31A-21-203 - Authorized clauses for insurance forms. - Utah Statutes

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31A-21-203. Authorized clauses for insurance forms.
(1) The commissioner may not adopt mandatory uniform clauses. However, thecommissioner may adopt authorized clauses by rule upon a finding that:
(a) price or coverage competition is ineffective because diversity in language or contentmakes comparison difficult;
(b) provision of language, content, or form of specific clauses is necessary to providecertainty of meaning to those clauses;
(c) regulation of policy forms would be more effective or litigation would be substantiallyreduced if there were increased standardization of certain clauses; or
(d) reasonable minimum standards of insurance protection are needed for policies to servea useful purpose.
(2) Any rule creating an authorized clause may prescribe that to be treated as anauthorized clause there shall be verbatim or substantial adherence to prescribed language, thatcertain standards or criteria shall be met, or that certain drafting principles shall be followed. Therules may also permit liberalization of prescribed language. A rule may prescribe verbatimadherence only after the commissioner has made a finding that substantial adherence to theprescribed language is not sufficient and that liberalization of prescribed language will frustratethe purposes of the prescription. If an insurer uses authorized clauses as part of filed forms, thecommissioner may only disapprove those clauses under Section 31A-21-201 upon a finding thatimproper combination of clauses makes them violate the criteria of Section 31A-21-201.

Enacted by Chapter 242, 1985 General Session

State Codes and Statutes

Statutes > Utah > Title-31a > Chapter-21 > 31a-21-203

31A-21-203. Authorized clauses for insurance forms.
(1) The commissioner may not adopt mandatory uniform clauses. However, thecommissioner may adopt authorized clauses by rule upon a finding that:
(a) price or coverage competition is ineffective because diversity in language or contentmakes comparison difficult;
(b) provision of language, content, or form of specific clauses is necessary to providecertainty of meaning to those clauses;
(c) regulation of policy forms would be more effective or litigation would be substantiallyreduced if there were increased standardization of certain clauses; or
(d) reasonable minimum standards of insurance protection are needed for policies to servea useful purpose.
(2) Any rule creating an authorized clause may prescribe that to be treated as anauthorized clause there shall be verbatim or substantial adherence to prescribed language, thatcertain standards or criteria shall be met, or that certain drafting principles shall be followed. Therules may also permit liberalization of prescribed language. A rule may prescribe verbatimadherence only after the commissioner has made a finding that substantial adherence to theprescribed language is not sufficient and that liberalization of prescribed language will frustratethe purposes of the prescription. If an insurer uses authorized clauses as part of filed forms, thecommissioner may only disapprove those clauses under Section 31A-21-201 upon a finding thatimproper combination of clauses makes them violate the criteria of Section 31A-21-201.

Enacted by Chapter 242, 1985 General Session

State Codes and Statutes

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State Codes and Statutes

Statutes > Utah > Title-31a > Chapter-21 > 31a-21-203

31A-21-203. Authorized clauses for insurance forms.
(1) The commissioner may not adopt mandatory uniform clauses. However, thecommissioner may adopt authorized clauses by rule upon a finding that:
(a) price or coverage competition is ineffective because diversity in language or contentmakes comparison difficult;
(b) provision of language, content, or form of specific clauses is necessary to providecertainty of meaning to those clauses;
(c) regulation of policy forms would be more effective or litigation would be substantiallyreduced if there were increased standardization of certain clauses; or
(d) reasonable minimum standards of insurance protection are needed for policies to servea useful purpose.
(2) Any rule creating an authorized clause may prescribe that to be treated as anauthorized clause there shall be verbatim or substantial adherence to prescribed language, thatcertain standards or criteria shall be met, or that certain drafting principles shall be followed. Therules may also permit liberalization of prescribed language. A rule may prescribe verbatimadherence only after the commissioner has made a finding that substantial adherence to theprescribed language is not sufficient and that liberalization of prescribed language will frustratethe purposes of the prescription. If an insurer uses authorized clauses as part of filed forms, thecommissioner may only disapprove those clauses under Section 31A-21-201 upon a finding thatimproper combination of clauses makes them violate the criteria of Section 31A-21-201.

Enacted by Chapter 242, 1985 General Session