31A-30-106.7. Surcharge for groups changing carriers.
(1) Except as provided in Subsection, if prior notice is given, a covered carrier may impose upon a small group that changes coverage to that carrier from another carrier a one-time surcharge of up to 25% of the annualized premium that the carrier could otherwise charge under Section. (1)(b) 31A-30-106.1 A covered carrier may not impose the surcharge described in Subsectionif: (1)(a) the change in carriers occurs on the anniversary of the plan year, as defined in Section; 31A-1-301 the previous coverage was terminated under Subsection; 31A-22-618.6(5) employees from an existing group form a new business; and the surcharge is not applied uniformly to all similarly situated small groups.
(2) A covered carrier may not impose the surcharge described in Subsectionif the offer to cover the group occurs at a time other than the anniversary of the plan year because: (1) the application for coverage is made prior to the anniversary date in accordance with the covered carrier's published policies; and the offer to cover the group is not issued until after the anniversary date; or the application for coverage is made prior to the anniversary date in accordance with the covered carrier's published policies; and additional underwriting or rating information requested by the covered carrier is not received until after the anniversary date.
(3) If a covered carrier chooses to apply a surcharge under Subsection, the application of the surcharge and the criteria for incurring or avoiding the surcharge shall be clearly stated in the: (1) written application materials provided to the applicant at the time of application; and written producer guidelines.
(4) The commissioner shall adopt rules in accordance with, to ensure compliance with this section. Title 63G, Chapter 3, Utah Administrative Rulemaking Act