No. 42365 (5-year Review): Rule R590-155. Utah Life and Health Insurance Guaranty Association Summary Document

DAR File No.: 42365
Filed: 12/08/2017 01:24:03 PM

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Subsection 31A-2-201(3)(a) authorizes the Insurance Commissioner to make rules to implement the provisions of the Utah Insurance Code, Title 31A. Section 31A-28-119 provides guidelines for the Utah Life and Health Insurance Guaranty Association (Guaranty Association) summary and disclaimer document. The purpose of this rule is to specify the form and content of the summary and disclaimer document for insurers to disclose to policy and contract holders the intent that contractual guarantees are not covered or have limited coverage by the Guaranty Association.

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

The Department of Insurance has received no written comments regarding this rule during the past five years.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

Section 31A-28-119 prohibits agents from telling prospective insureds that the policy they are buying is covered by the Guaranty Association in the event that the insurance company becomes insolvent. This assurance has been used deceptively to sell policies when the insurer was financially insolvent or unsound. Therefore, this rule should be continued.

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Insurance
Administration
Room 3110 STATE OFFICE BLDG
450 N MAIN ST
SALT LAKE CITY, UT 84114-1201

Direct questions regarding this rule to:

• Steve Gooch at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at [e-mail]

Effective:

12/08/2017

Authorized by:

Steve Gooch, Information Specialist

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