No. 30453: R590-96. Rule to Recognize New Annuity Mortality Tables for Use in Determining Reserve Liabilities for Annuities.

DAR File No.: 30453
Filed: 09/14/2007, 03:22
Received by: NL

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:

Section 31A-2-201 gives the commissioner authority to make rules to implement the provisions of Title 31A. Section 31A-17-505 gives the commissioner specific authority to make rules to approve mortality tables used in determining the minimum standard of valuation for annuity contracts. The rule approves specific mortality tables for individual group annuity or pure endowment contracts.

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 has not received any comments regarding this rule in 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:

This rule is necessary because it sets up reserving standards. In the absence of the rule, an insurer would be allowed to hold lower, inadequate reserves for annuities issued after 04/02/1980, which could result in the insolvency of the insurance company. Therefore, this rule should be continued.

The full text of this rule may be inspected, during regular business hours, at the Division 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:

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

Authorized by:

Jilene Whitby, Information Specialist