No. 28260: R590-130. Rules Governing Advertisements of Insurance

DAR File No.: 28260
Filed: 09/29/2005, 04:47
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:

Subsection 31A-2-201(3) allows the commissioner to make rules to implement the provisions of the insurance code. Section 31A-23-302, which has been renumbered to Section 31A-23a-402, authorizes the commissioner to define unfair or deceptive acts or practices in the business of insurance. This rule sets advertising guidelines to assure clear and truthful disclosure of the benefits, limitations, and exclusions of policies sold as insurance. The rule limits the form and content of advertisements; limits the use of deceptive word, phrases and illustrations; provides guidelines for the use of exceptions, reductions and limitations used in rules; requires disclosure of policy provisions dealing with renewals, cancellations and terminations; requires disclosure of the identity of the insurer; and procedures for enforcement by the Insurance Department in regards to this rule.

 

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 written comments for or against 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 still needed because licensees are still using misleading and deceptive information and advertising in the sale of insurance. 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