No. 38034 (5-year Review): Rule R590-160. Administrative Proceedings

DAR File No.: 38034
Filed: 09/30/2013 03:21:33 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:

The authority for this rule comes from the following subsections of the code: Subsection 31A-2-201(3)(a) gives the commissioner the authority to write rules to implement the provisions of the insurance code; Subsection 63G-4-102(6) gives the department the authority to enact rules affecting or governing adjudicative proceedings, the purpose of this rule; Subsection 63G-4-203(1) gives the department the right to designate one or more categories of adjudicative proceedings as informal and to prescribe procedures for these informal hearings; and Section R590-160-4 of this rule designates the categories for informal hearings and Sections R590-160-7 and R590-160-8 set the rules for such proceedings and their review.

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 received one written comment from a domestic insurer regarding a change to Subsection R590-160-6(7) making it possible for discovery to be had at the agreement of both parties or pursuant to an order of the presiding officer. The insurer felt that discovery should only be made at the agreement of both parties in the proceeding.

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 important to the department and those we regulate. It sets fair and equitable standards governing administrative procedures. This helps all involved in the process to know what is expected of them and what to expect of the process. Any discovery ordered by the presiding officer must be reasonable and not an abuse of discretion, whether the parties agree or not. 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:

Todd Kiser, Commissioner

Effective:

09/30/2013

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