No. 30680: R590-141. Individual and Agency License Lapse and Reinstatement

DAR File No.: 30680
Filed: 11/06/2007, 12:30
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:

Subsections 31A-23-216(3) and now 31A-23a-111(10), authorize the commissioner to prescribe by rule, license renewal and reinstatement procedures for agents, consultants, and brokers. This code reference was changed in 2003 by H.B. 374, which changed the numbering of the chapter and sections within. Subsection 31A-26-213(3) authorizes the commissioner to prescribe by rule, license renewal and reinstatement procedures for adjusters. Section R590-141-3 of the rule provides renewal instructions in Subsection R590-141-3(A) and reinstatement procedures in Subsection R590-141-3(B). This rule is in the process of being changed and will be finalized sometime within the first half of 2008. (DAR NOTE: H.B. 374 (2003) is found at Chapter 298, Laws of Utah 2003, and was effective 05/05/2003.)

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

There have been no written comments received regarding this rule within the last 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 establishes procedures for the renewal of insurance licenses, as well as procedures and penalties for dealing with licensees who do not renew their insurance licenses as required. Without the rule, it is anticipated that more licensees would allow their licenses to lapse. Agents would not know the process to reinstate their licenses and they would have little incentive to do so if there were no penalties. 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