No. 29407: R590-181. Yankee Bond Rule

DAR File No.: 29407
Filed: 01/11/2007, 04:28
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-18-105(13) permits the commissioner to specify an investment, besides those listed in this section, that insurers can invest in. The rule allows them to invest in Yankee Bonds.

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 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:

Due to the fact that some insurers are investing in Yankee Bonds, this rule is needed to provide guidelines making sure the quality of the bond is high and does not take up a major share of the investment portfolio. Without the rule, insurers would not be able to invest in them at all. 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