No. 35641 (5-year Review): Rule R590-95. Rule to Permit the Same Minimum Nonforfeiture Standards for Men and Women Insureds Under the 1980 CSO and 1980 CET Mortality Tables  

  • DAR File No.: 35641
    Filed: 01/10/2012 09:51:48 AM

    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 department general rulemaking authority. It allows the department to write rules to implement the provisions of Title 31A. Section 31A-22-408 allows a rule to be written to set the cash surrender values and paid-up nonforfeiture benefits provided by a plan and computed by a method consistent with the principles of the Standard Nonforfeiture Law for Life Insurance. The rule provides the same cash surrender values and paid-up nonforfeiture benefits to both men and women.

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

    No written comments regarding this rule have been received by the department within 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 was adopted because of the U.S. Supreme Court case, Arizona Governing Committee v. Norris in 1983. The court ruled that the use of gender-based actuarial tables in an annuity for an employer's pension plan violates the federal Civil Rights Act of 1964. As a result the National Association of Insurance Commissioners (NAIC) created a regulation that recognizes gender-blended mortality tables nonforfeiture standards for men and women. Most states, including Utah, adopted the rule. It allows insurance companies issuing annuity contracts to employer-clients to comply with the Norris decision. 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:

    Authorized by:

    Jilene Whitby, Information Specialist

    Effective:

    01/10/2012


Document Information

Effective Date:
1/10/2012
Publication Date:
02/01/2012
Filed Date:
01/10/2012
Agencies:
Insurance,Administration
Authorized By:
Jilene Whitby, Information Specialist
DAR File No.:
35641
Related Chapter/Rule NO.: (1)
R590-95. Rule to Permit the Same Minimum Nonforfeiture Standards for Men and Women Insureds Under the 1980 CSO and 1980 CET Mortality Tables.