No. 37176 (5-year Review): Rule R590-218. Permitted Language for Reservation of Discretion Clauses

DAR File No.: 37176
Filed: 01/09/2013 08:39:52 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 commissioner the authority to write rules to enforce the provisions of Title 31A. Subsections 31A-21-201(3) and 31A-21-314(2) authorize the department to regulate the use of "reservation of discretion clauses" in policy forms filed with the department. The rule prohibits their use in forms not associated with ERISA employee benefit plans and prescribes language to be used in reservation of discretion clauses used in ERISA employee benefit plans.

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 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:

This rule creates a safe harbor for insurance companies that provide insurance to ERISA employee benefit plans sponsored by employers, allowing insurers to know what language in insurance forms is acceptable to the department. 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:

Neal Gooch, Commissioner

Effective:

01/09/2013

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