No. 27684: R590-88. Prohibited Transactions Between Agents and Unauthorized Multiple Employer Trusts

DAR File No.: 27684
Filed: 01/31/2005, 02:53
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:

Section 31A-2-201 authorizes the commissioner to write rules to implement the Insurance code. Specific rulemaking authority comes from Section 31A-23-302, which is now Section 31A-23a-402. The renumbering of this part of the code was a result of H.B. 374, Insurance Producers Amendments, in the 2003 Legislature. The language in this section did not change. It authorizes the commissioner to set guidelines for determining what is unfair discrimination and allows the commissioner to make rules defining unfair marketing acts or practices. The rule identifies prohibited transactions of unauthorized multiple employer trusts and sets sanctions to be applied against those participating in these prohibited transactions. (DAR NOTE: H.B. 374 is found at UT L 2003 Ch 298, and was effective 05/05/2005.)

 

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 received no 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 protects consumers from agents or organizations selling insurance for unauthorized multiple employer trusts. This insurance is not backed by a licensed insurer. The rule also provides sanctions against producers transacting this type of business. 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