No. 31132: R590-94. Rule Permitting Smoker/Nonsmoker Mortality Tables for Use in Determining Minimum Reserve Liabilities and Nonforfeiture Benefits

DAR File No.: 31132
Filed: 04/09/2008, 11:47
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:

The statutory authority upon which this rule is promulgated are Sections 31A-2-201 and 31A-22-408. Section 31A-2-201 authorizes the commissioner to write rules to implement the provisions of Title 31A. Section 31A-22-408 allows the commissioner to adopt rules interpreting, describing, and clarifying the application of this nonforfeiture law to any form of life insurance for which the interpretation, description, or clarification is deemed necessary by the commissioner, including but not limited to, unusual and new forms of life insurance.

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:

The rule permits the use of smoker/nonsmoker mortality tables as a reserve standard allowing for a fairer pricing of life insurance products. The rule helps insurers offer lower rates to nonsmokers. 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