No. 32529: R590-166. Home Protection Service Contract Rule

DAR File No.: 32529
Filed: 04/15/2009, 09:09
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 authority for this rule comes from Subsection 31A-2-201(3) authorizing the commissioner to write rules to implement Title 31A. Also, Subsections 31A-6a-110(1) and (2) authorize the commissioner to write rules to implement the provisions in Chapter 6a, and provide exemptions or substitute requirements to protect the public regarding home service contracts. This rule establishes certain exemptions from the requirements in Title 31A, Chapter 6a, relating to home protection companies.

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 in the past five years regarding this rule.

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 intended to be a temporary fix to a problem facing home warranty companies having problems finding reimbursement insurance. The rule was intended to be a stop-gap measure to allow them to provide "alternative security" for the warranties they issue until the reimbursement insurance market could be developed. At this point, the department has received no indication that reimbursement insurance is easier to find and the rule is still necessary. 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