No. 32531: R590-93. Replacement of Life Insurance and Annuities

DAR File No.: 32531
Filed: 04/15/2009, 09:16
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 provisions of Title 31A. Subsection 31A-23a-402(8) allows the commissioner to define methods of competition and acts and practices found to be unfair or deceptive. This rule protects the interests of life insurance and annuity purchasers by establishing minimum standards of conduct to be observed in replacement or financed purchase transactions.

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

During a comment period held in 2005, the department received four written comments. All were of a nonsubstantive nature and were corrected in two subsequent nonsubstantive rule filings.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

This rule provides consumer protection and sets minimum standards to be followed by producers and insurers during the replacement of life insurance policies and annuity contracts. It informs the consumer who is contemplating replacing existing coverage, to think about the benefits that the old policy may provide over those in a new policy. 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