No. 38414 (5-year Review): Rule R590-98. Unfair Practice in Payment of Life Insurance and Annuity Policy Values

DAR File No.: 38414
Filed: 04/07/2014 10:05:19 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 allows 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 requires prompt response by a life insurance and annuity company to a policyholder's request for policy values. It limits the exercise of the statutory deferral option to situations in which the financial stability of the insurer is at risk.

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:

This rule is necessary to protect policyholders who request payment of life and annuity policy values. Therefore, this rule should be continued. Some insurers think they can delay payment up to six months. However, such a delay must first be approved by the commissioner.

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]

Effective:

04/07/2014

Authorized by:

Todd Kiser, Commissioner

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