No. 41443 (5-year Review): Rule R590-108. Interest Rate During Grace Period or Upon Reinstatement of Policy

DAR File No.: 41443
Filed: 04/04/2017 02:41:32 PM

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:

Subsection 31A-2-201(3) allows the commissioner to adopt rules to implement the provisions of the Utah Insurance Code. Section 31A-22-402 and Subsection 31A-22-407(1) authorize the commissioner to establish by rule the rate of interest an insurer may charge in a life insurance or annuity contract upon premiums due or overdue during a grace period or upon subsequent reinstatement of the contract.

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 during 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 provides limits for the maximum interest rate that an insurer can charge on premiums due under a life insurance or annuity contract during a grace period or upon subsequent reinstatement of the contract. It protects consumers against their insurer charging them an unreasonably high interest rate. Therefore, this rule should be continued.

The full text of this rule may be inspected, during regular business hours, at the Office 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:

• Steve Gooch 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:

04/04/2017

Authorized by:

Steve Gooch, Information Specialist

---