No. 27122: R590-98. Unfair Practice in Payment of Life Insurance and Annuity Policy Values

DAR File No.: 27122
Filed: 04/28/2004, 12:45
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 sections authorizing this rule are: Section 31A-2-201 that authorizes the commissioner to make rules to implement the provisions of Title 31A; and Section 31A-23-302, which has legislatively been changed to 31A-23a-402 and will be corrected in this rule later this year, authorizes the commissioner to define methods of competition and acts and practices found by him to be unfair or deceptive. Section R590-98-5 sets forth two acts that the commissioner deems unfair or deceptive and Section R590-98-6 sets forth requirements to be followed by insurers and producers to avoid these unfair or deceptive acts.

 

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 Insurance Department has not received 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 policy holders requesting payment of life and annuity policy values. Otherwise some insurance companies think they can delay payment up to six months. Such a delay can only be done after getting approval for the delay from the insurance 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]

 

Authorized by:

Jilene Whitby, Information Specialist