No. 37599 (5-year Review): Rule R590-223. Rule to Recognize the 2001 CSO Mortality Table for Use in Determining Minimum Reserve Liabilities and Nonforfeiture Benefits

DAR File No.: 37599
Filed: 05/07/2013 10:04:56 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:

Subsection 31A-2-201(3) authorizes the commissioner to make rules to implement the provisions of the insurance code. Subsection 31A-17-402(1) authorizes the commissioner to adopt rules specifying the liabilities to be reported by an insurer in an annual statement, as well as the methods of valuing the liabilities. Subsection 31A-22-408(11) authorizes the commissioner to adopt rules interpreting, describing, and clarifying the application of the nonforfeiture law. The rule recognizes, permits and prescribes the use of the 2001 Commissioners Standard Ordinary (CSO) Mortality Table in accordance with Sections 31A-17-504 and 31A-22-408, and Section R590-198-5.

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 a part of statutory accounting requirements. It prescribes a mortality table to be used for the valuation and nonforfeiture for life insurance. It establishes reserving standards consistent with that recommended by the National Association of Insurance Commissioner's (NAIC) Accounting Practices and Procedures Manual. Repeal of the rule would adversely impact insurance companies, as well as consumers. If the rule is withdrawn it will make life insurance less affordable. 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:

Todd Kiser, Commissioner

Effective:

05/07/2013

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