No. 43738 (5-year Review): Rule R590-230. Suitability in Annuity Transactions

DAR File No.: 43738
Filed: 05/23/2019 10:02:37 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)(a) authorizes the Insurance Commissioner to write rules to implement the provisions of the Insurance Code, Title 31A. Section 31A-22-425 authorizes the Insurance Commissioner to write rules dealing with definitions, disclosures, exclusions, or limitations in annuity contracts. This rule includes a definitions section, a section that sets forth the duties of producers and insurers in an annuity contract transaction, and a section that sets forth the Insurance Commissioner's authority to order corrective actions and penalties when there is a violation of this law and rule.

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 of Insurance 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:

It is critical that this rule continue to be in force so producers and insurers may have standards and procedures to follow when making financial recommendations to consumers who are considering the purchase of an annuity product. These recommendations require that the insurance needs and financial objectives of the consumer must be taken into account at the time of the transaction. 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:

05/23/2019

Authorized by:

Steve Gooch, Information Specialist

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