No. 28027: R590-171. Surplus Lines Procedures Rule

DAR File No.: 28027
Filed: 06/14/2005, 04:58
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:

Section 31A-2-201 gives the commissioner the authority to promulgate rules to implement the provisions of Title 31A. Subsection 31A-15-103(3)gives the commissioner the authority to write a rule to prescribe a remuneration for insurance placed by a surplus lines producer and also advertise surplus lines services. This is done in Section R590-171-7 of the rule. Subsection 31A-15-103(11) gives the commissioner the right to establish an organization to examine surplus lines policies to be sure they comply with the requirements of the law and the payment of taxes. This is done in Section R590-171-4 of the rule. Section 31A-15-111 gives the commissioner the authority to require by rule that surplus lines brokers be members of an advisory organized under this section of the law. This is done in Subsection R590-171-4(B) of the 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 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:

The rule was written to support Sections 31A-15-103 and 31A-15-111. It further defines the authority of the Surplus Lines Association, outlines the conditions for placing insurance with surplus lines insurers, and provides examination requirements for the Surplus Lines Association. The rule also provides a measure of accountability for the Surplus Lines Association and how this line of insurance can be sold in Utah. 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:

Jilene Whitby, Information Specialist