No. 36417 (5-year Review): Rule R590-173. Credit for Reinsurance

DAR File No.: 36417
Filed: 06/27/2012 03:31:07 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:

Section 31A-2-201 provides the commissioner with the authority to write rules to implement the provisions of the Insurance Code, Title 31A. In this case, the rule sets forth requirements the commissioner feels are necessary to carry on the provisions of Section 31A-17-404, "Credit against reserves for reinsurance."

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

There have been no 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:

Credit for reinsurance has relevance for many Utah insurance companies, and may be a significant factor in establishing their solvency position. The rule lays out the detailed requirements in this important area. It provides protection to the ceding insurers within the State of Utah and to the individuals insured. 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

Effective:

06/27/2012

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