No. 37909 (5-year Review): Rule R590-251. Preneed Life Insurance Minimum Standards for Determining Reserve Liabilities and Nonforfeiture Values Rule

DAR File No.: 37909
Filed: 08/09/2013 10:33:56 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 write rules to implement the provisions of Title 31A. Subsection 31A-17-402(1) allows the commissioner to write rules to specify the liabilities required to be reported by an insurer in a financial statement provided to the department, as well as the method for valuing the liabilities listed in the statement. Subsection 31A-22-408(11) gives the commissioner the authority to adopt rules interpreting, describing, and clarifying the application of the nonforfeiture law to a life insurance form that the commissioner considers necessary. The rule establishes minimum mortality standards for reserves and nonforfeiture reserves.

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 Department will continue this rule in effect because it helps protect the public interest on preneed policies by: increasing reserves to an appropriate level; promoting a responsible competitive environment by ensuring all insurers are acting responsibly; creating equitable value for consumers by increasing cash values; and promoting the reliability, solvency and financial solidity of insurance institutions by increasing the reserve requirement on preneed policies.

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:

08/09/2013

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