No. 41062 (5-year Review): Rule R590-133. Variable Contracts  

  • DAR File No.: 41062
    Filed: 12/12/2016 03:50:11 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:

    Subsection 31A-2-201(3) authorizes the commissioner to implement the provisions of Title 31A and Subsection 31A-20-106(1)(b)(ii), which gives the commissioner authority to regulate the issuance and sale of variable contracts.

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

    Comments were received during the comment period for a proposed amendment to the rule (Filing No. 36633). These comments requested the removal of the words "or terminate" from the rule. The department disagreed with these comments because the words "or terminate" serve as a consumer protection by requiring that a producer be knowledgeable and licensed in variable contracts before recommending that it is no longer beneficial for the consumer and should be terminated and did not include the changes in the rule.

    Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

    The rule provides guidance to both insurers and producers selling variable life insurance products so that compliance with the insurance code can be maintained. The rule provides consumer protection by requiring disclosure and annual reports for the product purchased. 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:

    Effective:

    12/12/2016

    Authorized by:

    Steve Gooch, Information Specialist


Document Information

Effective Date:
12/12/2016
Publication Date:
01/01/2017
Type:
Five-Year Notices of Review and Statements of Continuation
Filed Date:
12/12/2016
Agencies:
Insurance, Administration
Authorized By:
Steve Gooch, Information Specialist
DAR File No.:
41062
Summary:
Comments were received during the comment period for a proposed amendment to the rule (Filing No. 36633). These comments requested the removal of the words "or terminate" from the rule. The department disagreed with these comments because the words "or terminate" serve as a consumer protection by requiring that a producer be knowledgeable and licensed in variable contracts before recommending that it is no longer beneficial for the consumer and should be terminated and did not include the ...
CodeNo:
R590-133
CodeName:
{44884|R590-133|R590-133. Variable Contracts}
Link Address:
InsuranceAdministrationRoom 3110 STATE OFFICE BLDG450 N MAIN STSALT LAKE CITY, UT 84114-1201
Link Way:

Steve Gooch, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at sgooch@utah.gov

AdditionalInfo:
More information about a Five-Year Notice of Review and Statement of Continuation is available online. The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at http://www.rules.utah.gov/publicat/bull-pdf/2017/b20170101.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version. For questions regarding the content or ...
Related Chapter/Rule NO.: (1)
R590-133. Variable Contracts.