No. 33290 (5-year Review): Rule R590-197. Treatment of Guaranty Association Assessments as Qualified Assets

DAR File No.: 33290
Filed: 12/24/2009 10:35:24 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:

This rule is promulgated by the insurance commissioner pursuant to the general authority to adopt a rule granted under Subsection 31A-2-201(3). Specific rulemaking authority in Subsection 31A-17-201(2)(j) allows the department to authorize other assets than those specified in the insurance code as qualified assets in the determination of an insurers financial condition. Pursuant to Subsection 31A-28-109(8), the insurance commissioner is authorized to approve the amounts and time periods for which contributions are treated as assets.

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 received no written comments regarding this rule within 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:

Insurers are still subject to guarantee fund assessments and states are still allowing premium tax offsets to insurers for payment of guarantee fund assessments. As long as insurers are afforded tax offsets or other benefits for payment of guarantee fund assessments, it is appropriate to allow them as an asset, which is what this rule does. 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
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]

Effective:

12/24/2009

Authorized by:

Jilene Whitby, Information Specialist

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