No. 28587: R590-177. Life Insurance Illustrations Rule

DAR File No.: 28587
Filed: 03/31/2006, 11:14
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:

The code references to 31a-23 in Sections R590-177-1 and R590-177-12 are being updated in a nonsubstantive rule change at this same time. The text of the section will not change. Subsection 31A-23-302(8) authorizes the commissioner to define by rule unfair methods of competition. This rule prescribes standards to be followed when illustrations are used and specifies the disclosures that are required in connection with illustrations. (DAR NOTE: The nonsubstantive change to Rule R590-177 is under DAR No. 28588 is available from the Division of Administrative Rules.)

 

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 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:

This rule provides consumer protection by stating the requirements and restrictions on the values that can be shown in the projections contained in the illustrations. Unregulated illustrations have been found to provide values that are unrealistic and could entice a consumer into purchasing a product that will never perform as the company has illustrated. Therefore, this rules 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