No. 38413 (5-year Review): Rule R590-93. Replacement of Life Insurance and Annuities

DAR File No.: 38413
Filed: 04/07/2014 09:52:46 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:

Section 31A-2-201 authorizes the commissioner to write rules to implement the provisions of Title 31A. Subsection 31A-23a-402(8) allows the commissioner to define methods of competition and acts and practices found to be unfair or deceptive. Section 31A-22-429 gives the commissioner authority to require statements regarding existing insurance and to adopt the notice regarding replacement.

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

This rule went through the rulemaking process twice in the past five years, DAR No. 37515 and No. 34026. No comments were received requesting or in regard to the the first set of changes made under DAR No. 37515. Members of the life insurance industry requested a change to the trigger to complete the replacement notice. Changes were proposed to the rule, two comments were received during the first comment period, additional changes were proposed, a second comment period provided. No written comments were received at that time or since.

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 and sets minimum standards to be followed by producers and insurers during the replacement of life insurance policies and annuity contracts. It informs the consumer, who is contemplating replacing existing coverage, to think about the benefits that the old policy may provide over those in a new policy. 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]

Effective:

04/07/2014

Authorized by:

Todd Kiser, Commissioner

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