No. 38417 (5-year Review): Rule R590-166. Home Protection Service Contract Rule

DAR File No.: 38417
Filed: 04/07/2014 02:20:35 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 adopt rules to implement provisions of the insurance code, Title 31A. The purpose of the rule is to establish certain exemptions from the requirements of Chapter 6a, Service 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:

Within the past five years, the department has not received any written request to change this rule.

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

This rule was intended to be a temporary fix to a problem facing home warranty companies having problems finding reimbursement insurance. The rule was intended to be a stop-gap measure to allow them to provide "alternative security" for the warranties they issue until the reimbursement insurance market could be developed. To date it still has not been developed making it necessary to keep this rule in effect. 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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