No. 32702: R590-230. Suitability in Annuity Transactions

DAR File No.: 32702
Filed: 06/02/2009, 03:10
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:

Subsection 31A-2-201(3)(a) gives the commissioner the authority to write rules to implement the provisions of Title 31A. Section 31A-22-425 authorizes the commissioner to write rules dealing with definitions, disclosures, exclusions, or limitations in regards to annuity contracts. The rule includes a definitions section; a section setting forth duties of the producers and insurer in an annuity contract transaction; and a section setting forth the commissioner's authority to order corrective actions and penalties when there is a violation of this law and rule.

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 not received 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:

It is important that this rule continue in force so producers and insurers may have standards and procedures to follow in setting forth financial recommendations to consumers considering the purchase of an annuity product. These recommendations are to take into account the insurance needs and financial objectives of the consumer at the time of the transaction.

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