No. 41731 (5-year Review): Rule R590-122. Permissible Arbitration Provisions

DAR File No.: 41731
Filed: 06/05/2017 11:21:10 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:

Subsection 31A-2-201(3) authorizes the commissioner to make rules to implement the provisions of the Insurance Code, Title 31A. As a result of this authority, this rule defines the term "permissible arbitration" as set forth in Subsections 31A-21-313(3)(c) and 31A-21-314(2).

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 during 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 be continued because it provides guidance to insurance companies about the type of arbitration provisions they may put into their policies. These provisions provide steps to be taken by insureds who disagree with the settlement of their claims and would like to involve a third party in the settlement process. The rule gives the department the authority to make sure these provisions are fair and nondiscriminatory.

The full text of this rule may be inspected, during regular business hours, at the Office 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:

• Steve Gooch 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:

06/05/2017

Authorized by:

Steve Gooch, Information Specialist

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