DAR File No. 27115

Insurance, Administration

R590-191

Unfair Life Insurance Claims Settlement Practices Rule

FIVE-YEAR NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

DAR File No.: 27115
Filed: 04/26/2004, 04:31
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:

This rule is authorized specifically or generally by the following Utah Code references: 1) Subsection 31A-2-201(1) requires the commissioner to administer and enforce Title 31A; 2) Subsection 31A-2-201(3)(a) gives the commissioner authority to implement the provisions of Title 31A; 3) Section 31A-2-204 is a typo that should instead be Subsection 31A-2-202(4) requiring the insurer to respond to the Insurance Department in a timely manner. Subsection R590-191-4(13) gives direction regarding this requirement; 4) Subsection 31A-21-312(5) requires the commissioner to adopt rules dealing with notice and proof of loss time limitations under an insurance policy. Section R590-191-4 deals with this issue; 5) Section 31A-26-301 requires insurers to provide timely payment of claims. Section R590-191-4 addresses this issue; and 6) Subsection 31A-26-303(4) allows the commissioner to define by rule acts or general business practices that are unfair claim settlement practices after a finding of fact. Section R590-191-5 provides 13 acts or failure to perform required acts to be misleading, deceptive, unfairly discriminatory, or overreaching in the settlement of claims.

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 in the past five years regarding 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 is a critical guide for the insurance industry to use in claim settlement issues for life insurance policies. These standards govern the industry in claims issues which frequently occur; and 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:

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 jwhitby@utah.gov

Authorized by:

Jilene Whitby, Information Specialist

ADDITIONAL INFORMATION

PLEASE NOTE:

• Please see the DISCLAIMER regarding information available from state web pages.

For questions regarding the content or application of this rule, please contact Jilene Whitby at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at jwhitby@utah.gov

For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is NOT able to answer questions about the content or application of these administrative rules.