Insurance, Administration

Rule R590-67

Proxy Solicitations and Consent and Authorization of Stockholders of Domestic Stock Insurers

Five-Year Notice of Review and Statement of Continuation

DAR File No.: 32975
Filed: 09/14/2009 04:50:14 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:

This rule receives its authority from Subsection 31A-2-201(3), which authorizes the commissioner to make rules to implement the provisions of Title 31A of the Utah Code, and in this case the implementation of Chapter 5, Domestic Stock and Mutual Insurance Corporations.

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 in 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:

Many insurance companies in Utah are stock insurance companies. Stockholders in an insurance company have various rights, which may be assigned to another person via a proxy statement. This rule provides guidance as to the form and content of proxy solicitation made to insurance stockholders. Without this rule, there may be instances where individuals unfairly or covertly obtain a proxy to act on behalf of a stockholder without the stockholder's full or complete knowledge of what is happening. 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 [email protected]

Effective:

09/14/2009

Authorized by:

Jilene Whitby, Information Specialist