DAR File No. 38797

Insurance, Administration

Rule R590-229

Annuity Disclosure

Five-Year Notice of Review and Statement of Continuation

DAR File No.: 38797
Filed: 08/20/2014 11:41:20 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:

This rule receives its authority from Subsection 31A-2-201(3)(a), which authorizes the commissioner to write rules to implement the provisions of the insurance code, Title 31A. More specific authority comes from Section 31A-22-425, which authorizes the commissioner to make rules to establish standards for annuity buyer's guides and disclosures. The rule provides standards for the disclosure of minimum information about annuity contracts to protect consumers by specifying the minimum information to be disclosed and the method for disclosing it in connection with the sale of an annuity contract.

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

During the rulemaking process for DAR No. 38090, comments were received to eliminate duplication and to clarify that the buyer's guide is optional for variable annuity products. During the second comment period, another comment was received requesting that the date for enforcement be extended to give insurers more time to comply with requirements of the rule.

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

The department needs to continue this rule in effect in order to provide standards for the disclosure of information regarding annuity contracts to protect consumers by specifying the minimum information to be disclosed in connection with the sale of annuity contracts. The rule also fosters consumer education by ensuring that consumers understand certain basic features of annuity contracts.

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 [email protected]

Effective:

08/20/2014

Authorized by:

Jilene Whitby, Information Specialist