DAR File No. 32533

Insurance, Administration

R590-191

Unfair Life Insurance Claims Settlement Practices Rule

FIVE-YEAR NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

DAR File No.: 32533
Filed: 04/15/2009, 09:19
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(1) authorizes the commissioner to enforce Title 31A. Subsection 31A-2-201(3)(a) authorizes the commissioner to write rules to implement the provisions of Title 31A. Subsection 31A-26-301(1) authorizes the commissioner to write rules regarding the timely payment of claims. Section 31A-26-301 and Subsection 31A-21-312(5) authorize rules regarding notice of loss and proof of loss time limitations under insurance policies. Subsection 31A-26-303(4) provide for rules defining unfair claims settlement practices or acts. Subsection 31A-2-202(4) authorizes rules regarding timely response by licensees to written inquiries from the commissioner. The rule itself sets forth minimum standards for the investigation and disposition of life insurance claims arising under policies or certificates issued to residents of Utah. The various provisions of this rule are intended to define procedures and practices which constitute unfair claim settlement practices.

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

No written comments regarding this rule have been received since the last five-year review of 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 in the settlement of claims issues for life insurance policies. These standards govern the industry in claims issues that occur frequently. 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:

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]

Authorized by:

Jilene Whitby, Information Specialist