Insurance, Administration

Rule R590-88

Prohibited Transactions Between Agents and Unauthorized Multiple Employer Trusts

Five-Year Notice of Review and Statement of Continuation

DAR File No.: 33318
Filed: 01/13/2010 03:18:10 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:

Section 31A-2-201 authorizes the commissioner to write rules to implement the code. Specific rulemaking authority comes from Section 31A-23a-402. It authorizes the commissioner to set guidelines for determining what is unfair discrimination and allows the commissioner to make rules defining unfair marketing acts or practices. The rule identifies prohibited transactions of unauthorized multiple employer trusts and sets sanctions to be applied against those participating in these prohibited transactions.

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:

This rule protects consumers from agents and organizations selling insurance for unauthorized multiple employer trust. This insurance is not backed by a licensed insurer. The rule also provides sanctions against producers transacting this type of business. 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

Effective:

01/13/2010

Authorized by:

Jilene Whitby, Information Specialist