Insurance, Administration

Rule R590-212

Requirements for Interest Bearing Accounts Used by Title Insurance Agencies for Trust Fund Deposits

Five-Year Notice of Review and Statement of Continuation

DAR File No.: 35480
Filed: 11/23/2011 12:30:55 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 gives the commissioner the authority to write rules to implement the provisions of Title 31A. The rule implements the provisions of Subsection 31A-23a-409(2)(b) dealing with the type of depository account title agencies are to use to deposit trust funds. Section R590-212-5 provides requirements for these types of accounts. Subsection 31A-23a-409(4) allows that these trust accounts may be interest bearing.

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 not received any written comment regarding this rule within 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:

Without this rule agents could co-mingle money collected from insureds with their agent and personal funds, which would make it vulnerable to be used for other uses than that for which it was intended. 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

Effective:

11/23/2011