File No. 35554
This notice was published in the January 15, 2012, issue (Vol. 2012, No. 2) of the Utah State Bulletin.
Insurance, Administration
Rule R590-103
Security Deposits
Five-Year Notice of Review and Statement of Continuation
DAR File No.: 35554
Filed: 12/19/2011 03:39:35 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:
Subsection 31A-2-201(3) authorizes the commissioner to write rules to implement Title 31A of the Utah Code. Subsection 31A-2-206(17) authorizes the commissioner to write rules to implement the provisions of this section dealing with the receipt and handling of deposits and type of securities that may be qualified in the deposits.
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 have been received by the department in the past five years regarding 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 requires insurance companies to deposit a certain amount of money into an account to take care of claims in case they go out of business. The deposits help pay for claims, which are also covered, in part, by a guaranty association, which most companies are associated with. However, the most important use of these deposits is to help cover administrative costs of a liquidation. The rule provides guidelines that help secure that the deposits are federally secured and the financial institution is holding the required amount. Without these safeguards, it would be very difficult to be sure that the funds are actually deposited, as required by the law. 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:
InsuranceAdministration
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 jwhitby@utah.gov
Authorized by:
Jilene Whitby, Information Specialist
Effective:
12/19/2011
Additional Information
The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at https://rules.utah.gov/publicat/bull-pdf/2012/b20120115.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version.
For questions regarding the content or application of this rule, please contact 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.