Insurance, Administration

Rule R590-133

Variable Contracts

Five-Year Notice of Review and Statement of Continuation

DAR File No.: 35569
Filed: 12/22/2011 02:38:10 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:

Subsection 31A-2-201(3) authorizes the commissioner to implement the provisions of Title 31A and Subsection 31A-20-106(1)(b)(ii) gives the commissioner authority to regulate the issuance and sale of variable contracts.

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

Written comments were received during the last comment period for the filing under DAR No. 34175. Two concerns were expressed but were soon withdrawn once the person received more background.

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

The rule provides guidance to both insurers and producers selling variable life insurance products so that compliance with the Insurance Code can be maintained. The rule provides consumer protection by requiring disclosure and annual reports for the product purchased. 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:

12/22/2011