Insurance, Administration

Rule R590-116

Valuation of Assets

Five-Year Notice of Review and Statement of Continuation

DAR File No.: 35850
Filed: 02/06/2012 08:49:22 AM

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 authorizes the commissioner to write rules to implement the provisions of the insurance code. Subsection 31A-17-401(3)(a)(ii) allows the commissioner to write a rule to determine the present value of future income derived from securities owned by an insurer. Subsection 31A-17-401(4) requires the commissioner to adopt rules to implement the provisions of Section 31A-17-401, Valuation and Reserves. Section R590-116-4 of the rule sets standards for the valuation of an insurer's assets and securities.

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 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 sets a standard for all insurers doing business in Utah to use in determining the value of their assets. The rule helps the department to assess the financial health of each licensed insurer in their effort to protect the financial security of their insureds. 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:

02/06/2012