Insurance, Administration

Rule R590-117

Valuation of Liabilities

Five-Year Notice of Review and Statement of Continuation

DAR File No.: 35851
Filed: 02/06/2012 08:50:57 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(3) authorizes rules to implement the Insurance Code. Section 31A-17-402 requires the commissioner to adopt a rule specifying which liabilities shall be reported by insurers and the methods for evaluating these assets. Section R590-117-4 of the rule states the liabilities that are to be listed on the insurer's financial statement and also the methods by which these liabilities are to be valued.

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 over 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 standardizes those liabilities that should be listed on an insurer's annual statement, as well as how they are to be valued. It is important that the liabilities of all licensed insurers in Utah be evaluated by the same standard for fairness. Knowing the true value of an insurer's liabilities is one way the department has in determining the insurer's financial health. 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