Insurance, Administration

Rule R590-108

Interest Rate During Grace Period or Upon Reinstatement of Policy

Five-Year Notice of Review and Statement of Continuation

DAR File No.: 36032
Filed: 04/04/2012 03:39:57 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) allows the commissioner to adopt rules to implement the provisions of the Utah Insurance Code. Specifically, Section 31A-22-402 and Subsection 31A-22-407(1) authorize the commissioner to establish by rule the rate of interest an insurer may charge in a life insurance or annuity contract upon premiums due or overdue during a grace period or upon subsequent reinstatement of the contract.

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.

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

This rule should be continued to provide the maximum interest rate that an insurer can charge on premiums due under a life insurance or annuity contract during a grace period or upon subsequent reinstatement of the contract. It protects consumer against their insurer charging them an unreasonably high interest rate.

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:

04/04/2012