Insurance, Administration

Rule R590-241

Rule to Recognize the Preferred Mortality Tables for Use in Determining Minimum Reserve Liabilities

Five-Year Notice of Review and Statement of Continuation

DAR File No.: 36500
Filed: 07/16/2012 03:39:28 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 the provisions of the insurance code, Title 31A. Subsection 31A-17-402(1) requires the commissioner to write rules to specify the liabilities required to be reported by an insurer in a financial statement and setting the methods of valuing these liabilities.

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

There have been no 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 was developed to recognize, permit, and prescribe the use of mortality tables that reflect differences in mortality between preferred and standard lives in determining minimum reserve liabilities. Without this rule, insurance companies would have to raise reserves held in support of the preferred business which in turn would require them to raise rates for the best risks. The rule enables more equitable pricing of life insurance policies. 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:

07/16/2012