DAR File No. 40640
This notice was published in the September 1, 2016, issue (Vol. 2016, No. 17) of the Utah State Bulletin.
Insurance, Administration
Rule R590-178
Securities Custody
Five-Year Notice of Review and Statement of Continuation
DAR File No.: 40640
Filed: 08/02/2016 02:09:56 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:
Section 31A-2-201 gives the commissioner authority to write rules to implement the insurance code, Title 31A. Section 31A-2-206 gives the commissioner authority to write rules regarding the receipt and handling of deposited securities. Section 31A-4-108 gives the commissioner authority to write rules to safeguard and ensure securities are not loaned to other insurers. Section R590-178-4 sets standards, guidelines, and forms to be used when an insurer transfers their securities to a custodian.
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 received no written comments during the last five years.
Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:
The rule authorizes domestic insurance companies to utilize modern systems for holding and transferring securities without physical delivery of securities certificates. It also sets standards for national banks, state banks, trust companies, and broker/dealers to qualify and operate as custodians for insurance company securities. Without the rule, insurers could place their investments under risky custodial arrangements or in situations that could threaten the security of the company's assets and, in the end, the security of its insureds. Therefore, this rule should be continued.
The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:
InsuranceAdministration
Room 3110 STATE OFFICE BLDG
450 N MAIN ST
SALT LAKE CITY, UT 84114-1201
Direct questions regarding this rule to:
- Steve Gooch at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at sgooch@utah.gov
Effective:
08/02/2016
Authorized by:
Steve Gooch, Information Specialist
Additional Information
More information about a Five-Year Notice of Review and Statement of Continuation is available online.
The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at https://rules.utah.gov/publicat/bull-pdf/2016/b20160901.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version.
For questions regarding the content or application of this rule, please contact Steve Gooch at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at sgooch@utah.gov. For questions about the rulemaking process, please contact the Office of Administrative Rules.