DAR File No. 42437
This notice was published in the February 1, 2018, issue (Vol. 2018, No. 3) of the Utah State Bulletin.
Permitted Language for Reservation of Discretion Clauses
Five-Year Notice of Review and Statement of Continuation
DAR File No.: 42437
Filed: 01/04/2018 01:01:47 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 authorizes the Insurance Commissioner to write rules to enforce the provisions of the Insurance Code, Title 31A. Subsections 31A-21-201(3) and 31A-21-314(2) authorize the Department of Insurance (Department) to regulate the use of "reservation of discretion clauses" in policy forms filed with the Department. This rule prohibits their use in forms not associated with the Employee Retirement Income Security Act (ERISA) employee benefit plans, and prescribes language to be used in reservation of discretion clauses used in ERISA employee benefit plans.
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 regarding this rule during 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 creates a safe harbor for insurance companies that provide insurance to ERISA employee benefit plans sponsored by employers, allowing insurers to know what language in insurance forms is acceptable to the Department. 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:Insurance
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 email@example.com
Steve Gooch, Information Specialist
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/2018/b20180201.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 firstname.lastname@example.org. For questions about the rulemaking process, please contact the Office of Administrative Rules.