DAR File No. 42687

Insurance, Administration

Rule R590-154

Unfair Marketing Practices Rule; Misleading Names

Five-Year Notice of Review and Statement of Continuation

DAR File No.: 42687
Filed: 03/14/2018 01:48:55 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 implement the provisions of the Insurance Code, Title 31A. Section 31A-23-302 authorizes the Insurance Commissioner to prohibit, by rule, practices that are misleading, deceptive, unfairly discriminatory, provide an unfair inducement, or unreasonably restrain competition.

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 Insurance Department (Department) amended this rule twice during the past five years and received nine comments regarding one of those amendments. Three of those comments were supportive; two comments requested the ability to use a first initial rather than a first name, which was one purpose of the rule amendment; one comment concerned identity theft, which would neither be positively or negatively affected by this rule; one comment concerned a possible problem with transferring policies that may be noncompliant due to age, but the Department determined that there is no actual problem with such transfers; one comment concerned a market conduct issue that was related but not germane to the amendment; and one comment argued the validity of the rule filing due to bad links in the rule announcement, an issue that was fixed as soon as it was discovered, as well as questioning the need for the rule because it had no associated cost. The Department reviewed and considered all comments and determined that none of them disclosed issues that would necessitate holding up the rulemaking process.

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

This rule must be continued because it sets forth guidelines for producers regarding what is considered to be unacceptable market conduct.

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Insurance
Administration
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 protected]

Effective:

03/14/2018

Authorized by:

Steve Gooch, Information Specialist