DAR File No. 42873
This notice was published in the June 1, 2018, issue (Vol. 2018, No. 11) of the Utah State Bulletin.
Insurance, Administration
Rule R590-223
Rule to Recognize the 2001 CSO Mortality Table for Use in Determining Minimum Reserve Liabilities and Nonforfeiture Benefits
Five-Year Notice of Review and Statement of Continuation
DAR File No.: 42873
Filed: 05/04/2018 05:54:41 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 Insurance Commissioner to write rules to implement the provisions of the Insurance Code, Title 31A. Subsection 31A-17-402(1) authorizes the Insurance Commissioner to adopt rules specifying the liabilities to be reported by an insurer in an annual statement, as well as the methods of valuing those liabilities. Subsection 31A-22-408(11) authorizes the Insurance Commissioner to adopt rules interpreting, describing, and clarifying the application of the nonforfeiture law. Subsection 31A-22-408(6) allows the use of the tables adopted by the Insurance Commissioner by rule. This rule recognizes, permits, and prescribes the use of the 2001 Commissioners Standard Ordinary (CSO) Mortality Table in accordance with Sections 31A-17-504 and 31A-22-408, and Section R590-198-5.
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 of Insurance has received 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 is part of statutory accounting requirements. It prescribes a mortality table to be used for the valuation and nonforfeiture for life insurance. It establishes reserving standards consistent with that recommended by the National Association of Insurance Commissioners' (NAIC) Accounting Practices and Procedures Manual. Repealing this rule would adversely impact insurance companies and consumers. If this rule is withdrawn, it will make life insurance less affordable. 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 [email protected]
Effective:
05/04/2018
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/2018/b20180601.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 [email protected]. For questions about the rulemaking process, please contact the Office of Administrative Rules.