DAR File No. 43786
This notice was published in the July 1, 2019, issue (Vol. 2019, No. 13) of the Utah State Bulletin.
Insurance, Administration
Rule R590-244
Individual and Agency Licensing Requirements
Five-Year Notice of Review and Statement of Continuation
DAR File No.: 43786
Filed: 06/10/2019 05:10:52 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 adopt rules to implement the provisions of the Insurance Code, Title 31A. Subsections 31A-23a-104(2), 31A-23a-110(1), 31A-25-201(1), 31A-26-202(1), 31A-23b-203(2), 31A-23b-208(1), 31A-35-104, 31A-35-301(1), and 31A-35-401(2) authorize the Insurance Commissioner to prescribe the forms and manner in which an initial or renewal individual, or agency license application under Chapters 23a, 23b, 25, 26, and 35 is to be made to the Insurance Commissioner. Subsections 31A-23a-111(10), 31A-23b-401(9), 31A-25-208(9), 31A-26-213(10), and 31A-35-406(1) authorize the Insurance Commissioner to adopt a rule prescribing license renewal and reinstatement requirements for individual and agency licenses under Chapters 23a, 23b, 25, 26, and 35. Subsections 31A-23a-108(1), 31A-23b-205(2), 31A-23b-205(3), and 31A-26-207(1) authorize the Insurance Commissioner to adopt a rule prescribing how examination and training requirements may be administered to licensees under Chapters 23a, 23b, and 26. Subsection 31A-23a-115(1) authorizes the Insurance Commissioner to adopt a rule prescribing reporting requirements to be utilized by an insurer for the initial appointment, or the termination of the appointment of a person authorized to act on behalf of the insurer under Chapter 23a. Subsection 31A-23a-203.5(3) authorizes the Insurance Commissioner to adopt a rule prescribing the terms and conditions of any required legal liability insurance coverage to be maintained by, or on behalf of, a licensed resident individual producer. Subsection 31A-23b-207(1) authorizes the Insurance Commissioner to adopt a rule prescribing the amount of any surety bond required to be maintained by a licensed navigator to cover the legal liability of a navigator as the result of an erroneous act or failure to act in the navigator's capacity as a navigator. Subsections 31A-23a-302(2), 31A-23b-209(3), and 31A-26-201(1) authorize the Insurance Commissioner to adopt a rule prescribing the reporting requirements to be utilized by an agency for the initial designation or the termination of designation, of a person authorized to act on behalf of the agency under Chapters 23a, 23b, and 26.
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 in 2014 and received one industry comment at that time. The comment was a request to change proposed language regarding the timeframe for appointing agents. The Department declined to change the language because the proposed language was less restrictive than the commenter's suggestion and would provide more flexibility to the industry.
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 important because it provides standards for the licensing of individuals and agencies and for making other amendments to a license as needed. Standardized licensing requirements are important so that everyone who wants to apply for a license will know the standards, and consumers will know that if a person is licensed they have passed the required tests and had the required background checks. 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:
06/10/2019
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/2019/b20190701.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.