DAR File No. 27126

Insurance, Administration

R590-166

Home Protection Service Contract Rule

FIVE-YEAR NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

DAR File No.: 27126
Filed: 04/28/2004, 03:11
Received by: NL

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:

This rule receives its authority from the following code references: Subsection 31A-2-201(3) which authorizes the commissioner to adopt rules to implement the provisions of Title 31A; and Subsections 31A-6a-110(1) and (2) which authorizes the commissioner to write rules to implement the provisions of Chapter 6a, Service Contracts, of Title 31A; and authorizes the commissioner to exempt certain service contract providers, or just a particular service they provide, from the provisions of Chapter 6a. Sections R590-166-4 and R590-166-6 define how a home protection company qualifies to be exempt from certain sections of Chapter 6a and sets conditions that must be followed to maintain this exemption.

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 not received any 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 was intended to be a temporary fix to a problem facing home warranty companies having problems finding reimbursement insurance. The rule was intended to be a stop-gap measure to allow them to provide "alternative security" for the warranties they issue until the reimbursement insurance market could be developed. At this point, the department has received no indication that reimbursement insurance is easier to find and therefore, the rule is still necessary and should be continued.

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

Direct questions regarding this rule to:

Jilene Whitby at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at jwhitby@utah.gov

Authorized by:

Jilene Whitby, Information Specialist

ADDITIONAL INFORMATION

PLEASE NOTE:

• Please see the DISCLAIMER regarding information available from state web pages.

For questions regarding the content or application of this rule, please contact Jilene Whitby at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at jwhitby@utah.gov

For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is NOT able to answer questions about the content or application of these administrative rules.