DAR File No. 28260

Insurance, Administration

R590-130

Rules Governing Advertisements of Insurance

FIVE-YEAR NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

DAR File No.: 28260
Filed: 09/29/2005, 04:47
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:

Subsection 31A-2-201(3) allows the commissioner to make rules to implement the provisions of the insurance code. Section 31A-23-302, which has been renumbered to Section 31A-23a-402, authorizes the commissioner to define unfair or deceptive acts or practices in the business of insurance. This rule sets advertising guidelines to assure clear and truthful disclosure of the benefits, limitations, and exclusions of policies sold as insurance. The rule limits the form and content of advertisements; limits the use of deceptive word, phrases and illustrations; provides guidelines for the use of exceptions, reductions and limitations used in rules; requires disclosure of policy provisions dealing with renewals, cancellations and terminations; requires disclosure of the identity of the insurer; and procedures for enforcement by the Insurance Department in regards to this rule.

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 for or against 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 still needed because licensees are still using misleading and deceptive information and advertising in the sale of insurance. Therefore, this rule 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.