DAR File No. 31525

Insurance, Administration

R590-219

Credit Scoring

FIVE-YEAR NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

DAR File No.: 31525
Filed: 06/04/2008, 09:35
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) authorizes the commissioner to write rules to implement the provisions of Title 31A. Specific authorization for this rule is provided in Subsection 31A-22-320(3) to enforce the use of credit information by auto insurers.

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 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 needed to regulate automobile insurance companies in the way they use an insured's credit score. One of the main reasons for this rule and the law is to disallow insurers from using a credit score as the sole reason to cancel an insured. The law and rule require there be risk-related factors before increasing an insured's premium or canceling them. Since the creation of this law and rule, the department has received fewer and fewer complaints related to misuse of credit scores. 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:

Insurance
Administration
Room 3110 STATE OFFICE BLDG
450 N MAIN ST
SALT LAKE CITY UT 84114-1201

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