This filing was published in the 01/15/2009, issue, Vol. 2009, No. 2, of the Utah State Bulletin.
Use of Senior-Specific Certifications and Professional Designations
NOTICE OF PROPOSED RULE
DAR File No.: 32261
Filed: 12/31/2008, 02:27
Received by: NL
Purpose of the rule or reason for the change:
The purpose of the rule is to set forth standards to protect consumers from misleading marketing practices with respect to the use of senior-specific certifications and professional designations in the solicitation, sale or purchase of, or advice made in connection with, an annuity, accident and health, or life insurance product.
Summary of the rule or change:
This rule sets forth standards to protect consumers from misleading and deceptive marketing practices with respect to the use of senior-specific certifications and professional designations in the solicitation, sale or purchase of, or advice made in connection with, an annuity, accident and health, or life insurance product. The rule also sets penalties for the violation of this rule. The enforcement of the rule will take effect 45 days after the rule goes into effect.
State statutory or constitutional authorization for this rule:
Sections 31A-2-201 and 31A-23a-402
Anticipated cost or savings to:
the state budget:
This rule should have a neutral fiscal impact on the state's budget unless the department receives a large number of complaints from the public requiring the department to hire additional employees to investigate and take administrative actions against violators. This is an unlikely scenario since there is a hiring freeze and legislation would have to be passed.
The agency is unaware of any way this rule could affect local governments. The rule deals with the way those selling insurance represent themselves to the consumer, requiring them not be apply misleading and deceptive titles to themselves.
small businesses and persons other than businesses:
Those agents and agencies using noncompliant designations or certifications to solicit insurance to consumers, especially seniors, will have to reprint anything they have the certification or designation on.
Compliance costs for affected persons:
Insurance companies should incur no costs or savings as a result of this rule. They are not the ones that solicit consumers directly. Agents and agencies using noncompliant designations or certifications to solicit insurance to consumers, especially seniors, will have to reprint anything with the noncompliant certification or designation on it. The rule is written to protect the public from those who would try to validate their product with the use of a misleading or deceptive designation or certification in order to sway the consumer into purchasing an insurance product they do not need.
Comments by the department head on the fiscal impact the rule may have on businesses:
Only those in violation of the this rule will incur a cost. D. Kent Michie, Commissioner
The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:
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 firstname.lastname@example.org
Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:
This rule may become effective on:
Jilene Whitby, Information Specialist
R590. Insurance, Administration.