3901-1-08 Unfair and deceptive military sales practices.

 

 

 

Rule Summary and Fiscal Analysis (Part A)

 

Department of Insurance

Agency Name

 

Tina Chubb

Division                                                                  Contact

 

2100 Stella Court Columbus OH 43215-1067               [phone]     (614)

644-3742

Agency Mailing Address (Plus Zip)                                       Phone                     Fax

 

 

 

3901-1-08

Rule Number

NEW

TYPE of rule filing

Rule Title/Tag Line              Unfair and deceptive military sales practices.

RULE SUMMARY

1.  Is the rule being filed consistent with the requirements of the RC 119.032 review? No

2.  Are you proposing this rule as a result of recent legislation? No

3.  Statute prescribing the procedure in accordance with the agency is required to adopt the rule: 119.03

4.  Statute(s) authorizing agency to adopt the rule: 3901.041

5.  Statute(s) the rule, as filed, amplifies or implements: 3901.20 and 3901.21

6.  State the reason(s) for proposing (i.e., why are you filing,) this rule:

The rule is promulgated in response to the requirements of the "Military Personnel Financial Services protection Act," Public Law 109-290 109th Congress, effective September 26, 2006, which grants states the primary jurisdiction for regulating the business of insurance on military installations.

7.  If the rule is an AMENDMENT, then summarize the changes and the content of the proposed rule; If the rule type is RESCISSION, NEW or NO CHANGE, then summarize the content of the rule:

By adopting the National Association of Insurance Commissioner's (NAIC's) "Military Sales Practices Model Regulation," the rule further defines Ohio's unfair trade practices in the business of insurance to include dishonest and predatory practices involving the sale of certain life insurance products, including annuities, to active duty members of the United States Armed Forces and their families. The rule also sets acceptable standards for the sale and solicitation of the defined life insurance products and adds special protections for enlisted service members.

8.  If the rule incorporates a text or other material by reference and the agency claims the incorporation by reference is exempt from compliance with sections

121.71 to 121.74 of the Revised Code because the text or other material is generally available to persons who reasonably can be expected to be affected by the rule, provide an explanation of how the text or other material is generally available to those persons:

This response left blank because filer specified online that the rule does not incorporate a text or other material by reference.

9.  If the rule incorporates a text or other material by reference, and it was infeasible for the agency to file the text or other material electronically, provide an explanation of why filing the text or other material electronically was infeasible:

This response left blank because filer specified online that the rule does not incorporate a text or other material by reference.

10.  If the rule is being rescinded and incorporates a text or other material by reference, and it was infeasible for the agency to file the text or other material, provide an explanation of why filing the text or other material was infeasible:

Not Applicable.

11.  If revising or refiling this rule, identify changes made from the previously filed version of this rule; if none, please state so:

Added amended date to (F)(11) to conform to RC 121.71.

12.  119.032 Rule Review Date:

(If the rule is not exempt and you answered NO to question No. 1, provide the scheduled review date. If you answered YES to No. 1, the review date for this rule is the filing date.)

NOTE: If the rule is not exempt at the time of final filing, two dates are required: the current review date plus a date not to exceed 5 years from the effective date for Amended rules or a date not to exceed 5 years from the review date for No Change rules.

FISCAL ANALYSIS

13.  Estimate the total amount by which this proposed rule would increase / decrease either revenues / expenditures for the agency during the current biennium (in dollars): Explain the net impact of the proposed changes to the budget of your agency/department.

This will have no impact on revenues or expenditures. N/A

N/A

14.  Identify the appropriation (by line item etc.) that authorizes each expenditure necessitated by the proposed rule:

N/A

15.  Provide a summary of the estimated cost of compliance with the rule to all directly affected persons. When appropriate, please include the source for your information/estimated costs, e.g. industry, CFR, internal/agency:

N/A

16.  Does this rule have a fiscal effect on school districts, counties, townships, or municipal corporations? No

17.  Does this rule deal with environmental protection or contain a component dealing with environmental protection as defined in R. C. 121.39? No