Utah Code § 31A-2-205 — Utah Code / Title 31A / Chapter 31A-2 / § 31A-2-205
§ 31A-2-205. Examination costs.
Status: in_force

(1) Except as provided in Subsection (7), an examinee that is one of the following shall pay for the reasonable costs of an examination made under Sections 31A-2-203 and 31A-2-204: (a) an insurer; (b) a rate service organization; (c) a subsidiary of an insurer or rate service organization; or (d) a life settlement provider. (2) An examinee shall pay the following costs of the department under Subsection (1): (a) an examiner's actual travel expenses; (b) an examiner's reasonable living expense allowance; (c) an examiner's actual rate of compensation; (d) each administration expense, support expense, and supervisory expense of the department for the examination; and (e) an amount necessary to cover fringe benefits that the commissioner authorizes or as provided by law. (3) An examinee shall pay the following costs of an independent contractor that the commissioner employs in accordance with Subsection 31A-2-203(3): (a) the independent contractor's actual travel expenses; (b) the independent contractor's reasonable living expense; (c) the independent contractor's compensation; and (d) an expense that the independent contractor necessarily incurs that the commissioner approves. (4) In determining rates, the commissioner shall consider the rates recommended and outlined in the examination manual sponsored by the National Association of Insurance Commissioners. (5) Subsections (1) through (4) apply to a surplus lines producer to the extent that the examinations are of the surplus line producer's surplus lines business. (6) (a) An insurer requesting the examination of one of the insurer's producers shall pay the cost of the examination to the extent described in Subsections (2) through (4). (b) If an insurer does not request the examination of one of the insurer's producers as described in Subsection (6)(a), the department shall pay the cost of examining a licensee except for a licensee listed in Subsection (1). (7) (a) On the examinee's request or at the commissioner's discretion, the department may pay all or part of the costs of an examination whenever the commissioner finds that based on the frequency of examinations or the examinee's financial condition: (i) the imposition of the costs of an examination would place an unreasonable burden on the examinee; and (ii) the department has sufficient funds to pay the costs of an examination. (b) The commissioner shall include in the commissioner's annual report information about any instance in which the commissioner has applied this Subsection (7). (8) (a) An independent contractor the commissioner employs under Subsection 31A-2-203(3) shall present to the commissioner an invoice for each cost described in Subsection (3). (b) The examinee shall pay the invoice described in Subsection (8)(a) after the commissioner: (i) reviews the invoice; (ii) approves the invoice for payment; and (iii) delivers the invoice to the examinee with a direction to pay the invoice. (c) An invoice dispute shall be resolved in accordance with rules the department makes in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act. (9) An amount an examinee pays to an independent contractor the commissioner employs under Subsection 31A-2-203(3) or to a department examiner may not be deducted from the department's appropriation. (10) (a) The amount payable under Subsections (1) through (3) is due 10 days after the day on which the commissioner directs the examinee to pay the invoice. (b) Payments the department receives under this Subsection (10) shall be handled as provided by Section 31A-3-101. (11) (a) The commissioner may require an examinee under Subsection (1), or an insurer requesting an examination under Subsection (6), either before or during an examination, to make deposits with the state treasurer to pay the costs of examination. (b) The state treasurer shall hold a deposit an examinee or an insurer makes under this Subsection (11) in trust until the state treasurer applies the deposit to pay the department the costs payable under this section. (c) If a deposit made under this Subsection (11) exceeds examination costs, the state treasurer shall refund the surplus. (12) If an examinee does not timely pay examination costs, the commissioner may satisfy the debt by drawing on a statutory deposit the examinee files in accordance with Section 31A-2-206. (13) A domestic insurer may offset the examination expenses paid under this section against premium taxes under Subsection 59-9-102(2).