reglab/statecodes huggingface dataset:
2023 Utah Code › Title 31A - Insurance Code › Chapter 35 - Bail Bond Act › Part 4 - Certificate of Authority › Section 405 - Issuance of license -- Denial -- Right of appeal.

Effective 5/14/2019
31A-35-405.
Issuance of license -- Denial -- Right of appeal.
(1) After the commissioner receives a complete application, fee, and any additional information in accordance with Section 31A-35-401, the board shall determine whether the applicant meets the requirements for issuance of a license under this chapter.
(2)
(a) If the board determines that the applicant meets the requirements for issuance of a license under this chapter, the commissioner shall issue to that person a bail bond agency license.
(b) If the board determines that the applicant does not meet the requirements for issuance of a license under this chapter, the commissioner shall make a final determination as to whether to issue a license under this chapter.
(3)
(a) If the commissioner denies an application for a bail bond agency license under this chapter, the commissioner shall provide prompt written notification of the denial by commencing an informal adjudicative proceeding in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
(b) An applicant may request a hearing on a denial of an application for a bail bond agency license within 15 days after the day on which the commissioner issues the denial.
(c) The commissioner shall hold a hearing no later than 60 days after the day on which the commissioner receives a request for a hearing described in Subsection (3)(b).
Amended by Chapter 193, 2019 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 35 - Bail Bond Act › Part 4 - Certificate of Authority › Section 406 - Initial licensing, license renewal, and license reinstatement.

Effective 5/5/2021
31A-35-406.
Initial licensing, license renewal, and license reinstatement.
(1) An applicant for an initial bail bond agency license shall:
(a) complete and submit to the department an application;
(b) submit to the department, as applicable, a copy of the applicant's:
(i) irrevocable letter of credit, as required under Subsection 31A-35-404(1);
(ii) verified financial statement, as required under Subsection 31A-35-404(2); or
(iii) qualifying power of attorney, as required under Subsection 31A-35-404(3); and
(c) pay the department the applicable renewal fee established in accordance with Section 31A-3-103.
(2)
(a) A license under this chapter expires annually effective at midnight on August 14.
(b) To renew a bail bond agency license issued under this chapter, on or before July 15, the bail bond agency shall:
(i) complete and submit to the department a renewal application that includes certification that:
(A) a principal of the agency attended or participated by telephone in at least one entire board meeting during the 12-month period before July 15; and
(B) as of May 1, the agency complies with aggregate bond limits established by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(ii) submit to the department, as applicable, a copy of the applicant's:
(A) irrevocable letter of credit, as required under Subsection 31A-35-404(1);
(B) verified financial statement, as required under Subsection 31A-35-404(2); or
(C) qualifying power of attorney, as required under Subsection 31A-35-404(3); and
(iii) pay the department the applicable renewal fee established in accordance with Section 31A-3-103.
(c) A bail bond agency shall renew the bail bond agency's license under this chapter annually as established by department rule, regardless of when the license is issued.
(3)
(a) A bail bond agency may apply for reinstatement of an expired bail bond agency license within one year after the day on which the license expires by complying with the renewal requirements described in Subsection (2).
(b) If a bail bond agency license has been expired for more than one year, the person applying for reinstatement of the bail bond agency license shall comply with the initial licensing requirements described in Subsection (1).
(4) If a bail bond agency license is suspended, the applicant may not submit an application for a bail bond agency license until after the day on which the period of suspension ends.
(5) The department shall deposit a fee collected under this section in the restricted account created in Section 31A-35-407.
Amended by Chapter 252, 2021 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 35 - Bail Bond Act › Part 4 - Certificate of Authority › Section 407 - Restricted account.

Effective 5/10/2016
31A-35-407.
Restricted account.
(1) There is created within the General Fund a restricted account known as the "Bail Bond Administration Account."
(2)
(a) The account shall be funded from the fees imposed under this chapter.
(b) The department shall deposit all fees collected under this part into the account.
(c) The funds in the account shall be used by the department to administer this chapter.
(d) The account shall earn interest, which shall be deposited into the account.
(3) The department shall, at the end of each quarter, provide to the board an itemized accounting that includes the balances at the beginning and the end of the quarter. The department shall provide the report no later than the 30th day of the month subsequent to the last month of the required quarterly report.
Amended by Chapter 234, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 35 - Bail Bond Act › Part 5 - Action Regarding a Certificate › Section 501 - Emergency action regarding a license.

Effective 5/10/2016
31A-35-501.
Emergency action regarding a license.
(1) If the commissioner determines, based on an investigation, that the public health, safety, or welfare requires emergency action, the commissioner may order a summary suspension of a bail bond agency license pending proceedings for revocation or other action.
(2) The order described in Subsection (1) shall:
(a) state the grounds upon which the summary suspension is issued, including the charges made against the licensee; and
(b) advise the licensee of the right to an administrative hearing before the commissioner within 60 days after the summary suspension is ordered.
Amended by Chapter 234, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 35 - Bail Bond Act › Part 5 - Action Regarding a Certificate › Section 502 - Notification of violation of chapter.

Effective 5/10/2016
31A-35-502.
Notification of violation of chapter.
If the commissioner has reason to believe a person licensed as a bail bond agency, surety insurer, or bail bond producer has violated this chapter, written notice shall be sent to that person, advising the person of:
(1) the alleged violation;
(2) the commissioner's authority to take action against the person's license;
(3) the person's right to an administrative hearing under Title 63G, Chapter 4, Administrative Procedures Act; and
(4) the period of time within which the hearing described in Subsection (3) shall be requested if the person requests a hearing.
Amended by Chapter 234, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 35 - Bail Bond Act › Part 5 - Action Regarding a Certificate › Section 503 - Disciplinary action -- Hearing -- Appeal.

Effective 5/10/2016
31A-35-503.
Disciplinary action -- Hearing -- Appeal.
(1) Based on information the commissioner receives during a hearing described in Section 31A-35-502 regarding a person licensed as a bail bond agency or bail bond producer, the commissioner may:
(a) dismiss the complaint if the commissioner finds it is without merit;
(b) fix a period and terms of probation best adopted to educate the person;
(c) place the license on suspension for a period of not more than 12 months;
(d) impose a forfeiture pursuant to Section 31A-2-308; or
(e) revoke the license.
(2) The commissioner shall advise the person described in Subsection (1) in writing of:
(a) the commissioner's findings based on the hearing; and
(b) the person's rights of appeal under this chapter.
(3)
(a) Unless the conditions of Subsection (3)(b) are met, if a bail bond agency license is suspended or revoked under this chapter, a member, employee, officer, or director of that corporation may not:
(i) be licensed as a bail bond agency or bail bond producer; or
(ii) be designated in any license to exercise authority under this chapter during the period of the suspension or revocation.
(b) Subsection (3)(a) does not apply if the commissioner determines upon substantial evidence that the member, employee, officer, or director:
(i) was not personally at fault; and
(ii) did not acquiesce in the matter on account of which the license was suspended or revoked.
Amended by Chapter 234, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 35 - Bail Bond Act › Part 6 - Conduct of Bail Bond Business › Section 601 - Acts of producer or agent.

Effective 5/10/2016
31A-35-601.
Acts of producer or agent.
(1) The acts or conduct of any bail bond producer who acts within the scope of the authority delegated to the producer by the bail bond agency or surety insurer are considered to be the acts or conduct of the bail bond agency or surety insurer for which the bail bond producer is acting as agent.
(2) The acts or conduct of any bail bond agency that acts within the scope of the authority delegated to the bail bond agency by the surety insurer are considered to be the acts or conduct of the surety insurer.
(3)
(a) Bail bond agencies and surety insurers are not liable for the actions of bail enforcement agents, bail recovery agents, or bail recovery apprentices.
(b) Bail enforcement agent, bail recovery agent, and bail recovery apprentice mean the same as those terms are defined in Section 53-11-102.
Amended by Chapter 234, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 35 - Bail Bond Act › Part 6 - Conduct of Bail Bond Business › Section 602 - Place of business -- Records to be kept at place of business.

Effective 5/10/2016
31A-35-602.
Place of business -- Records to be kept at place of business.
(1)
(a) A bail bond agency shall have and maintain in this state a place of business:
(i) accessible to the public; and
(ii) where the bail bond agency principally conducts transactions authorized by its bail bond agency license.
(b) The address of the place of business described in Subsection (1)(a) shall appear upon:
(i) the application for a bail bond agency license; and
(ii) a bail bond agency license issued under this chapter.
(c) In addition to complying with Subsection (1)(b), a bail bond agency shall register and maintain with the commissioner the following at which the commissioner may contact the bail bond agency:
(i) a telephone number; and
(ii) a business email address.
(d) A bail bond agency shall notify the commissioner within 20 days of a change in the bail bond agency's:
(i) place of business address;
(ii) telephone number; and
(iii) business email address.
(e) This section does not prohibit a bail bond agency from maintaining the place of business required under this section in the licensee's residence, if the residence is in Utah.
(2) The bail bond agency shall keep at the place of business described in Subsection (1)(a) the records required under Section 31A-35-604.
Amended by Chapter 234, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 35 - Bail Bond Act › Part 6 - Conduct of Bail Bond Business › Section 604 - Records.

Effective 5/10/2016
31A-35-604.
Records.
(1) A bail bond producer shall maintain at the bail bond producer's place of business:
(a) records of all bail bonds the bail bond producer executes or countersigns, so the public may obtain all necessary information concerning those bail bonds for not less than the current calendar year plus the three prior years after the liability of the bail bond agency or surety insurer has been terminated; and
(b) any additional information the commissioner may reasonably require by rule.
(2) Records required to be maintained under Subsection (1) shall be available for examination by the commissioner or the commissioner's representatives during regular business hours.
(3) The bail bond agency shall maintain for not less than the current calendar year and the three years after receipt all records of any bail bond executed or countersigned by a bail bond producer appointed by the bail bond agency.
Amended by Chapter 234, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 35 - Bail Bond Act › Part 6 - Conduct of Bail Bond Business › Section 605 - Guarantors -- Agreement and enforcement.

Effective 5/10/2016
31A-35-605.
Guarantors -- Agreement and enforcement.
(1) All agreements of persons to act as guarantor for a bail bond shall be in writing or reduced to writing as soon as possible after completion.
(2) When a person executes an agreement to act as a guarantor, the bail bond agency or the bail bond producer shall deliver to that person a copy of the agreement promptly upon that person's execution of the agreement.
(3) A bail bond producer may not enforce any guarantor agreement without disclosing to the guarantor all collateral held by the bail bond producer indemnifying the bail bond to which the agreement relates, and the identity of each other guarantor.
Amended by Chapter 234, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 35 - Bail Bond Act › Part 6 - Conduct of Bail Bond Business › Section 606 - Bail agreement prior to commission of offense prohibited.

Effective 5/10/2016
31A-35-606.
Bail agreement prior to commission of offense prohibited.
A bail bond agency or bail bond producer may not enter into an agreement or arrangement with any person, guaranteeing or assuring in advance of the commission of any offense that bail will be furnished to that person or any other party if arrested.
Amended by Chapter 234, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 35 - Bail Bond Act › Part 6 - Conduct of Bail Bond Business › Section 607 - Filing of forms -- Commissioner maintains files.

Effective 5/10/2016
31A-35-607.
Filing of forms -- Commissioner maintains files.
(1)
(a) In accordance with Section 31A-21-201, a bail bond agency that meets the financial capacity requirements through the use of a letter of credit, personal property, real property, or a surety insurer shall file with the commissioner a copy of each form the bail bond agency or surety insurer uses in the bail bond insurance business.
(b) A surety insurer filing shall comply with the following:
(i) a form shall be identified by a unique form number;
(ii) a form shall include the address, telephone number, and business email address of the bail bond agency and the surety insurer;
(iii) the surety insurer shall file a form on behalf of each bail bond agency appointed to write on behalf of the surety insurer;
(iv) once a filing is filed with the commissioner, it is the responsibility of the surety insurer to verify that the bail bond agency and its producers are using the correct form;
(v) a bail bond agency and its bail bond producers are prohibited from using a form that has not been filed by the surety insurer; and
(vi) a bail bond agency and its bail bond producers are prohibited from making changes to a form that is filed by the surety insurer.
(c) A bail bond agency filing, for a bail bond agency that meets the financial capacity requirements through the use of a letter of credit, personal property, or real estate, shall comply with the following:
(i) a form shall be identified by a unique form number;
(ii) a form shall include the address, telephone number, and business email address of the bail bond agency;
(iii) once a filing is filed with the commissioner, it is the responsibility of the bail bond agency to verify that its bail bond producers are using the correct form;
(iv) a bail bond producer is prohibited from using a form that has not been filed by the bail bond agency; and
(v) a bail bond producer is prohibited from making changes to a form that is filed by the bail bond agency.
(2) A form described in Subsection (1) shall be filed 30 days before the form:
(a) is first used by the bail bond agency or surety insurer; and
(b) is changed after it is filed under Subsection (2)(a).
(3)
(a) The commissioner shall maintain and make available for public inspection a file regarding each bail bond agency and each surety insurer.
(b) A bail bond agency and surety insurer shall maintain a form required to be filed under this section in the office of the bail bond agency or surety insurer.
Amended by Chapter 234, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 35 - Bail Bond Act › Part 6 - Conduct of Bail Bond Business › Section 608 - Premiums and authorized charges.

Effective 5/10/2016
31A-35-608.
Premiums and authorized charges.
(1) A bail bond agency or bail bond producer may not, in any bail transaction or in connection with that transaction, directly or indirectly, charge or collect money or other valuable consideration from any person except to:
(a) pay the premium on the bail at the rates established by the bail bond agency or surety insurer;
(b) provide collateral;
(c) reimburse the bail bond agency or bail bond producer for actual expenses, as described in Subsection (2), incurred in connection with the bail bond transaction; or
(d) reimburse the bail bond agency or bail bond producer, or to establish a right of action against the principal or any indemnitor, for actual expenses the bail bond agency or bail bond producer incurred:
(i) in good faith; and
(ii) which were by reason of breach by the defendant of any of the terms of the written agreement under which the undertaking of bail or bail bond was written.
(2)
(a) A bail bond agency or surety insurer may bring an action in a court of law to enforce its equitable rights against the principal and the principal's indemnitors in exoneration if:
(i) a bail bond producer did not establish a written agreement; or
(ii) there is only an incomplete writing.
(b) Reimbursement claimed under this Subsection (2) may not exceed the sum of:
(i) the principal sum of the bail bond or undertaking; and
(ii) any reasonable expenses that:
(A) are verified by receipt;
(B) in total do not amount to more than the principal sum of the bail bond or undertaking; and
(C) are incurred in good faith by the bail bond agency, its bail bond producers, and the bail bond agency's employees by reason of the principal's breach.
(3) This section does not affect or impede the right of a bail bond producer to execute undertaking of bail on behalf of a nonresident producer of the bail bond agency or surety insurer the bail bond producer represents.
(4) A bail bond agency or surety insurer shall maintain complete records of all current and closed accounts receivable regarding financed premiums for the current calendar year and the three prior years.
(5) If the bail amount on the original charge is increased by the court, the bail premium paid on the original bond may be applied to the bail premium due on the increased bail amount for that charge.
Amended by Chapter 234, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 35 - Bail Bond Act › Part 7 - Prohibitions and Penalties › Section 701 - Prohibited acts.

Effective 5/10/2016
31A-35-701.
Prohibited acts.
(1) A bail bond producer or bail bond agency may not:
(a) solicit business in or about:
(i) any place where persons in the custody of the state or any local law enforcement or correctional agency are confined; or
(ii) any court;
(b) pay a fee or rebate or give or promise anything of value to any person in order to secure a settlement, compromise, remission, or reduction of the amount of any undertaking or bail bond;
(c) pay a fee or rebate or give anything of value to an attorney in regard to any bail bond matter, except payment for legal services actually rendered for the bail bond producer or bail bond agency;
(d) pay a fee or rebate or give or promise anything of value to the principal or anyone in the principal's behalf; or
(e) engage in any other act prohibited by the commissioner by rule.
(2) The following persons may not act as bail bond producers and may not, directly or indirectly, receive any benefits from the execution of any bail bond:
(a) a person employed at any jail, correctional facility, or other facility used for the incarceration of persons;
(b) a peace officer;
(c) a judge; and
(d) an inmate incarcerated in any jail, correctional facility, or other facility used for the incarceration of persons.
(3) A bail bond producer may not:
(a) sign or countersign in blank any bail bond;
(b) give the power of attorney to, or otherwise authorize anyone to, countersign in the bail bond producer's name to a bail bond; or
(c) submit a bail bond to a jail or court in Utah without having completed a written agreement that:
(i) states the terms of the bail agreement, contract, or undertaking;
(ii) is signed by the bail bond producer; and
(iii) is filed with the department.
(4) A bail bond producer may not advertise or hold himself or herself out to be a bail bond agency or surety insurer.
(5) The following persons or members of their immediate families may not solicit business on behalf of a bail bond agency or bail bond producer:
(a) a person employed at any jail, correctional facility, or other facility used for the incarceration of persons;
(b) a peace officer;
(c) a judge; or
(d) an inmate incarcerated in any jail, correctional facility, or other facility used for the incarceration of persons.
Amended by Chapter 234, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 35 - Bail Bond Act › Part 7 - Prohibitions and Penalties › Section 702 - Early surrender without cause.

Effective 5/10/2016
31A-35-702.
Early surrender without cause.
(1) The bail or bail bond premium shall be returned in full if a bail bond producer without good cause surrenders a defendant to custody before:
(a) the time specified in the undertaking of bail or the bail bond for the appearance of the defendant; or
(b) any other occasion where the presence of the defendant in court is lawfully required.
(2) As used in this section, "good cause" includes:
(a) the defendant providing materially false information on the application for bail or a bail bond;
(b) the court's increasing the amount of bail beyond sound underwriting criteria employed by:
(i) the bail bond producer; or
(ii) the bail bond agency;
(c) a material and detrimental change in the collateral posted by:
(i) the defendant; or
(ii) a person acting on the defendant's behalf;
(d) the defendant changing the defendant's address or telephone number without giving reasonable notice to:
(i) the bail bond producer; or
(ii) the bail bond agency;
(e) the defendant commits another crime, other than a minor traffic violation, as defined by department rule, while on bail;
(f) failure by the defendant to appear in court at the appointed time; or
(g) a finding of guilt against the defendant by a court of competent jurisdiction.
Amended by Chapter 234, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 35 - Bail Bond Act › Part 7 - Prohibitions and Penalties › Section 703 - Disciplinary action.

Effective 5/10/2016
31A-35-703.
Disciplinary action.
(1) A person found to be in violation of the statutes or rules governing the conduct of bail bond producers and bail bond agencies under this chapter is subject to:
(a) disciplinary action by the commissioner against that person's:
(i) license, if the person is a bail bond agency or bail bond producer; or
(ii) certificate, if the person is a surety insurer; and
(b) imposition of civil penalties, as authorized under Title 31A, Chapter 2, Administration of the Insurance Laws.
(2) Penalties collected under this section shall be deposited in the restricted account created in Section 31A-35-407.
Amended by Chapter 234, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 35 - Bail Bond Act › Part 7 - Prohibitions and Penalties › Section 704 - Submission of bail bond agencies and producers to jurisdiction of court.

Effective 5/10/2016
31A-35-704.
Submission of bail bond agencies and producers to jurisdiction of court.
By applying for and receiving a license or certificate to engage in the bail bond insurance business in accordance with this chapter, a bail bond agency or bail bond producer:
(1) submits to the jurisdiction of the court;
(2) irrevocably appoints the clerk of the court as agent upon whom any papers affecting the bail bond agency's or bail bond producer's liability on the undertaking may be served; and
(3) acknowledges that liability may be enforced on motion and upon notice as the court may require, without the necessity of an independent action.
Amended by Chapter 234, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 36 - Life Settlements Act › Section 103 - Law governing.

31A-36-103.
Law governing.
(1) If there is more than one owner on a single policy and the owners are residents of different states, the law of the state in which the owner having the largest percentage ownership resides governs the life settlement. If the owners own equal fractions of a policy, the owners may agree in writing that the law of the state in which one resides governs the life settlement.
(2) A life settlement that is subject to this chapter may not:
(a) require that the life settlement be construed according to the laws of another jurisdiction; or
(b) deprive a court of competent jurisdiction in Utah to have jurisdiction over an action.
Amended by Chapter 355, 2009 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 36 - Life Settlements Act › Section 104 - License requirements, revocation, and denial.

31A-36-104.
License requirements, revocation, and denial.
(1)
(a) A person may not, without first obtaining a license from the commissioner, operate in or from this state as:
(i) a life settlement provider; or
(ii) a life settlement producer.
(b) A life settlement is included within the scope of the life insurance producer line of authority.
(2)
(a) To obtain a license as a life settlement provider, an applicant shall:
(i) comply with Section 31A-23a-117;
(ii) file an application;
(iii) pay the license fee; and
(iv) provide evidence of financial responsibility.
(b) If an applicant for a life settlement provider license complies with Subsection (2)(a) and Section 31A-23a-117, the commissioner shall investigate the applicant and issue a life settlement provider license if the commissioner finds that the applicant is competent and trustworthy to engage in the business of providing life settlements by experience, training, or education.
(3) In addition to the requirements in Sections 31A-23a-111, 31A-23a-112 and 31A-23a-113, the commissioner may refuse to issue, suspend, revoke, or refuse to renew the license of a life settlement provider or life settlement producer if the commissioner finds that:
(a) a life settlement provider demonstrates a pattern of unreasonable payments to owners;
(b) the applicant, the licensee, an officer, partner, or member, or key management personnel:
(i) is, whether or not a judgment of conviction is entered by the court, found guilty of, or pleads guilty or nolo contendere to:
(A) a felony; or
(B) a misdemeanor involving fraud or moral turpitude;
(ii) violates this chapter; or
(iii) is subject to a final administrative action by another state or federal jurisdiction.
(c) a life settlement provider enters into a life settlement not approved under this chapter;
(d) a life settlement provider fails to honor obligations of a life settlement;
(e) a life settlement provider assigns, transfers, or pledges a settled policy to a person other than:
(i) a life settlement provider licensed under this chapter;
(ii) a life settlement purchaser;
(iii) an accredited investor as defined in Regulation D, Rule 501, 17 C.F.R. Sec. 230.501;
(iv) a qualified institutional buyer as defined in Rule 144A, 17 C.F.R. Sec. 230.144A;
(v) a financing entity;
(vi) a special purpose entity; or
(vii) a related provider trust;
(f) a life settlement provider fails to maintain a standard set forth in Subsection (2)(b);
(g) an applicant or licensee has a material misrepresentation in an initial or renewal application for a license; or
(h) the licensee engages in bad faith conduct with one or more owners.
(4) If the commissioner denies a license application or suspends, revokes, or refuses to renew the license of a life settlement provider or life settlement producer, the commissioner shall conduct an adjudicative proceeding under Title 63G, Chapter 4, Administrative Procedures Act.
Amended by Chapter 355, 2009 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 36 - Life Settlements Act › Section 105 - Filing and use of forms for life settlement and disclosure.

31A-36-105.
Filing and use of forms for life settlement and disclosure.
(1) A person may not use a form unless the form is filed with the commissioner under Subsection 31A-21-201(1).
(2) The commissioner may prohibit the use of a form submitted under Subsection (1) pursuant to Subsection 31A-21-201(3).
(3) The commissioner may require the submission of advertising material before its use.
Amended by Chapter 355, 2009 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 36 - Life Settlements Act › Section 106 - Reporting requirements and privacy.

31A-36-106.
Reporting requirements and privacy.
(1)
(a) Subject to Subsection (1)(b), a life settlement provider shall file with the commissioner on or before March 1 of each year an annual report containing the information the commissioner prescribes under Section 31A-36-119.
(b) Notwithstanding Subsection (1)(a), the commissioner shall only require the information for those transactions that involve an owner.
(2) Except as otherwise allowed or required by law, the following may not disclose the identity, financial information, or medical information of an insured to any other person:
(a) a life settlement provider;
(b) a life settlement producer;
(c) a producer of insurance;
(d) an information bureau;
(e) a rating agency or company; or
(f) any other person knowing the identity of an insured.
(3) Notwithstanding Subsection (2), a person may disclose the identity of an insured if the disclosure is:
(a) necessary to effect a life settlement between an owner and a life settlement provider and both the owner and the insured give prior written consent to the disclosure;
(b) furnished in response to an investigation or examination by the commissioner or another governmental officer or agency;
(c) furnished pursuant to Section 31A-36-114;
(d) a term of or condition to the transfer of a policy by one life settlement provider to another life settlement provider;
(e) necessary to permit a financing entity, related provider trust, or special purpose entity to finance the purchase of a policy by a life settlement provider and the insured gives prior written consent to the disclosure;
(f) necessary to allow the life settlement provider or life settlement producer or the life settlement provider's or life settlement producer's authorized representatives to make a contact to determine the health status of an insured; or
(g) required to purchase stop-loss coverage.
Amended by Chapter 355, 2009 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 36 - Life Settlements Act › Section 107 - Examinations and retention of records.

31A-36-107.
Examinations and retention of records.
(1) The commissioner may conduct an examination of a life settlement provider or life settlement producer in accordance with Sections 31A-2-203, 31A-2-203.5, 31A-2-204, and 31A-2-205.
(2) A life settlement provider or life settlement producer shall retain for five years copies of:
(a) the following records, whether proposed, offered, or executed, from the later of the date of the proposal, offer, or execution:
(i) contracts;
(ii) purchase agreements;
(iii) underwriting documents;
(iv) policy forms; and
(v) applications;
(b) checks, drafts, and other evidence or documentation relating to the payment, transfer, or release of money, from the date of the transaction; and
(c) records and documents related to the requirements of this chapter.
(3) This section does not relieve a person of the obligation to produce a document described in Subsection (2) to the commissioner after the expiration of the relevant period if the person has retained the document.
(4) A record required by this section to be retained:
(a) shall be legible and complete; and
(b) may be retained in any form or by any process that accurately reproduces or is a durable medium for the reproduction of the record.
(5) An examiner may not be appointed by the commissioner if the examiner, either directly or indirectly, has a conflict of interest or is affiliated with the management of or owns a pecuniary interest in a person subject to examination under this chapter. This Subsection (5) does not automatically preclude an examiner from being:
(a) an owner;
(b) an insured in a settled policy; or
(c) a beneficiary in a policy that is proposed to be settled.
(6)
(a) An examinee under this section shall reimburse the cost of an examination to the department consistent with Section 31A-2-205.
(b) Notwithstanding Subsection (6)(a), an individual life settlement producer is not subject to Section 31A-2-205.
Amended by Chapter 297, 2011 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 36 - Life Settlements Act › Section 108 - Required disclosures.

31A-36-108.
Required disclosures.
(1) With an application for a life settlement, a life settlement provider or life settlement producer shall furnish to the owner the disclosures the commissioner may require under Section 31A-36-119, in a separate document signed by the owner and the life settlement provider or life settlement producer, no later than the time the application for the life settlement is signed by all the participants in the life settlement.
(2) A life settlement provider shall furnish to the owner the disclosures the commissioner may require under Section 31A-36-119, conspicuously displayed in the life settlement or in a separate document signed by the owner and the life settlement provider, no later than the time the life settlement is signed by all participants in the life settlement.
Amended by Chapter 355, 2009 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 36 - Life Settlements Act › Section 110 - Payment and document requirements.

31A-36-110.
Payment and document requirements.
(1)
(a) A life settlement provider shall instruct the owner to send the executed documents required to effect the change in ownership or assignment or change of beneficiary of the affected policy to a designated independent escrow agent.
(b) Within three business days after the day on which the escrow agent receives the documents, or within three business days after the day on which the life settlement provider receives the documents if by mistake they are sent directly to the life settlement provider, the life settlement provider shall deposit the proceeds of the life settlement into an escrow or trust account of the escrow agent in a federally insured depository institution.
(2)
(a) Upon completion of the requirements of Subsection (1), the escrow agent shall deliver the original documents executed by the owner to:
(i) the life settlement provider; or
(ii) a related provider trust or other designated representative of the life settlement provider.
(b) Upon the life settlement provider's receipt from the insurer of an acknowledgment of the change in ownership or assignment or change of beneficiary of the affected policy, the life settlement provider shall instruct the escrow agent to pay the proceeds of the life settlement to the owner.
(3) Payment to the owner shall be made within three business days after the day on which the life settlement provider receives the acknowledgment from the insurer. Failure to make the payment within that time makes the life settlement voidable by the owner for lack of consideration until payment is tendered to and accepted by the owner.
Amended by Chapter 297, 2011 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 36 - Life Settlements Act › Section 112 - Advertising regulations.

31A-36-112.
Advertising regulations.
(1)
(a) A life settlement provider or life settlement producer shall establish and continuously maintain a system of control over the content, form, and method of dissemination of advertisements of the life settlement provider's or life settlement producer's contracts and services.
(b) An advertisement is the responsibility of the life settlement provider or life settlement producer as well as the person that creates or presents the advertisement.
(c) A system of control shall include at least annual notification to persons authorized by the life settlement provider or life settlement producer that disseminate advertisements of the requirements and procedures for approval before use of any advertisements not furnished by the life settlement provider or life settlement producer.
(2) An advertisement shall be truthful and not misleading in fact or by implication, as determined by the commissioner from the overall impression it may reasonably be expected to create upon a person of average education or intelligence in the segment of the public to which it is directed.
(3) A false or misleading statement is not remedied by:
(a) making a life settlement available for inspection before it is consummated; or
(b) offering to refund payment if the owner is not satisfied within the period prescribed in Subsection 31A-36-109(7).
Amended by Chapter 297, 2011 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 36 - Life Settlements Act › Section 114 - Reporting of fraud and immunity.

31A-36-114.
Reporting of fraud and immunity.
(1) A person engaged in the business of life settlements that knows or reasonably suspects that a violation of Section 31A-36-113 is being, has been, or will be committed shall provide to the commissioner the information required by, and in a manner prescribed by, the commissioner.
(2) A person not engaged in the business of life settlements that knows or reasonably believes that a violation of Section 31A-36-113 is being, has been, or will be committed may furnish to the commissioner the information required by, and in a manner prescribed by, the commissioner.
(3) Except as provided in Subsection (4), a person furnishing information of the kind described in this section is immune from liability and civil action if the information is furnished to or received from:
(a) the commissioner or the commissioner's employees, agents, or representatives;
(b) federal, state, or local law enforcement or regulatory officials or their employees, agents, or representatives;
(c) another person involved in the prevention or detection of violations of Section 31A-36-113 or that person's employees, agents, or representatives;
(d) the following organizations or their employees, agents, or representatives:
(i) the National Association of Insurance Commissioners;
(ii) the Financial Industry Regulatory Authority;
(iii) the North American Securities Administrators Association; or
(iv) another regulatory body overseeing life insurance, life settlements, securities, or investment fraud; or
(e) the insurer that issued the policy concerned in the information.
(4) The immunity provided in Subsection (3) does not extend to a statement made with actual malice. In an action brought against a person for filing a report or furnishing other information concerning a violation of this section, the plaintiff shall plead specifically that the defendant acted with actual malice.
(5) A person furnishing information as identified in Subsection (3) is entitled to an award of attorney fees and costs if:
(a) the person is the prevailing party in a civil cause of action for libel, slander, or another relevant tort arising out of activities in carrying out the provisions of this chapter; and
(b) the action did not have a reasonable basis in law or fact at the time it was initiated.
(6) This section does not supplant or modify any other privilege or immunity at common law or under another statute.
Amended by Chapter 297, 2011 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 36 - Life Settlements Act › Section 115 - Confidentiality.

31A-36-115.
Confidentiality.
(1) The following shall be classified as protected records under Title 63G, Chapter 2, Government Records Access and Management Act:
(a) a document or information furnished pursuant to Section 31A-36-114; and
(b) a document or information obtained by the commissioner in an investigation of a violation of Section 31A-36-113.
(2) Subsection (1) does not prohibit the commissioner from disclosing documents or evidence so furnished or obtained:
(a) in an administrative or judicial proceeding to enforce laws administered by the commissioner;
(b) to federal, state, or local law enforcement or regulatory agencies;
(c) to an organization established to detect and prevent fraudulent life settlement acts;
(d) to the National Association of Insurance Commissioners; or
(e) to a person engaged in the business of life settlements that is aggrieved by the violation.
(3) Disclosure of a document or evidence under Subsection (2) does not abrogate or modify the privilege granted in Subsection (1).
Amended by Chapter 355, 2009 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 36 - Life Settlements Act › Section 116 - Other law enforcement or regulatory authority.

31A-36-116.
Other law enforcement or regulatory authority.
This chapter does not:
(1) preempt the authority or relieve the duty of other law enforcement or regulatory agencies to investigate, examine, and prosecute suspected violations of law;
(2) prevent or prohibit a person from disclosing voluntarily information concerning life settlement fraud to a law enforcement or regulatory agency other than the insurance department; or
(3) limit the powers granted elsewhere by law to the commissioner or an insurance fraud unit to investigate and examine possible violations of law and to take appropriate action.
Amended by Chapter 355, 2009 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 36 - Life Settlements Act › Section 117 - Antifraud initiatives.

31A-36-117.
Antifraud initiatives.
(1) The following shall establish and maintain antifraud initiatives which are reasonably calculated to prevent, detect, and assist in the prosecution of violations of Section 31A-36-113:
(a) a life settlement provider; and
(b) an agency that is a life settlement producer.
(2) The commissioner may order, or a licensee may request and the commissioner may approve, modifications of the measures otherwise required under this section, more or less restrictive than those measures, as necessary to protect against fraud.
(3) Antifraud initiatives shall include:
(a) fraud investigators, that may be either:
(i) employees of a life settlement provider or life settlement producer; or
(ii) independent contractors;
(b) an antifraud plan submitted to the commissioner, which shall include:
(i) a description of the procedures for:
(A) detecting and investigating possible violations of Section 31A-36-113; and
(B) resolving material inconsistencies between medical records and applications for insurance;
(ii) a description of the procedures for reporting possible violations to the commissioner;
(iii) a description of the plan for educating and training underwriters and other personnel against fraud; and
(iv) a description or chart of the organizational arrangement of the personnel responsible for detecting and investigating possible violations of Section 31A-36-113 and for resolving material inconsistencies between medical records and applications for insurance.
(4) A plan submitted to the commissioner shall be classified as a protected record under Title 63G, Chapter 2, Government Records Access and Management Act.
Amended by Chapter 355, 2009 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 36 - Life Settlements Act › Section 118 - Criminal penalties and restitution.

Effective 5/3/2023
31A-36-118.
Criminal penalties and restitution.
(1) A person subject to this chapter is subject to:
(a) Section 31A-2-308 for an administrative violation of this title;
(b) prosecution under Title 76, Chapter 6, Part 4, Theft, for criminal activity involving a life settlement; or
(c) prosecution under Section 31A-31-103 for insurance fraud involving a life settlement.
(2) A person found to be in violation of this chapter may:
(a) be ordered to pay restitution to persons aggrieved by the violation;
(b) be ordered to pay a forfeiture;
(c) be imprisoned if found guilty of a criminal law by a court of competent jurisdiction; and
(d) be subject to a combination of the penalties described in this Subsection (2).
(3) Except for a fraudulent act committed by an owner, this section does not apply to the owner.
Amended by Chapter 111, 2023 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 36 - Life Settlements Act › Section 119 - Authority to make rules.

31A-36-119.
Authority to make rules.
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commissioner may adopt rules to:
(1) establish the requirements for the annual report required under Section 31A-36-106;
(2) establish standards for evaluating the reasonableness of payments under life settlements;
(3) establish appropriate licensing requirements, fees, and standards for continued licensure for:
(a) a life settlement provider; and
(b) a life settlement producer;
(4)
(a) determine the amount and conditions of a bond or other assurance of financial responsibility required under Section 31A-23a-117 for a life settlement provider; and
(b) require, determine the amount, or determine the conditions of an assurance of financial responsibility for a life settlement producer, including a bond or an errors and omissions insurance policy;
(5) govern the relationship of insurers with a life settlement provider or life settlement producer during the settlement of a policy;
(6) determine the specific disclosures required under Section 31A-36-108;
(7) determine whether advertising for life settlements violates Section 31A-36-112;
(8) determine the information to be provided to the commissioner under Section 31A-36-114 and the manner of providing the information;
(9) determine additional acts or practices that are prohibited under Section 31A-36-111;
(10) establish payment requirements for the payments in Section 31A-36-110; and
(11) establish the filing procedure for the forms listed in Subsection 31A-36-105(1).
Amended by Chapter 355, 2009 General Session