reglab/statecodes huggingface dataset:
2023 Utah Code › Title 31A - Insurance Code › Chapter 14 - Foreign Insurers › Part 2 - Authorization of Foreign Insurers › Section 208 - Requirements for foreign reciprocals.

31A-14-208.
Requirements for foreign reciprocals.
(1) No foreign reciprocal may be authorized to do business in this state unless:
(a) under the laws of its domicile, the provisions of its power of attorney, or otherwise, it can sue and be sued in its own name;
(b) the assets resulting from the exchange of insurance contracts can be reached by its creditors; and
(c) either:
(i) if it issues only nonassessable policies, it meets all the financial requirements for a mutual corporation in similar circumstances, including unallocated surplus that is at least as great as the level required under Chapter 17, Part 6, Risk-Based Capital; or
(ii) if it issues any assessable policies, it meets all the requirements for a mutual corporation issuing assessable policies in similar circumstances and its subscribers are liable to the exchange to the limit of their assessability without regard to the validity or collectibility of any assessment levied against other subscribers.
(2) Any reciprocal admitted to Utah shall have a name that includes the word "reciprocal," "interinsurer," "interinsurance exchange," "underwriters," or "association." The name may not suggest a corporate entity.
(3) The reciprocal may not be authorized to do business in Utah unless the contract with its attorney in fact satisfies the requirements for a management contract under Section 31A-14-207.
(4) To the extent they are consistent with the nature of a reciprocal, the provisions of Chapter 5, Domestic Stock and Mutual Insurance Corporations, that are made applicable to foreign mutual corporations by Section 31A-14-205 apply to foreign reciprocals, and the provisions and requirements applicable to principal officers of corporations apply to the attorneys in fact of reciprocal insurers.
(5) Except for life insurance and annuities, an authorized reciprocal may transact any kind of insurance, including reinsurance subject to Section 31A-20-107.
Amended by Chapter 9, 1996 Special Session 2
Amended by Chapter 9, 1996 Special Session 2
2023 Utah Code › Title 31A - Insurance Code › Chapter 14 - Foreign Insurers › Part 2 - Authorization of Foreign Insurers › Section 209 - Requirements for incorporated alien insurers.

31A-14-209.
Requirements for incorporated alien insurers.
(1) No incorporated alien insurer may be authorized to do business in Utah unless, in addition to the requirements of Section 31A-14-201, it satisfies all of the following:
(a) It has operated for three years in its domicile or the commissioner finds other grounds for being confident that it will be solid during its formative period.
(b) It supplies and commits itself to maintain in the United States a deposit or bond in an amount the commissioner considers sufficient to protect the interests of insureds, creditors, and the public in Utah.
(c) It files an agreement with the commissioner as required by the commissioner regarding its records, reports, and submission to examinations. This agreement shall include a commitment to keep its records, reports, and other documents relevant to its United States business constantly available in full in the English language, and to keep these records and make its reports on its United States business in a form which satisfies the commissioner.
(2) A deposit under Subsection (1)(b) may be made as specified in Section 31A-2-206 or it may be made in another state with a custodian approved by the commissioner. The deposit shall be in trust for those persons the commissioner considers appropriate to protect the interests of insureds, creditors, and the public in Utah. The custodian shall supply a certificate of the deposit in the form and at the intervals reasonably required by the commissioner.
(3) A bond satisfies Subsection (1)(b) if it is issued by an insurer authorized to do a surety business in Utah and is conditioned on nonperformance of any obligation to those persons the commissioner considers appropriate in protecting the interests of insureds, creditors, and the public in Utah. Each bond shall cover any claims that arise out of occurrences prior to the termination of the bond, and may not be terminable on any ground without at least 30 days notice to the commissioner. Each bond shall be in the form and be renewed at the intervals reasonably required by the commissioner.
Enacted by Chapter 242, 1985 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 14 - Foreign Insurers › Part 2 - Authorization of Foreign Insurers › Section 210 - Requirements for foreign fraternals.

31A-14-210.
Requirements for foreign fraternals.
(1) A foreign fraternal may not be authorized to do business in this state under Section 31A-14-203, unless it strictly complies with:
(a) the financial requirements of Section 31A-9-209 and Chapter 17, Part 6, Risk-Based Capital;
(b) the requirements of Section 16-6a-1506 and Subsection 31A-5-410(1)(a), the reporting requirements of Subsection 31A-5-410(2), Section 31A-5-413 whenever removal is made involuntarily under the laws of the domicile, Section 31A-9-202, and Subsections 31A-9-204(1)(c), 31A-9-402(2), and 31A-9-602(1); and
(c) for five years after the initial issuance of a certificate of authority in its domiciliary jurisdiction, the requirements of Subsection 31A-9-213(2).
(2)
(a) No foreign fraternal may be authorized to do business in this state unless it substantially complies with Sections 31A-5-217 and 31A-5-218, except that the approval requirement of Subsection 31A-5-217(2) does not apply.
(b) When any corporate reorganization, transformation, or liquidation of a foreign fraternal, or any levy to cover a deficiency under a law comparable to Subsection 31A-9-209(2), is formally initiated by the fraternal, by the official act of the domiciliary commissioner, or by any other official, the fraternal shall promptly give written notice to the commissioner.
(3) The commissioner may issue orders imposing and eliminating restrictions under Section 31A-9-103 that are applicable to foreign fraternals.
(4)
(a) After a hearing, the commissioner may, by order, apply any of the provisions of Sections 31A-9-213, 31A-9-404, 31A-9-411, 31A-9-413, or Subsection 31A-5-415(2) to a foreign fraternal after finding that it is necessary for the protection of the interests of its members, creditors, or the public in this state.
(b) If any provision made applicable to the foreign fraternal under Subsection (4)(a) conflicts with a provision of the law of the domicile, so that it is impossible for the fraternal to comply with both, the law of the domicile governs.
Amended by Chapter 300, 2000 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 14 - Foreign Insurers › Part 2 - Authorization of Foreign Insurers › Section 211 - Restrictions on foreign title insurers.

31A-14-211.
Restrictions on foreign title insurers.
(1) An authorized foreign title insurer may only insure property in this state:
(a) through an agency title insurance producer who is a resident in Utah; or
(b) if the authorized foreign title insurer has a bona fide office in Utah:
(i) that is under the direction and control of the authorized foreign title insurer;
(ii) for which the authorized foreign title insurer pays the expenses, including compensation of the employees of the bona fide office;
(iii) at which a person may request information about title services related to a real estate transaction for which the person is a party;
(iv) at which a person may deliver written communications to the authorized foreign title insurer as required by the real estate transaction for which the person is a party; and
(v) at which a person may deliver escrow money related to a real estate transaction for which the person is a party.
(2) This section does not apply to reinsurance.
Amended by Chapter 319, 2013 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 14 - Foreign Insurers › Part 2 - Authorization of Foreign Insurers › Section 212 - Changes in business plan.

31A-14-212.
Changes in business plan.
(1) Within two years after the initial issuance of a certificate of authority to a foreign insurer by its domiciliary jurisdiction, the insurer may not substantially deviate from its business plan under Subsection 31A-14-201(2)(b)(xii) unless notice of the proposed action is filed with the commissioner 30 days in advance of the proposed effective date.
(2) If the commissioner believes that the change proposed under Subsection (1) would be contrary to Utah law or to the interests of insureds, creditors, or the public, he may prohibit the application of the change to Utah. In his prohibitory order he shall explain why he has prohibited the change.
(3) If the commissioner finds after a hearing that the application of the proposed change outside Utah would endanger the interests of insureds, creditors, or the public in Utah, the commissioner may revoke the insurer's certificate of authority unless the insurer agrees not to make the change.
Amended by Chapter 116, 2001 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 14 - Foreign Insurers › Part 2 - Authorization of Foreign Insurers › Section 213 - Transfer of business.

31A-14-213.
Transfer of business.
(1) A foreign insurer that intends to transfer to another person all or a substantial part of its insurance business in Utah by means of an assumption reinsurance transaction, a sale, or otherwise, shall report the proposed transaction to the commissioner not less than 30 days before the proposed effective date. The commissioner may approve the transaction to take effect immediately. Alternatively, the commissioner may defer the effective date of the transaction for an additional period not exceeding 30 days, by written notice to the insurer before the expiration of the initial 30-day period.
(2) The commissioner may, within the 30-day period or its extension, prohibit the proposed action if it would be contrary to the law or to the interests of insureds, creditors, or the public in Utah.
Enacted by Chapter 242, 1985 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 14 - Foreign Insurers › Part 2 - Authorization of Foreign Insurers › Section 214 - Amendment to articles and notice of corporate reorganization.

31A-14-214.
Amendment to articles and notice of corporate reorganization.
Sections 16-10a-1001 through 16-10a-1004 apply when a foreign insurer amends its articles of incorporation. If a foreign insurer plans to undergo any corporate reorganization of the kinds dealt with in Chapter 5, Part 5, Corporate Reorganization, the insurer shall notify the commissioner in writing, at the same time that the first formal step of the statutory procedure for achieving the reorganization is taken in the domiciliary jurisdiction or elsewhere. The insurer shall provide the details required by the commissioner, whether by rule or order.
Amended by Chapter 90, 2004 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 14 - Foreign Insurers › Part 2 - Authorization of Foreign Insurers › Section 215 - Assessment by foreign company.

31A-14-215.
Assessment by foreign company.
Every foreign mutual insurer authorized in this state shall notify the commissioner immediately after making an assessment upon any of its members in this state. The insurer shall attach to the notice a statement of the condition of the insurer, giving the facts showing the necessity for the assessment. Unless the commissioner orders otherwise under a Chapter 27, Part 5, Administrative Actions, proceeding, a foreign mutual insurer authorized in this state may not make or increase any assessment because of its inability to collect assessments from its members in other states.
Amended by Chapter 309, 2007 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 14 - Foreign Insurers › Part 2 - Authorization of Foreign Insurers › Section 216 - Release from regulation.

31A-14-216.
Release from regulation.
(1) A foreign insurer authorized under this chapter is subject to regulation under the applicable provisions of the Insurance Code, unless it is released from regulation under this section.
(2) A foreign insurer may apply for release from regulation by filing with the commissioner:
(a) its certificate of authority;
(b) a schedule of its outstanding liabilities from policies issued in this state to residents of Utah or on risks located in Utah, and from other business transactions in Utah;
(c) a plan for securing the discharge of those outstanding liabilities; and
(d) any other information as reasonably required by the commissioner.
(3) The commissioner shall promptly release the insurer from regulation if he finds all the following:
(a) The insurer has stopped doing any new business in Utah.
(b) The discharge of existing liabilities to creditors in Utah is sufficiently secured.
(c) The release would not otherwise be prejudicial to the interests of insureds or creditors in Utah or, if the insurer is an alien insurer and Utah is the state of entry into the United States, of all insureds and creditors in the United States.
(4) Before deciding on the release, the commissioner may require the insurer to notify, at its own expense, all agents or other classes of potentially interested persons in a manner the commissioner prescribes, including publication of its withdrawal from Utah. The notice shall advise affected persons to communicate to the commissioner any objections they may have to the insurer's release from regulation.
(5) As a prerequisite for releasing the insurer, the commissioner may require a deposit under Section 31A-2-206, a bond issued by a surety authorized in Utah, or other appropriate security or reinsurance in a sufficient amount to secure the proper discharge of the insurer's remaining liabilities in Utah. The commissioner may also require the insurer to sign an agreement to remain subject to the jurisdiction of the commissioner and the courts of Utah with respect to any matter arising out of business done in Utah prior to the release.
Enacted by Chapter 242, 1985 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 14 - Foreign Insurers › Part 2 - Authorization of Foreign Insurers › Section 217 - Revocation of certificate of authority.

31A-14-217.
Revocation of certificate of authority.
Whenever there would be grounds for delinquency proceedings under Chapter 27a, Insurer Receivership Act, against a foreign insurer, if the foreign insurer were a domestic insurer, the commissioner may, after any proceeding authorized by Title 63G, Chapter 4, Administrative Procedures Act, revoke, suspend, or limit the foreign insurer's certificate of authority. This action does not affect insurance which has already been issued. The insurer remains subject to regulation until released under Section 31A-14-216.
Amended by Chapter 382, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 15 - Unauthorized Insurers, Surplus Lines, and Risk Retention Groups › Part 1 - Unauthorized Insurers and Surplus Lines › Section 101 - Purposes.

31A-15-101.
Purposes.
It is the purpose of this chapter to:
(1) prevent evasion by unauthorized insurers of the regulatory and tax laws of Utah and protect Utah and its residents against loss from that type of evasion;
(2) subject unauthorized insurers and other persons doing an insurance business in Utah to the jurisdiction of the Utah commissioner and courts;
(3) protect authorized insurers from unfair competition by unauthorized insurers; and
(4) provide an orderly method, under reasonable and practical safeguards, for procuring insurance from unauthorized insurers.
Enacted by Chapter 242, 1985 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 15 - Unauthorized Insurers, Surplus Lines, and Risk Retention Groups › Part 1 - Unauthorized Insurers and Surplus Lines › Section 102 - Assisting unauthorized insurers.

31A-15-102.
Assisting unauthorized insurers.
(1) No person may do any act enumerated under Subsection (2) who knows or should know that the act may assist in the illegal placement of insurance with an unauthorized insurer or the subsequent servicing of an insurance policy illegally placed with an unauthorized insurer.
(2) An act performed by mail is performed both at the place of mailing and at the place of delivery. Any of the following acts, whether performed by mail or otherwise, fall within the prohibition of Subsection (1):
(a) soliciting, making, or proposing to make an insurance contract;
(b) taking, receiving, or forwarding an application for insurance;
(c) collecting or receiving, in full or in part, an insurance premium;
(d) issuing or delivering an insurance policy or other evidence of an insurance contract except as a messenger not employed by the insurer, or an insurance producer;
(e) doing any of the following in connection with the solicitation, negotiation, procuring, or effectuation of insurance coverage for another: inspecting risks, setting rates, advertising, disseminating information, or advising on risk management;
(f) publishing or disseminating any advertisement encouraging the placement or servicing of insurance that would violate Subsection (1); however this provision does not apply to publication or dissemination to an audience primarily outside Utah that also reaches persons in Utah unless the extension to persons inside Utah can be conveniently avoided without substantial expense other than loss of revenue; nor does it apply to regional or national network programs on radio or television unless they originate in Utah;
(g) investigating, settling, adjusting, or litigating claims; or
(h) representing or assisting any person to do an unauthorized insurance business or to procure insurance from an unauthorized insurer.
(3) Subsection (1) does not prohibit:
(a) an attorney acting for a client;
(b) a full-time salaried employee of an insured acting in the capacity of an insurance buyer or manager; or
(c) insurance activities described under Section 31A-15-103.
(4) Any act performed in Utah which is prohibited under this section constitutes appointment of the commissioner or the lieutenant governor as agent for service of process under Sections 31A-2-309 and 31A-2-310.
(5) Any person or entity who knows or should know that the person's or entity's actions assist in the illegal placement of insurance in violation of this section is guilty of a third degree felony.
Amended by Chapter 58, 2005 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 15 - Unauthorized Insurers, Surplus Lines, and Risk Retention Groups › Part 1 - Unauthorized Insurers and Surplus Lines › Section 104 - Direct placement of insurance.

31A-15-104.
Direct placement of insurance.
(1) Subject to this section, any person seeking insurance may obtain it from an unauthorized insurer if no producer resident doing business in Utah is involved and if negotiations occur primarily outside Utah. Negotiations by mail occur within Utah if a letter or other document containing insurance-related solicitations or negotiations is sent from or to a Utah address. Negotiations by telephone take place within Utah if one of the parties to the conversation is in Utah.
(2) Each policyholder who procures or renews insurance otherwise subject to this code from any insurer not authorized to do business in Utah, other than insurance procured under Section 31A-15-103 and the renewal of guaranteed renewable insurance lawfully issued outside Utah, shall within 60 days after the insurance is procured or renewed, report to the commissioner in the form required by the commissioner and pay the taxes specified by Section 31A-3-301.
(3)
(a) Any insurance on personal property sold on the installment plan, under a conditional sales contract, or an equivalent security agreement under the Uniform Commercial Code which charges the buyer, as a part of the consideration in the agreement of sale for insurance on the property, shall be placed with an insurer authorized to do business in Utah.
(b) Whenever the law of Utah requires a person to purchase insurance on risks in Utah, it shall be obtained from an insurer authorized to do business in Utah, or under Section 31A-15-103.
Amended by Chapter 298, 2003 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 15 - Unauthorized Insurers, Surplus Lines, and Risk Retention Groups › Part 1 - Unauthorized Insurers and Surplus Lines › Section 105 - Effect of contracts illegal because insurer was unauthorized.

31A-15-105.
Effect of contracts illegal because insurer was unauthorized.
(1) An insurance contract entered into in violation of this chapter is unenforceable by, but enforceable against, the insurer. In an action against the insurer on the contract, the insured is bound by the terms of the contract as affected by this title and rules adopted under this title.
(2) An insurance policy entered into in violation of this chapter is voidable by the policyholder who entered into the transaction without knowing it was illegal. The policyholder may avoid the contract by notice to the insurer, if no insured has enforced the contract by an action under Subsection (1), and may recover any consideration paid under the contract.
(3) Any person who assisted in the procurement of an illegal contract under this chapter, and who knew or should have known the transaction was illegal, is liable to the insured for the full amount of a claim or loss payable under the contract, if the insurer does not pay it. The receiver appointed under Chapter 27a, Insurer Receivership Act, may assert the claims of insureds if the insurer is the subject of a proceeding under Chapter 27a, Insurer Receivership Act.
Amended by Chapter 309, 2007 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 15 - Unauthorized Insurers, Surplus Lines, and Risk Retention Groups › Part 1 - Unauthorized Insurers and Surplus Lines › Section 106 - Servicing of contracts made out of state.

31A-15-106.
Servicing of contracts made out of state.
(1) A foreign insurer that does not have a certificate of authority to do business in this state under Section 31A-14-202 may, in this state, collect premiums and adjust losses and do all other acts reasonably incidental to contracts made outside this state without violating this chapter. Any premiums collected under this section are subject to Section 31A-3-301.
(2) Subsection (1) does not permit a renewal, extension, increase, or other substantial change in the terms of any contract under Subsection (1) unless:
(a) it is permitted under Section 31A-15-103;
(b) the contract is for life or accident and health insurance or annuities; or
(c) a rule adopted by the commissioner permits this action when the interests of the policyholder and the public appear to be sufficiently protected.
Amended by Chapter 116, 2001 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 15 - Unauthorized Insurers, Surplus Lines, and Risk Retention Groups › Part 1 - Unauthorized Insurers and Surplus Lines › Section 107 - Defense of action by unauthorized person.

31A-15-107.
Defense of action by unauthorized person.
(1) Except under Subsection (3), no pleading, notice, order, or process in any action in court or in any administrative proceeding before the commissioner instituted against an unauthorized person under Sections 31A-2-309 and 31A-2-310 may be filed by or on behalf of the unauthorized person unless one of the following conditions exists:
(a) The unauthorized person deposits with the clerk of the court in which the action or proceeding is pending, or with the commissioner in administrative proceedings, cash, securities, or a bond with sureties in an amount fixed by the court or the commissioner, sufficient to secure the payment or performance of any probable final judgment or order.
(b) That person procures proper authorization to do an insurance business in Utah.
(c) The commissioner, after a hearing, issues an order stating that he is satisfied the person has funds or securities, in a state of the United States, in trust or otherwise, which are readily available and adequate to satisfy any probable final judgment or to perform in accordance with any order.
(2) The court in any action or proceeding under this section, or the commissioner in any administrative proceeding under this section, may order any postponement he considers necessary to give the unauthorized person a reasonable opportunity to comply with Subsection (1).
(3) Subsection (1) does not prevent an unauthorized person from filing a motion to quash a writ or to set aside service on the ground that the person has not done any of the acts specified under Subsection 31A-15-102(2).
Enacted by Chapter 242, 1985 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 15 - Unauthorized Insurers, Surplus Lines, and Risk Retention Groups › Part 1 - Unauthorized Insurers and Surplus Lines › Section 108 - Attorney fees.

31A-15-108.
Attorney fees.
In an action against an unauthorized person upon a contract of insurance issued in violation of this chapter, if the unauthorized person fails to make payment in accordance with the contract for 30 days after the payment is due and demand is made, and it appears to the court that the failure was without just cause, the court may allow the plaintiff a reasonable attorney's fee and may include the fee in any judgment that may be rendered in the action. The unauthorized person's failure to defend this action is prima facie evidence that the failure to pay was without just cause.
Enacted by Chapter 242, 1985 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 15 - Unauthorized Insurers, Surplus Lines, and Risk Retention Groups › Part 1 - Unauthorized Insurers and Surplus Lines › Section 109 - Investigation and disclosure of insurance contracts.

31A-15-109.
Investigation and disclosure of insurance contracts.
Whenever the commissioner has reason to believe that insurance has been effectuated by or for any person in Utah with an unauthorized insurer, the commissioner may, in writing, order the person to produce for examination all insurance contracts and other documents evidencing insurance with both authorized and unauthorized insurers and to disclose to the commissioner the amount of insurance, the name and address of each insurer, the gross amount of premium, and the name and address of any person who has assisted in effecting the insurance.
Enacted by Chapter 242, 1985 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 15 - Unauthorized Insurers, Surplus Lines, and Risk Retention Groups › Part 1 - Unauthorized Insurers and Surplus Lines › Section 110 - Reporting of illegal insurance.

31A-15-110.
Reporting of illegal insurance.
(1) Every person investigating or adjusting any loss or claim on a subject of insurance in this state shall immediately report to the commissioner every insurance policy or contract connected with the investigation or settlement, which the person has reason to believe has been entered into illegally by any insurer not authorized to transact business in this state.
(2) Every person acting as an insurance consultant shall immediately report to the commissioner every insurance policy or contract covering a subject of insurance in this state, which the consultant has reason to believe has been entered into illegally by an insurer not authorized to transact that type of insurance in this state.
Amended by Chapter 204, 1986 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 15 - Unauthorized Insurers, Surplus Lines, and Risk Retention Groups › Part 2 - Risk Retention Groups Act › Section 205 - Guaranty associations.

31A-15-205.
Guaranty associations.
(1) A risk retention group may not be required to join or contribute financially to the Insurance Guaranty Fund created under Title 31A, Chapter 28, Part 2, Property and Casualty Guaranty Association, nor may any risk retention group, or its insureds or claimants against its insureds, receive any benefit from any such fund for claims arising under the insurance policies issued by the risk retention group.
(2) When a purchasing group obtains insurance covering its members' risks from an insurer not authorized in this state or from a risk retention group, the risks, wherever resident or located, may not be covered by any insurance guaranty fund or similar mechanism in this state.
(3) When a purchasing group obtains insurance covering its members' risks from an authorized insurer, only risks resident or located in this state shall be covered by the Utah Property and Casualty Insurance Guaranty Association created under Title 31A, Chapter 28, Guaranty Associations.
Enacted by Chapter 258, 1992 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 15 - Unauthorized Insurers, Surplus Lines, and Risk Retention Groups › Part 2 - Risk Retention Groups Act › Section 206.5 - Countersignatures not required.

Effective 5/10/2016
31A-15-206.5.
Countersignatures not required.
A policy of insurance issued to a risk retention group or any member of the risk retention group may not be required to be countersigned.
Enacted by Chapter 138, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 15 - Unauthorized Insurers, Surplus Lines, and Risk Retention Groups › Part 2 - Risk Retention Groups Act › Section 207 - Purchasing groups -- Exemption from certain laws.

31A-15-207.
Purchasing groups -- Exemption from certain laws.
A purchasing group and its insurers are subject to all applicable laws of this state, except that a purchasing group and its insurers are exempt, in regard to liability insurance for the purchasing group, from any law that would:
(1) prohibit the establishment of a purchasing group;
(2) make it unlawful for an insurer to provide, or offer to provide, to a purchasing group or its members insurance on a basis providing advantages based on their loss and expense experience not afforded to other persons with respect to rates, policy forms, coverages, or other matters;
(3) prohibit a purchasing group or its members from purchasing insurance on a group basis described in Subsection (2);
(4) prohibit a purchasing group from obtaining insurance on a group basis because the group has not been in existence for a minimum period of time or because any member has not belonged to the group for a minimum period of time;
(5) require that a purchasing group have a minimum number of members, common ownership or affiliation, or certain legal form;
(6) require that a certain percentage of a purchasing group obtain insurance on a group basis;
(7) otherwise discriminate against a purchasing group or any of its members; or
(8) require that any insurance policy issued to a purchasing group or any of its members be countersigned by an insurance producer residing in this state.
Amended by Chapter 297, 2011 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 15 - Unauthorized Insurers, Surplus Lines, and Risk Retention Groups › Part 2 - Risk Retention Groups Act › Section 208 - Purchasing groups -- Notice and registration requirements.

Effective 5/10/2016
31A-15-208.
Purchasing groups -- Notice and registration requirements.
(1) A purchasing group that intends to do business in this state shall, before doing business, furnish reasonable notice to the insurance commissioner in this state. The notice shall be on forms prescribed by the National Association of Insurance Commissioners and shall:
(a) identify the state in which the group is domiciled;
(b) identify the other states in which the group intends to do business;
(c) specify the lines and classifications of liability insurance that the group intends to purchase;
(d) identify the one or more insurance companies from which the group intends to purchase its insurance and the domicile of the insurers;
(e) specify the method by which, and the one or more persons, if any, through whom, insurance will be offered to its members whose risks are resident or located in this state;
(f) identify the principal place of business of the group; and
(g) provide any other information as may be required by the commissioner to verify that the group is a qualified "purchasing group," as defined in Section 31A-15-202.
(2) A purchasing group shall notify the commissioner of a change in an item listed in Subsection (1) within 10 days of the change.
(3)
(a) A purchasing group shall annually register with the commissioner and pay a filing fee.
(b) A purchasing group shall designate the commissioner as its agent solely for the purpose of receiving service of legal documents or process.
(c) The registration and fee requirements of this Subsection (3) do not apply to a purchasing group that only purchases insurance that was authorized under the Product Liability Risk Retention Act of 1981, and that:
(i) in any state of the United States:
(A) was domiciled before April 1, 1986; and
(B) is domiciled after October 27, 1986;
(ii)
(A) before October 27, 1986, purchased insurance from an insurer licensed in any state; and
(B) since October 27, 1986, purchased its insurance from an insurer licensed in any state; or
(iii) was a purchasing group under the requirements of the Product Liability Risk Retention Act of 1981 before October 27, 1986.
(4) Each purchasing group that is required to give notice under Subsection (1) shall also furnish the information required by the commissioner to:
(a) verify that the entity qualifies as a purchasing group;
(b) determine where the purchasing group is located; and
(c) determine appropriate tax treatment of the purchasing group.
Amended by Chapter 138, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 15 - Unauthorized Insurers, Surplus Lines, and Risk Retention Groups › Part 2 - Risk Retention Groups Act › Section 209 - Restrictions on purchasing groups.

Effective 5/10/2016
31A-15-209.
Restrictions on purchasing groups.
(1) A purchasing group may not purchase insurance from a risk retention group that is not chartered in a state or from an insurer not admitted in the state in which the purchasing group is located, unless the purchase is effected through a licensed producer acting pursuant to the surplus lines laws and regulations of the state in which the purchasing group is located.
(2) A purchasing group that obtains liability insurance from an insurer not admitted in this state or a risk retention group shall inform each of the members of the purchasing group or risk retention group that have a risk resident or located in this state that:
(a) the risk is not protected by an insurance insolvency guaranty fund in this state; and
(b) the risk retention group or insurer may not be subject to all insurance laws and regulations of this state.
(3)
(a) A purchasing group may not purchase insurance providing for a deductible or self-insured retention applicable to the group as a whole.
(b) Notwithstanding Subsection (3)(a), coverage may provide for a deductible or self-insured retention applicable to individual members.
(4) Purchases of insurance by purchasing groups are subject to the same standards regarding aggregate limits which are applicable to all purchases of group insurance.
Amended by Chapter 138, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 15 - Unauthorized Insurers, Surplus Lines, and Risk Retention Groups › Part 2 - Risk Retention Groups Act › Section 210 - Purchasing group taxation.

31A-15-210.
Purchasing group taxation.
Premium taxes and taxes on premiums paid for coverage of risks resident or located in this state by a purchasing group or any members of the purchasing groups are imposed and shall be paid as follows:
(1) If the insurer is an admitted insurer, taxes are imposed on the insurer at the same rate and in the same manner and subject to the same procedures, interest, and penalties that apply to premium taxes and other taxes imposed on other admitted liability insurers relative to coverage of risks resident or located in this state.
(2) If the insurer is an approved, nonadmitted surplus lines insurer, taxes are imposed on the licensed producer who effected coverage on risks resident or located in this state at the same rate and in the same manner and subject to the same procedures, interest, and penalties that apply to taxes imposed on other licensed producers effecting coverage with approved, nonadmitted surplus lines insurers on risks resident or located in this state.
Amended by Chapter 297, 2011 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 15 - Unauthorized Insurers, Surplus Lines, and Risk Retention Groups › Part 2 - Risk Retention Groups Act › Section 211 - Enforcement authority.

Superseded 7/1/2024
31A-15-211.
Enforcement authority.
(1) The commissioner is authorized to use the powers established for the department under this title to enforce the laws of this state not specifically preempted by the Liability Risk Retention Act of 1986, including the commissioner's administrative authority to investigate, issue subpoena, conduct depositions and hearings, issue orders, impose monetary penalties and seek injunctive relief. With regard to any investigation, administrative proceedings, or litigation, the commissioner shall rely on the procedural laws of this state.
(2) Whenever the commissioner determines that any person, risk retention group, purchasing group, or insurer of a purchasing group has violated, is violating, or is about to violate any provision of this part or any other insurance law of this state applicable to the person or entity, or that the person or entity has failed to comply with a lawful order of the commissioner, he may, in addition to any other lawful remedies or penalties, file a complaint in the Third District Court of Salt Lake County to enjoin and restrain any person, risk retention group, purchasing group, or insurer from engaging in the violation, or to compel compliance with the order of the commissioner. The court has jurisdiction of the proceeding and has the power to enter a judgment and order for injunctive or other relief. In any action by the commissioner under this subsection, service of process shall be made upon the director of the Division of Corporations and Commercial Code who shall forward the order, pleadings, or other process to the person, risk retention group, purchasing group, or insurer in accordance with the procedures specified in Section 31A-14-204. Nothing in this section may be construed to limit or abridge the authority of the commissioner to seek injunctive relief in any district court of the United States as provided in Section 31A-15-213.
Enacted by Chapter 258, 1992 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 15 - Unauthorized Insurers, Surplus Lines, and Risk Retention Groups › Part 2 - Risk Retention Groups Act › Section 211 - Enforcement authority.

Effective 7/1/2024
31A-15-211.
Enforcement authority.
(1)
(a) The commissioner is authorized to use the powers established for the department under this title to enforce the laws of this state not specifically preempted by the Liability Risk Retention Act of 1986, including the commissioner's administrative authority to investigate, issue subpoena, conduct depositions and hearings, issue orders, impose monetary penalties and seek injunctive relief.
(b) With regard to any investigation, administrative proceedings, or litigation, the commissioner shall rely on the procedural laws of this state.
(2)
(a) Whenever the commissioner determines that any person, risk retention group, purchasing group, or insurer of a purchasing group has violated, is violating, or is about to violate any provision of this part or any other insurance law of this state applicable to the person or entity, or that the person or entity has failed to comply with a lawful order of the commissioner, the commissioner may, in addition to any other lawful remedies or penalties, bring an action in a court with jurisdiction under Title 78A, Judiciary and Judicial Administration, to enjoin and restrain any person, risk retention group, purchasing group, or insurer from engaging in the violation, or to compel compliance with the order of the commissioner.
(b) In an action by the commissioner under Subsection (2)(a), service of process shall be made upon the director of the Division of Corporations and Commercial Code who shall forward the order, pleadings, or other process to the person, risk retention group, purchasing group, or insurer in accordance with the procedures specified in Section 31A-14-204.
(c) Nothing in this section may be construed to limit or abridge the authority of the commissioner to seek injunctive relief in any district court of the United States as provided in Section 31A-15-213.
(3) In an action under this section, a court has the power to enter a judgment and order for injunctive or other relief.
Amended by Chapter 401, 2023 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 15 - Unauthorized Insurers, Surplus Lines, and Risk Retention Groups › Part 2 - Risk Retention Groups Act › Section 212 - Duty of producers to obtain license -- Risk retention groups -- Purchasing groups.

Effective 5/10/2016
31A-15-212.
Duty of producers to obtain license -- Risk retention groups -- Purchasing groups.
(1) A person may do the following only if the person is licensed as an insurance producer or is exempt from licensure under Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries:
(a) solicit, negotiate, or procure liability insurance in this state from a risk retention group;
(b) solicit, negotiate, or procure liability insurance in this state for a purchasing group from an authorized insurer or a risk retention group; and
(c) solicit, negotiate, or procure liability insurance coverage in this state for any member of a purchasing group under a purchasing group's policy.
(2)
(a) A person may not act or aid in any manner in soliciting, negotiating, or procuring liability insurance in this state for a purchasing group from an authorized insurer or a risk retention group chartered in a state unless that person is licensed as an insurance producer, or is exempt from licensure under Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries.
(b) A person may not act or aid in any manner in soliciting, negotiating, or procuring liability insurance coverage in this state for any member of a purchasing group under a purchasing group's policy unless that person is licensed as an insurance producer, or is exempt from licensure under Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries.
(c) A person may not act or aid in any manner in soliciting, negotiating, or procuring liability insurance from an insurer not authorized to do business in this state on behalf of a purchasing group located in this state unless that person is licensed as a surplus lines producer or excess lines producer or is exempt from licensure under Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries.
(3) For purposes of acting as a producer for a risk retention group or purchasing group pursuant to Subsections (1) and (2), the requirement of residence in this state does not apply.
(4) A person licensed pursuant to Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries, on business placed with a risk retention group or written through a purchasing group, shall inform each prospective insured of the provisions of the notice required by Subsection 31A-15-204(7) in the case of a purchasing group.
Amended by Chapter 138, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 15 - Unauthorized Insurers, Surplus Lines, and Risk Retention Groups › Part 2 - Risk Retention Groups Act › Section 213 - Effect of orders issued in U.S. District Court.

31A-15-213.
Effect of orders issued in U.S. District Court.
An order issued by any district court of the United States shall be enforceable in the courts of this state to enjoin a risk retention group from soliciting or selling insurance, or operating in any state, in all states, or in any territory or possession of the United States, upon a finding that the group is in hazardous financial condition or financially impaired condition.
Enacted by Chapter 258, 1992 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 15 - Unauthorized Insurers, Surplus Lines, and Risk Retention Groups › Part 2 - Risk Retention Groups Act › Section 213.5 - Rulemaking.

Effective 5/10/2016
31A-15-213.5.
Rulemaking.
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commissioner may make and from time to time amend rules relating to risk retention groups as may be necessary or desirable to carry out this part.
Enacted by Chapter 138, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 15 - Unauthorized Insurers, Surplus Lines, and Risk Retention Groups › Part 2 - Risk Retention Groups Act › Section 214 - Severability.

31A-15-214.
Severability.
If any provision of this part, or the application of any provision to any person or circumstances, is held invalid, the remainder of this part shall be given effect without the invalid provision or application.
Enacted by Chapter 258, 1992 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 16 - Insurance Holding Companies › Section 101 - Scope and purpose of chapter.

31A-16-101.
Scope and purpose of chapter.
(1) This chapter applies to all persons doing an insurance business in Utah.
(2) The purposes of this chapter include:
(a) exercising surveillance over the acquisition of a domestic insurer, to ensure that in the process of making it part of an insurance holding company system, the interests of policyholders, shareholders, and the public are not harmed;
(b) providing the regulatory monitoring of those intercorporate relationships and transactions among affiliates within an insurance holding company system that may affect the solidity of insurers;
(c) controlling the payment of dividends that might affect the solidity of insurers; and
(d) providing, in appropriate cases, recoupment of dividends paid.
Enacted by Chapter 242, 1985 General Session