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2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 1 - General Provisions › Section 117 - Special requirements for life settlement providers and producers.

31A-23a-117.
Special requirements for life settlement providers and producers.
(1) A life settlement provider or life settlement producer shall be licensed in accordance with this title, with the additional requirements listed in this section.
(2) A life settlement provider shall provide to the commissioner:
(a) a detailed plan of operation with the life settlement provider's:
(i) initial license application; and
(ii) renewal application;
(b) a copy of the life settlement provider's most current audited financial statement;
(c) an antifraud plan that meets the requirements of Section 31A-36-117; and
(d) a bond or other form of assurance of financial responsibility as provided under rules made in accordance with Section 31A-36-119.
(3) A life settlement provider shall provide with the life settlement provider's initial license application information describing the life settlement provider's life settlement experience, training, and education.
(4) A life settlement provider shall provide to the commissioner, within 30 days after a change occurs, new or revised information concerning any of the following:
(a) officers;
(b) holders of more than 10% of its stock;
(c) partners;
(d) directors;
(e) members; and
(f) designated employees.
Amended by Chapter 355, 2009 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 1 - General Provisions › Section 118 - Car rental related licensing requirements.

31A-23a-118.
Car rental related licensing requirements.
(1) Subject to Section 31A-23a-103, a person is required to hold a limited line producer license with a car rental related insurance limited line of authority to sell or offer car rental related insurance coverage under a car rental related insurance policy.
(2) A car rental related insurance limited line license issued pursuant to Sections 31A-23a-103 and 31A-23a-106 authorizes an employee or authorized representative of the licensee to sell or offer coverage under a car rental related insurance policy to a customer at each location at which the licensee engages in car rental related insurance transactions.
(3) An agency holding a car rental related insurance limited line license shall:
(a) be appointed by an insurer underwriting a car rental related insurance policy that the agency sells or offers; and
(b) have a designated responsible licensed individual at each location at which the agency is soliciting, selling, or offering car rental related insurance.
(4) An agency holding a car rental related insurance limited line license may employ a nonlicensed individual employed as a counter sales representative in soliciting, selling, or offering car rental related insurance. The nonlicensed individual shall be:
(a) trained and supervised in the sale of car rental related insurance products; and
(b) responsible to a licensed individual designated by the agency at each location where a car rental related insurance product is sold.
Enacted by Chapter 319, 2013 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 2 - Producers and Consultants › Section 203 - Training period requirements.

Effective 5/9/2017
31A-23a-203.
Training period requirements.
(1) A producer is eligible to become a surplus lines producer only if the producer:
(a) has passed the applicable surplus lines producer examination;
(b) has been a producer with property or casualty or both lines of authority for at least three years during the four years immediately preceding the date of application; and
(c) has paid the applicable fee under Section 31A-3-103.
(2) A person is eligible to become a consultant only if the person has acted in a capacity that would provide the person with preparation to act as an insurance consultant for a period aggregating not less than three years during the four years immediately preceding the date of application.
(3)
(a) A resident producer with an accident and health line of authority may only sell long-term care insurance if the producer:
(i) initially completes a minimum of three hours of long-term care training before selling long-term care coverage; and
(ii) after completing the training required by Subsection (3)(a)(i), completes a minimum of three hours of long-term care training during each subsequent two-year licensing period.
(b) A course taken to satisfy a long-term care training requirement may be used toward satisfying a producer continuing education requirement.
(c) Long-term care training is not a continuing education requirement to renew a producer license.
(d) An insurer that issues long-term care insurance shall demonstrate to the commissioner, upon request, that a producer who is appointed by the insurer and who sells long-term care insurance coverage is in compliance with this Subsection (3).
(4)
(a) A resident producer with a property line of authority may only sell flood insurance coverage under the National Flood Insurance Program if the producer completes a minimum of three hours of flood insurance training related to the National Flood Insurance Program before selling flood insurance coverage.
(b) A course taken to satisfy a flood insurance training requirement may be used toward satisfying a producer continuing education requirement.
(c) Flood insurance training is not a continuing education requirement to renew a producer license.
(d) An insurer that issues flood insurance shall demonstrate to the commissioner, upon request, that a producer who is appointed by the insurer and who sells flood insurance coverage is in compliance with this Subsection (4).
(5) The training periods required under this section apply only to an individual applying for a license under this chapter.
Amended by Chapter 168, 2017 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 2 - Producers and Consultants › Section 203.5 - Errors and omissions coverage requirements.

Effective 5/12/2015
31A-23a-203.5.
Errors and omissions coverage requirements.
(1) In accordance with this section, a resident individual producer shall ensure that the resident individual producer is covered:
(a) for the legal liability of the resident individual producer as the result of an erroneous act or failure to act in the resident individual producer's capacity as a producer; and
(b) at all times during the term of the resident individual producer's license.
(2) The coverage required by Subsection (1) shall consist of:
(a) a policy naming the resident individual producer;
(b) a policy naming the agency that designates the resident individual producer in accordance with this chapter; or
(c) a written agreement by an insurer or group of affiliated insurers, on behalf of a resident individual producer who is or will become an exclusive agent of the insurer or group of affiliated insurers, under which the insurer or group of affiliated insurers agrees to assume responsibility, to the benefit of an aggrieved person, for legal liability of the resident individual producer as the result of an erroneous act or failure to act in the resident individual producer's capacity as a producer for the insurer or group of affiliated insurers.
(3) The commissioner may, by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, provide for:
(a) the terms and conditions of the coverage required under Subsection (1); and
(b) if the coverage required by Subsection (1) is terminated during a resident individual producer's license term, requirements to:
(i) provide notice; and
(ii) replace the coverage.
(4) An individual title insurance producer is considered to be in compliance with this section when:
(a) the individual title insurance producer who is not designated by an agency title producer maintains the individual title insurance producer's own bond, policy, or other financial protection in accordance with Subsection 31A-23a-204(2);
(b) the individual title insurance producer is designated by an agency title insurance producer that maintains a bond, policy, or other financial protection in accordance with Subsection 31A-23a-204(2); or
(c) the individual title insurance producer is an employee of and is appointed by a title insurer.
(5) Notwithstanding the other provisions of this section, a resident individual producer is exempt from the requirement to maintain coverage as provided in this section during a period in which the resident individual producer is not either:
(a) appointed by an insurer under this title; or
(b) designated by an agency under this title.
(6) A limited lines producer is exempt from this section.
Amended by Chapter 312, 2015 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 2 - Producers and Consultants › Section 205 - Special requirements for bail bond producers and bail bond enforcement agents.

Effective 5/12/2020
31A-23a-205.
Special requirements for bail bond producers and bail bond enforcement agents.
(1) As used in this section, "bail bond producer" and "bail enforcement agent" have the same definitions as in Section 31A-35-102.
(2) A bail bond producer may not operate in this state without an appointment from one or more authorized bail bond surety insurers or licensed bail bond companies.
(3) A bail bond enforcement agent may not operate in this state without an appointment from one or more licensed bail bond producers.
Amended by Chapter 32, 2020 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 2 - Producers and Consultants › Section 206 - Special requirements for variable contracts line of authority.

Effective 5/10/2016
31A-23a-206.
Special requirements for variable contracts line of authority.
(1) Before applying for a variable contracts line of authority:
(a) a producer shall be licensed under Section 61-1-3 as a:
(i) broker-dealer; or
(ii) broker-dealer agent; and
(b) a consultant shall be licensed under Section 61-1-3 as an:
(i) investment adviser; or
(ii) investment adviser representative.
(2) A producer's or consultant's variable contracts line of authority is canceled on the day the producer's or consultant's securities related license under Section 61-1-3 is no longer active.
Amended by Chapter 138, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 2 - Producers and Consultants › Section 207 - Registration of motor club agents.

31A-23a-207.
Registration of motor club agents.
(1) Subsection 31A-23a-103(1) does not apply to persons who sell no insurance products other than motor club service contracts, if those contracts provide only for those services described in Subsections 31A-11-102(1)(b) through (1)(f), and personal accident insurance provided automatically with the purchase of the motor club contract.
(2) Section 31A-11-110 applies to those persons in Subsection (1).
(3) Subsection 31A-23a-103(1) applies to persons selling motor club contracts providing services in addition to those described under Subsections 31A-11-102(1)(b) through (1)(f).
Renumbered and Amended by Chapter 298, 2003 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 2 - Producers and Consultants › Section 208 - Producer and agency authority in health insurance exchange.

Effective 5/8/2018
31A-23a-208.
Producer and agency authority in health insurance exchange.
A producer or agency licensed under this chapter, with a line of authority that permits the producer or agency to sell, negotiate, or solicit accident and health insurance, is authorized to sell, negotiate, or solicit qualified health plans offered on a health insurance exchange.
Amended by Chapter 319, 2018 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 3 - Agencies › Section 301 - Agency license.

31A-23a-301.
Agency license.
An insurance organization shall be licensed as an agency if the insurance organization acts as:
(1) a producer;
(2) a surplus lines producer;
(3) a limited line producer;
(4) a consultant;
(5) a managing general agent; or
(6) a reinsurance intermediary.
Amended by Chapter 253, 2012 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 4 - Marketing Practices › Section 401 - Disclosure of conflicting interests.

31A-23a-401.
Disclosure of conflicting interests.
(1)
(a) Except as provided under Subsection (1)(b):
(i) a licensee under this chapter may not act in the same or any directly related transaction as:
(A) a producer for the insured or consultant; and
(B) producer for the insurer; and
(ii) a producer for the insured or consultant may not recommend or encourage the purchase of insurance from or through an insurer or other producer:
(A) of which the producer for the insured or consultant or producer for the insured's or consultant's spouse is an owner, executive, or employee; or
(B) to which the producer for the insured or consultant has the type of relation that a material benefit would accrue to the producer for the insured or consultant or spouse as a result of the purchase.
(b) Subsection (1)(a) does not apply if the following three conditions are met:
(i) Prior to performing the consulting services, the producer for the insured or consultant shall disclose to the client, prominently, in writing:
(A) the producer for the insured's or consultant's interest as a producer for the insurer, or the relationship to an insurer or other producer; and
(B) that as a result of those interests, the producer for the insured's or the consultant's recommendations should be given appropriate scrutiny.
(ii) The producer for the insured's or consultant's fee shall be agreed upon, in writing, after the disclosure required under Subsection (1)(b)(i), but before performing the requested services.
(iii) Any report resulting from requested services shall contain a copy of the disclosure made under Subsection (1)(b)(i).
(2) A licensee under this chapter may not act as to the same client as both a producer for the insurer and a producer for the insured without the client's prior written consent based on full disclosure.
(3) Whenever a person applies for insurance coverage through a producer for the insured, the producer for the insured shall disclose to the applicant, in writing, that the producer for the insured is not the producer for the insurer or the potential insurer. This disclosure shall also inform the applicant that the applicant likely does not have the benefit of an insurer being financially responsible for the conduct of the producer for the insured.
(4) If a licensee is subject to both this section and Subsection 31A-23a-501(4), the licensee shall provide the disclosure required under each statute.
Amended by Chapter 12, 2009 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 4 - Marketing Practices › Section 403 - Inherent unsuitability.

31A-23a-403.
Inherent unsuitability.
(1) If the commissioner finds after a hearing that a certain type of accident and health insurance, life insurance, or annuity product is inherently unsuitable for persons of certain ages or in certain conditions of health, the commissioner shall make a rule declaring the accident and health insurance, life insurance, or annuity product as inherently unsuitable for persons of certain ages or in certain conditions of health.
(2) An accident and health insurance, life insurance, or annuity product that is subject to the rule may not be sold to a person for whom the product has been determined as inherently unsuitable unless that person purchasing the product signs a receipt acknowledging having received a statement that expresses that the product has been determined by the commissioner to be inherently unsuitable for persons of certain ages or in certain conditions of health.
(3) Unless the insurer or its appointed licensee establishes that its sale of coverage is inconsistent with the rule made under Subsection (1) is due to excusable neglect, the purchaser may treat the sale as voidable, if acted upon by the insured within a two-year period from the date of sale.
Renumbered and Amended by Chapter 298, 2003 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 4 - Marketing Practices › Section 405 - Insurer liability.

31A-23a-405.
Insurer liability.
(1) As used in this section, "insurer" includes bail bond surety companies as defined in Section 31A-35-102.
(2) There is a rebuttable presumption that every insurer is bound by any act of its appointed licensee performed in this state that is within the scope of the appointed licensee's actual (express or implied) or apparent authority, until the insurer has canceled the appointed licensee's appointment and has made reasonable efforts to recover from the appointed licensee its policy forms and other indicia of agency. Reasonable efforts include a formal demand in writing for return of the indicia, and notice to the commissioner if the appointed licensee does not promptly comply with the demand. This Subsection (2) neither waives any common law defense available to insurers, nor precludes the insured from seeking redress against the appointed licensee individually or jointly against the insurer and licensee.
(3) When a licensee under this chapter with authority to bind more than one insurer on a particular risk agrees to bind coverage on a particular risk, but fails to outwardly indicate the insurer with which the risk is placed, and before the risk is placed with a particular insurer a loss occurs, if there is no conclusive admissible evidence indicating the insurer with which the licensee exercised his binding authority, a court may equitably apportion the loss among all insurers with which the licensee had binding authority as to the particular type of risk.
Renumbered and Amended by Chapter 298, 2003 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 4 - Marketing Practices › Section 406.5 - Conduct of escrow.

31A-23a-406.5.
Conduct of escrow.
(1) Only an escrow agent or a title insurer in compliance with Subsection 31A-4-107(1)(a) and Section 31A-14-211 shall conduct escrow.
(2) Subsection (1) does not limit or expand the authority granted to:
(a) a person defined as an escrow agent in Section 7-22-101;
(b) a person licensed to practice law in Utah, if that person meets the requirements of Section 31A-23a-204;
(c) a person licensed under Title 61, Chapter 2f, Real Estate Licensing and Practices Act; or
(d) a person licensed under Title 58, Chapter 55, Utah Construction Trades Licensing Act.
Enacted by Chapter 319, 2013 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 4 - Marketing Practices › Section 407 - Liability for acts of title insurance producers.

Effective 5/9/2017
31A-23a-407.
Liability for acts of title insurance producers.
(1) Subject to the other provisions in this section, a title insurer that has a contract with or appoints an individual title insurance producer or an agency title insurance producer is liable to a buyer, seller, borrower, lender, or third party that deposits money with the individual title insurance producer or agency title insurance producer for the receipt and disbursement of money deposited with the individual title insurance producer or agency title insurance producer for a transaction when a commitment for a policy of title insurance of that title insurer is ordered, issued, or distributed or a title insurance policy of that title insurer is issued, except that once a title insurer is named in an issued commitment only that title insurer is liable as a title insurer under this section.
(2) The liability of a title insurer under Subsection (1) and the liability of an individual title insurance producer or agency title insurance producer for the receipt and disbursement of money deposited with the individual title insurance producer or agency title insurance producer is limited to the amount of money received and disbursed, not to exceed the amount of proposed insurance set forth in the commitment or title insurance policy described in Subsection (1) plus 10% of the amount of the proposed insurance.
(3) The liability described in Subsection (1) does not modify, mitigate, impair, or affect the contractual obligations between an individual title insurance producer or agency title insurance producer and the title insurer.
(4) The liability of a title insurer with respect to the condition of title to the real property that is the subject of a title insurance policy or a title insurance commitment for a title insurance policy is limited to the terms, conditions, and stipulations contained in the title insurance policy or title commitment.
Amended by Chapter 168, 2017 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 4 - Marketing Practices › Section 408 - Representations of agency.

31A-23a-408.
Representations of agency.
A person may not represent that the person is acting in behalf of an insurer unless a written agency contract is in effect giving the person authority from the insurer and the insurer appoints that person to act in behalf of the insurer.
Amended by Chapter 284, 2011 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 4 - Marketing Practices › Section 411.1 - Person's liability if premium received is not forwarded to the insurer.

Effective 5/14/2019
31A-23a-411.1.
Person's liability if premium received is not forwarded to the insurer.
A person commits insurance fraud as described in Subsection 31A-31-103(1)(g) if that person knowingly fails to forward to the insurer a premium:
(1) received from one of the following in partial or total payment of the premium due from:
(a) an applicant;
(b) a policyholder; or
(c) a certificate holder; or
(2) collected from or on behalf of an insured employee under an insured employee benefit plan.
Amended by Chapter 193, 2019 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 4 - Marketing Practices › Section 413 - Title insurance producer's annual report.

Effective 5/12/2015
31A-23a-413.
Title insurance producer's annual report.
An agency title insurance producer and an individual title insurance producer who is not an employee of a title insurer or who has not been designated by an agency title insurance producer shall annually file with the commissioner, by a date and in a form the commissioner specifies by rule, a verified statement of the agency title insurance producer's or individual title insurance producer's financial condition, transactions, and affairs as of the end of the preceding calendar year.
Amended by Chapter 312, 2015 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 4 - Marketing Practices › Section 414 - Consultant's duty to report illegal insurance.

31A-23a-414.
Consultant's duty to report illegal insurance.
Section 31A-15-110 applies to a consultant's duty to report illegal insurance.
Renumbered and Amended by Chapter 298, 2003 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 4 - Marketing Practices › Section 416 - Solicitations to loan applicants.

31A-23a-416.
Solicitations to loan applicants.
(1)
(a) A person authorized to engage in insurance activities in this state shall prominently disclose in writing the information described in Subsection (1)(b) to a person seeking an extension of credit if:
(i) the person authorized to engage in insurance activities also extends credit directly or through a subsidiary or an affiliate;
(ii) the person requires a customer to obtain insurance in connection with an extension of credit; and
(iii) the person offers to the person seeking an extension of credit the line of credit insurance required in connection with the extension of credit.
(b) The disclosure required by Subsection (1)(a) shall be in a form substantially similar to the following. "You may obtain insurance required in connection with your extension of credit from any insurance producer or approved insurer that sells such insurance. Your choice of insurance provider will not affect our credit decision or your credit terms."
(c) The person shall make the required disclosure under Subsection (1)(a):
(i) at the time of written application for an extension of credit; or
(ii) if there is no written application, before the closing of the extension of credit.
(2) The disclosure required by Subsection (1)(c)(ii) may be in a verbal, electronic, or other unwritten form if a printed disclosure is included with the first printed statement of terms and conditions of the extension of credit sent to the person seeking the extension of credit.
(3) This section does not apply when:
(a) a person is contacting a person in the course of direct or mass marketing to a group of persons in a manner that bears no relation to the person's application for an extension of credit or credit decision; and
(b) an agreement for the extension of credit is changed or extended, if the person who originally sought the extension of credit is not required to purchase new or additional insurance.
(4)
(a) For purposes of this section, "approved insurer" means an insurer that is approved to issue insurance related to the extension of credit by the person that extends the credit.
(b) The commissioner shall make rules establishing standards that govern the approval under Subsection (4)(a) of an insurer by a person that extends credit.
Renumbered and Amended by Chapter 298, 2003 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 4 - Marketing Practices › Section 417 - Financial services insurance activities regulation.

31A-23a-417.
Financial services insurance activities regulation.
(1) It is the intent of the Legislature that the regulation of insurance activities of any person in this state be based on functional regulation principles established in the Gramm-Leach-Bliley Act of 1999, Pub. L. No. 106-102.
(2) The insurance activities of any person in this state shall be functionally regulated by the commissioner subject to Sections 104, 301-308, 501-507, and 509 of the Gramm-Leach-Bliley Act of 1999, Pub. L. No. 106-102.
(3) Under Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commissioner may adopt rules consistent with Section 104(d) of the Gramm-Leach-Bliley Act of 1999, Pub. L. No. 106-102, and the functional regulation of insurance activities of any person otherwise subject to the jurisdiction of the commissioner in this state described in Subsection (2).
(4) The commissioner shall consult and coordinate with the commissioner of the Department of Financial Institutions and the director of the Division of Securities for the purpose of assuring, to the extent possible, that the rules prescribed by the department are consistent and comparable with federal regulations governing the insurance, banking, and securities industries.
Amended by Chapter 382, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 5 - Compensation of Producers and Consultants › Section 502 - Controlled business, except as to title insurance.

31A-23a-502.
Controlled business, except as to title insurance.
(1) As used in this section, "controlled business" means insurance procured by:
(a) an insurance producer who is a natural person upon the life, person, or property of himself, his relative within the second degree by blood or marriage, his employer, employees, or organization; or
(b) an insurance producer that is an organization upon its own property or upon the life, person, or property of its partners, shareholders, directors, or employees, or their relatives within the second degree by blood or marriage.
(2) No producer may receive any compensation from an insurer for effecting insurance upon controlled business unless during the preceding 12 months the producer had effected other insurance with aggregate premiums exceeding the premiums on the controlled business.
(3) This section does not apply to title insurance.
Renumbered and Amended by Chapter 298, 2003 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 5 - Compensation of Producers and Consultants › Section 505 - Benefit plans for producers.

31A-23a-505.
Benefit plans for producers.
An authorized insurer may establish retirement, insurance, and other benefit plans for producers on a basis approved by the commissioner.
Renumbered and Amended by Chapter 298, 2003 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 6 - Managing General Agents › Section 601 - Licensure.

31A-23a-601.
Licensure.
(1) A person, firm, association, or corporation may not act in the capacity of managing general agent with respect to risks located in this state for an insurer licensed in this state unless the person is a licensed producer in this state.
(2) A person, firm, association, or corporation may not act in the capacity of a managing general agent representing an insurer domiciled in this state with respect to risks located outside this state unless the person is licensed as a producer in this state pursuant to this chapter. The license may be a nonresident license.
(3) The commissioner may require a bond in an amount he finds acceptable for the protection of each insurer represented.
(4) The commissioner may require the managing general agent to maintain an errors and omissions policy or other security acceptable to the commissioner.
Renumbered and Amended by Chapter 298, 2003 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 6 - Managing General Agents › Section 603 - Duties of insurers.

31A-23a-603.
Duties of insurers.
(1) The insurer shall have on file an independent financial examination, in a form acceptable to the commissioner, of each managing general agent with which the insurer has done business.
(2)
(a) If a managing general agent establishes loss reserves, the insurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the managing general agent.
(b) The requirement of Subsection (2)(a) is in addition to any other required loss reserve certification.
(3) The insurer shall at least semiannually conduct an on-site review of the underwriting and claims processing operations of the managing general agent.
(4) Binding authority for all reinsurance contracts or participation in insurance or reinsurance syndicates shall rest with an officer of the insurer, who may not be affiliated with the managing general agent.
(5)
(a) Within 30 days after entering into or terminating a contract with a managing general agent, the insurer shall provide written notification of the appointment or termination to the commissioner.
(b) A notice of appointment of a managing general agent shall include:
(i) a statement of duties that the applicant is expected to perform on behalf of the insurer;
(ii) the lines of insurance for which the applicant is to be authorized to act; and
(iii) any other information the commissioner may request.
(6)
(a) An insurer shall review the insurer's books and records each quarter to determine if any producer, as defined in Section 31A-1-301, has become a managing general agent as defined in Section 31A-23a-102.
(b) If the insurer determines that a producer has become a managing general agent:
(i) the insurer shall promptly notify the producer and the commissioner of the determination; and
(ii) the insurer and producer shall fully comply with the provisions of this chapter within 30 days.
(7)
(a) An insurer may not appoint officers, directors, employees, subproducers, or controlling shareholders of the insurer's managing general agents to the insurer's board of directors.
(b) This Subsection (7) does not apply to relationships governed by:
(i)Chapter 16, Insurance Holding Companies; or
(ii)Chapter 23a, Part 7, Producer Controlled Insurers, if it applies.
Renumbered and Amended by Chapter 298, 2003 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 6 - Managing General Agents › Section 604 - Examination authority.

31A-23a-604.
Examination authority.
The acts of the managing general agent are considered to be the acts of the insurer on whose behalf it is acting. A managing general agent may be examined as if it were the insurer.
Renumbered and Amended by Chapter 298, 2003 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 6 - Managing General Agents › Section 605 - Penalties and liabilities.

31A-23a-605.
Penalties and liabilities.
(1) If the commissioner finds after a hearing that any person has violated any provision of this part, the commissioner may order:
(a) for each separate violation, a penalty in an amount of $5,000;
(b) revocation or suspension of the producer's license; and
(c) the managing general agent to reimburse the insurer, the rehabilitator, or liquidator of the insurer for any losses incurred by the insurer caused by the managing general agent's violation.
(2) Nothing contained in this section affects the right of the commissioner to impose any other penalties provided for in this title.
(3) Nothing contained in this part is intended to, or in any manner limits or restricts the rights of policyholders, claimants, and auditors.
Renumbered and Amended by Chapter 298, 2003 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 7 - Producer Controlled Insurers › Section 701 - Applicability.

31A-23a-701.
Applicability.
(1) This part applies to licensed insurers, as defined in Section 31A-23a-102, that are domiciled:
(a) in this state; or
(b) in a state that does not have a substantially similar law.
(2) All provisions of Chapter 16, Insurance Holding Companies, to the extent they are not superseded by this part, continue to apply to all parties within holding company systems subject to this part.
Renumbered and Amended by Chapter 298, 2003 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 7 - Producer Controlled Insurers › Section 703 - Disclosure.

31A-23a-703.
Disclosure.
The producer, prior to the effective date of the policy, shall deliver written notice to the prospective insured disclosing the relationship between the producer and the controlled insurer. However, if the business is placed through a producer who is not a controlling producer, the controlling producer shall retain in his records a signed commitment from the noncontrolling producer that the noncontrolling producer is aware of the relationship between the insurer and the producer and that the noncontrolling producer has, or will, notify the insured.
Renumbered and Amended by Chapter 298, 2003 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 7 - Producer Controlled Insurers › Section 704 - Penalties.

31A-23a-704.
Penalties.
(1)
(a) If, after notice and opportunity to be heard, the commissioner finds that the controlling producer or any other person has not materially complied with this part, or any rule made or order issued under the part, the commissioner may order the controlling producer to cease placing business with the controlled insurer.
(b) If the commissioner finds that because of the material noncompliance that the controlled insurer or any policyholder of the controlled insurer has suffered any loss or damage, the commissioner may maintain a civil action or may intervene in an action brought by or on behalf of the insurer or policyholder for recovery of compensatory damages for the benefit of the insurer or policyholder or the commissioner may seek other appropriate relief.
(2) If an order for liquidation or rehabilitation of the controlled insurer has been entered pursuant to Chapter 27a, Insurer Receivership Act, and the receiver appointed under that order believes that the controlling producer or any other person has not materially complied with this part, or any rule made or order issued under this part, and the insurer suffered any loss or damage as a result of the noncompliance, the receiver may maintain a civil action for recovery of damages or other appropriate sanctions for the benefit of the insurer.
(3) Nothing in this section affects the right of the commissioner to impose any other penalties provided for in this title.
(4) Nothing contained in this section is intended to or shall in any manner alter or affect the rights of policyholders, claimants, creditors, or other third parties.
Amended by Chapter 309, 2007 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 8 - Reinsurance Intermediaries › Section 802 - Required contract provisions -- Reinsurance intermediary-broker.

31A-23a-802.
Required contract provisions -- Reinsurance intermediary-broker.
Transactions between a reinsurance intermediary-broker and the insurer it represents in that capacity may only be entered into pursuant to a written authorization, which specifies the responsibilities of each party. The authorization shall, at a minimum, provide that the reinsurance intermediary-broker:
(1) may have his authority terminated by the insurer at any time;
(2) will render accounts to the insurer accurately detailing all material transactions, including information necessary to support all commissions, charges and other fees received by, or owing to the reinsurance intermediary-broker, and that he will remit all funds due to the insurer within 30 days of receipt;
(3) shall hold, in a fiduciary capacity, all funds collected for the insurer's account in a financial institution, which is a qualified United States financial institution;
(4) will comply with Section 31A-23a-803;
(5) will comply with the written standards established by the insurer for the cession or retrocession of all risks; and
(6) will disclose to the insurer any relationship with any reinsurer to which business will be ceded or retroceded.
Renumbered and Amended by Chapter 298, 2003 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 8 - Reinsurance Intermediaries › Section 803 - Books and records -- Reinsurance intermediary-broker.

31A-23a-803.
Books and records -- Reinsurance intermediary-broker.
(1) For at least 10 years after expiration of each contract of reinsurance transacted by the reinsurance intermediary-broker, he will keep a complete record for each transaction showing:
(a) the type of contract, limits, underwriting restrictions, classes or risks, and territory;
(b) the period of coverage, including the effective and expiration dates, cancellation provisions, and notice required of cancellation;
(c) reporting and settlement requirements of balances;
(d) the rate used to compute the reinsurance premium;
(e) the names and addresses of assuming reinsurers;
(f) the rates of all reinsurance commissions, including the commissions on any retrocessions handled by the reinsurance intermediary-broker;
(g) related correspondence and memoranda;
(h) proof of placement;
(i) details regarding retrocessions handled by the reinsurance intermediary-broker, including the identity of retrocessionaires and percentage of each contract assumed or ceded;
(j) financial records including premium and loss accounts; and
(k) when the reinsurance intermediary-broker procures a reinsurance contract on behalf of a licensed ceding insurer:
(i) directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or
(ii) if placed through a representative of the assuming reinsurer, other than an employee, written evidence that the reinsurer has delegated binding authority to the representative.
(2) The insurer will have access and the right to copy and audit all accounts and records maintained by the reinsurance intermediary-broker related to its business in a form usable by the insurer.
Renumbered and Amended by Chapter 298, 2003 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 8 - Reinsurance Intermediaries › Section 804 - Duties of insurers utilizing the services of a reinsurance intermediary-broker.

31A-23a-804.
Duties of insurers utilizing the services of a reinsurance intermediary-broker.
(1) An insurer may not engage the services of any person, firm, association, or corporation to act as a reinsurance intermediary-broker on its behalf unless the person is licensed as required by Subsection 31A-23a-801(1).
(2) An insurer may not employ an individual who is employed by a reinsurance intermediary-broker with which it transacts business, unless the reinsurance intermediary-broker is under common control with the insurer and subject to Title 31A, Chapter 16, Insurance Holding Companies.
(3) The insurer shall annually obtain a copy of statements of the financial condition of each reinsurance intermediary-broker with which it transacts business.
Renumbered and Amended by Chapter 298, 2003 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 8 - Reinsurance Intermediaries › Section 806 - Prohibited acts.

31A-23a-806.
Prohibited acts.
(1) The reinsurance intermediary-manager may not cede retrocessions on behalf of the reinsurer, except that the reinsurance intermediary-manager may cede facultative retrocessions pursuant to obligatory facultative agreements if the contract with the reinsurer contains reinsurance underwriting guidelines for facultative retrocessions. The guidelines shall include a list of reinsurers with which automatic agreements are in effect, and for each listed reinsurer, the coverages and amounts or percentages that may be reinsured, and commission schedules.
(2) The reinsurance intermediary-manager may not commit the reinsurer to participate in reinsurance syndicates.
(3) The reinsurance intermediary-manager may not appoint any producer without assuring that the producer is lawfully licensed to transact the type of reinsurance for which the producer is appointed.
(4) The reinsurance intermediary-manager may not, without prior approval of the reinsurer, pay or commit the reinsurer to pay a claim, net of retrocessions, that exceeds the lesser of an amount specified by the reinsurer or 1% of the reinsurer's policyholder's surplus as of December 31 of the last complete calendar year.
(5) The reinsurance intermediary-manager may not collect any payment from a retrocessionaire or commit the reinsurer to any claim settlement with a retrocessionaire, without prior approval of the reinsurer. If prior approval is given, a report shall be promptly forwarded to the reinsurer.
(6) The reinsurance intermediary-manager may not jointly employ an individual who is employed by the reinsurer unless the reinsurance intermediary-manager is under common control with the reinsurer subject to Title 31A, Chapter 16, Insurance Holding Companies.
(7) The reinsurance intermediary-manager may not appoint a subreinsurance intermediary-manager.
Amended by Chapter 297, 2011 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 8 - Reinsurance Intermediaries › Section 807 - Duties of reinsurers utilizing the services of reinsurance.

31A-23a-807.
Duties of reinsurers utilizing the services of reinsurance.
(1) A reinsurer may not engage the services of any person, firm, association, or corporation to act as a reinsurance intermediary-manager on its behalf unless the person is licensed as required by Subsection 31A-23a-801(2).
(2) The reinsurer shall annually obtain a copy of statements of the financial condition of each reinsurance intermediary-manager which the reinsurer has engaged, which shall be prepared by an independent certified public accountant in a form acceptable to the commissioner.
(3) If a reinsurance intermediary-manager establishes loss reserves, the reinsurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the reinsurance intermediary-manager. The actuary's opinion shall be in addition to any other required loss reserve certification.
(4) Binding authority for all retrocessional contracts or participation in reinsurance syndicates shall rest with an officer of the reinsurer, who may not be affiliated with the reinsurance intermediary-manager.
(5) Within 30 days of termination of a contract with a reinsurance intermediary-manager, the reinsurer shall provide written notification of the termination to the commissioner.
(6) A reinsurer may not appoint to its board of directors, any officer, director, employee, controlling shareholder, or subproducer of its reinsurance intermediary-manager. This subsection does not apply to relationships governed by Title 31A, Chapter 16, Insurance Holding Companies, or Chapter 23a, Part 7, Producer Controlled Insurers, if it applies.
Renumbered and Amended by Chapter 298, 2003 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 23a - Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries › Part 8 - Reinsurance Intermediaries › Section 808 - Examination authority.

31A-23a-808.
Examination authority.
(1) A reinsurance intermediary shall be subject to examination by the commissioner. The commissioner shall have access to all books, bank accounts, and records of the reinsurance intermediary, which shall be kept in a form usable to the commissioner.
(2) A reinsurance intermediary-manager may be examined as if it were the reinsurer.
Renumbered and Amended by Chapter 298, 2003 General Session