Contract: A legal written agreement that becomes binding when signed.
Conviction: A judgement of guilt against a criminal defendant.
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
Corporation: means an insurance corporation, except when referring to:
Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
Director: means a member of the board of directors of a corporation. See Utah Code 31A-1-301
Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
Fraud: Intentional deception resulting in injury to another.
Indictment: The formal charge issued by a grand jury stating that there is enough evidence that the defendant committed the crime to justify having a trial; it is used primarily for felonies.
Insurance: includes :
(i)
a risk distributing arrangement providing for compensation or replacement for damages or loss through the provision of a service or a benefit in kind;
(ii)
a contract of guaranty or suretyship entered into by the guarantor or surety as a business and not as merely incidental to a business transaction; and
(iii)
a plan in which the risk does not rest upon the person who makes an arrangement, but with a class of persons who have agreed to share the risk. See Utah Code 31A-1-301
Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
Person: includes :
(a)
an individual;
(b)
a partnership;
(c)
a corporation;
(d)
an incorporated or unincorporated association;
(e)
a joint stock company;
(f)
a trust;
(g)
a limited liability company;
(h)
a reciprocal;
(i)
a syndicate; or
(j)
another similar entity or combination of entities acting in concert. See Utah Code 31A-1-301
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
United States: includes each state, district, and territory of the United States of America. See Utah Code 68-3-12.5
(a)
An incorporated person, other than a foreign health maintenance organization, authorized as an insurer in another jurisdiction in the United States may apply under this section for a certificate of authority as an insurer in this state.
(b)
An alien insurer that is incorporated may apply under this section for a certificate of authority as an insurer in this state.
(2)
An applicant for a certificate of authority under this section shall:
(a)
use the forms prescribed by the commissioner; and
(b)
provide the information and documents the commissioner requests, including the following:
(i)
a copy of the applicant’s articles and bylaws;
(ii)
financial statements for the most recent complete fiscal year, with an explanation of the bases of all valuations and computations, in the detail reasonably required by the commissioner;
(iii)
a summary, as detailed as the commissioner reasonably requires, of the applicant’s financial history for:
(A)
the preceding 10 years; or
(B)
the entire period of the applicant’s existence if less than 10 years;
(iv)
for each of the applicant’s current or proposed directors and principal officers:
(A)
the name of the director or principal officer;
(B)
the address of the director or principal officer; and
(C)
the occupation for the preceding 10 years of the director or principal officer;
(v)
for an alien insurer:
(A)
the name of its United States manager, the manager’s addresses and occupations for the preceding 10 years; and
(B)
if the manager is a corporation, the names, addresses, and occupations of its directors and principal officers, and its most recent detailed financial statements;
(vi)
a schedule listing:
(A)
all jurisdictions in which applicant has done or has been authorized to conduct an insurance business during the preceding 10 years;
(B)
all jurisdictions in which the applicant has applied for authorization to conduct an insurance business during the preceding 10 years, and the dates and results of those applications;
(C)
all jurisdictions from which the applicant has withdrawn from conducting an insurance business during the preceding 10 years, and the reasons for its withdrawals; and
(D)
the name of and the circumstances surrounding any officer, director, or controlling shareholder of the corporation ever being subject to a:
(I)
felony indictment or conviction; or
(II)
civil, criminal, or administrative action alleging fraud;
(vii)
a summary description of the applicant’s present business operations, including the coverages written and the states and countries in which it does business;
(viii)
a list of any statements, reports, or other documents that have, within the last five years, been generally transmitted or distributed to or among the insurer’s creditors, shareholders, members, subscribers, or policyholders;
(ix)
if the applicant has been in the insurance business for less than 10 years, a summary of the past and a projection of the anticipated operating results at the end of each year of the first 10 years of operation, based, where known, on actual data and otherwise on reasonable assumptions of loss experience, premium and other income, operating expenses, and acquisition costs;
(x)
a statement that organizational and promotional expenses have been paid, and that organizational procedures required by the insurer’s domiciliary authority are complete;
(xi)
a statement from the domiciliary regulatory authority and the state of entry into the United States, if any, that so far as known, the applicant is sound and there are no legitimate objections to its proposed operations in this state;
(xii)
the plan for conducting an insurance business in this state, including:
(A)
the geographical area where business is to be conducted;
(B)
the types of insurance to be written;
(C)
the proposed general marketing methods;
(D)
the proposed method for establishing premium rates; and
(E)
copies of the policy and application forms to be used in this state;
(xiii)
any other information the commissioner reasonably requires;
(xiv)
authorization to the commissioner to make inquiry of any person about the applicant, its manager under a management contract, its attorney in fact, its general agents, and any of the officers, directors, or shareholders of any of them designated by the commissioner; and
(xv)
written agreement by the applicant and any other designated persons that in the absence of actual malice, no communication made in response to any inquiry under Subsection (2)(b)(xiv) will subject the person making it to an action for damages for defamation brought by the applicant, the designated person, or a legal representative of either.
(3)
No action for damages for defamation lies even in the absence of this agreement.
(4)
Notwithstanding Subsection (2), the commissioner may exempt an applicant for a certificate of authority from providing the information described in Subsection (2) if the commissioner finds that the information will not be helpful in making the decision of whether to issue a certificate of authority.
