31A-23a-1004. Annual affiliated business report. Before March 1 each year, each new or newly affiliated title entity shall submit a report to the division that:
(1)
contains the following for the preceding calendar year:
Terms Used In Utah Code 31A-23a-1004
Affiliated business: means the gross transaction revenue of a title entity's title insurance business in the state that is the result of an affiliated business arrangement. See Utah Code 31A-23a-1001
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
New or newly affiliated title entity: means a title entity that:
(a)
is licensed as a title entity for the first time on or after May 14, 2019; or
(b)
(i)
is licensed as a title entity before May 14, 2019; and
(ii)
enters into an affiliated business arrangement for the first time on or after May 14, 2019. See Utah Code 31A-23a-1001
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
Producer: means the same as the term "person who is in a position to refer settlement service business" is defined in 12 C. See Utah Code 31A-23a-1001
Sufficient capital and net worth: means :
(a)
for a new or newly affiliated title entity:
(i)
$100,000 for the first five years after becoming a new or newly affiliated title entity; or
(ii)
after the first five years after becoming a new or newly affiliated title entity, the greater of:
(A)
$50,000; or
(B)
on February 1 of each year, an amount equal to 5% of the title entity's average annual gross revenue over the preceding two calendar years, up to $150,000; or
(b)
for a title entity licensed before May 14, 2019, who is not a new or newly affiliated title entity:
(i)
for the time period beginning on February 1, 2020, and ending on January 31, 2029, the lesser of:
(A)
an amount equal to the applicable percentage of the title entity's average annual gross revenue over the two calendar years immediately preceding the February 1 on which the applicable percentage first applies; or
(B)
$150,000; and
(ii)
beginning on February 1, 2029, the greater of:
(A)
$50,000; or
(B)
an amount equal to 5% of the title entity's average annual gross revenue over the preceding two calendar years, up to $150,000. See Utah Code 31A-23a-1001
Title entity: means :
(a)
a title licensee as defined in Section 31A-2-402; or
the name and address of any producer or associate that owns a financial interest in the new or newly affiliated title entity;
(b)
for each producer and associate identified under Subsection (1)(a), the percentage of the new or newly affiliated title entity’s affiliated business that is the result of an affiliated business arrangement with the producer or associate;
(c)
a description of any affiliated business arrangement the new or newly affiliated title entity has with a person other than a producer or associate identified under Subsection (1)(a);
(d)
the percentage of the new or newly affiliated title entity’s annual title insurance business that is affiliated business;
(e)
proof of sufficient capital and net worth; and
(f)
any other information required by the division by rule; and
(2)
is certified by an officer of the new or newly affiliated title entity that the information contained in the report is true to the best of the officer’s knowledge, information, and belief.
