advises another person about insurance needs and coverages;
(b)
is compensated by the person advised on a basis not directly related to the insurance placed; and
(c)
except as provided in Section 31A-23a-501, is not compensated directly or indirectly by an insurer or producer for advice given. See Utah Code 31A-1-301
Contract: A legal written agreement that becomes binding when signed.
Designated home state: means the state or territory of the United States or the District of Columbia:
(a)
in which an insurance producer, limited lines producer, consultant, managing general agent, or reinsurance intermediary licensee does not maintain the licensee's principal:
(i)
place of residence; or
(ii)
place of business;
(b)
if the resident state, territory, or District of Columbia of the licensee does not license for the line of authority sought, the licensee has qualified for the license as if the person were a resident in the state, territory, or District of Columbia described in Subsection (2)(a), including an applicable:
(i)
examination requirement;
(ii)
fingerprint background check requirement; and
(iii)
continuing education requirement; and
(c)
if the licensee has designated the state, territory, or District of Columbia as the designated home state. See Utah Code 31A-23a-102
Employee: means :
(a)
an individual employed by an employer; or
(b)
an individual who meets the requirements of Subsection (53)(b). See Utah Code 31A-1-301
Filed: means that a filing is:
(i)
submitted to the department as required by and in accordance with applicable statute, rule, or filing order;
(ii)
received by the department within the time period provided in applicable statute, rule, or filing order; and
(iii)
accompanied by the appropriate fee in accordance with:
a state or territory of the United States or the District of Columbia in which an insurance producer, limited lines producer, consultant, managing general agent, or reinsurance intermediary licensee:
(i)
maintains the licensee's principal:
(A)
place of residence; or
(B)
place of business; and
(ii)
is licensed to act as a resident licensee; or
(b)
if the resident state, territory, or the District of Columbia described in Subsection (3)(a) does not license for the line of authority sought, a state, territory, or the District of Columbia:
(i)
in which the licensee is licensed;
(ii)
in which the licensee is in good standing; and
(iii)
that the licensee has designated as the licensee's designated home state. See Utah Code 31A-23a-102
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
insurance company: means a person doing an insurance business as a principal including:
(i)
a fraternal benefit society;
(ii)
an issuer of a gift annuity other than an annuity specified in Subsections 31A-22-1305(2) and (3);
(iii)
a motor club;
(iv)
an employee welfare plan;
(v)
a person purporting or intending to do an insurance business as a principal on that person's own account; and
Insurer: is a s defined in Section 31A-1-301, except that the following persons or similar persons are not insurers for purposes of 7:
(a)
a risk retention group as defined in:
(i)
the Superfund Amendments and Reauthorization Act of 1986, Pub. See Utah Code 31A-23a-102
License: includes a certificate of authority issued to an insurer. See Utah Code 31A-1-301
Limited lines producer: means a person who sells, solicits, or negotiates limited lines insurance. See Utah Code 31A-1-301
Managing general agent: means a person that:
(i)
manages all or part of the insurance business of an insurer, including the management of a separate division, department, or underwriting office;
(ii)
acts as an agent for the insurer whether it is known as a managing general agent, manager, or other similar term;
(iii)
produces and underwrites an amount of gross direct written premium equal to, or more than, 5% of the policyholder surplus as reported in the last annual statement of the insurer in any one quarter or year:
(A)
with or without the authority;
(B)
separately or together with an affiliate; and
(C)
directly or indirectly; and
(iv)
(A)
adjusts or pays claims in excess of an amount determined by the commissioner; or
producer: means a person licensed or required to be licensed under the laws of this state to sell, solicit, or negotiate insurance. See Utah Code 31A-1-301
Reinsurance: means an insurance transaction where an insurer, for consideration, transfers any portion of the risk it has assumed to another insurer. See Utah Code 31A-1-301
Reinsurance intermediary-broker: means a person other than an officer or employee of the ceding insurer, firm, association, or corporation who solicits, negotiates, or places reinsurance cessions or retrocessions on behalf of a ceding insurer without the authority or power to bind reinsurance on behalf of the insurer. See Utah Code 31A-23a-102
Reinsurance intermediary-manager: means a person who:
(i)
has authority to bind or who manages all or part of the assumed reinsurance business of a reinsurer, including the management of a separate division, department, or underwriting office; and
(ii)
acts as an agent for the reinsurer whether the person is known as a reinsurance intermediary-manager, manager, or other similar term. See Utah Code 31A-23a-102
Reinsurer: means a person licensed in this state as an insurer with the authority to assume reinsurance. 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
Surplus: means the excess of assets over the sum of paid-in capital and liabilities. See Utah Code 31A-1-301
Title examination: means a license subline of authority in conjunction with the title insurance line of authority that allows a person to issue title insurance commitments or policies on behalf of a title insurer. See Utah Code 31A-23a-102
Title insurance: means the insuring, guaranteeing, or indemnifying of an owner of real or personal property or the holder of liens or encumbrances on that property, or others interested in the property against loss or damage suffered by reason of liens or encumbrances upon, defects in, or the unmarketability of the title to the property, or invalidity or unenforceability of any liens or encumbrances on the property. See Utah Code 31A-1-301
under common control: means the direct or indirect possession of the power to direct or cause the direction of the management and policies of a person. See Utah Code 31A-1-301
Uniform business entity application: means the version of the National Association of Insurance Commissioners' uniform business entity application for resident and nonresident business entities at the time the application is filed. See Utah Code 31A-23a-102
United States: includes each state, district, and territory of the United States of America. See Utah Code 68-3-12.5
(2)
“Designated home state” means the state or territory of the United States or the District of Columbia:
(a)
in which an insurance producer, limited lines producer, consultant, managing general agent, or reinsurance intermediary licensee does not maintain the licensee’s principal:
(i)
place of residence; or
(ii)
place of business;
(b)
if the resident state, territory, or District of Columbia of the licensee does not license for the line of authority sought, the licensee has qualified for the license as if the person were a resident in the state, territory, or District of Columbia described in Subsection (2)(a), including an applicable:
(i)
examination requirement;
(ii)
fingerprint background check requirement; and
(iii)
continuing education requirement; and
(c)
if the licensee has designated the state, territory, or District of Columbia as the designated home state.
(3)
“Home state” means:
(a)
a state or territory of the United States or the District of Columbia in which an insurance producer, limited lines producer, consultant, managing general agent, or reinsurance intermediary licensee:
(i)
maintains the licensee’s principal:
(A)
place of residence; or
(B)
place of business; and
(ii)
is licensed to act as a resident licensee; or
(b)
if the resident state, territory, or the District of Columbia described in Subsection (3)(a) does not license for the line of authority sought, a state, territory, or the District of Columbia:
(i)
in which the licensee is licensed;
(ii)
in which the licensee is in good standing; and
(iii)
that the licensee has designated as the licensee’s designated home state.
(4)
“Insurer” is as defined in Section 31A-1-301, except that the following persons or similar persons are not insurers for purposes of 7:
(a)
a risk retention group as defined in:
(i)
the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499;
manages all or part of the insurance business of an insurer, including the management of a separate division, department, or underwriting office;
(ii)
acts as an agent for the insurer whether it is known as a managing general agent, manager, or other similar term;
(iii)
produces and underwrites an amount of gross direct written premium equal to, or more than, 5% of the policyholdersurplus as reported in the last annual statement of the insurer in any one quarter or year:
(A)
with or without the authority;
(B)
separately or together with an affiliate; and
(C)
directly or indirectly; and
(iv)
(A)
adjusts or pays claims in excess of an amount determined by the commissioner; or
(B)
negotiates reinsurance on behalf of the insurer.
(b)
Notwithstanding Subsection (6)(a), the following persons may not be considered as managing general agent for the purposes of this chapter:
(i)
an employee of the insurer;
(ii)
a United States manager of the United States branch of an alien insurer;
(iii)
an underwriting manager that, pursuant to contract:
(A)
manages all the insurance operations of the insurer;
is not compensated based on the volume of premiums written; and
(iv)
the attorney-in-fact authorized by and acting for the subscribers of a reciprocal insurer or inter-insurance exchange under powers of attorney.
(7)
“Negotiate” means the act of conferring directly with or offering advice directly to a purchaser or prospective purchaser of a particular contract of insurance concerning a substantive benefit, term, or condition of the contract if the person engaged in that act:
(a)
sells insurance; or
(b)
obtains insurance from insurers for purchasers.
(8)
“Reinsurance intermediary” means:
(a)
a reinsurance intermediary-broker; or
(b)
a reinsurance intermediary-manager.
(9)
“Reinsurance intermediary-broker” means a person other than an officer or employee of the ceding insurer, firm, association, or corporation who solicits, negotiates, or places reinsurance cessions or retrocessions on behalf of a ceding insurer without the authority or power to bind reinsurance on behalf of the insurer.
(10)
(a)
“Reinsurance intermediary-manager” means a person who:
(i)
has authority to bind or who manages all or part of the assumed reinsurance business of a reinsurer, including the management of a separate division, department, or underwriting office; and
(ii)
acts as an agent for the reinsurer whether the person is known as a reinsurance intermediary-manager, manager, or other similar term.
(b)
Notwithstanding Subsection (10)(a), the following persons may not be considered reinsurance intermediary-managers for the purpose of this chapter with respect to the reinsurer:
(i)
an employee of the reinsurer;
(ii)
a United States manager of the United States branch of an alien reinsurer;
(iii)
an underwriting manager that, pursuant to contract:
(A)
manages all the reinsurance operations of the reinsurer;
advertising insurance, including advertising for the purpose of obtaining leads for the sale of insurance; or
(d)
holding oneself out as being in the insurance business.
(14)
“Terminate” means:
(a)
the cancellation of the relationship between:
(i)
an individual licensee or agency licensee and a particular insurer; or
(ii)
an individual licensee and a particular agency licensee; or
(b)
the termination of:
(i)
an individual licensee’s or agency licensee’s authority to transact insurance on behalf of a particular insurance company; or
(ii)
an individual licensee’s authority to transact insurance on behalf of a particular agency licensee.
(15)
“Title examination” means a license subline of authority in conjunction with the title insurance line of authority that allows a person to issue title insurance commitments or policies on behalf of a title insurer.
(16)
“Title marketing representative” means a person who:
(a)
represents a title insurer in soliciting, requesting, or negotiating the placing of:
(i)
title insurance; or
(ii)
escrow services; and
(b)
does not have a title examination or escrow license as provided in Section 31A-23a-106.
(17)
“Uniform application” means the version of the National Association of Insurance Commissioners’ uniform application for resident and nonresident producer licensing at the time the application is filed.
(18)
“Uniform business entity application” means the version of the National Association of Insurance Commissioners’ uniform business entity application for resident and nonresident business entities at the time the application is filed.
Amended by Chapter 244, 2015 General Session Amended by Chapter 330, 2015 General Session