31A-23a-111. Revoking, suspending, surrendering, lapsing, limiting, or otherwise terminating a license — Forfeiture — Rulemaking for renewal or reinstatement.
(1)
A license type issued under this chapter remains in force until:
Terms Used In Utah Code 31A-23a-111
Agency: means :
(a)
a person other than an individual, including a sole proprietorship by which an individual does business under an assumed name; and
completed by an applicant to provide information about the risk to be insured; and
(ii)
that contains information that is used by the insurer to evaluate risk and decide whether to:
(A)
insure the risk under:
(I)
the coverage as originally offered; or
(II)
a modification of the coverage as originally offered; or
(B)
decline to insure the risk; or
(b)
used by the insurer to gather information from the applicant before issuance of an annuity contract. See Utah Code 31A-1-301
business of insurance: includes :
(a)
providing health care insurance by an organization that is or is required to be licensed under this title;
(b)
providing a benefit to an employee in the event of a contingency not within the control of the employee, in which the employee is entitled to the benefit as a right, which benefit may be provided either:
(i)
by a single employer or by multiple employer groups; or
(ii)
through one or more trusts, associations, or other entities;
(c)
providing an annuity:
(i)
including an annuity issued in return for a gift; and
(ii)
except an annuity provided by a person specified in Subsections 31A-22-1305(2) and (3);
(d)
providing the characteristic services of a motor club;
(e)
providing another person with insurance;
(f)
making as insurer, guarantor, or surety, or proposing to make as insurer, guarantor, or surety, a contract or policy offering title insurance;
(g)
transacting or proposing to transact any phase of title insurance, including:
(i)
solicitation;
(ii)
negotiation preliminary to execution;
(iii)
execution of a contract of title insurance;
(iv)
insuring; and
(v)
transacting matters subsequent to the execution of the contract and arising out of the contract, including reinsurance;
(h)
transacting or proposing a life settlement; and
(i)
doing, or proposing to do, any business in substance equivalent to Subsections (95)(a) through (h) in a manner designed to evade this title. See Utah Code 31A-1-301
Contract: A legal written agreement that becomes binding when signed.
Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
insolvent: means that:
(a)
an insurer is unable to pay the insurer's obligations as the obligations are due;
(b)
an insurer's total adjusted capital is less than the insurer's mandatory control level RBC under Subsection 31A-17-601(8)(c); or
(c)
an insurer's admitted assets are less than the insurer's liabilities. See Utah Code 31A-1-301
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.
License: includes a certificate of authority issued to an insurer. See Utah Code 31A-1-301
Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
another similar entity or combination of entities acting in concert. See Utah Code 31A-1-301
Plea: In a criminal case, the defendant's statement pleading "guilty" or "not guilty" in answer to the charges, a declaration made in open court.
Proceeding: includes an action or special statutory proceeding. See Utah Code 31A-1-301
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
Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
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
Statute: A law passed by a legislature.
United States: includes each state, district, and territory of the United States of America. See Utah Code 68-3-12.5
(a)
revoked or suspended under Subsection (5);
(b)
surrendered to the commissioner and accepted by the commissioner in lieu of administrative action;
(c)
the licensee dies or is adjudicated incompetent as defined under:
The following may be reinstated within one year after the day on which the license is no longer in force:
(a)
a lapsed license; or
(b)
a voluntarily surrendered license, except that a voluntarily surrendered license may not be reinstated after the license period in which the license is voluntarily surrendered.
(3)
Unless otherwise stated in a written agreement for the voluntary surrender of a license, submission and acceptance of a voluntary surrender of a license does not prevent the department from pursuing additional disciplinary or other action authorized under:
a rule that is valid under Subsection 31A-2-201(3); or
(C)
an order that is valid under Subsection 31A-2-201(4);
(iii)
is insolvent or the subject of receivership, conservatorship, rehabilitation, or other delinquency proceedings in any state;
(iv)
fails to pay a final judgment rendered against the person within 60 days after the day on which the judgment became final;
(v)
fails to meet the same good faith obligations in claims settlement that is required of admitted insurers;
(vi)
is affiliated with and under the same general management or interlocking directorate or ownership as another insurance producer that transacts business in this state without a license;
(vii)
refuses:
(A)
to be examined; or
(B)
to produce its accounts, records, and files for examination;
(viii)
has an officer who refuses to:
(A)
give information with respect to the insurance producer’s affairs; or
(B)
perform any other legal obligation as to an examination;
(ix)
provides information in the license application that is:
(A)
incorrect;
(B)
misleading;
(C)
incomplete; or
(D)
materially untrue;
(x)
violates an insurance law, valid rule, or valid order of another regulatory agency in any jurisdiction;
(xi)
obtains or attempts to obtain a license through misrepresentation or fraud;
(xii)
improperly withholds, misappropriates, or converts money or properties received in the course of doing insurance business;
(xiii)
intentionally misrepresents the terms of an actual or proposed:
(A)
insurance contract;
(B)
application for insurance; or
(C)
life settlement;
(xiv)
has been convicted of, or has entered a plea in abeyance as defined in Section 77-2a-1 to:
(A)
a felony; or
(B)
a misdemeanor involving fraud, misrepresentation, theft, or dishonesty;
(xv)
admits or is found to have committed an insurance unfair trade practice or fraud;
(xvi)
in the conduct of business in this state or elsewhere:
(A)
uses fraudulent, coercive, or dishonest practices; or
(B)
demonstrates incompetence, untrustworthiness, or financial irresponsibility;
(xvii)
has had an insurance license or other professional or occupational license, or an equivalent to an insurance license or registration, or other professional or occupational license or registration:
(A)
denied;
(B)
suspended;
(C)
revoked; or
(D)
surrendered to resolve an administrative action;
(xviii)
forges another’s name to:
(A)
an application for insurance; or
(B)
a document related to an insurance transaction;
(xix)
improperly uses notes or another reference material to complete an examination for an insurance license;
(xx)
knowingly accepts insurance business from an individual who is not licensed;
(xxi)
fails to comply with an administrative or court order imposing a child support obligation;
(xxii)
fails to:
(A)
pay state income tax; or
(B)
comply with an administrative or court order directing payment of state income tax;
(xxiii)
has been convicted of violating the federal Violent Crime Control and Law Enforcement Act of 1994, 18 U.S.C. § 1033 and has not obtained written consent to engage in the business of insurance or participate in such business as required by 18 U.S.C. § 1033;
(xxiv)
engages in a method or practice in the conduct of business that endangers the legitimate interests of customers and the public; or
(xxv)
has been convicted of any criminal felony involving dishonesty or breach of trust and has not obtained written consent to engage in the business of insurance or participate in such business as required by 18 U.S.C. § 1033.
(c)
For purposes of this section, if a license is held by an agency, both the agency itself and any individual designated under the license are considered to be the holders of the license.
(d)
If an individual designated under the agency license commits an act or fails to perform a duty that is a ground for suspending, revoking, or limiting the individual’s license, the commissioner may suspend, revoke, or limit the license of:
(i)
the individual;
(ii)
the agency, if the agency:
(A)
is reckless or negligent in its supervision of the individual; or
(B)
knowingly participates in the act or failure to act that is the ground for suspending, revoking, or limiting the license; or
(iii)
(A)
the individual; and
(B)
the agency if the agency meets the requirements of Subsection (5)(d)(ii).
(6)
A licensee under this chapter is subject to the penalties for acting as a licensee without a license if:
(a)
the licensee’s license is:
(i)
revoked;
(ii)
suspended;
(iii)
limited;
(iv)
surrendered in lieu of administrative action;
(v)
lapsed; or
(vi)
voluntarily surrendered; and
(b)
the licensee:
(i)
continues to act as a licensee; or
(ii)
violates the terms of the license limitation.
(7)
A licensee under this chapter shall immediately report to the commissioner:
(a)
a revocation, suspension, or limitation of the person’s license in another state, the District of Columbia, or a territory of the United States;
(b)
the imposition of a disciplinary sanction imposed on that person by another state, the District of Columbia, or a territory of the United States; or
(c)
a judgment or injunction entered against that person on the basis of conduct involving:
(i)
fraud;
(ii)
deceit;
(iii)
misrepresentation; or
(iv)
a violation of an insurance law or rule.
(8)
(a)
An order revoking a license under Subsection (5) or an agreement to surrender a license in lieu of administrative action may specify a time, not to exceed five years, within which the former licensee may not apply for a new license.
(b)
If no time is specified in an order or agreement described in Subsection (8)(a), the former licensee may not apply for a new license for five years from the day on which the order or agreement is made without the express approval by the commissioner.
(9)
The commissioner shall promptly withhold, suspend, restrict, or reinstate the use of a license issued under this part if so ordered by a court.
