An insurance organization shall be licensed as an agency if the insurance organization acts as:

(1)  a producer;

Terms Used In Utah Code 31A-23a-301

  • Agency: means :
(a) a person other than an individual, including a sole proprietorship by which an individual does business under an assumed name; and
(b) an insurance organization licensed or required to be licensed under Section 31A-23a-301, 31A-25-207, or 31A-26-209. See Utah Code 31A-1-301
  • consultant: means a person who:
    (a) 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
  • 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
  • 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
    (A) adjusts or pays claims in excess of an amount determined by the commissioner; or
    (B) negotiates reinsurance on behalf of the insurer. See Utah Code 31A-23a-102
  • 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: means :
    (a) a reinsurance intermediary-broker; or
    (b) a reinsurance intermediary-manager. See Utah Code 31A-23a-102
  • Surplus: means the excess of assets over the sum of paid-in capital and liabilities. See Utah Code 31A-1-301
  • (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