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
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
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
Insured: means a person to whom or for whose benefit an insurer makes a promise in an insurance policy and includes:
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
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 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
Producer for the insured: means a producer who:
(A)
is compensated directly and only by an insurance customer or an insured; and
(B)
receives no compensation directly or indirectly from an insurer for selling, soliciting, or negotiating an insurance product of that insurer to an insurance customer or insured. See Utah Code 31A-1-301
Producer for the insurer: means a producer who is compensated directly or indirectly by an insurer for selling, soliciting, or negotiating an insurance product of that insurer. See Utah Code 31A-1-301
a licensee under this chapter may not act in the same or any directly related transaction as:
(A)
a producer for the insured or consultant; and
(B)
producer for the insurer; and
(ii)
a producer for the insured or consultant may not recommend or encourage the purchase of insurance from or through an insurer or other producer:
(A)
of which the producer for the insured or consultant or producer for the insured’s or consultant’s spouse is an owner, executive, or employee; or
(B)
to which the producer for the insured or consultant has the type of relation that a material benefit would accrue to the producer for the insured or consultant or spouse as a result of the purchase.
(b)
Subsection (1)(a) does not apply if the following three conditions are met:
(i)
Prior to performing the consulting services, the producer for the insured or consultant shall disclose to the client, prominently, in writing:
(A)
the producer for the insured’s or consultant’s interest as a producer for the insurer, or the relationship to an insurer or other producer; and
(B)
that as a result of those interests, the producer for the insured’s or the consultant’s recommendations should be given appropriate scrutiny.
(ii)
The producer for the insured’s or consultant’s fee shall be agreed upon, in writing, after the disclosure required under Subsection (1)(b)(i), but before performing the requested services.
(iii)
Any report resulting from requested services shall contain a copy of the disclosure made under Subsection (1)(b)(i).
(2)
A licensee under this chapter may not act as to the same client as both a producer for the insurer and a producer for the insured without the client’s prior written consent based on full disclosure.
(3)
Whenever a person applies for insurance coverage through a producer for the insured, the producer for the insured shall disclose to the applicant, in writing, that the producer for the insured is not the producer for the insurer or the potential insurer. This disclosure shall also inform the applicant that the applicant likely does not have the benefit of an insurer being financially responsible for the conduct of the producer for the insured.
(4)
If a licensee is subject to both this section and Subsection 31A-23a-501(4), the licensee shall provide the disclosure required under each statute.
