Utah Code 31A-27a-801. Condition on release from delinquency proceedings

(1)

Unless otherwise provided in a plan approved by the guaranty associations, an insurer that is subject to a rehabilitation proceeding may not take an action listed in Subsection (2) until all payments by all guaranty associations of or on account of the insurer’s contractual obligations are repaid to the guaranty associations with:

Terms Used In Utah Code 31A-27a-801

Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
Certificate: means evidence of insurance given to:

(a)	an insured under a group insurance policy; or

(b)

a third party. See Utah Code 31A-1-301

Control: is a s defined in Section 31A-1-301. See Utah Code 31A-27a-102

insurer: means a person who:

(a)	is doing, has done, purports to do, or is licensed to do the business of insurance;

(b)	is or has been subject to the authority of, or to rehabilitation, liquidation, reorganization, supervision, or conservation by an insurance commissioner; or

(c)	is included under Section 31A-27a-104. See Utah Code 31A-27a-102 License: includes a certificate of authority issued to an insurer. See Utah Code 31A-1-301 Proceeding: includes an action or special statutory proceeding. See Utah Code 31A-1-301
(a)	all expenses related to the payments by all guaranty associations of or on account of the insurer’s contractual obligations; and

(b)	interest on all the payments.

(2)

Until an insurer that is subject to a rehabilitation proceeding complies with Subsection (1), the insurer may not:

(a)

be permitted to:

(i)	solicit or accept new business; or

(ii)	request or accept the restoration of any suspended or revoked license or certificate of authority;

(b)	be returned to the control of its shareholders or private management; or

(c)	have any of its assets returned to the control of its shareholders or private management.

Enacted by Chapter 309, 2007 General Session

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