Utah Code 31A-40-402. Disciplinary action

(1)

Notwithstanding Section 31A-2-308, in accordance with this section the commissioner may take action against a person if the commissioner finds that the person:

Terms Used In Utah Code 31A-40-402

Application: means a document:

(a)

(i)	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

controlling person: means a person who, individually or acting in concert with one or more persons, owns, directly or indirectly, 10% or more of the equity interest in a professional employer organization. See Utah Code 31A-40-102

License: includes a certificate of authority issued to an insurer. See Utah Code 31A-1-301

Licensee: means a person licensed under this chapter. See Utah Code 31A-40-102

Order: means an order of the commissioner. See Utah Code 31A-1-301

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

Probation: A sentencing alternative to imprisonment in which the court releases convicted defendants under supervision as long as certain conditions are observed.

professional employer organization: means a person engaged in the business of providing a professional employer service. See Utah Code 31A-40-102

(a)

is violating or has violated Section 31A-40-401; or

(b)

(i)

is a:

(A)	professional employer organization licensed under this chapter; or

(B)	controlling person of a professional employer organization licensed under this chapter; and

(ii)

is convicted of a crime that relates to:

(A)	the operation of a professional employer organization;

(B)	fraud or deceit; or

(C)	the ability of the professional employer organization or a controlling person of the professional employer organization to operate a professional employer organization.

(2)

After notice and an opportunity for a hearing in accordance with Title 63G, Chapter 4, Administrative Procedures Act, if the commissioner makes a finding described in Subsection (1), the commissioner may:

(a)	deny an application for a license;

(b)	revoke, restrict, or refuse to renew a license;

(c)	place a licensee on probation for the period and subject to conditions specified by the commissioner;

(d)	impose an administrative penalty in an amount not to exceed $2,500 for each violation; or

(e)	issue a cease and desist order.

Enacted by Chapter 318, 2008 General Session

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