Utah Code 31A-5-410. Supervision of management changes

(1)

Terms Used In Utah Code 31A-5-410

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

Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.

Corporation: means an insurance corporation, except when referring to:

(i)

a corporation doing business:

(A)

as:

(I)	an insurance producer;

(II)	a surplus lines producer;

(III)

a limited line producer;

(IV)	a consultant;

(V)	a managing general agent;

(VI)	a reinsurance intermediary;

(VII)

a third party administrator; or

(VIII)

an adjuster; and

(B)

under:

(I)	Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries;

(II)	Chapter 25, Third Party Administrators; or

(III)

Chapter 26, Insurance Adjusters; or

(ii)

a noninsurer that is part of a holding company system under Chapter 16, Insurance Holding Companies. See Utah Code 31A-1-301

Director: means a member of the board of directors of a corporation. See Utah Code 31A-1-301

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

(a)

Immediately after the selection of a person as a director or principal officer, the insurer shall report to the commissioner:

(i)	the name of the person selected as a director or principal officer of a corporation; and

(ii)	pertinent biographical and other data that the commissioner requires by rule.

(b)

For five years after the initial issuance of a certificate of authority to a corporation, the commissioner may, within 30 days after receipt of a report under Subsection (1)(a), disapprove any person selected who fails to satisfy the commissioner that the person:

(i)	is trustworthy; and

(ii)	has the competence and experience necessary to discharge that person’s responsibilities.

(2)

(a)

Whenever a director or principal officer of a corporation is removed under a provision listed in Subsection (2)(b), the insurer shall immediately report to the commissioner:

(i)	the removal; and

(ii)	a statement of the reasons for the removal.

(b)

Subsection (2)(a) applies to a removal under:

(i)	Subsection 16-6a-820(4);

(ii)	Section 16-10a-808;

(iii)

Section 16-10a-832; and

(iv)	Subsection 31A-5-409(4).

(3)

The commissioner may order the removal of a director or officer if the commissioner finds, after a hearing, that:

(a)

a director or officer:

(i)	is incompetent;

(ii)	untrustworthy;

(iii)

is not qualified under Section 31A-5-409; or

(iv)

has wilfully violated:

(A)	this title;

(B)	a rule adopted under Subsection 31A-2-201(3); or

(C)	an order issued under Subsection 31A-2-201(4); and

(b)

the circumstances described in Subsection (3)(a) endangers the interests of:

(i)	insureds; or

(ii)	the public.

Amended by Chapter 308, 2002 General Session

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