State Codes and Statutes

Statutes > Utah > Title-31a > Chapter-02 > 31a-2-308

31A-2-308. Enforcement penalties and procedures.
(1) (a) A person who violates any insurance statute or rule or any order issued underSubsection 31A-2-201(4) shall forfeit to the state twice the amount of any profit gained from theviolation, in addition to any other forfeiture or penalty imposed.
(b) (i) The commissioner may order an individual producer, limited line producer,customer service representative, managing general agent, reinsurance intermediary, adjuster, orinsurance consultant who violates an insurance statute or rule to forfeit to the state not more than$2,500 for each violation.
(ii) The commissioner may order any other person who violates an insurance statute orrule to forfeit to the state not more than $5,000 for each violation.
(c) (i) The commissioner may order an individual producer, limited line producer,customer service representative, managing general agent, reinsurance intermediary, adjuster, orinsurance consultant who violates an order issued under Subsection 31A-2-201(4) to forfeit tothe state not more than $2,500 for each violation. Each day the violation continues is a separateviolation.
(ii) The commissioner may order any other person who violates an order issued underSubsection 31A-2-201(4) to forfeit to the state not more than $5,000 for each violation. Eachday the violation continues is a separate violation.
(d) The commissioner may accept or compromise any forfeiture under this Subsection(1) until after a complaint is filed under Subsection (2). After the filing of the complaint, only theattorney general may compromise the forfeiture.
(2) When a person fails to comply with an order issued under Subsection 31A-2-201(4),including a forfeiture order, the commissioner may file an action in any court of competentjurisdiction or obtain a court order or judgment:
(a) enforcing the commissioner's order;
(b) (i) directing compliance with the commissioner's order and restraining furtherviolation of the order; and
(ii) subjecting the person ordered to the procedures and sanctions available to the courtfor punishing contempt if the failure to comply continues; or
(c) imposing a forfeiture in an amount the court considers just, up to $10,000 for eachday the failure to comply continues after the filing of the complaint until judgment is rendered.
(3) (a) The Utah Rules of Civil Procedure govern actions brought under Subsection (2),except that the commissioner may file a complaint seeking a court-ordered forfeiture underSubsection (2)(c) no sooner than two weeks after giving written notice of the commissioner'sintention to proceed under Subsection (2)(c).
(b) The commissioner's order issued under Subsection 31A-2-201(4) may contain anotice of intention to seek a court-ordered forfeiture if the commissioner's order is disobeyed.
(4) If, after a court order is issued under Subsection (2), the person fails to comply withthe commissioner's order or judgment:
(a) the commissioner may certify the fact of the failure to the court by affidavit; and
(b) the court may, after a hearing following at least five days written notice to the partiessubject to the order or judgment, amend the order or judgment to add the forfeiture or forfeitures,as prescribed in Subsection (2)(c), until the person complies.
(5) (a) The proceeds of all forfeitures under this section, including collection expenses,shall be paid into the General Fund.

(b) The expenses of collection shall be credited to the department's budget.
(c) The attorney general's budget shall be credited to the extent the departmentreimburses the attorney general's office for its collection expenses under this section.
(6) (a) Forfeitures and judgments under this section bear interest at the rate charged bythe United States Internal Revenue Service for past due taxes on the:
(i) date of entry of the commissioner's order under Subsection (1); or
(ii) date of judgment under Subsection (2).
(b) Interest accrues from the later of the dates described in Subsection (6)(a) until theforfeiture and accrued interest are fully paid.
(7) A forfeiture may not be imposed under Subsection (2)(c) if:
(a) at the time the forfeiture action is commenced, the person was in compliance with thecommissioner's order; or
(b) the violation of the order occurred during the order's suspension.
(8) The commissioner may seek an injunction as an alternative to issuing an order underSubsection 31A-2-201(4).
(9) (a) A person is guilty of a class B misdemeanor if that person:
(i) intentionally violates:
(A) an insurance statute of this state; or
(B) an order issued under Subsection 31A-2-201(4);
(ii) intentionally permits a person over whom that person has authority to violate:
(A) an insurance statute of this state; or
(B) an order issued under Subsection 31A-2-201(4); or
(iii) intentionally aids any person in violating:
(A) an insurance statute of this state; or
(B) an order issued under Subsection 31A-2-201(4).
(b) Unless a specific criminal penalty is provided elsewhere in this title, the person maybe fined not more than:
(i) $10,000 if a corporation; or
(ii) $5,000 if a person other than a corporation.
(c) If the person is an individual, the person may, in addition, be imprisoned for up to oneyear.
(d) As used in this Subsection (9), "intentionally" has the same meaning as underSubsection 76-2-103(1).
(10) (a) A person who knowingly and intentionally violates Section 31A-4-102,31A-8a-208, 31A-15-105, 31A-23a-116, or 31A-31-111 is guilty of a felony as provided in thisSubsection (10).
(b) When the value of the property, money, or other things obtained or sought to beobtained in violation of Subsection (10)(a):
(i) is less than $5,000, a person is guilty of a third degree felony; or
(ii) is or exceeds $5,000, a person is guilty of a second degree felony.
(11) (a) After a hearing, the commissioner may, in whole or in part, revoke, suspend,place on probation, limit, or refuse to renew the licensee's license or certificate of authority:
(i) when a licensee of the department, other than a domestic insurer:
(A) persistently or substantially violates the insurance law; or
(B) violates an order of the commissioner under Subsection 31A-2-201(4);

(ii) if there are grounds for delinquency proceedings against the licensee under Section31A-27a-207; or
(iii) if the licensee's methods and practices in the conduct of the licensee's businessendanger, or the licensee's financial resources are inadequate to safeguard, the legitimate interestsof the licensee's customers and the public.
(b) Additional license termination or probation provisions for licensees other thaninsurers are set forth in Sections 31A-19a-303, 31A-19a-304, 31A-23a-111, 31A-23a-112,31A-25-208, 31A-25-209, 31A-26-213, 31A-26-214, 31A-35-501, and 31A-35-503.
(12) The enforcement penalties and procedures set forth in this section are not exclusive,but are cumulative of other rights and remedies the commissioner has pursuant to applicable law.

Amended by Chapter 347, 2009 General Session

State Codes and Statutes

Statutes > Utah > Title-31a > Chapter-02 > 31a-2-308

31A-2-308. Enforcement penalties and procedures.
(1) (a) A person who violates any insurance statute or rule or any order issued underSubsection 31A-2-201(4) shall forfeit to the state twice the amount of any profit gained from theviolation, in addition to any other forfeiture or penalty imposed.
(b) (i) The commissioner may order an individual producer, limited line producer,customer service representative, managing general agent, reinsurance intermediary, adjuster, orinsurance consultant who violates an insurance statute or rule to forfeit to the state not more than$2,500 for each violation.
(ii) The commissioner may order any other person who violates an insurance statute orrule to forfeit to the state not more than $5,000 for each violation.
(c) (i) The commissioner may order an individual producer, limited line producer,customer service representative, managing general agent, reinsurance intermediary, adjuster, orinsurance consultant who violates an order issued under Subsection 31A-2-201(4) to forfeit tothe state not more than $2,500 for each violation. Each day the violation continues is a separateviolation.
(ii) The commissioner may order any other person who violates an order issued underSubsection 31A-2-201(4) to forfeit to the state not more than $5,000 for each violation. Eachday the violation continues is a separate violation.
(d) The commissioner may accept or compromise any forfeiture under this Subsection(1) until after a complaint is filed under Subsection (2). After the filing of the complaint, only theattorney general may compromise the forfeiture.
(2) When a person fails to comply with an order issued under Subsection 31A-2-201(4),including a forfeiture order, the commissioner may file an action in any court of competentjurisdiction or obtain a court order or judgment:
(a) enforcing the commissioner's order;
(b) (i) directing compliance with the commissioner's order and restraining furtherviolation of the order; and
(ii) subjecting the person ordered to the procedures and sanctions available to the courtfor punishing contempt if the failure to comply continues; or
(c) imposing a forfeiture in an amount the court considers just, up to $10,000 for eachday the failure to comply continues after the filing of the complaint until judgment is rendered.
(3) (a) The Utah Rules of Civil Procedure govern actions brought under Subsection (2),except that the commissioner may file a complaint seeking a court-ordered forfeiture underSubsection (2)(c) no sooner than two weeks after giving written notice of the commissioner'sintention to proceed under Subsection (2)(c).
(b) The commissioner's order issued under Subsection 31A-2-201(4) may contain anotice of intention to seek a court-ordered forfeiture if the commissioner's order is disobeyed.
(4) If, after a court order is issued under Subsection (2), the person fails to comply withthe commissioner's order or judgment:
(a) the commissioner may certify the fact of the failure to the court by affidavit; and
(b) the court may, after a hearing following at least five days written notice to the partiessubject to the order or judgment, amend the order or judgment to add the forfeiture or forfeitures,as prescribed in Subsection (2)(c), until the person complies.
(5) (a) The proceeds of all forfeitures under this section, including collection expenses,shall be paid into the General Fund.

(b) The expenses of collection shall be credited to the department's budget.
(c) The attorney general's budget shall be credited to the extent the departmentreimburses the attorney general's office for its collection expenses under this section.
(6) (a) Forfeitures and judgments under this section bear interest at the rate charged bythe United States Internal Revenue Service for past due taxes on the:
(i) date of entry of the commissioner's order under Subsection (1); or
(ii) date of judgment under Subsection (2).
(b) Interest accrues from the later of the dates described in Subsection (6)(a) until theforfeiture and accrued interest are fully paid.
(7) A forfeiture may not be imposed under Subsection (2)(c) if:
(a) at the time the forfeiture action is commenced, the person was in compliance with thecommissioner's order; or
(b) the violation of the order occurred during the order's suspension.
(8) The commissioner may seek an injunction as an alternative to issuing an order underSubsection 31A-2-201(4).
(9) (a) A person is guilty of a class B misdemeanor if that person:
(i) intentionally violates:
(A) an insurance statute of this state; or
(B) an order issued under Subsection 31A-2-201(4);
(ii) intentionally permits a person over whom that person has authority to violate:
(A) an insurance statute of this state; or
(B) an order issued under Subsection 31A-2-201(4); or
(iii) intentionally aids any person in violating:
(A) an insurance statute of this state; or
(B) an order issued under Subsection 31A-2-201(4).
(b) Unless a specific criminal penalty is provided elsewhere in this title, the person maybe fined not more than:
(i) $10,000 if a corporation; or
(ii) $5,000 if a person other than a corporation.
(c) If the person is an individual, the person may, in addition, be imprisoned for up to oneyear.
(d) As used in this Subsection (9), "intentionally" has the same meaning as underSubsection 76-2-103(1).
(10) (a) A person who knowingly and intentionally violates Section 31A-4-102,31A-8a-208, 31A-15-105, 31A-23a-116, or 31A-31-111 is guilty of a felony as provided in thisSubsection (10).
(b) When the value of the property, money, or other things obtained or sought to beobtained in violation of Subsection (10)(a):
(i) is less than $5,000, a person is guilty of a third degree felony; or
(ii) is or exceeds $5,000, a person is guilty of a second degree felony.
(11) (a) After a hearing, the commissioner may, in whole or in part, revoke, suspend,place on probation, limit, or refuse to renew the licensee's license or certificate of authority:
(i) when a licensee of the department, other than a domestic insurer:
(A) persistently or substantially violates the insurance law; or
(B) violates an order of the commissioner under Subsection 31A-2-201(4);

(ii) if there are grounds for delinquency proceedings against the licensee under Section31A-27a-207; or
(iii) if the licensee's methods and practices in the conduct of the licensee's businessendanger, or the licensee's financial resources are inadequate to safeguard, the legitimate interestsof the licensee's customers and the public.
(b) Additional license termination or probation provisions for licensees other thaninsurers are set forth in Sections 31A-19a-303, 31A-19a-304, 31A-23a-111, 31A-23a-112,31A-25-208, 31A-25-209, 31A-26-213, 31A-26-214, 31A-35-501, and 31A-35-503.
(12) The enforcement penalties and procedures set forth in this section are not exclusive,but are cumulative of other rights and remedies the commissioner has pursuant to applicable law.

Amended by Chapter 347, 2009 General Session


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State Codes and Statutes

Statutes > Utah > Title-31a > Chapter-02 > 31a-2-308

31A-2-308. Enforcement penalties and procedures.
(1) (a) A person who violates any insurance statute or rule or any order issued underSubsection 31A-2-201(4) shall forfeit to the state twice the amount of any profit gained from theviolation, in addition to any other forfeiture or penalty imposed.
(b) (i) The commissioner may order an individual producer, limited line producer,customer service representative, managing general agent, reinsurance intermediary, adjuster, orinsurance consultant who violates an insurance statute or rule to forfeit to the state not more than$2,500 for each violation.
(ii) The commissioner may order any other person who violates an insurance statute orrule to forfeit to the state not more than $5,000 for each violation.
(c) (i) The commissioner may order an individual producer, limited line producer,customer service representative, managing general agent, reinsurance intermediary, adjuster, orinsurance consultant who violates an order issued under Subsection 31A-2-201(4) to forfeit tothe state not more than $2,500 for each violation. Each day the violation continues is a separateviolation.
(ii) The commissioner may order any other person who violates an order issued underSubsection 31A-2-201(4) to forfeit to the state not more than $5,000 for each violation. Eachday the violation continues is a separate violation.
(d) The commissioner may accept or compromise any forfeiture under this Subsection(1) until after a complaint is filed under Subsection (2). After the filing of the complaint, only theattorney general may compromise the forfeiture.
(2) When a person fails to comply with an order issued under Subsection 31A-2-201(4),including a forfeiture order, the commissioner may file an action in any court of competentjurisdiction or obtain a court order or judgment:
(a) enforcing the commissioner's order;
(b) (i) directing compliance with the commissioner's order and restraining furtherviolation of the order; and
(ii) subjecting the person ordered to the procedures and sanctions available to the courtfor punishing contempt if the failure to comply continues; or
(c) imposing a forfeiture in an amount the court considers just, up to $10,000 for eachday the failure to comply continues after the filing of the complaint until judgment is rendered.
(3) (a) The Utah Rules of Civil Procedure govern actions brought under Subsection (2),except that the commissioner may file a complaint seeking a court-ordered forfeiture underSubsection (2)(c) no sooner than two weeks after giving written notice of the commissioner'sintention to proceed under Subsection (2)(c).
(b) The commissioner's order issued under Subsection 31A-2-201(4) may contain anotice of intention to seek a court-ordered forfeiture if the commissioner's order is disobeyed.
(4) If, after a court order is issued under Subsection (2), the person fails to comply withthe commissioner's order or judgment:
(a) the commissioner may certify the fact of the failure to the court by affidavit; and
(b) the court may, after a hearing following at least five days written notice to the partiessubject to the order or judgment, amend the order or judgment to add the forfeiture or forfeitures,as prescribed in Subsection (2)(c), until the person complies.
(5) (a) The proceeds of all forfeitures under this section, including collection expenses,shall be paid into the General Fund.

(b) The expenses of collection shall be credited to the department's budget.
(c) The attorney general's budget shall be credited to the extent the departmentreimburses the attorney general's office for its collection expenses under this section.
(6) (a) Forfeitures and judgments under this section bear interest at the rate charged bythe United States Internal Revenue Service for past due taxes on the:
(i) date of entry of the commissioner's order under Subsection (1); or
(ii) date of judgment under Subsection (2).
(b) Interest accrues from the later of the dates described in Subsection (6)(a) until theforfeiture and accrued interest are fully paid.
(7) A forfeiture may not be imposed under Subsection (2)(c) if:
(a) at the time the forfeiture action is commenced, the person was in compliance with thecommissioner's order; or
(b) the violation of the order occurred during the order's suspension.
(8) The commissioner may seek an injunction as an alternative to issuing an order underSubsection 31A-2-201(4).
(9) (a) A person is guilty of a class B misdemeanor if that person:
(i) intentionally violates:
(A) an insurance statute of this state; or
(B) an order issued under Subsection 31A-2-201(4);
(ii) intentionally permits a person over whom that person has authority to violate:
(A) an insurance statute of this state; or
(B) an order issued under Subsection 31A-2-201(4); or
(iii) intentionally aids any person in violating:
(A) an insurance statute of this state; or
(B) an order issued under Subsection 31A-2-201(4).
(b) Unless a specific criminal penalty is provided elsewhere in this title, the person maybe fined not more than:
(i) $10,000 if a corporation; or
(ii) $5,000 if a person other than a corporation.
(c) If the person is an individual, the person may, in addition, be imprisoned for up to oneyear.
(d) As used in this Subsection (9), "intentionally" has the same meaning as underSubsection 76-2-103(1).
(10) (a) A person who knowingly and intentionally violates Section 31A-4-102,31A-8a-208, 31A-15-105, 31A-23a-116, or 31A-31-111 is guilty of a felony as provided in thisSubsection (10).
(b) When the value of the property, money, or other things obtained or sought to beobtained in violation of Subsection (10)(a):
(i) is less than $5,000, a person is guilty of a third degree felony; or
(ii) is or exceeds $5,000, a person is guilty of a second degree felony.
(11) (a) After a hearing, the commissioner may, in whole or in part, revoke, suspend,place on probation, limit, or refuse to renew the licensee's license or certificate of authority:
(i) when a licensee of the department, other than a domestic insurer:
(A) persistently or substantially violates the insurance law; or
(B) violates an order of the commissioner under Subsection 31A-2-201(4);

(ii) if there are grounds for delinquency proceedings against the licensee under Section31A-27a-207; or
(iii) if the licensee's methods and practices in the conduct of the licensee's businessendanger, or the licensee's financial resources are inadequate to safeguard, the legitimate interestsof the licensee's customers and the public.
(b) Additional license termination or probation provisions for licensees other thaninsurers are set forth in Sections 31A-19a-303, 31A-19a-304, 31A-23a-111, 31A-23a-112,31A-25-208, 31A-25-209, 31A-26-213, 31A-26-214, 31A-35-501, and 31A-35-503.
(12) The enforcement penalties and procedures set forth in this section are not exclusive,but are cumulative of other rights and remedies the commissioner has pursuant to applicable law.

Amended by Chapter 347, 2009 General Session


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