State Codes and Statutes

Statutes > Utah > Title-31a > Chapter-05 > 31a-5-410

31A-5-410. Supervision of management changes.
(1) (a) Immediately after the selection of a person as a director or principal officer, theinsurer 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, thecommissioner may, within 30 days after receipt of a report under Subsection (1)(a), disapproveany 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'sresponsibilities.
(2) (a) Whenever a director or principal officer of a corporation is removed under aprovision 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 commissionerfinds, 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