State Codes and Statutes

Statutes > Utah > Title-31a > Chapter-11 > 31a-11-106

31A-11-106. Application for certificate of authority -- Deposit or bond.
(1) Any corporation may apply, in the form specified by the commissioner, for acertificate of authority to transact a motor club business. The applicant shall include with theapplication any documents the commissioner may reasonably require, the deposit described inSubsection (2), which may be waived if net worth exceeds the deposit requirements, and the feeprovided for in Section 31A-3-103. No person may engage in the motor club business withoutcomplying with this section and receiving a certificate of authority under Section 31A-11-107.
(2) The deposit required under Subsection (1) shall comply with the requirements ofSection 31A-2-206, and is $100,000. In lieu of the deposit, the applicant may supply a bond of acorporate surety authorized to do a surety business in this state, in the same sum and in a formprescribed by the commissioner, payable to the state. The deposit, or the bond, shall beconditioned upon the corporation's faithful performance in the sale or rendering of motor clubservice under the provisions of this chapter, and the payment of fines, fees, or penalties imposedon the motor club under this title. Any person with a claim against the deposit or bond arisingfrom the motor club's breach of the conditions of the deposit or bond may bring suit in his ownname to make a claim against the deposit or bond, or the commissioner may bring suit on behalfof claimants. In no event shall the liability of the surety exceed the amount of the bond, regardlessof the number of claimants or claims made on the bond. Regardless of the number of years thebond continues in force or the number of premiums payable or paid, the limit of the surety'sliability, specified as the amount of liability of the bond, is not cumulative from year to year orfrom period to period. The bond shall be forfeited up to the amount of actual damages sustainedby any claimant or claimants. No cause of action shall be filed against the bond after two yearsfrom the date of termination of the bond.
(3) If a motor club is a separate division of a corporation, the commissioner may increasethe deposit or bond requirements to take into account the increased risk created by the otherbusiness of the corporation. However, the deposit or bond requirement may not be more thantwice the amounts required under Subsection (2).

Amended by Chapter 10, 1988 Special Session 2