State Codes and Statutes
Statutes > Utah > Title-31a > Chapter-23a > 31a-23a-11131A-23a-111. Revocation, suspension, surrender, lapsing, limiting, or otherwiseterminating a license -- Rulemaking for renewal or reinstatement.
(1) A license type issued under this chapter remains in force until:
(a) revoked or suspended under Subsection (5);
(b) surrendered to the commissioner and accepted by the commissioner in lieu ofadministrative action;
(c) the licensee dies or is adjudicated incompetent as defined under:
(i) Title 75, Chapter 5, Part 3, Guardians of Incapacitated Persons; or
(ii) Title 75, Chapter 5, Part 4, Protection of Property of Persons Under Disability andMinors;
(d) lapsed under Section 31A-23a-113; or
(e) voluntarily surrendered.
(2) The following may be reinstated within one year after the day on which the license isno longer in force:
(a) a lapsed license; or
(b) a voluntarily surrendered license, except that a voluntarily surrendered license maynot be reinstated after the license period in which the license is voluntarily surrendered.
(3) Unless otherwise stated in the written agreement for the voluntary surrender of alicense, submission and acceptance of a voluntary surrender of a license does not prevent thedepartment from pursuing additional disciplinary or other action authorized under:
(a) this title; or
(b) rules made under this title in accordance with Title 63G, Chapter 3, UtahAdministrative Rulemaking Act.
(4) A line of authority issued under this chapter remains in force until:
(a) the qualifications pertaining to a line of authority are no longer met by the licensee; or
(b) the supporting license type:
(i) is revoked or suspended under Subsection (5);
(ii) is surrendered to the commissioner and accepted by the commissioner in lieu ofadministrative action;
(iii) the licensee dies or is adjudicated incompetent as defined under:
(A) Title 75, Chapter 5, Part 3, Guardians of Incapacitated Persons; or
(B) Title 75, Chapter 5, Part 4, Protection of Property of Persons Under Disability andMinors;
(iv) lapsed under Section 31A-23a-113; or
(v) voluntarily surrendered.
(5) (a) If the commissioner makes a finding under Subsection (5)(b), as part of anadjudicative proceeding under Title 63G, Chapter 4, Administrative Procedures Act, thecommissioner may:
(i) revoke:
(A) a license; or
(B) a line of authority;
(ii) suspend for a specified period of 12 months or less:
(A) a license; or
(B) a line of authority;
(iii) limit in whole or in part:
(A) a license; or
(B) a line of authority; or
(iv) deny a license application.
(b) The commissioner may take an action described in Subsection (5)(a) if thecommissioner finds that the licensee:
(i) is unqualified for a license or line of authority under Section 31A-23a-104,31A-23a-105, or 31A-23a-107;
(ii) violates:
(A) an insurance statute;
(B) a rule that is valid under Subsection 31A-2-201(3); or
(C) an order that is valid under Subsection 31A-2-201(4);
(iii) is insolvent or the subject of receivership, conservatorship, rehabilitation, or otherdelinquency proceedings in any state;
(iv) fails to pay a final judgment rendered against the person in this state within 60 daysafter the day on which the judgment became final;
(v) fails to meet the same good faith obligations in claims settlement that is required ofadmitted insurers;
(vi) is affiliated with and under the same general management or interlocking directorateor ownership as another insurance producer that transacts business in this state without a license;
(vii) refuses:
(A) to be examined; or
(B) to produce its accounts, records, and files for examination;
(viii) has an officer who refuses to:
(A) give information with respect to the insurance producer's affairs; or
(B) perform any other legal obligation as to an examination;
(ix) provides information in the license application that is:
(A) incorrect;
(B) misleading;
(C) incomplete; or
(D) materially untrue;
(x) violates an insurance law, valid rule, or valid order of another state's insurancedepartment;
(xi) obtains or attempts to obtain a license through misrepresentation or fraud;
(xii) improperly withholds, misappropriates, or converts money or properties received inthe course of doing insurance business;
(xiii) intentionally misrepresents the terms of an actual or proposed:
(A) insurance contract;
(B) application for insurance; or
(C) life settlement;
(xiv) is convicted of a felony;
(xv) admits or is found to have committed an insurance unfair trade practice or fraud;
(xvi) in the conduct of business in this state or elsewhere:
(A) uses fraudulent, coercive, or dishonest practices; or
(B) demonstrates incompetence, untrustworthiness, or financial irresponsibility;
(xvii) has an insurance license, or its equivalent, denied, suspended, or revoked in
another state, province, district, or territory;
(xviii) forges another's name to:
(A) an application for insurance; or
(B) a document related to an insurance transaction;
(xix) improperly uses notes or another reference material to complete an examination foran insurance license;
(xx) knowingly accepts insurance business from an individual who is not licensed;
(xxi) fails to comply with an administrative or court order imposing a child supportobligation;
(xxii) fails to:
(A) pay state income tax; or
(B) comply with an administrative or court order directing payment of state income tax;
(xxiii) violates or permits others to violate the federal Violent Crime Control and LawEnforcement Act of 1994, 18 U.S.C. Secs. 1033 and 1034; or
(xxiv) engages in a method or practice in the conduct of business that endangers thelegitimate interests of customers and the public.
(c) For purposes of this section, if a license is held by an agency, both the agency itselfand any individual designated under the license are considered to be the holders of the license.
(d) If an individual designated under the agency license commits an act or fails toperform a duty that is a ground for suspending, revoking, or limiting the individual's license, thecommissioner may suspend, revoke, or limit the license of:
(i) the individual;
(ii) the agency, if the agency:
(A) is reckless or negligent in its supervision of the individual; or
(B) knowingly participates in the act or failure to act that is the ground for suspending,revoking, or limiting the license; or
(iii) (A) the individual; and
(B) the agency if the agency meets the requirements of Subsection (5)(d)(ii).
(6) A licensee under this chapter is subject to the penalties for acting as a licenseewithout a license if:
(a) the licensee's license is:
(i) revoked;
(ii) suspended;
(iii) limited;
(iv) surrendered in lieu of administrative action;
(v) lapsed; or
(vi) voluntarily surrendered; and
(b) the licensee:
(i) continues to act as a licensee; or
(ii) violates the terms of the license limitation.
(7) A licensee under this chapter shall immediately report to the commissioner:
(a) a revocation, suspension, or limitation of the person's license in another state, theDistrict of Columbia, or a territory of the United States;
(b) the imposition of a disciplinary sanction imposed on that person by another state, theDistrict of Columbia, or a territory of the United States; or
(c) a judgment or injunction entered against that person on the basis of conductinvolving:
(i) fraud;
(ii) deceit;
(iii) misrepresentation; or
(iv) a violation of an insurance law or rule.
(8) (a) An order revoking a license under Subsection (5) or an agreement to surrender alicense in lieu of administrative action may specify a time, not to exceed five years, within whichthe former licensee may not apply for a new license.
(b) If no time is specified in an order or agreement described in Subsection (8)(a), theformer licensee may not apply for a new license for five years from the day on which the order oragreement is made without the express approval by the commissioner.
(9) The commissioner shall promptly withhold, suspend, restrict, or reinstate the use of alicense issued under this part if so ordered by a court.
(10) The commissioner shall by rule prescribe the license renewal and reinstatementprocedures in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
Amended by Chapter 349, 2009 General Session
Amended by Chapter 355, 2009 General Session
