2006 Utah Code - 31A-23a-401 — Disclosure of conflicting interests.

     31A-23a-401.   Disclosure of conflicting interests.
     (1) (a) Except as provided under Subsection (1)(b), no licensee under this chapter may act in the same or any directly related transaction as a producer for the insured or consultant and producer for the insurer; nor may a producer for the insured or consultant recommend or encourage the purchase of insurance from or through an insurer or other producer of which the producer for the insured or consultant or producer for the insured's or consultant's spouse is an owner, executive, or employee or to which he has the type of relation that a material benefit would accrue to the consultant or spouse as a result of the purchase.
     (b) Subsection (1)(a) does not apply if the following three conditions are met:
     (i) Prior to performing the consulting services, the producer for the insured or consultant discloses to the client, prominently, in writing, the producer for the insured's or consultant's interest as a producer for the insurer, or the relationship to an insurer or other producer, and that as a result of those interests the consultant's recommendations should be given appropriate scrutiny.
     (ii) The producer for the insured's or consultant's fee is agreed upon, in writing, after the disclosure required under Subsection (1)(b)(i), but prior to performing the requested services.
     (iii) Any report resulting from requested services contains a copy of the disclosure made under Subsection (1)(b)(i).
     (2) No licensee under this chapter may act as to the same client as both a producer for the insurer and a producer for the insured without the client's prior written consent based on full disclosure.
     (3) Whenever a person applies for insurance coverage through a producer for the insured, the producer for the insured shall disclose to the applicant, in writing, that the producer for the insured is not the producer for the insurer of the potential insurer. This disclosure shall also inform the applicant that the applicant likely does not have the benefit of an insurer being financially responsible for the producer for the insured's conduct.

Renumbered and Amended by Chapter 298, 2003 General Session