2006 Utah Code - 31A-25-203 — General requirements for license issuance.

     31A-25-203.   General requirements for license issuance.
     (1) The commissioner shall issue a license to act as a third party administrator to any person who has:
     (a) satisfied the character requirements under Section 31A-25-204;
     (b) satisfied the financial responsibility requirement under Section 31A-25-205;
     (c) if a nonresident, complied with Section 31A-25-206; and
     (d) paid the applicable fees under Section 31A-3-103.
     (2) The license of each third party administrator licensed under former Title 31, Chapter 15a, is continued under this chapter.
     (3) (a) This Subsection (3) applies to the following persons:
     (i) an applicant for a third party administrator's license; or
     (ii) a licensed third party administrator.
     (b) A person described in Subsection (3)(a) shall report to the commissioner:
     (i) any administrative action taken against the person:
     (A) in another jurisdiction; or
     (B) by another regulatory agency in this state; and
     (ii) any criminal prosecution taken against the person in any jurisdiction.
     (c) The report required by Subsection (3)(b) shall:
     (i) be filed:
     (A) at the time the person applies for a third party administrator's license; and
     (B) for an action or prosecution that occurs on or after the day on which the person applies for a third party administrator license:
     (I) for an administrative action, within 30 days of the final disposition of the administrative action; or
     (II) for a criminal prosecution, within 30 days of the initial pretrial hearing; and
     (ii) include a copy of the complaint or other relevant legal documents related to the action or prosecution described in Subsection (3)(b).
     (4) (a) The department may request concerning a person applying for a third party administrator's license:
     (i) criminal background information maintained pursuant to Title 53, Chapter 10, Part 2, Bureau of Criminal Identification, from the Bureau of Criminal Identification; and
     (ii) complete Federal Bureau of Investigation criminal background checks through the national criminal history system.
     (b) Information obtained by the department from the review of criminal history records received under Subsection (4)(a) shall be used by the department for the purposes of:
     (i) determining if a person satisfies the character requirements under Section 31A-25-204 for issuance or renewal of a license;
     (ii) determining if a person has failed to maintain the character requirements under Section 31A-25-204; and
     (iii) preventing persons who violate the federal Violent Crime Control and Law Enforcement Act of 1994, 18 U.S.C. Secs. 1033 and 1034, from engaging in the business of insurance in the state.
     (c) If the department requests the criminal background information, the department shall:
     (i) pay to the Department of Public Safety the costs incurred by the Department of Public Safety in providing the department criminal background information under Subsection (4)(a)(i);

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     (ii) pay to the Federal Bureau of Investigation the costs incurred by the Federal Bureau of Investigation in providing the department criminal background information under Subsection (4)(a)(ii); and
     (iii) charge the person applying for a license or for renewal of a license a fee equal to the aggregate of Subsections (4)(c)(i) and (ii).

Amended by Chapter 312, 2006 General Session