2006 Utah Code - 31A-26-213 — Revocation, suspension, surrender, lapsing, limiting, or otherwise terminating 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 of administrative 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 and Minors;
(d) lapsed under Section 31A-26-214.5; or
(e) voluntarily surrendered.
(2) The following may be reinstated within one year after the day on which the license is inactivated:
(a) a lapsed license; or
(b) a voluntarily surrendered license.
(3) Unless otherwise stated in the written agreement for the voluntary surrender of a license, submission and acceptance of a voluntary surrender of a license does not prevent the department from pursuing additional disciplinary or other action authorized under:
(a) this title; or
(b) rules made under this title in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act.
(4) A license classification issued under this chapter remains in force until:
(a) the qualifications pertaining to a license classification are no longer met by the licensee; or
(b) the supporting license type:
(i) is revoked or suspended under Subsection (5); or
(ii) is surrendered to the commissioner and accepted by the commissioner in lieu of administrative action.
(5) (a) If the commissioner makes a finding under Subsection (5)(b) after an adjudicative proceeding under Title 63, Chapter 46b, Administrative Procedures Act, the commissioner may:
(i) revoke:
(A) a license; or
(B) a license classification;
(ii) suspend for a specified period of 12 months or less:
(A) a license; or
(B) a license classification; or
(iii) limit in whole or in part:
(A) a license; or
(B) a license classification.
(b) The commissioner may take an action described in Subsection (5)(a) if the commissioner finds that the licensee:
(i) is unqualified for a license or license classification under Sections 31A-26-202, 31A-26-203, and 31A-26-204;
(ii) has violated:
(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 other delinquency proceedings in any state;
(iv) fails to pay any final judgment rendered against the person in this state within 60 days after the judgment became final;
(v) fails to meet the same good faith obligations in claims settlement that is required of admitted insurers;
(vi) is affiliated with and under the same general management or interlocking directorate or ownership as another insurance adjuster 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 adjuster'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) has violated any insurance law, valid rule, or valid order of another state's insurance department;
(xi) has obtained or attempted to obtain a license through misrepresentation or fraud;
(xii) has improperly withheld, misappropriated, or converted any monies or properties received in the course of doing insurance business;
(xiii) has intentionally misrepresented the terms of an actual or proposed:
(A) insurance contract; or
(B) application for insurance;
(xiv) has been convicted of a felony;
(xv) has admitted or been found to have committed any insurance unfair trade practice or fraud;
(xvi) in the conduct of business in this state or elsewhere has:
(A) used fraudulent, coercive, or dishonest practices; or
(B) demonstrated incompetence, untrustworthiness, or financial irresponsibility;
(xvii) has had an insurance license, or its equivalent, denied, suspended, or revoked in any other state, province, district, or territory;
(xviii) has forged another's name to:
(A) an application for insurance; or
(B) any document related to an insurance transaction;
(xix) has improperly used notes or any other reference material to complete an examination for an insurance license;
(xx) has knowingly accepted insurance business from an individual who is not licensed;
(xxi) has failed to comply with an administrative or court order imposing a child support
obligation;
(xxii) has failed to:
(A) pay state income tax; or
(B) comply with any administrative or court order directing payment of state income tax;
(xxiii) has violated or permitted others to violate the federal Violent Crime Control and
Law Enforcement Act of 1994, 18 U.S.C. Secs. 1033 and 1034; or
(xxiv) has engaged in methods and practices in the conduct of business that endanger the
legitimate interests of customers and the public.
(c) For purposes of this section, if a license is held by an agency, both the agency itself
and any natural person named on the license are considered to be the holders of the license.
(d) If a natural person named on the agency license commits any act or fails to perform
any duty that is a ground for suspending, revoking, or limiting the natural person's license, the
commissioner may suspend, revoke, or limit the license of:
(i) the natural person;
(ii) the agency, if the agency:
(A) is reckless or negligent in its supervision of the natural person; or
(B) knowingly participated in the act or failure to act that is the ground for suspending,
revoking, or limiting the license; or
(iii) (A) the natural person; 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 conducting an insurance
business without 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 any other state, the
District of Columbia, or a territory of the United States;
(b) the imposition of a disciplinary sanction imposed on that person by any other state,
the District of Columbia, or a territory of the United States; or
(c) a judgment or injunction entered against that person on the basis of conduct
involving:
(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 a
license in lieu of administrative action may specify a time not to exceed five years within which
the former licensee may not apply for a new license.
(b) If no time is specified in the order or agreement described in Subsection (8)(a), the
former licensee may not apply for a new license for five years without the express approval of the
commissioner.
(9) The commissioner shall promptly withhold, suspend, restrict, or reinstate the use of a
license issued under this part if so ordered by a court.
(10) The commissioner shall by rule prescribe the license renewal and reinstatement
procedures in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act.
Amended by Chapter 312, 2006 General Session
