2006 Utah Code - 31A-27-201 — Commissioner\'s summary orders.

     31A-27-201.   Commissioner's summary orders.
     (1) (a) Whenever the commissioner has reasonable cause to believe, and determines after a hearing that any insurer has committed or engaged in, is committing or engaging in, or is about to commit or engage in any act, practice, or transaction, or is in or is about to be in a condition that would subject it to formal delinquency proceedings under this chapter, he may make and serve upon the insurer and any other persons whose action or forbearance from action is reasonably necessary, those orders other than seizure orders under Section 31A-27-202 that are reasonably necessary to correct, eliminate, or remedy that act, practice, transaction, or condition.
     (b) The commissioner may issue an order for the insurer to submit to supervision by a supervisor appointed by the commissioner until the act, practice, transaction, or condition that was the ground for the order has been halted or corrected.
     (2) (a) If the conditions of Subsection (1) are satisfied, and if it appears to the commissioner that irreparable harm to the property or business of the insurer or to the interests of its policyholders, creditors, or the public may occur unless the commissioner issues, with immediate effect, the orders described in Subsection (1), the commissioner may make and serve those orders without notice and before a hearing.
     (b) The commissioner shall serve the insurer with the orders and a notice of agency action, containing a statement of the reasons why irreparable harm is threatened unless the order is issued with immediate effect.
     (3) If the commissioner issues an order for supervision of an insurer under Subsection (1) or (2), he shall notify the insurer that it is under the supervision of the commissioner and shall explain the reasons for that supervision. During the period of supervision, the commissioner may prohibit the insurer from doing any of the following, without the prior approval of the commissioner or his supervisor:
     (a) transferring any of its assets or its business in force;
     (b) withdrawing funds from any of its bank accounts;
     (c) lending any of its funds;
     (d) investing any of its funds;
     (e) transferring any of its property;
     (f) incurring any debt, obligation, or liability other than in the ordinary and usual course of business; or
     (g) entering into any new reinsurance contract or treaty.
     (4) (a) If the commissioner issues a summary order before a hearing under Subsection (2), the insurer may waive the commissioner's hearing and apply for immediate judicial relief by any remedy afforded by law, without first exhausting its administrative remedies.
     (b) If the insurer has a hearing before the commissioner, the insurer and any person whose interests are substantially affected are entitled to judicial review of any order issued by the commissioner.

Amended by Chapter 161, 1987 General Session