2006 Utah Code - 31A-36-113 — Fraud.

     31A-36-113.   Fraud.
     (1) As used in this section, "recklessly" means engaging in conduct:
     (a) where a person knows or should have known of a substantial likelihood of the existence of the relevant facts or risks; and
     (b) involving a significant deviation from acceptable standards of conduct.
     (2) A person may not, knowingly or with intent to defraud, to deprive another of property or for pecuniary gain, do or permit its employees or agents to engage in any of the following acts:
     (a) present, cause to be presented or prepare with knowledge or belief that it will be presented, false information to or by a provider or producer of viatical settlements, a financing entity, an insurer, a provider of insurance or any other person, or to conceal information, as part of, in support of or concerning a fact material to:
     (i) an application for the issuance of a policy or viatical settlement;
     (ii) the underwriting of a policy or viatical settlement;
     (iii) a claim for payment or other benefit under a policy or viatical settlement;
     (iv) a premium paid on a policy;
     (v) a payment or change of beneficiary or ownership pursuant to a policy or viatical settlement;
     (vi) the reinstatement or conversion of a policy;
     (vii) the solicitation, offer, effectuation, or sale of a policy or viatical settlement;
     (viii) the issuance of written evidence of a policy or viatical settlement; or
     (ix) a financing transaction;
     (b) in furtherance of a fraud or to prevent detection of a fraud:
     (i) remove, conceal, alter, destroy, or sequester from the commissioner assets or records of a licensee under this chapter or other person engaged in the business of viatical settlements;
     (ii) misrepresent or conceal the financial condition of a licensee, a financing entity, an insurer, or other person;
     (iii) transact the business of viatical settlements in violation of this chapter; or
     (iv) file with the commissioner or analogous officer of another jurisdiction a document containing false information or otherwise conceal information about a material fact from the commissioner or analogous officer;
     (c) embezzle, steal, misappropriate, or convert money, premiums, credits, or other property of a provider of viatical settlements, a viator, an insurer, an insured, an owner of a policy, or other person engaged in the business of viatical settlements or insurance;
     (d) recklessly enter into, negotiate, or otherwise deal in a viatical settlement, the subject of which is a policy obtained where the viator or the viator's agent intended to defraud the policy's issuer by:
     (i) presenting false information concerning any fact material to the policy; or
     (ii) concealing, to mislead another, information concerning any fact material to the policy;
     (e) attempt to commit, assist, aid, abet, or conspire to commit an act or omission described in this Subsection (2).
     (3) A person may not knowingly or intentionally interfere with the enforcement of the provisions of this chapter or an investigation of a possible violation of this chapter.
     (4) A person engaged in the business of viatical settlements may not knowingly or intentionally permit any person convicted of a felony involving dishonesty or breach of trust to

participate in the business of viatical settlements.
     (5) An application or contract for a viatical settlement, however transmitted, shall contain the following or a substantially similar statement: "A person that knowingly presents false information in an application for insurance or a viatical settlement is guilty of a crime and may be subject to fines and confinement in prison." The lack of such a statement is not a defense in a prosecution for violation of this section.

Enacted by Chapter 81, 2003 General Session