Utah Code 31A-36-113. Fraud
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(1) As used in this section, “recklessly” means engaging in conduct:
Terms Used In Utah Code 31A-36-113
- Application: means a document:(10)(a)(10)(a)(i) completed by an applicant to provide information about the risk to be insured; and(10)(a)(ii) that contains information that is used by the insurer to evaluate risk and decide whether to:(10)(a)(ii)(A) insure the risk under:(10)(a)(ii)(A)(I) the coverage as originally offered; or(10)(a)(ii)(A)(II) a modification of the coverage as originally offered; or(10)(a)(ii)(B) decline to insure the risk; or(10)(b) used by the insurer to gather information from the applicant before issuance of an annuity contract. See Utah Code 31A-1-301
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Business of life settlements: includes the following:
(2)(a) offering a life settlement;(2)(b) soliciting a life settlement;(2)(c) negotiating a life settlement;(2)(d) procuring a life settlement;(2)(e) effectuating a life settlement;(2)(f) purchasing a life settlement;(2)(g) investing in a life settlement;(2)(h) financing a life settlement;(2)(i) monitoring a life settlement;(2)(j) tracking a life settlement;(2)(k) underwriting a life settlement;(2)(l) selling a life settlement;(2)(m) transferring a life settlement;(2)(n) assigning a life settlement;(2)(o) pledging a life settlement;(2)(p) hypothecating a life settlement; or(2)(q) in any other manner acquiring an interest in an insurance policy by means of a life settlement. See Utah Code 31A-36-102- Contract: A legal written agreement that becomes binding when signed.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Financing entity: includes , if the requirements of Subsection (5)(a) are met, the following:
(5)(b)(i) an underwriter;(5)(b)(ii) a placement agent;(5)(b)(iii) an enhancer of credit;(5)(b)(iv) a lender;(5)(b)(v) a purchaser of securities; and(5)(b)(vi) a purchaser of a policy from a life settlement provider. See Utah Code 31A-36-102- Fraud: Intentional deception resulting in injury to another.
- Insurance: includes :
(96)(b)(i) a risk distributing arrangement providing for compensation or replacement for damages or loss through the provision of a service or a benefit in kind;(96)(b)(ii) a contract of guaranty or suretyship entered into by the guarantor or surety as a business and not as merely incidental to a business transaction; and(96)(b)(iii) a plan in which the risk does not rest upon the person who makes an arrangement, but with a class of persons who have agreed to share the risk. See Utah Code 31A-1-301- Insured: means a person to whom or for whose benefit an insurer makes a promise in an insurance policy and includes:
(103)(a)(i) a policyholder;(103)(a)(ii) a subscriber;(103)(a)(iii) a member; and(103)(a)(iv) a beneficiary. See Utah Code 31A-1-301- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Life settlement: includes :
(8)(b)(i) the transfer for compensation or value of ownership or beneficial interest in a trust or other entity that owns a policy if the trust or other entity is formed or operated for the principal purpose of acquiring one or more policies; or(8)(b)(ii) a premium finance loan made for a policy by a lender to an owner on, before, or after the date of issuance of the policy if the owner:(8)(b)(ii)(A) receives on the date of the premium finance loan a guarantee of a future life settlement value of the policy; or(8)(b)(ii)(B) agrees on the date of the premium finance loan to sell the policy or any portion of the policy's death benefit on a date following the issuance of the policy. See Utah Code 31A-36-102- Life settlement provider: means a person other than an owner that enters into or effectuates a life settlement. See Utah Code 31A-36-102
- Owner: means any of the following who resides in this state and seeks to enter into a life settlement:
(12)(a)(i) the owner of a policy; or(12)(a)(ii) the holder of a certificate of a group policy. See Utah Code 31A-36-102- Person: includes :
(146)(a) an individual;(146)(b) a partnership;(146)(c) a corporation;(146)(d) an incorporated or unincorporated association;(146)(e) a joint stock company;(146)(f) a trust;(146)(g) a limited liability company;(146)(h) a reciprocal;(146)(i) a syndicate; or(146)(j) another similar entity or combination of entities acting in concert. See Utah Code 31A-1-301- Policy: means :
(13)(a) an individual or group life insurance policy;(13)(b) an individual or group annuity policy;(13)(c) a group life insurance certificate;(13)(d) a group annuity certificate; or(13)(e) a life insurance policy or an annuity policy, whether or not delivered or issued for delivery in Utah:(13)(e)(i) affecting the rights of a resident of Utah; or(13)(e)(ii) bearing a reasonable relation to Utah. See Utah Code 31A-36-102- Premium: includes , however designated:
(156)(b)(i) an assessment;(156)(b)(ii) a membership fee;(156)(b)(iii) a required contribution; or(156)(b)(iv) monetary consideration. See Utah Code 31A-1-301- producer: means a person licensed or required to be licensed under the laws of this state to sell, solicit, or negotiate insurance. See Utah Code 31A-1-301
- Property: includes both real and personal property. See Utah Code 68-3-12.5
- Sequester: To separate. Sometimes juries are sequestered from outside influences during their deliberations.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- Stranger-originated life insurance: includes when:
(18)(b)(i) a policy is purchased with resources or guarantees from or through a person who, at the time of policy origination, could not lawfully initiate the policy itself; and(18)(b)(ii) at the time of policy origination, there is an agreement, whether oral or written, to directly or indirectly transfer to a third party the ownership of a policy, policy benefits, or both. See Utah Code 31A-36-102(1)(a) when a person knows or should have known of a substantial likelihood of the existence of the relevant facts or risks; and(1)(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:(2)(a)(2)(a)(i) present, cause to be presented or prepare with knowledge or belief that it will be presented, false information to or by a life settlement provider or life settlement producer, 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:(2)(a)(i)(A) an application for the issuance of a policy or life settlement;(2)(a)(i)(B) the underwriting of a policy or life settlement;(2)(a)(i)(C) a claim for payment or other benefit under a policy or life settlement;(2)(a)(i)(D) a premium paid on a policy;(2)(a)(i)(E) a payment or change of beneficiary or ownership pursuant to a policy or life settlement;(2)(a)(i)(F) the reinstatement or conversion of a policy;(2)(a)(i)(G) the solicitation, offer, effectuation, or sale of a policy or life settlement;(2)(a)(i)(H) the issuance of written evidence of a policy or life settlement; or(2)(a)(i)(I) a financing transaction;(2)(a)(ii) employ a device, scheme, or artifice to defraud in the business of life settlements;(2)(a)(iii) enter into any plan or practice that involves stranger-originated life insurance; or(2)(a)(iv) employ a device, scheme, or artifice resulting in a violation of Section 31A-21-104 in the solicitation, application, or issuance of a policy that is the subject of a life settlement;(2)(b) in furtherance of a fraud or to prevent detection of a fraud:(2)(b)(i) remove, conceal, alter, destroy, or sequester from the commissioner assets or records of a person engaged in the business of life settlements;(2)(b)(ii) misrepresent or conceal the financial condition of a licensee, a financing entity, an insurer, or other person;(2)(b)(iii) transact the business of life settlements in violation of this chapter; or(2)(b)(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;(2)(c) embezzle, steal, misappropriate, or convert money, premiums, credits, or other property of a life settlement provider, an owner, an insurer, an insured, an owner of a policy, or other person engaged in the business of life settlements or insurance;(2)(d) recklessly enter into, negotiate, or otherwise deal in a life settlement, the subject of which is a policy obtained when one or more persons intend to defraud the policy’s issuer, the life settlement provider, or the owner by:(2)(d)(i) presenting false information concerning a fact material to the policy; or(2)(d)(ii) concealing, to mislead another, information concerning a fact material to the policy;(2)(e) facilitate a change of the state or jurisdiction of ownership of a policy or the state of residency of an owner to a state or jurisdiction that does not have a law similar to this chapter for the express purpose of evading or avoiding this chapter; or(2)(f) 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 this chapter or an investigation of a possible violation of this chapter.(4) A person engaged in the business of life settlements may not knowingly or intentionally permit a person convicted of a felony involving dishonesty or breach of trust to participate in the business of life settlements.(5)(5)(a) An application or contract for a life 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 life settlement is guilty of a crime and may be subject to fines and confinement in prison.”(5)(b) The lack of the statement described in Subsection (5)(a) is not a defense in a prosecution for violation of this section.