Utah Code 31A-15-212. Duty of producers to obtain license — Risk retention groups — Purchasing groups
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(1) A person may do the following only if the person is licensed as an insurance producer or is exempt from licensure under Chapter 23a, Insurance Marketing – Licensing Producers, Consultants, and Reinsurance Intermediaries:
Terms Used In Utah Code 31A-15-212
- authorized insurer: means an insurer:(191)(b)(i) holding a valid certificate of authority to do an insurance business in this state; and(191)(b)(ii) transacting business as authorized by a valid certificate. See Utah Code 31A-1-301
- Insurance: means primary insurance, excess insurance, reinsurance, surplus lines insurance, and any other arrangement for shifting and distributing risk which is determined to be insurance under the laws of this state. See Utah Code 31A-15-202
- 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- Liability: means legal liability for damages, including costs of defense, legal costs and fees, and other claims expenses because of injuries to other persons, damage to their property, or other damage or loss to other persons resulting from or arising out of:
(6)(a)(i) any business, whether profit or nonprofit, trade, product, services, including professional services, premises, or operations; or(6)(a)(ii) any activity of any state or local government or any agency or political subdivision of any state or local government. See Utah Code 31A-15-202- Liability insurance: includes :
(112)(b)(i) vehicle liability insurance;(112)(b)(ii) residential dwelling liability insurance; and(112)(b)(iii) making inspection of, and issuing a certificate of inspection upon, an elevator, boiler, machinery, or apparatus of any kind when done in connection with insurance on the elevator, boiler, machinery, or apparatus. See Utah Code 31A-1-301- Member: means a person having membership rights in an insurance corporation. See Utah Code 31A-1-301
- 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: includes a service contract issued by:
(150)(b)(i) a motor club under Chapter 11, Motor Clubs;(150)(b)(ii) a service contract provided under Chapter 6a, Service Contracts; and(150)(b)(iii) a corporation licensed under:(150)(b)(iii)(A) Chapter 7, Nonprofit Health Service Insurance Corporations; or(150)(b)(iii)(B) Chapter 8, Health Maintenance Organizations and Limited Health Plans. 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
- Purchasing group: means any group that:
(10)(a) has as one of its purposes the purchase of liability insurance on a group basis;(10)(b) purchases liability insurance only for its group members and only to cover their similar or related liability exposure, as described in Subsection (10)(c);(10)(c) is composed of members whose businesses or activities are similar or related with respect to the liability to which members are exposed by virtue of any related, similar, or common business, trade, products, services, premises, or operations; and(10)(d) is domiciled in any state. See Utah Code 31A-15-202- Reinsurance: means an insurance transaction where an insurer, for consideration, transfers any portion of the risk it has assumed to another insurer. See Utah Code 31A-1-301
- Risk retention group: means any corporation or other limited liability association:
(11)(a) whose primary activity consists of assuming and spreading all, or any portion of, the liability exposure of its group members;(11)(b) which is organized for the primary purpose of conducting the activity described under Subsection (11)(a);(11)(c) that:(11)(c)(i) is chartered and licensed as a liability insurance company and authorized to engage in the business of insurance under the laws of any state; or(11)(c)(ii)(11)(c)(ii)(A) before January 1, 1985, was chartered or licensed and authorized to engage in the business of insurance under the laws of Bermuda or the Cayman Islands and, before January 1, 1985, had certified to the insurance commissioner of at least one state that it satisfied the capitalization requirements of that state;(11)(c)(ii)(B) except that any group as described in Subsection (11)(c)(ii)(A) shall be considered to be a risk retention group only if it has been engaged in business continuously since January 1, 1985, and only for the purpose of continuing to provide insurance to cover product liability or completed operations liability, as these terms were defined in the Product Liability Risk Retention Act of 1981 before the date of the enactment of the Liability Risk Retention Act of 1986;(11)(d) that does not exclude any person from membership in the group solely to provide for members of the group a competitive advantage over the excluded person;(11)(e) that:(11)(e)(i) has as its owners only persons who comprise the membership of the risk retention group and who are provided insurance by the group; or(11)(e)(ii) has as its sole owner an organization that has as:(11)(e)(ii)(A) its members only persons who comprise the membership of the risk retention group; and(11)(e)(ii)(B) its owners only persons who comprise the membership of the risk retention group and who are provided insurance by the group;(11)(f) whose members are engaged in businesses or activities similar or related with respect to the liability to which the members are exposed by virtue of any related, similar, or common business trade, products, services, premises or operations;(11)(g) whose activities do not include providing insurance other than:(11)(g)(i) liability insurance for assuming and spreading all or any portion of the liability of its group members; and(11)(g)(ii) reinsurance with respect to the liability of any other risk retention group, or any members of the other group, which is engaged in businesses or activities so that the group or member meets the requirement described in Subsection (11)(f) for membership in the risk retention group which provides the reinsurance; and(11)(h) the name of which includes the phrase "risk retention group. See Utah Code 31A-15-202- State: means :
(12)(a) a state of the United States; or(12)(b) the District of Columbia. See Utah Code 31A-15-202- Surplus: means the excess of assets over the sum of paid-in capital and liabilities. See Utah Code 31A-1-301
(1)(a) solicit, negotiate, or procure liability insurance in this state from a risk retention group;(1)(b) solicit, negotiate, or procure liability insurance in this state for a purchasing group from an authorized insurer or a risk retention group; and(1)(c) solicit, negotiate, or procure liability insurance coverage in this state for any member of a purchasing group under a purchasing group’s policy.(2)(2)(a) A person may not act or aid in any manner in soliciting, negotiating, or procuring liability insurance in this state for a purchasing group from an authorized insurer or a risk retention group chartered in a state unless that person is licensed as an insurance producer, or is exempt from licensure under Chapter 23a, Insurance Marketing – Licensing Producers, Consultants, and Reinsurance Intermediaries.(2)(b) A person may not act or aid in any manner in soliciting, negotiating, or procuring liability insurance coverage in this state for any member of a purchasing group under a purchasing group’s policy unless that person is licensed as an insurance producer, or is exempt from licensure under Chapter 23a, Insurance Marketing – Licensing Producers, Consultants, and Reinsurance Intermediaries.(2)(c) A person may not act or aid in any manner in soliciting, negotiating, or procuring liability insurance from an insurer not authorized to do business in this state on behalf of a purchasing group located in this state unless that person is licensed as a surplus lines producer or excess lines producer or is exempt from licensure under Chapter 23a, Insurance Marketing – Licensing Producers, Consultants, and Reinsurance Intermediaries.(3) For purposes of acting as a producer for a risk retention group or purchasing group pursuant to Subsections (1) and (2), the requirement of residence in this state does not apply.(4) A person licensed pursuant to Chapter 23a, Insurance Marketing – Licensing Producers, Consultants, and Reinsurance Intermediaries, on business placed with a risk retention group or written through a purchasing group, shall inform each prospective insured of the provisions of the notice required by Subsection 31A-15-204(7) in the case of a purchasing group.