Utah Code 31A-23a-119. Special requirements for agency title insurance producers
Current as of: 2024 | Check for updates
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(1) As used in this section:
Terms Used In Utah Code 31A-23a-119
- Agency: means :(6)(a) a person other than an individual, including a sole proprietorship by which an individual does business under an assumed name; and(6)(b) an insurance organization licensed or required to be licensed under Section
31A-23a-301 ,31A-25-207 , or31A-26-209 . See Utah Code 31A-1-301- Equal: means , with respect to biological sex, of the same value. See Utah Code 68-3-12.5
- 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- 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
- Title insurance: means the insuring, guaranteeing, or indemnifying of an owner of real or personal property or the holder of liens or encumbrances on that property, or others interested in the property against loss or damage suffered by reason of liens or encumbrances upon, defects in, or the unmarketability of the title to the property, or invalidity or unenforceability of any liens or encumbrances on the property. See Utah Code 31A-1-301
(1)(a) “Applicable percentage” means:(1)(a)(i) on February 1, 2024, through January 31, 2025, 2.5%;(1)(a)(ii) on February 1, 2025, through January 31, 2026, 3%;(1)(a)(iii) on February 1, 2026, through January 31, 2027, 3.5%;(1)(a)(iv) on February 1, 2027, through January 31, 2028, 4%; and(1)(a)(v) on February 1, 2028, through January 31, 2029, 4.5%.(1)(b) “Sufficient capital and net worth” means:(1)(b)(i) for a new title entity:(1)(b)(i)(A) $100,000 for the first five years after becoming a new agency title insurance producer; or(1)(b)(i)(B) after the first five years after becoming a new agency title insurance producer, the greater of $50,000, or on February 1 of each year, an amount equal to 5% of the title entity’s average annual gross revenue over the preceding two calendar years, up to $150,000; or(1)(b)(ii) for a title entity licensed before May 14, 2019:(1)(b)(ii)(A) for the time period beginning on February 1, 2020, and ending on January 31, 2029, the lesser of an amount equal to the applicable percentage of the title entity’s average annual gross revenue over the two calendar years immediately preceding the February 1 on which the applicable percentage applies or $150,000; and(1)(b)(ii)(B) beginning on February 1, 2029, the greater of $50,000 or an amount equal to 5% of the title entity’s average annual gross revenue over the preceding two calendar years, up to $150,000.(2) Before May 1 of each year, each agency title insurance producer shall submit a report to the commissioner containing proof satisfactory to the commissioner that the agency title insurance producer had sufficient capital and net worth for the preceding calendar year.