Utah Code 31A-36-104. License requirements, revocation, and denial
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Terms Used In Utah Code 31A-36-104
- 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
- Conviction: A judgement of guilt against a criminal defendant.
- 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- 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.
- License: includes a certificate of authority issued to an insurer. See Utah Code 31A-1-301
- 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 producer: means a person licensed in the state as a life insurance producer that on behalf of an owner and for consideration offers or attempts to negotiate a life settlement between the owner and one or more life settlement providers. 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
- Life settlement purchaser: means a person that, to derive an economic benefit:
(11)(a)(i) provides a sum of money as consideration for a policy or an interest in the death benefits of a policy; or(11)(a)(ii) owns, acquires, or is entitled to a beneficial interest in a trust that:(11)(a)(ii)(A) owns a life settlement; or(11)(a)(ii)(B) is the beneficiary of a policy that has been or will be the subject of a life settlement. See Utah Code 31A-36-102- Member: means a person having membership rights in an insurance corporation. See Utah Code 31A-1-301
- Nolo contendere: No contest-has the same effect as a plea of guilty, as far as the criminal sentence is concerned, but may not be considered as an admission of guilt for any other purpose.
- 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- Proceeding: includes an action or special statutory proceeding. 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
- Related provider trust: means a trust established by a licensed life settlement provider or a financing entity solely to hold the ownership of or beneficial interests in purchased policies in connection with financing. See Utah Code 31A-36-102
- 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.
- Special purpose entity: means an entity formed by a licensed life settlement provider solely to enable the life settlement provider to gain access to institutional markets for capital. See Utah Code 31A-36-102
(1)(a) A person may not, without first obtaining a license from the commissioner, operate in or from this state as:(1)(a)(i) a life settlement provider; or(1)(a)(ii) a life settlement producer.(1)(b) A life settlement is included within the scope of the life insurance producer line of authority.(2)(2)(a) To obtain a license as a life settlement provider, an applicant shall:(2)(a)(i) comply with Section 31A-23a-117;(2)(a)(ii) file an application;(2)(a)(iii) pay the license fee; and(2)(a)(iv) provide evidence of financial responsibility.(2)(b) If an applicant for a life settlement provider license complies with Subsection (2)(a) and Section 31A-23a-117, the commissioner shall investigate the applicant and issue a life settlement provider license if the commissioner finds that the applicant is competent and trustworthy to engage in the business of providing life settlements by experience, training, or education.(3) In addition to the requirements in Sections 31A-23a-111, 31A-23a-112 and 31A-23a-113, the commissioner may refuse to issue, suspend, revoke, or refuse to renew the license of a life settlement provider or life settlement producer if the commissioner finds that:(3)(a) a life settlement provider demonstrates a pattern of unreasonable payments to owners;(3)(b) the applicant, the licensee, an officer, partner, or member, or key management personnel:(3)(b)(i) is, whether or not a judgment of conviction is entered by the court, found guilty of, or pleads guilty or nolo contendere to:(3)(b)(i)(A) a felony; or(3)(b)(i)(B) a misdemeanor involving fraud or moral turpitude;(3)(b)(ii) violates this chapter; or(3)(b)(iii) is subject to a final administrative action by another state or federal jurisdiction.(3)(c) a life settlement provider enters into a life settlement not approved under this chapter;(3)(d) a life settlement provider fails to honor obligations of a life settlement;(3)(e) a life settlement provider assigns, transfers, or pledges a settled policy to a person other than:(3)(e)(i) a life settlement provider licensed under this chapter;(3)(e)(ii) a life settlement purchaser;(3)(e)(iii) an accredited investor as defined in Regulation D, Rule 501, 17 C.F.R. § 230.501;(3)(e)(iv) a qualified institutional buyer as defined in Rule 144A, 17 C.F.R. § 230.144A;(3)(e)(v) a financing entity;(3)(e)(vi) a special purpose entity; or(3)(e)(vii) a related provider trust;(3)(f) a life settlement provider fails to maintain a standard set forth in Subsection (2)(b);(3)(g) an applicant or licensee has a material misrepresentation in an initial or renewal application for a license; or(3)(h) the licensee engages in bad faith conduct with one or more owners.(4) If the commissioner denies a license application or suspends, revokes, or refuses to renew the license of a life settlement provider or life settlement producer, the commissioner shall conduct an adjudicative proceeding under Title 63G, Chapter 4, Administrative Procedures Act.