(1) The commissioner may conduct an examination of a life settlement provider or life settlement producer in accordance with Sections 31A-2-203, 31A-2-203.5, 31A-2-204, and 31A-2-205.

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Terms Used In Utah Code 31A-36-107

  • 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
  • Department: means the Insurance Department. See Utah Code 31A-1-301
  • 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.
  • Form: means , in addition to a form as defined in Section 31A-1-301:
         (6)(a) a life settlement;
         (6)(b) a disclosure to an owner;
         (6)(c) a notice of intent to settle; or
         (6)(d) a verification of coverage. See Utah Code 31A-36-102
  • Individual: means a natural person. 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
  • 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
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • 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
  • Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5
  • 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
  • Settled policy: means a policy that is acquired by a life settlement provider pursuant to a life settlement. 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.
(2) A life settlement provider or life settlement producer shall retain for five years copies of:

     (2)(a) the following records, whether proposed, offered, or executed, from the later of the date of the proposal, offer, or execution:

          (2)(a)(i) contracts;
          (2)(a)(ii) purchase agreements;
          (2)(a)(iii) underwriting documents;
          (2)(a)(iv) policy forms; and
          (2)(a)(v) applications;
     (2)(b) checks, drafts, and other evidence or documentation relating to the payment, transfer, or release of money, from the date of the transaction; and
     (2)(c) records and documents related to the requirements of this chapter.
(3) This section does not relieve a person of the obligation to produce a document described in Subsection (2) to the commissioner after the expiration of the relevant period if the person has retained the document.
(4) A record required by this section to be retained:

     (4)(a) shall be legible and complete; and
     (4)(b) may be retained in any form or by any process that accurately reproduces or is a durable medium for the reproduction of the record.
(5) An examiner may not be appointed by the commissioner if the examiner, either directly or indirectly, has a conflict of interest or is affiliated with the management of or owns a pecuniary interest in a person subject to examination under this chapter. This Subsection (5) does not automatically preclude an examiner from being:

     (5)(a) an owner;
     (5)(b) an insured in a settled policy; or
     (5)(c) a beneficiary in a policy that is proposed to be settled.
(6)

     (6)(a) An examinee under this section shall reimburse the cost of an examination to the department consistent with Section 31A-2-205.
     (6)(b) Notwithstanding Subsection (6)(a), an individual life settlement producer is not subject to Section 31A-2-205.