31A-15-102 - Assisting unauthorized insurers. - Utah Statutes

31A-15-102. Assisting unauthorized insurers.
(1) No person may do any act enumerated under Subsection (2) who knows or shouldknow that the act may assist in the illegal placement of insurance with an unauthorized insurer orthe subsequent servicing of an insurance policy illegally placed with an unauthorized insurer.
(2) An act performed by mail is performed both at the place of mailing and at the placeof delivery. Any of the following acts, whether performed by mail or otherwise, fall within theprohibition of Subsection (1):
(a) soliciting, making, or proposing to make an insurance contract;
(b) taking, receiving, or forwarding an application for insurance;
(c) collecting or receiving, in full or in part, an insurance premium;
(d) issuing or delivering an insurance policy or other evidence of an insurance contractexcept as a messenger not employed by the insurer, or an insurance producer;
(e) doing any of the following in connection with the solicitation, negotiation, procuring,or effectuation of insurance coverage for another: inspecting risks, setting rates, advertising,disseminating information, or advising on risk management;
(f) publishing or disseminating any advertisement encouraging the placement orservicing of insurance that would violate Subsection (1); however this provision does not applyto publication or dissemination to an audience primarily outside Utah that also reaches persons inUtah unless the extension to persons inside Utah can be conveniently avoided without substantialexpense other than loss of revenue; nor does it apply to regional or national network programs onradio or television unless they originate in Utah;
(g) investigating, settling, adjusting, or litigating claims; or
(h) representing or assisting any person to do an unauthorized insurance business or toprocure insurance from an unauthorized insurer.
(3) Subsection (1) does not prohibit:
(a) an attorney acting for a client;
(b) a full-time salaried employee of an insured acting in the capacity of an insurancebuyer or manager; or
(c) insurance activities described under Section 31A-15-103.
(4) Any act performed in Utah which is prohibited under this section constitutesappointment of the commissioner or the lieutenant governor as agent for service of process underSections 31A-2-309 and 31A-2-310.
(5) Any person or entity who knows or should know that the person's or entity's actionsassist in the illegal placement of insurance in violation of this section is guilty of a third degreefelony.

Amended by Chapter 58, 2005 General Session