31A-23a-401 - Disclosure of conflicting interests. - Utah Statutes

31A-23a-401. Disclosure of conflicting interests.
(1) (a) Except as provided under Subsection (1)(b):
(i) a licensee under this chapter may not act in the same or any directly relatedtransaction as:
(A) a producer for the insured or consultant; and
(B) producer for the insurer; and
(ii) a producer for the insured or consultant may not recommend or encourage thepurchase of insurance from or through an insurer or other producer:
(A) of which the producer for the insured or consultant or producer for the insured's orconsultant's spouse is an owner, executive, or employee; or
(B) to which the producer for the insured or consultant has the type of relation that amaterial benefit would accrue to the producer for the insured or consultant or spouse as a resultof the purchase.
(b) Subsection (1)(a) does not apply if the following three conditions are met:
(i) Prior to performing the consulting services, the producer for the insured or consultantshall disclose to the client, prominently, in writing:
(A) the producer for the insured's or consultant's interest as a producer for the insurer, orthe relationship to an insurer or other producer; and
(B) that as a result of those interests, the producer for the insured's or the consultant'srecommendations should be given appropriate scrutiny.
(ii) The producer for the insured's or consultant's fee shall be agreed upon, in writing,after the disclosure required under Subsection (1)(b)(i), but before performing the requestedservices.
(iii) Any report resulting from requested services shall contain a copy of the disclosuremade under Subsection (1)(b)(i).
(2) A licensee under this chapter may not act as to the same client as both a producer forthe insurer and a producer for the insured without the client's prior written consent based on fulldisclosure.
(3) Whenever a person applies for insurance coverage through a producer for the insured,the producer for the insured shall disclose to the applicant, in writing, that the producer for theinsured is not the producer for the insurer or the potential insurer. This disclosure shall alsoinform the applicant that the applicant likely does not have the benefit of an insurer beingfinancially responsible for the conduct of the producer for the insured.
(4) If a licensee is subject to both this section and Subsection 31A-23a-501(4), thelicensee shall provide the disclosure required under each statute.

Amended by Chapter 12, 2009 General Session