31A-23a-403 - Inherent unsuitability. - Utah Statutes

31A-23a-403. Inherent unsuitability.
(1) If the commissioner finds after a hearing that a certain type of accident and healthinsurance, life insurance, or annuity product is inherently unsuitable for persons of certain ages orin certain conditions of health, the commissioner shall make a rule declaring the accident andhealth insurance, life insurance, or annuity product as inherently unsuitable for persons of certainages or in certain conditions of health.
(2) An accident and health insurance, life insurance, or annuity product that is subject tothe rule may not be sold to a person for whom the product has been determined as inherentlyunsuitable unless that person purchasing the product signs a receipt acknowledging havingreceived a statement that expresses that the product has been determined by the commissioner tobe inherently unsuitable for persons of certain ages or in certain conditions of health.
(3) Unless the insurer or its appointed licensee establishes that its sale of coverage isinconsistent with the rule made under Subsection (1) is due to excusable neglect, the purchasermay treat the sale as voidable, if acted upon by the insured within a two-year period from the dateof sale.

Renumbered and Amended by Chapter 298, 2003 General Session