31A-23a-416 - Solicitations to loan applicants. - Utah Statutes

31A-23a-416. Solicitations to loan applicants.
(1) (a) A person authorized to engage in insurance activities in this state shallprominently disclose in writing the information described in Subsection (1)(b) to a personseeking an extension of credit if:
(i) the person authorized to engage in insurance activities also extends credit directly orthrough a subsidiary or an affiliate;
(ii) the person requires a customer to obtain insurance in connection with an extension ofcredit; and
(iii) the person offers to the person seeking an extension of credit the line of creditinsurance required in connection with the extension of credit.
(b) The disclosure required by Subsection (1)(a) shall be in a form substantially similarto the following. "You may obtain insurance required in connection with your extension ofcredit from any insurance producer or approved insurer that sells such insurance. Your choice ofinsurance provider will not affect our credit decision or your credit terms."
(c) The person shall make the required disclosure under Subsection (1)(a):
(i) at the time of written application for an extension of credit; or
(ii) if there is no written application, before the closing of the extension of credit.
(2) The disclosure required by Subsection (1)(c)(ii) may be in a verbal, electronic, orother unwritten form if a printed disclosure is included with the first printed statement of termsand conditions of the extension of credit sent to the person seeking the extension of credit.
(3) This section does not apply when:
(a) a person is contacting a person in the course of direct or mass marketing to a group ofpersons in a manner that bears no relation to the person's application for an extension of credit orcredit decision; and
(b) an agreement for the extension of credit is changed or extended, if the person whooriginally sought the extension of credit is not required to purchase new or additional insurance.
(4) (a) For purposes of this section, "approved insurer" means an insurer that is approvedto issue insurance related to the extension of credit by the person that extends the credit.
(b) The commissioner shall make rules establishing standards that govern the approvalunder Subsection (4)(a) of an insurer by a person that extends credit.

Renumbered and Amended by Chapter 298, 2003 General Session