Title 31A Chapter 5 Section 410

Insurance Code
Domestic Stock and Mutual Insurance Corporations
Section 410
Supervision of management changes.

            

31A-5-410.   Supervision of management changes.

            (1) (a) Immediately after the selection of a person as a director or principal officer, the insurer shall report to the commissioner:

            (i) the name of the person selected as a director or principal officer of a corporation; and

            (ii) pertinent biographical and other data that the commissioner requires by rule.

            (b) For five years after the initial issuance of a certificate of authority to a corporation, the commissioner may, within 30 days after receipt of a report under Subsection (1)(a), disapprove any person selected who fails to satisfy the commissioner that the person:

            (i) is trustworthy; and

            (ii) has the competence and experience necessary to discharge that person's responsibilities.

            (2) (a) Whenever a director or principal officer of a corporation is removed under a provision listed in Subsection (2)(b), the insurer shall immediately report to the commissioner:

            (i) the removal; and

            (ii) a statement of the reasons for the removal.

            (b) Subsection (2)(a) applies to a removal under:

            (i) Subsection 16-6a-820(4);

            (ii) Section 16-10a-808;

            (iii) Section 16-10a-832; and

            (iv) Subsection 31A-5-409(4).

            (3) The commissioner may order the removal of a director or officer if the commissioner finds, after a hearing, that:

            (a) a director or officer:

            (i) is incompetent;

            (ii) untrustworthy;

            (iii) is not qualified under Section 31A-5-409; or

            (iv) has wilfully violated:

            (A) this title;

            (B) a rule adopted under Subsection 31A-2-201(3); or

            (C) an order issued under Subsection 31A-2-201(4); and

            (b) the circumstances described in Subsection (3)(a) endangers the interests of:

            (i) insureds; or

            (ii) the public.


Amended by Chapter 308, 2002 General Session