31A-11-107. Issuance of certificate of authority -- Reinsurance of excess services.
(1) The commissioner shall issue a certificate applied for under Section 31A-11-106 if he
finds that:
(a) the corporation is able to negotiate, execute, and carry out the motor club business in
a sound, reliable, and ongoing manner;
(b) the reinsurance requirements of Subsection (2) are satisfied; and
(c) all other applicable requirements of law are satisfied.
(2) If a motor club provides legal expense service other than that authorized in
Subsection 31A-11-102(1)(b), or other trip reimbursement service than that authorized in
Subsection 31A-11-102(1)(d), or bail service other than that authorized under Section
31A-11-112, it must fully reinsure the excess service with an insurer authorized under Chapter 5
or 14. That insurer must assume direct liability to the insured, and must fully comply with
Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and Reinsurance
Intermediaries.
Amended by Chapter 298, 2003 General Session
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Last revised: Thursday, May 28, 2009