Title 31A Chapter 23a Section 106

Insurance Code
Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries
Section 106
License types.

            

31A-23a-106.   License types.

            (1) (a) A resident or nonresident license issued under this chapter shall be issued under the license types described under Subsection (2).

            (b) A license type and a line of authority pertaining to a license type describe the type of licensee and the lines of business that a licensee may sell, solicit, or negotiate. A license type is intended to describe the matters to be considered under any education, examination, and training required of a license applicant under Sections 31A-23a-108, 31A-23a-202, and 31A-23a-203.

            (2) (a) A producer license type includes the following lines of authority:

            (i) life insurance, including a nonvariable contract;

            (ii) variable contracts, including variable life and annuity, if the producer has the life insurance line of authority;

            (iii) accident and health insurance, including a contract issued to a policyholder under Chapter 7, Nonprofit Health Service Insurance Corporations, or Chapter 8, Health Maintenance Organizations and Limited Health Plans;

            (iv) property insurance;

            (v) casualty insurance, including a surety or other bond;

            (vi) title insurance under one or more of the following categories:

            (A) search, including authority to act as a title marketing representative;

            (B) escrow, including authority to act as a title marketing representative; and

            (C) title marketing representative only; and

            (vii) personal lines insurance.

            (b) A surplus lines producer license type includes the following lines of authority:

            (i) property insurance, if the person holds an underlying producer license with the property line of insurance; and

            (ii) casualty insurance, if the person holds an underlying producer license with the casualty line of authority.

            (c) A limited line producer license type includes the following limited lines of authority:

            (i) limited line credit insurance;

            (ii) travel insurance;

            (iii) motor club insurance;

            (iv) car rental related insurance;

            (v) legal expense insurance;

            (vi) crop insurance;

            (vii) self-service storage insurance;

            (viii) bail bond producer;

            (ix) guaranteed asset protection waiver; and

            (x) portable electronics insurance.

            (d) A consultant license type includes the following lines of authority:

            (i) life insurance, including a nonvariable contract;

            (ii) variable contracts, including variable life and annuity, if the consultant has the life insurance line of authority;

            (iii) accident and health insurance, including a contract issued to a policyholder under Chapter 7, Nonprofit Health Service Insurance Corporations, or Chapter 8, Health Maintenance Organizations and Limited Health Plans;

            (iv) property insurance;

            (v) casualty insurance, including a surety or other bond; and

            (vi) personal lines insurance.

            (e) A managing general agent license type includes the following lines of authority:

            (i) life insurance, including a nonvariable contract;

            (ii) variable contracts, including variable life and annuity, if the managing general agent has the life insurance line of authority;

            (iii) accident and health insurance, including a contract issued to a policyholder under Chapter 7, Nonprofit Health Service Insurance Corporations, or Chapter 8, Health Maintenance Organizations and Limited Health Plans;

            (iv) property insurance;

            (v) casualty insurance, including a surety or other bond; and

            (vi) personal lines insurance.

            (f) A reinsurance intermediary license type includes the following lines of authority:

            (i) life insurance, including a nonvariable contract;

            (ii) variable contracts, including variable life and annuity, if the reinsurance intermediary has the life insurance line of authority;

            (iii) accident and health insurance, including a contract issued to a policyholder under Chapter 7, Nonprofit Health Service Insurance Corporations, or Chapter 8, Health Maintenance Organizations and Limited Health Plans;

            (iv) property insurance;

            (v) casualty insurance, including a surety or other bond; and

            (vi) personal lines insurance.

            (g) A person who holds a license under Subsection (2)(a) has the qualifications necessary to act as a holder of a license under Subsection (2)(c), except that the person may not act under Subsection (2)(c)(viii) or (ix).

            (3) (a) The commissioner may by rule recognize other producer, surplus lines producer, limited line producer, consultant, managing general agent, or reinsurance intermediary lines of authority as to kinds of insurance not listed under Subsections (2)(a) through (f).

            (b) Notwithstanding Subsection (3)(a), for purposes of title insurance the Title and Escrow Commission may by rule, with the concurrence of the commissioner and subject to Section 31A-2-404, recognize other categories for an individual title insurance producer or agency title insurance producer line of authority not listed under Subsection (2)(a)(vi).

            (4) The variable contracts line of authority requires:

            (a) for a producer, licensure by the Financial Industry Regulatory Authority as a:

            (i) registered broker-dealer; or

            (ii) broker-dealer agent, with a current registration with a broker-dealer; and

            (b) for a consultant, registration with the Securities and Exchange Commission or licensure by the Utah Division of Securities as an:

            (i) investment adviser; or

            (ii) investment adviser representative, with a current association with an investment adviser.

            (5) A surplus lines producer is a producer who has a surplus lines license.


Amended by Chapter 319, 2013 General Session