31A-23a-302. Agency designations.
(1) An agency shall designate an individual that has an individual producer, limited line
producer, customer service representative, consultant, managing general agent, or reinsurance
intermediary license to act on the agency's behalf in order for the licensee to do business for the
agency in this state.
(2) An agency shall report to the commissioner, at intervals and in the form the
commissioner establishes by rule:
(a) a new designation; and
(b) a terminated designation.
(3) (a) An agency licensed under this chapter shall report to the commissioner the cause
of termination of a designation if:
(i) the reason for termination is a reason described in Subsection 31A-23a-111(5)(b); or
(ii) the agency has knowledge that the individual licensee is found to have engaged in an
activity described in Subsection 31A-23a-111(5)(b) by:
(A) a court;
(B) a government body; or
(C) a self-regulatory organization, which the commissioner may define by rule made in
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(b) The information provided the commissioner under Subsection (3)(a) is a private
record under Title 63G, Chapter 2, Government Records Access and Management Act.
(c) An agency is immune from civil action, civil penalty, or damages if the agency
complies in good faith with this Subsection (3) in reporting to the commissioner the cause of
termination of a designation.
(d) Notwithstanding any other provision in this section, an agency is not immune from an
action or resulting penalty imposed on the reporting agency as a result of proceedings brought by
or on behalf of the department if the action is based on evidence other than the report submitted
in compliance with this Subsection (3).
(4) An agency licensed under this chapter may act in a capacity for which it is licensed
only through an individual who is licensed under this chapter to act in the same capacity.
(5) An agency licensed under this chapter shall designate and report to the commissioner
in accordance with any rule made by the commissioner the name of the designated responsible
licensed individual who has authority to act on behalf of the agency in all matters pertaining to
compliance with this title and orders of the commissioner.
(6) If an agency designates a licensee in reports submitted under Subsection (2) or (5),
there is a rebuttable presumption that the designated licensee acts on behalf of the agency.
(7) (a) When a license is held by an agency, both the agency itself and any individual
designated under the agency license shall be considered to be the holder of the agency license for
purposes of this section.
(b) If an individual designated under the agency license commits an act or fails to
perform a duty that is a ground for suspending, revoking, or limiting the agency license, the
commissioner may suspend, revoke, or limit the license of:
(i) the individual;
(ii) the agency, if the agency:
(A) is reckless or negligent in its supervision of the individual; or
(B) knowingly participates in the act or failure to act that is the ground for suspending,
revoking, or limiting the license; or
(iii) (A) the individual; and
(B) the agency if the agency meets the requirements of Subsection (7)(b)(ii).
Amended by Chapter 349, 2009 General Session
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Last revised: Thursday, May 28, 2009