H.B. 60 Enrolled

INSURANCE LICENSING AMENDMENTS
2005 GENERAL SESSION
STATE OF UTAH
Sponsor: James A. Dunnigan

LONG TITLE
General Description:
This bill modifies the Insurance Code to address licensing.
Highlighted Provisions:
This bill:
. modifies the limited lines of authority for a limited license producer license type;
. addresses lapsing and surrendering of a license;
. deletes the requirement that an insurer maintain certain information with the
department related to the appointment or removal of producers and agents;
. addresses continuing education requirements;
. addresses timing of motion to set aside judgment or notice of an application for
extraordinary writ;
. addresses failure to pay bail bond forfeiture and grounds for suspension and
revocation of a bail bond surety license; and
. makes technical changes.
Monies Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
31A-23a-106, as last amended by Chapter 81 and renumbered and amended by Chapter
298, Laws of Utah 2003
31A-23a-108, as renumbered and amended by Chapter 298, Laws of Utah 2003

31A-23a-111, as last amended by Chapter 173, Laws of Utah 2004
31A-23a-113, as last amended by Chapter 173, Laws of Utah 2004
31A-23a-115, as last amended by Chapter 173, Laws of Utah 2004
31A-23a-202, as renumbered and amended by Chapter 298, Laws of Utah 2003
31A-26-206, as last amended by Chapter 308, Laws of Utah 2002
31A-35-504, as enacted by Chapter 245, Laws of Utah 2001

Be it enacted by the Legislature of the state of Utah:
Section 1. Section 31A-23a-106 is amended to read:
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 [Subsections (1) through (7)] Subsection (2).
(b) License types and lines of authority pertaining to each license type describe the type
of licensee and the lines of business that licensee may sell, solicit, or negotiate. License types are
intended to describe the matters to be considered under any education, examination, and training
required of license applicants under Sections 31A-23a-108 , 31A-23a-202 , and 31A-23a-203 .
[(1)] (2) (a) A producer license type includes the following lines of authority:
[(a)] (i) life insurance, including nonvariable contracts;
[(b)] (ii) variable contracts, including variable life and annuity, if the producer has the
life insurance line of authority;
[(c)] (iii) accident and health insurance, including contracts issued to policyholders under
Chapter 7, Nonprofit Health Service Insurance Corporations, or Chapter 8, Health Maintenance
Organizations and Limited Health Plans;
[(d)] (iv) property insurance;
[(e)] (v) casualty insurance, including surety and other bonds;
[(f)] (vi) title insurance under one or more of the following categories:
[(i)] (A) search, including authority to act as a title marketing representative;
[(ii)] (B) escrow, including authority to act as a title marketing representative;

[(iii)] (C) search and escrow, including authority to act as a title marketing
representative; and
[(iv)] (D) title marketing representative only;
[(g)] (vii) workers' compensation insurance;
[(h)] (viii) personal lines insurance; and
[(i)] (ix) surplus lines, if the producer has the property or casualty or both lines of
authority.
[(2)] (b) A limited line producer license type includes the following limited lines of
authority:
[(a)] (i) limited line credit insurance;
[(b)] (ii) travel insurance;
[(c)] (iii) motor club insurance;
[(d)] (iv) car rental related insurance;
[(e)] (v) legal expense insurance; and
[(f)] (vi) bail bond producer[; and].
[(g) viatical settlements.]
[(3)] (c) A customer service representative license type includes the following lines of
authority, if held by the customer service representative's employer producer:
[(a)] (i) life insurance, including nonvariable contracts;
[(b)] (ii) accident and health insurance, including contracts issued to policyholders under
Chapter 7, Nonprofit Health Service Insurance Corporations, or Chapter 8, Health Maintenance
Organizations and Limited Health Plans;
[(c)] (iii) property insurance;
[(d)] (iv) casualty insurance, including surety and other bonds;
[(e)] (v) workers' compensation insurance;
[(f)] (vi) personal lines insurance; and
[(g)] (vii) surplus lines, if the employer producer has the property or casualty or both
lines of authority.

[(4)] (d) A consultant license type includes the following lines of authority:
[(a)] (i) life insurance, including nonvariable contracts;
[(b)] (ii) variable contracts, including variable life and annuity, if the consultant has the
life insurance line of authority;
[(c)] (iii) accident and health insurance, including contracts issued to policyholders under
Chapter 7, Nonprofit Health Service Insurance Corporations, or Chapter 8, Health Maintenance
Organizations and Limited Health Plans;
[(d)] (iv) property insurance;
[(e)] (v) casualty insurance, including surety and other bonds;
[(f)] (vi) workers' compensation insurance; and
[(g)] (vii) personal lines insurance.
[(5)] (e) A managing general agent license type includes the following lines of authority:
[(a)] (i) life insurance, including nonvariable contracts;
[(b)] (ii) variable contracts, including variable life and annuity, if the managing general
agent has the life insurance line of authority;
[(c)] (iii) accident and health insurance, including contracts issued to policyholders under
Chapter 7, Nonprofit Health Service Insurance Corporations, or Chapter 8, Health Maintenance
Organizations and Limited Health Plans;
[(d)] (iv) property insurance;
[(e)] (v) casualty insurance, including surety and other bonds;
[(f)] (vi) workers' compensation insurance; and
[(g)] (vii) personal lines insurance.
[(6)] (f) A reinsurance intermediary license type includes the following lines of authority:
[(a)] (i) life insurance, including nonvariable contracts;
[(b)] (ii) variable contracts, including variable life and annuity, if the reinsurance
intermediary has the life insurance line of authority;
[(c)] (iii) accident and health insurance, including contracts issued to policyholders under
Chapter 7, Nonprofit Health Service Insurance Corporations, or Chapter 8, Health Maintenance

Organizations and Limited Health Plans;
[(d)] (iv) property insurance;
[(e)] (v) casualty insurance, including surety and other bonds;
[(f)] (vi) workers' compensation insurance; and
[(g)] (vii) personal lines insurance.
[(7)] (g) A holder of licenses under Subsections [(1), (4), (5), and (6)] (2)(a), (d), (e), and
(f) has all qualifications necessary to act as a holder of a license under Subsections (2)(b) and
[(3)] (c).
[(8)] (3) The commissioner may by rule recognize other producer, limited line producer,
customer service representative, consultant, managing general agent, or reinsurance intermediary
lines of authority as to kinds of insurance not listed under Subsections [(1)] (2)(a) through [(6)]
(f).
[(9)] (4) The variable contracts, including variable life and annuity line of authority
requires:
(a) licensure as a registered agent or broker by the National Association of Securities
Dealers [(NASD)]; and
(b) current registration with a securities broker/dealer.
[(10)] (5) A surplus lines producer is a producer who has a surplus lines line of authority.
Section 2. Section 31A-23a-108 is amended to read:
31A-23a-108. Examination requirements.
(1) (a) The commissioner may require applicants for any particular license type under
Section 31A-23a-106 to pass a line of authority examination as a requirement for a license,
except that an examination may not be required of applicants for:
(i) licenses under Subsections 31A-23a-106 (2)(b) and [(3)] (c); or
(ii) other limited line license lines of authority recognized by the commissioner by rule as
provided in Subsection 31A-23a-106 [(8)](3).
(b) The examination described in Subsection (1)(a):
(i) shall reasonably relate to the line of authority for which it is prescribed; and

(ii) may be administered by the commissioner or as otherwise specified by rule.
(2) The commissioner shall waive the requirement of an examination for a nonresident
applicant who:
(a) applies for an insurance producer license in this state;
(b) has been licensed for the same line of authority in another state; and
(c) (i) is licensed in the state described in Subsection (2)(b) at the time the applicant
applies for an insurance producer license in this state; or
(ii) if the application is received within 90 days of the cancellation of the applicant's
previous license:
(A) the prior state certifies that at the time of cancellation, the applicant was in good
standing in that state; or
(B) the state's producer database records maintained by the National Association of
Insurance Commissioners or the National Association of Insurance Commissioner's affiliates or
subsidiaries, indicates that the producer is or was licensed in good standing for the line of
authority requested.
(3) A nonresident producer licensee who moves to this state and applies for a resident
license within 90 days of establishing legal residence in this state shall be exempt from any line
of authority examination that the producer was authorized on the producer's nonresident producer
license, except where the commissioner determines otherwise by rule.
(4) This section's requirement may only be applied to applicants who are natural persons.
Section 3. Section 31A-23a-111 is amended to read:
31A-23a-111. Revocation, suspension, surrender, lapsing, or limiting of license.
(1) A license type issued under this chapter remains in force until:
(a) revoked or suspended under Subsection [(4)] (5);
(b) surrendered to the commissioner and accepted by the commissioner in lieu of
administrative action;
(c) the licensee dies or is adjudicated incompetent as defined under:
(i) Title 75, Chapter 5, Part 3, Guardians of Incapacitated Persons; or

(ii) Title 75, Chapter 5, Part 4, Protection of Property of Persons Under Disability and
Minors;
(d) lapsed under Section 31A-23a-113 ; or
(e) voluntarily surrendered.
(2) [Lapsed] A lapsed or voluntarily surrendered [licenses] license may be reinstated
[during the current license period.] within one year after the day on which the license is
inactivated.
(3) Unless otherwise stated in the written agreement for the voluntary surrender of a
license, submission and acceptance of a voluntary surrender of a license does not prevent the
department from pursuing additional disciplinary or other action authorized under this title or in
rules adopted under this title.
[(3)] (4) A line of authority issued under this chapter remains in force until:
(a) the qualifications pertaining to a line of authority are no longer met by the licensee; or
(b) the supporting license type:
(i) is revoked or suspended under Subsection [(4)] (5); or [voluntarily]
(ii) is surrendered to the commissioner and accepted by the commissioner in lieu of
administrative action.
[(4)] (5) (a) If the commissioner makes a finding under Subsection [(4)] (5)(b), after an
adjudicative proceeding under Title 63, Chapter 46b, Administrative Procedures Act, the
commissioner may:
(i) revoke:
(A) a license; or
(B) a line of authority;
(ii) suspend for a specified period of 12 months or less:
(A) a license; or
(B) a line of authority; or
(iii) limit in whole or in part:
(A) a license; or

(B) a line of authority.
(b) The commissioner may take an action described in Subsection [(4)] (5)(a) if the
commissioner finds that the licensee:
(i) is unqualified for a license or line of authority under Sections 31A-23a-104 and
31A-23a-105 ;
(ii) has violated:
(A) an insurance statute;
(B) a rule that is valid under Subsection 31A-2-201 (3); or
(C) an order that is valid under Subsection 31A-2-201 (4);
(iii) is insolvent or the subject of receivership, conservatorship, rehabilitation, or other
delinquency proceedings in any state;
(iv) fails to pay any final judgment rendered against the person in this state within 60
days after the day the judgment became final;
(v) fails to meet the same good faith obligations in claims settlement that is required of
admitted insurers;
(vi) is affiliated with and under the same general management or interlocking directorate
or ownership as another insurance producer that transacts business in this state without a license;
(vii) refuses:
(A) to be examined; or
(B) to produce its accounts, records, and files for examination;
(viii) has an officer who refuses to:
(A) give information with respect to the administrator's affairs; or
(B) perform any other legal obligation as to an examination;
(ix) provided information in the license application that is:
(A) incorrect;
(B) misleading;
(C) incomplete; or
(D) materially untrue;

(x) has violated any insurance law, valid rule, or valid order of another state's insurance
department;
(xi) has obtained or attempted to obtain a license through misrepresentation or fraud;
(xii) has improperly withheld, misappropriated, or converted any monies or properties
received in the course of doing insurance business;
(xiii) has intentionally misrepresented the terms of an actual or proposed:
(A) insurance contract; or
(B) application for insurance;
(xiv) has been convicted of a felony;
(xv) has admitted or been found to have committed any insurance unfair trade practice or
fraud;
(xvi) in the conduct of business in this state or elsewhere has:
(A) used fraudulent, coercive, or dishonest practices; or
(B) demonstrated incompetence, untrustworthiness, or financial irresponsibility;
(xvii) has had an insurance license, or its equivalent, denied, suspended, or revoked in
any other state, province, district, or territory;
(xviii) has forged another's name to:
(A) an application for insurance; or
(B) any document related to an insurance transaction;
(xix) has improperly used notes or any other reference material to complete an
examination for an insurance license;
(xx) has knowingly accepted insurance business from an individual who is not licensed;
(xxi) has failed to comply with an administrative or court order imposing a child support
obligation;
(xxii) has failed to:
(A) pay state income tax; or
(B) comply with any administrative or court order directing payment of state income tax;
(xxiii) has violated or permitted others to violate the federal Violent Crime Control and

Law Enforcement Act of 1994, 18 U.S.C. Secs. 1033 and 1034; or
(xxiv) has engaged in methods and practices in the conduct of business that endanger the
legitimate interests of customers and the public.
(c) For purposes of this section, if a license is held by an agency, both the agency itself
and any natural person named on the license are considered to be the holders of the license.
(d) If a natural person named on the agency license commits any act or fails to perform
any duty that is a ground for suspending, revoking, or limiting the natural person's license, the
commissioner may suspend, revoke, or limit the license of:
(i) the natural person;
(ii) the agency, if the agency:
(A) is reckless or negligent in its supervision of the natural person; or
(B) knowingly participated in the act or failure to act that is the ground for suspending,
revoking, or limiting the license; or
(iii) (A) the natural person; and
(B) the agency if the agency meets the requirements of Subsection [(4)] (5)(d)(ii).
[(5)] (6) A licensee under this chapter is subject to the penalties for acting as a licensee
without a license if:
(a) the licensee's license is:
(i) revoked;
(ii) suspended;
(iii) limited;
(iv) surrendered in lieu of administrative action;
(v) lapsed; or
(vi) voluntarily surrendered; and
(b) the licensee:
(i) continues to act as a licensee; or
(ii) violates the terms of the license limitation.
[(6)] (7) A licensee under this chapter shall immediately report to the commissioner:

(a) a revocation, suspension, or limitation of the person's license in any other state,
District of Columbia, or territory of the United States;
(b) the imposition of a disciplinary sanction imposed on that person by any other state,
District of Columbia, or territory of the United States; and
(c) a judgment or injunction entered against that person on the basis of conduct
involving:
(i) fraud;
(ii) deceit;
(iii) misrepresentation; or
(iv) a violation of an insurance law or rule.
[(7)] (8) (a) An order revoking a license under Subsection [(4)] (5) or an agreement to
surrender a license in lieu of administrative action may specify a time, not to exceed five years,
within which the former licensee may not apply for a new license.
(b) If no time is specified in an order revoking a license under Subsection [(4)] (5) or an
agreement to surrender a license in lieu of administrative action, the former licensee may not
apply for a new license for five years without express approval by the commissioner.
[(8)] (9) The division shall promptly withhold, suspend, restrict, or reinstate the use of a
license issued under this part if so ordered by a court.
Section 4. Section 31A-23a-113 is amended to read:
31A-23a-113. License lapse and voluntary surrender.
(1) (a) A license issued under this chapter shall lapse if the licensee fails:
(i) to pay when due a fee under Section 31A-3-103 ;
(ii) to complete continuing education requirements under Section 31A-23a-202 before
submitting the license renewal application;
(iii) to submit a completed renewal application as required by Section 31A-23a-104 ; [or]
(iv) to submit additional documentation required to complete the licensing process as
related to a specific license type or line of authority[.]; or
(v) to maintain an active license in a resident state if the licensee is a nonresident

licensee.
(b) (i) A licensee whose license lapses due to the following may request an action
described in Subsection (1)(b)(ii):
(A) military service;
(B) voluntary service for a period of time designated by the person for whom the licensee
provides voluntary service; or
(C) some other extenuating circumstances such as long-term medical disability [may
request:].
(ii) A licensee described in Subsection (1)(b)(i) may request:
[(i)] (A) reinstatement of the license; and
[(ii)] (B) waiver of any of the following imposed for failure to comply with renewal
procedures:
[(A)] (I) an examination requirement;
[(B)] (II) reinstatement fees; [or]
(III) continuing education requirements; or
[(C)] (IV) other sanction imposed for failure to comply with renewal procedures.
(2) If a license type or line of authority issued under this chapter is voluntarily
surrendered, the license or line of authority may be reinstated [during the current license period]
within one year after the day on which the license or line of authority is inactivated.
(3) The commissioner shall by rule prescribe the license renewal and reinstatement
procedures, in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act.
Section 5. Section 31A-23a-115 is amended to read:
31A-23a-115. Appointment of individual and agency insurance producer, limited
line producer, or managing general agent -- Reports and lists.
(1) (a) An insurer shall appoint a natural person or agency that has an insurance producer,
limited line producer, or managing general agent license to act as an insurance producer, limited
line producer, or managing general agent on [its] the insurer's behalf prior to any producer,
limited line producer, or managing general agent doing business for the insurer in this state.

(b) An insurer shall report to the commissioner, at intervals and in the form the
commissioner establishes by rule:
(i) all new appointments; and
(ii) all terminations of appointments.
(2) (a) (i) An insurer shall report to the commissioner the cause of termination of an
appointment.
(ii) The information provided to the commissioner under this Subsection (2) is a private
record under Title 63, Chapter 2, Government Records Access and Management Act.
(b) An insurer is immune from civil action, civil penalty, or damages if the insurer
complies in good faith with this Subsection (2) in reporting to the commissioner the cause of
termination of an appointment.
(c) Notwithstanding any other provision in this section, an insurer is not immune from
any action or resulting penalty imposed on the reporting insurer 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 (2).
(3) If an insurer appoints an agency, the insurer need not appoint, report, or pay
appointment reporting fees for natural persons designated on the agency's license under Section
31A-23a-302 .
[(4) (a) Each insurer shall maintain with the department a list of natural persons with
authority to appoint and remove the company's producers, limited line producers, or managing
general agents in this state on forms:]
[(i) supplied by the department; and]
[(ii) signed by any officer of the insurer.]
[(b) The insurer shall submit the list required under Subsection (4)(a) to the
commissioner pursuant to Subsection (1).]
[(5)] (4) If an insurer lists a licensee in [reports] a report submitted under Subsection (2),
there is a rebuttable presumption that in placing a risk with the insurer the appointed licensee or
any of the licensee's licensed employees acted on behalf of the insurer.

Section 6. Section 31A-23a-202 is amended to read:
31A-23a-202. Continuing education requirements -- Regulatory authority.
(1) The commissioner shall by rule prescribe the continuing education requirements for a
producer and a consultant.
(2) (a) The commissioner may not state a continuing education requirement in terms of
formal education.
(b) The commissioner may state a continuing education requirement in terms of
classroom hours, or their equivalent, of insurance-related instruction received.
(c) Insurance-related formal education may be a substitute, in whole or in part, for
classroom hours, or their equivalent, required under Subsection (2)(b).
(3) (a) The commissioner shall impose continuing education requirements in accordance
with a two-year licensing period in which the licensee meets the requirements of this Subsection
(3).
(b) (i) [The] Except as provided in Subsection (3)(b)(iii), the continuing education
[requirement] requirements shall require:
[(i) a minimum of 12 hours of continuing education;]
[(ii) a maximum of 23 hours of continuing education;]
[(iii) three hours of ethics continuing education; and]
[(iv) for each line of authority authorized for a producer or consultant, not to exceed four
lines of authority:]
[(A) five hours of continuing education;]
[(B) passing a line of authority examination; or]
[(C) a combination of Subsections (3)(b)(iv)(A) and (B).]
[(c) (i) If a licensee completes the licensee's continuing education requirement without
taking a line of authority continuing education examination,]
(A) that a licensee complete 24 credit hours of continuing education for every two-year
licensing period;
(B) that three of the 24 credit hours described in Subsection (3)(b)(i)(A) be ethics

courses; and
(C) that the licensee [shall] complete at least half of the required hours through
classroom hours of insurance-related instruction.
(ii) The hours not completed through classroom hours in accordance with Subsection
[(2)(b)] (3)(b)(i)(C) may be obtained through:
(A) home study;
(B) video recording;
(C) experience credit; or
(D) other methods provided by rule.
(iii) Notwithstanding Subsections (3)(b)(i)(A) and (B), a title insurance producer is
required to complete 12 credit hours of continuing education for every two-year licensing period,
with three of the credit hours being ethics courses.
[(d) (i)] (c) A licensee may obtain continuing education hours at any time during the
two-year licensing period.
[(ii) The licensee may not take a line of authority continuing education examination more
than 90 calendar days before the date on which the licensee's license is renewed.]
[(e) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
commissioner shall adopt rules for the content and procedures for line of authority continuing
education examinations].
[(f)] (d) (i) Beginning May 3, 1999, a licensee is exempt from continuing education
requirements under this section if:
[(A) as of April 1, 1990, the licensee has completed 20 years of licensure in good
standing;]
(A) the licensee was first licensed before April 1, 1970;
(B) the licensee requests an exemption from the department; and
(C) the department approves the exemption.
(ii) If the department approves the exemption under Subsection (3)[(f)](d)(i), the licensee
is not required to apply again for the exemption.

[(g) A licensee with a variable contract line of authority is exempt from the requirement
for continuing education for that line of authority so long as the:]
[(i) National Association of Securities Dealers requires continuing education for
licensees having a securities license; and]
[(ii) licensee complies with the National Association of Securities Dealers' continuing
education requirements for securities licensees.]
[(h)] (e) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
the commissioner shall, by rule:
(i) publish a list of insurance professional designations whose continuing education
requirements can be used to meet the requirements for continuing education under Subsection
(3)(b); and
(ii) authorize continuing education providers and professional producer or consultant
associations to:
(A) offer qualified programs for all license types and lines of authority on a
geographically accessible basis; and
(B) collect reasonable fees for funding and administration of the continuing education
program, subject to the review and approval of the commissioner.
(iii) The fees permitted under Subsection (3)[(h)](e)(ii)(B) that are charged for
attendance at a professional producer or consultant association program may be less for an
association member, based on the member's affiliation expense, but shall preserve the right of a
nonmember to attend without affiliation.
(4) The commissioner shall approve continuing education providers and continuing
education courses which satisfy the requirements of this section.
(5) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
commissioner shall by rule set the processes and procedures for continuing education provider
registration and course approval.
(6) The requirements of this section apply only to producers or consultants who are
natural persons.

(7) A nonresident producer or consultant is considered to have satisfied this state's
continuing education requirements if the nonresident producer or consultant satisfies the
nonresident producer's or consultant's home state's continuing education requirements for a
licensed insurance producer or consultant.
Section 7. Section 31A-26-206 is amended to read:
31A-26-206. Continuing education requirements.
(1) The commissioner shall by rule prescribe continuing education requirements for each
class of license under Section 31A-26-204 .
(2) (a) The commissioner shall impose continuing education requirements in accordance
with a two-year licensing period in which the licensee meets the requirements of this Subsection
(2).
[(b) Except as provided in Subsection (2)(c), for a two-year licensing period described in
Subsection (2)(a) the commissioner shall require that the licensee for each line of authority held
by the licensee:]
[(i) receive five hours of continuing education; or]
[(ii) pass a line of authority continuing education examination.]
[(c) Notwithstanding Subsection (2)(b):]
[(i) the commissioner may not require continuing education for more than four lines of
authority held by the licensee;]
[(ii) the commissioner shall require:]
[(A) a minimum of:]
[(I) 12 hours of continuing education;]
[(II) passage of two line of authority continuing education examinations; or]
[(III) a combination of Subsection (2)(c)(ii)(A)(I) and (II);]
[(B) that the minimum continuing education requirement of Subsection (2)(c)(ii)(A)
include:]
[(I) at least five hours or one line of authority continuing education examination for each
line of authority held by the licensee not to exceed four lines of authority held by the licensee;

and]
[(II) three hours of ethics training.]
[(d) (i) If a licensee completes the licensee's continuing education requirement without
taking a line of authority continuing education examination,]
(b) (i) Except as provided in Subsection (2)(b)(iii), the continuing education
requirements shall require:
(A) that a licensee complete 24 credit hours of continuing education for every two-year
licensing period;
(B) that three of the 24 credit hours described in Subsection (2)(b)(i)(A) be ethics
courses; and
(C) that the licensee [shall] complete at least [1/2] half of the required hours through
classroom hours of insurance-related instruction.
(ii) The hours not completed through classroom hours in accordance with Subsection
(2)[(d)(i)](b)(i)(C) may be obtained through:
(A) home study;
(B) video [tape] recording;
(C) experience credit; or
(D) other [method] methods provided by rule.
(iii) Notwithstanding Subsections (2)(b)(i)(A) and (B), a title insurance adjuster is
required to complete 12 credit hours of continuing education for every two-year licensing period,
with three of the credit hours being ethics courses.
[(e) (i)] (c) A licensee may obtain continuing education hours at any time during the
two-year licensing period.
[(ii) The licensee may not take a line of authority continuing education examination more
than 90 calendar days before the date on which the licensee's license is renewed.]
[(f) The commissioner shall make rules for the content and procedures for line of
authority continuing education examinations.]
[(g)] (d) (i) Beginning May 3, 1999, a licensee is exempt from the continuing education

requirements of this section if:
[(A) as of April 1, 1990, the licensee has completed 20 years of licensure in good
standing;]
(A) the licensee was first licensed before April 1, 1970;
(B) the licensee requests an exemption from the department; and
(C) the department approves the exemption.
(ii) If the department approves the exemption under Subsection (2)[(g)](d)(i), the
licensee is not required to apply again for the exemption.
[(h) A licensee with a variable annuity line of authority is exempt from the requirement
for continuing education for that line of authority so long as:]
[(i) the National Association of Securities Dealers requires continuing education for
licensees having a securities license; and]
[(ii) the licensee complies with the National Association of Securities Dealers'
continuing education requirements for securities licensees.]
[(i) The] (e) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
Act, the commissioner shall by rule:
(i) publish a list of insurance professional designations whose continuing education
requirements can be used to meet the requirements for continuing education under Subsection
(2)[(c)](b); and
(ii) authorize professional adjuster associations to:
(A) offer qualified programs for all classes of licenses on a geographically accessible
basis; and
(B) collect reasonable fees for funding and administration of the continuing education
programs, subject to the review and approval of the commissioner.
[(j)] (f) (i) The fees permitted under Subsection (2)[(i)](e)(ii)(B) that are charged to fund
and administer a program shall reasonably relate to the costs of administering the program.
(ii) Nothing in this section shall prohibit a provider of continuing education programs or
courses from charging fees for attendance at courses offered for continuing education credit.

(iii) The fees permitted under Subsection (2)[(i)](e)(ii)(B) that are charged for
attendance at an association program may be less for an association member, based on the
member's affiliation expense, but shall preserve the right of a nonmember to attend without
affiliation.
(3) The requirements of this section apply only to licensees who are natural persons.
(4) The requirements of this section do not apply to members of the Utah State Bar.
(5) The commissioner shall designate courses that satisfy the requirements of this
section, including those presented by insurers.
(6) A nonresident adjuster is considered to have satisfied this state's continuing education
requirements if:
(a) the nonresident adjuster satisfies the nonresident producer's home state's continuing
education requirements for a licensed insurance adjuster; and
(b) on the same basis the nonresident adjuster's home state considers satisfaction of
Utah's continuing education requirements for a producer as satisfying the continuing education
requirements of the home state.
Section 8. Section 31A-35-504 is amended to read:
31A-35-504. Failure to pay bail bond forfeiture -- Grounds for suspension and
revocation of bail bond surety license.
(1) As used in this section:
(a) "Company" means a bail bond surety company.
(b) "Judgment" means a judgment of bond forfeiture issued under Section 77-20b-104 .
(2) (a) A company shall pay a judgment not later than 15 days following service of notice
upon the company from a prosecutor of the entry of the judgment.
(b) A prosecutor who does not receive proof of or notice of payment of the judgment
within 15 days after the service of notice to the company of a judgment shall notify the
commissioner of the failure to pay the judgment.
(c) If notice of entry of judgment is served upon the company by mail, three additional
days are added to the 15 days provided in Subsections (2)(a) [and], (2)(b), and (2)(d).

(d) A prosecutor [shall] may not proceed under Subsection (2)(b) if a company provides
notice of a motion to set aside judgment or notice of an application for an extraordinary writ
[prior to the end of the payment period.] filed within 15 days after the day on which service of
notice of the entry of a judgment is served.
(e) For purposes of this section, the filing of the following shall toll the time within
which a company is required to pay a judgment if the motion or application is filed within 15
days after the day on which service of notice of the entry of a judgment is served:
(i) a motion to set aside a judgment; or
(ii) an application for extraordinary writ.
(3) [(a)] The commissioner shall suspend the license of the company not later than five
days following receipt of notice from a prosecutor of the company's failure to pay the judgment.
[(b) The suspension shall be for 60 days and shall be in accordance with Section
31A-35-502 .]
(4) [(a)] If the prosecutor receives proof of or notice of payment of the judgment during
the suspension period under Subsection (3), the prosecutor shall immediately notify the
commissioner of the payment. The notice shall be in writing and by the most expeditious means
possible, [which may be via] including facsimile or [any] other electronic means[, followed by
the prosecutor's mailing of the original written notification to the commissioner].
[(b) The commissioner shall vacate any suspension of the company's license due solely to
the failure to pay a judgment, which is then paid under Subsection (4)(a), not later than five days
after the commissioner receives the original written notification from the prosecutor, regardless
of whether the prosecutor also sent the notification via facsimile or other electronic means.
However, any suspension under this Subsection (4) may not be for fewer than 14 days.]
[(c) The commissioner may not vacate any suspension under this section for fewer than
14 days after receiving notification under Subsection (2) of failure to pay a judgment, even if the
suspension for 14 days causes the total suspension of a company's license to extend beyond 60
days because the company had failed to pay a prior judgment and the commissioner had
suspended the company's license based on that prior failure to pay.]

(5) The commissioner [may not vacate] shall lift a suspension under Subsection (3) [if at
the time the commissioner receives notification under Subsection (4)(a) of payment of a
judgment: (a) at least one other unpaid judgment against the company exists;] within five days of
the day on which all of the following conditions are met:
(a) the suspension has been in place for no fewer than 14 days;
(b) the commissioner has received written notice [under Subsection (2) of the company's
failure to pay that judgment] of payment of the unpaid forfeiture from the prosecutor; and
(c) the commissioner has [not] received [notice under Subsection (4)(a) of the company's
payment of that outstanding judgment.]:
(i) no other notice of any unpaid forfeiture from a prosecutor; or
(ii) if a notice of unpaid forfeiture is received, written notice from the prosecutor that the
unpaid forfeiture has been paid.
(6) The commissioner shall commence an administrative proceeding [to] and revoke the
license of a company that fails to [pay a judgment of bond forfeiture before the expiration date of
the suspension period] meet the conditions under Subsection (5) within 60 days following the
initial date of suspension.
(7) This section does not restrict or otherwise affect the rights of a prosecutor to
commence collection proceedings under Subsection 77-20b-104 (5).