31A-22-103 - Validity of surety bonds.
31A-22-103. Validity of surety bonds.
(1) An undertaking to stand as surety which is issued by an insurer authorized to do asurety business in this state is complete compliance with any qualification requirement in Utahlaw respecting surety bonds. This undertaking is acceptable to any state official orcourt-appointed fiduciary authorized to receive or empowered to require the undertaking. A copyof a surety's certificate of authority, certified by the commissioner, is prima facie evidence that asurety was authorized to do business in this state on the date of the certificate.
(2) No instrument executed by an insurer authorized to do a surety business is ineffectivebecause of the insurer's failure to attach a copy of its certificate of authority to do business in thisstate. However, a public official or court-appointed fiduciary may, by prior written request,require that a copy of the insurer's certificate of authority, certified by the commissioner, bedelivered. The insurer's failure to deliver a certified copy of the surety's certificate of authoritywithin 10 days of receipt of the request is adequate grounds for refusing to accept the suretyshipinstrument. Failure to request a copy of the certificate of authority prior to accepting the suretyinstrument is a waiver of the right to request the certificate.
(3) After executing an obligation of suretyship, no insurer may deny its corporate powerto execute that type of instrument or to incur that type of liability in any proceeding against theinsurer upon that instrument.
Amended by Chapter 204, 1986 General Session