31A-23a-102 - Definitions.
31A-23a-102. Definitions.
As used in this chapter:
(1) "Bail bond producer" means a person who:
(a) is appointed by:
(i) a surety insurer that issues bail bonds; or
(ii) a bail bond surety company licensed under Chapter 35, Bail Bond Act;
(b) is designated to execute or countersign undertakings of bail in connection with ajudicial proceeding; and
(c) receives or is promised money or other things of value for engaging in an actdescribed in Subsection (1)(b).
(2) "Escrow" means a license subline of authority in conjunction with the title insuranceline of authority that allows a person to conduct escrow as defined in Section 31A-1-301.
(3) "Home state" means a state or territory of the United States or the District ofColumbia in which an insurance producer:
(a) maintains the insurance producer's principal:
(i) place of residence; or
(ii) place of business; and
(b) is licensed to act as an insurance producer.
(4) "Insurer" is as defined in Section 31A-1-301, except that the following persons orsimilar persons are not insurers for purposes of Part 7, Producer Controlled Insurers:
(a) a risk retention group as defined in:
(i) the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499;
(ii) the Risk Retention Act, 15 U.S.C. Sec. 3901 et seq.; and
(iii) Chapter 15, Part 2, Risk Retention Groups Act;
(b) a residual market pool;
(c) a joint underwriting authority or association; and
(d) a captive insurer.
(5) "License" is defined in Section 31A-1-301.
(6) (a) "Managing general agent" means a person that:
(i) manages all or part of the insurance business of an insurer, including the managementof a separate division, department, or underwriting office;
(ii) acts as an agent for the insurer whether it is known as a managing general agent,manager, or other similar term;
(iii) produces and underwrites an amount of gross direct written premium equal to, ormore than 5% of, the policyholder surplus as reported in the last annual statement of the insurerin any one quarter or year:
(A) with or without the authority;
(B) separately or together with an affiliate; and
(C) directly or indirectly; and
(iv) (A) adjusts or pays claims in excess of an amount determined by the commissioner;or
(B) negotiates reinsurance on behalf of the insurer.
(b) Notwithstanding Subsection (6)(a), the following persons may not be considered asmanaging general agent for the purposes of this chapter:
(i) an employee of the insurer;
(ii) a United States manager of the United States branch of an alien insurer;
(iii) an underwriting manager that, pursuant to contract:
(A) manages all the insurance operations of the insurer;
(B) is under common control with the insurer;
(C) is subject to Chapter 16, Insurance Holding Companies; and
(D) is not compensated based on the volume of premiums written; and
(iv) the attorney-in-fact authorized by and acting for the subscribers of a reciprocalinsurer or inter-insurance exchange under powers of attorney.
(7) "Negotiate" means the act of conferring directly with or offering advice directly to apurchaser or prospective purchaser of a particular contract of insurance concerning a substantivebenefit, term, or condition of the contract if the person engaged in that act:
(a) sells insurance; or
(b) obtains insurance from insurers for purchasers.
(8) "Reinsurance intermediary" means:
(a) a reinsurance intermediary-broker; or
(b) a reinsurance intermediary-manager.
(9) "Reinsurance intermediary-broker" means a person other than an officer or employeeof the ceding insurer, firm, association, or corporation who solicits, negotiates, or placesreinsurance cessions or retrocessions on behalf of a ceding insurer without the authority or powerto bind reinsurance on behalf of the insurer.
(10) (a) "Reinsurance intermediary-manager" means a person who:
(i) has authority to bind or who manages all or part of the assumed reinsurance businessof a reinsurer, including the management of a separate division, department, or underwritingoffice; and
(ii) acts as an agent for the reinsurer whether the person is known as a reinsuranceintermediary-manager, manager, or other similar term.
(b) Notwithstanding Subsection (10)(a), the following persons may not be consideredreinsurance intermediary-managers for the purpose of this chapter with respect to the reinsurer:
(i) an employee of the reinsurer;
(ii) a United States manager of the United States branch of an alien reinsurer;
(iii) an underwriting manager that, pursuant to contract:
(A) manages all the reinsurance operations of the reinsurer;
(B) is under common control with the reinsurer;
(C) is subject to Chapter 16, Insurance Holding Companies; and
(D) is not compensated based on the volume of premiums written; and
(iv) the manager of a group, association, pool, or organization of insurers that:
(A) engage in joint underwriting or joint reinsurance; and
(B) are subject to examination by the insurance commissioner of the state in which themanager's principal business office is located.
(11) "Search" means a license subline of authority in conjunction with the title insuranceline of authority that allows a person to issue title insurance commitments or policies on behalf ofa title insurer.
(12) "Sell" means to exchange a contract of insurance:
(a) by any means;
(b) for money or its equivalent; and
(c) on behalf of an insurance company.
(13) "Solicit" means:
(a) attempting to sell insurance;
(b) asking or urging a person to apply for:
(i) a particular kind of insurance; and
(ii) insurance from a particular insurance company;
(c) advertising insurance, including advertising for the purpose of obtaining leads for thesale of insurance; or
(d) holding oneself out as being in the insurance business.
(14) "Terminate" means:
(a) the cancellation of the relationship between:
(i) an individual licensee or agency licensee and a particular insurer; or
(ii) an individual licensee and a particular agency licensee; or
(b) the termination of:
(i) an individual licensee's or agency licensee's authority to transact insurance on behalfof a particular insurance company; or
(ii) an individual licensee's authority to transact insurance on behalf of a particularagency licensee.
(15) "Title marketing representative" means a person who:
(a) represents a title insurer in soliciting, requesting, or negotiating the placing of:
(i) title insurance; or
(ii) escrow services; and
(b) does not have a search or escrow license as provided in Section 31A-23a-106.
(16) "Uniform application" means the version of the National Association of InsuranceCommissioner's uniform application for resident and nonresident producer licensing at the timethe application is filed.
(17) "Uniform business entity application" means the version of the National Associationof Insurance Commissioner's uniform business entity application for resident and nonresidentbusiness entities at the time the application is filed.
Amended by Chapter 349, 2009 General Session