31A-11-107. Issuance of certificate of authority -- Reinsurance of excess services.
170 words·~1 min read·
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31A-11-107. Issuance of certificate of authority -- Reinsurance of excess services.
(1)The commissioner shall issue a certificate applied for under Section 31A-11-106 if the commissioner finds that:
(a)the corporation is able to negotiate, execute, and carry out the motor club business in a sound, reliable, and ongoing manner;
(b)the reinsurance requirements of Subsection
(2)are satisfied; and
(c)all other applicable requirements of law are satisfied.
(2)If a motor club provides legal expense service other than that authorized in Subsection 31A-11-102(1)(b) , or other trip reimbursement service than that authorized in Subsection 31A-11-102(1)(d) , or bail service other than that authorized under Section 31A-11-112 , it shall fully reinsure the excess service with an insurer authorized under Chapter 5, Domestic Stock and Mutual Insurance Corporations , or Chapter 14, Foreign Insurers . That insurer shall assume direct liability to the insured, and shall fully comply with Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries .
Amended by Chapter 297 , 2011 General Session