31A-27a-110. Cooperation of officers, owners, and employees.

365 words·~2 min read·/ut/title-31a/chapter-27a/31a-27a-110

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(1)As used in this section:

(a)"Cooperate" includes to:

(i)reply promptly in writing to an inquiry from the commissioner or receiver requesting a reply; and

(ii)promptly make available to the commissioner or receiver any record, account, information, or property:

(A)of or pertaining to the insurer; and

(B)in the person's possession, custody, or control.

(b)"Person" includes a person who exercises control directly or indirectly over activities of the insurer through:

(i)a holding company; or

(ii)other affiliate of the insurer.

(2)The following shall cooperate with the commissioner or receiver in a proceeding under this chapter or an investigation preliminary to a proceeding under this chapter:

(a)a present or former officer, manager, director, trustee, owner, or employee of an insurer;

(b)a present or former agent of an insurer; or

(c)a person with authority over or in charge of any segment of the insurer's affairs.

(3)A person may not obstruct or interfere with the commissioner or receiver in the conduct of:

(a)a delinquency proceeding; or

(b)an investigation preliminary or incidental to a delinquency proceeding.

(4)This section may not be construed to abridge otherwise existing legal rights, including the right to resist:

(a)a petition for liquidation or other delinquency proceeding; or

(b)other orders.

(a)A person described in Subsection (5)(b) is:

(i)guilty of a class B misdemeanor, except that the fine may exceed $1,000 but may not exceed $10,000; or

(ii)after a hearing, subject to:

(A)the commissioner imposing a civil penalty that may not exceed $10,000;

(B)the revocation or suspension of an insurance license issued by the commissioner; or

(C)a combination of Subsections (5)(a)(ii)(A) and

(B).

(b)This Subsection

(5)applies to:

(i)a person described in Subsection

(2)who fails to cooperate with the commissioner or receiver;

(ii)a person who obstructs or interferes with the commissioner or receiver in the conduct of a delinquency proceeding or an investigation preliminary or incidental to a delinquency proceeding; or

(iii)a person who violates an order validly issued under this chapter.

Enacted by Chapter 309 , 2007 General Session