31A-27a-112. Unrecorded obligations and defenses of affiliates.

207 words·~1 min read·/ut/title-31a/chapter-27a/31a-27a-112

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)This section applies to a person who in relation to an insurer is:

(a)an affiliate;

(b)a controlled or controlling person; or

(c)a present or former officer, manager, director, trustee, or shareholder.

(2)In a proceeding or claim by the receiver, a person described in Subsection

(1)may not assert a defense unless evidence of the defense:

(a)is recorded in the records of the insurer at or about the time the event giving rise to the defense occurs; and

(b)if required by statutory accounting practices and procedures, is timely reported on the insurer's official financial statements filed with the commissioner.

(3)A person described in Subsection

(1)may not assert a claim, unless the obligation:

(a)is recorded in the records of the insurer at or about the time the obligation is incurred; and

(b)if required by statutory accounting practices and procedures, is timely reported on the insurer's official financial statements filed with the commissioner.

(4)A claim by the receiver against a person described in Subsection

(1)that is made on the basis of an unrecorded or unreported transaction is not barred by this section.

Enacted by Chapter 309 , 2007 General Session