31A-5-410. Supervision of management changes.

272 words·~1 min read·/ut/title-31a/chapter-5/31a-5-410

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

(a)Immediately after the selection of a person as a director or principal officer, the insurer shall report to the commissioner:

(i)the name of the person selected as a director or principal officer of a corporation; and

(ii)pertinent biographical and other data that the commissioner requires by rule.

(b)For five years after the initial issuance of a certificate of authority to a corporation, the commissioner may, within 30 days after receipt of a report under Subsection (1)(a) , disapprove any person selected who fails to satisfy the commissioner that the person:

(i)is trustworthy; and

(ii)has the competence and experience necessary to discharge that person's responsibilities.

(a)Whenever a director or principal officer of a corporation is removed under a provision listed in Subsection (2)(b) , the insurer shall immediately report to the commissioner:

(i)the removal; and

(ii)a statement of the reasons for the removal.

(b)Subsection (2)(a) applies to a removal under:

(i)Subsection 16-6a-820(4) ;

(ii)Section 16-10a-808 ;

(iii)Section 16-10a-832 ; and

(iv)Subsection 31A-5-409(4) .

(3)The commissioner may order the removal of a director or officer if the commissioner finds, after a hearing, that:

(a)a director or officer:

(i)is incompetent;

(ii)untrustworthy;

(iii)is not qualified under Section 31A-5-409 ; or

(iv)has wilfully violated:

(A)this title;

(B)a rule adopted under Subsection 31A-2-201(3) ; or

(C)an order issued under Subsection 31A-2-201(4) ; and

(b)the circumstances described in Subsection (3)(a) endangers the interests of:

(i)insureds; or

(ii)the public.

Amended by Chapter 308 , 2002 General Session