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

(1) As used in this section:

(1)(a) "Cooperate" includes to:
(1)(a)(i) reply promptly in writing to an inquiry from the commissioner or receiver requesting a reply; and
(1)(a)(ii) promptly make available to the commissioner or receiver any record, account, information, or property:

(1)(a)(ii)(A) of or pertaining to the insurer; and
(1)(a)(ii)(B) in the person's possession, custody, or control.
(1)(b) "Person" includes a person who exercises control directly or indirectly over activities of the insurer through:
(1)(b)(i) a holding company; or
(1)(b)(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:

(2)(a) a present or former officer, manager, director, trustee, owner, or employee of an insurer;
(2)(b) a present or former agent of an insurer; or
(2)(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:

(3)(a) a delinquency proceeding; or
(3)(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:

(4)(a) a petition for liquidation or other delinquency proceeding; or
(4)(b) other orders.
(5) (5)(a) A person described in Subsection (5)(b) is:
(5)(a)(i) guilty of a class B misdemeanor, except that the fine may exceed $1,000 but may not exceed $10,000; or
(5)(a)(ii) after a hearing, subject to:

(5)(a)(ii)(A) the commissioner imposing a civil penalty that may not exceed $10,000;
(5)(a)(ii)(B) the revocation or suspension of an insurance license issued by the commissioner; or
(5)(a)(ii)(C) a combination of Subsections (5)(a)(ii)(A) and (B).
(5)(b) This Subsection (5) applies to:
(5)(b)(i) a person described in Subsection (2) who fails to cooperate with the commissioner or receiver;
(5)(b)(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
(5)(b)(iii) a person who violates an order validly issued under this chapter.

Legislative History

Enacted by Chapter 309, 2007 General Session