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

(1) (1)(a) Immediately after the selection of a person as a director or principal officer, the insurer shall report to the commissioner:
(1)(a)(i) the name of the person selected as a director or principal officer of a corporation; and
(1)(a)(ii) pertinent biographical and other data that the commissioner requires by rule.
(1)(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:
(1)(b)(i) is trustworthy; and
(1)(b)(ii) has the competence and experience necessary to discharge that person's responsibilities.
(2) (2)(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:
(2)(a)(i) the removal; and
(2)(a)(ii) a statement of the reasons for the removal.
(2)(b) Subsection (2)(a) applies to a removal under:
(2)(b)(i) Subsection 16-6a-820(4);
(2)(b)(ii) Section 16-10a-808;
(2)(b)(iii) Section 16-10a-832; and
(2)(b)(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:

(3)(a) a director or officer:
(3)(a)(i) is incompetent;
(3)(a)(ii) untrustworthy;
(3)(a)(iii) is not qualified under Section 31A-5-409; or
(3)(a)(iv) has wilfully violated:

(3)(a)(iv)(A) this title;
(3)(a)(iv)(B) a rule adopted under Subsection 31A-2-201(3); or
(3)(a)(iv)(C) an order issued under Subsection 31A-2-201(4); and
(3)(b) the circumstances described in Subsection (3)(a) endangers the interests of:
(3)(b)(i) insureds; or
(3)(b)(ii) the public.

Legislative History

Amended by Chapter 308, 2002 General Session