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Order 2020-1: Order Establishing Standards for Obtaining and a Process for Issuing a Temporary Resident Individual Producer License

The Utah Insurance Commissioner finds as follows:

1. Due to social distancing restrictions from the COVID-19 pandemic, the Utah Insurance Department’s license testing vendor, Prometric, has temporarily closed its facilities in Utah.
2. As a result of the closure, a person who seeks a resident individual producer license is unable to apply.
3. Consistent with Utah Code § 31A-23a-114(1)(a)(ii)(A), the public interest will best be served by providing standards for obtaining and a process for issuing a temporary resident individual producer license.
4. Consistent with Utah Code § 31A-23a-114(5)(a)(i), the limitations on the authority of a temporary licensee as set forth in the Order below are necessary to protect insureds and the public.

Based on the above findings, and pursuant to Utah Code §§ 31A-2-201(4) and 31A-23a-114(5), the Commissioner enters the following Order:

1. The Insurance Department may issue a temporary resident individual producer license to a person who satisfies the requirements of this Order. A holder of a temporary resident license is not eligible for a non-resident license in another state.
2. Beginning April 23, 2020, a license application will be available through and shall be submitted electronically using SIRCON.
3. An applicant shall submit the following as an attachment to the license application using SIRCON’s attachment utility feature:
A. proof that the applicant, during the temporary license period, will be affiliated with and sponsored by a licensed insurance company or by a licensed agency producer that is in good standing with the Department and is responsible for the applicant’s acts occurring in the course and scope of the temporary licensure;
B. proof that the applicant will be supervised on the job by a licensed individual producer who is in good standing with the Department and who is affiliated with the sponsoring insurance company or agency;
C. proof that the applicant has successfully completed 40 hours of training in the line(s) of authority for which a license is sought as identified in the Exam Content Outlines of the Utah Insurance Department License Information Bulletin, https://insurance.utah.gov/wp-content/uploads/LicensingBulletin.pdf; and
D. proof that the sponsoring insurance company or agency will immediately notify the Department if the applicant’s affiliation or sponsorship ends before the last day of the temporary license period.
4. The requirements of paragraph 3 above can be satisfied by submitting a completed Certification of Compliance with Temporary License Requirements, attached. The Certification is also available on the Department’s website. The Certification must be signed and dated by an owner, partner, officer, or designated responsible licensed producer of the sponsoring insurance company or agency.
5. An application will be denied if the applicant:
A. fails to submit sufficient proof as required in paragraph 3 above;
B. has a felony conviction or a misdemeanor conviction involving fraud, misrepresentation, theft, or dishonesty; or
C. has a pending criminal proceeding in which the applicant is charged with a felony or a misdemeanor involving fraud, misrepresentation, theft, or dishonesty.
7. A license is valid for 180 days from date of issuance. The Commissioner may exercise discretion to shorten this period if the license testing vendor opens its facilities before the temporary license expires. The Commissioner will inactivate a temporary license if the licensee obtains a two-year individual producer license before the end of the temporary license period.
8. A temporary licensee may represent only the following: the sponsoring insurance company and its affiliates; the sponsoring agency and insurance companies to which the agency is appointed.
9. A temporary license may be revoked at any time if the licensee:
A. is not affiliated with and sponsored by the sponsoring insurance company or agency identified in the licensee’s application;
B. is not supervised on the job by a licensed individual producer who is in good standing with the Department and who is affiliated with the sponsoring insurance company or agency identified in the licensee’s application;
C. has a felony conviction or a misdemeanor conviction involving fraud, misrepresentation, theft, or dishonesty; or
D. has a pending criminal proceeding in which the applicant is charged with a felony or a misdemeanor involving fraud, misrepresentation, theft, or dishonesty.
10. The legal grounds for denying, suspending, or revoking a two-year individual producer license, and the legal grounds for penalizing a two-year individual producer licensee, apply equally to a temporary license and licensee.

Dated: April 21, 2020

/s/ Todd E. Kiser
Utah Insurance Commissioner

PDF Version
Order of the Commissioner 2020-1: Order Establishing Standards for Obtaining and a Process for Issuing a Temporary Resident Individual Producer License
Certification of Compliance with Temporary License Requirements

Variable Contracts

To qualify for a variable contracts license, you must meet the following requirements:

  1. Either apply for a life license at the same time or already hold a life license.
  2. Have evidence of a current FINRA qualification and registration with the Utah Securities Division (a current CRD showing Utah approval).
  3. For Non-resident Variable Contracts: Please refer to the non-resident jurisdictional agreement in 31A-23a-109.

Residents or Non-residents may apply online at SIRCON or NIPR.

Third-Party Administrator

UCA 31A-1-301(170): “Third party administrator” or “administrator” means a person who collects charges or premiums from, or who, for consideration, adjusts or settles claims of residents of the state in connection with insurance coverage, annuities, or service insurance coverage.

*For a list of licensing exemptions, please see 31A-1-301(170).

Licensing: Third-party administrator applications are now completed online through SIRCON or NIPR. The fee is $85. After completing the application, please fax a copy of the bond to the Department at 385-465-6055 or email to licensing.uid@utah.gov.

Surplus Lines

To qualify for surplus lines, you must have been a property/casualty insurance producer for at least three of the past four years. The “comparable preparation” provision does not apply to surplus lines.

Residents or Non-residents may apply online at SIRCON or NIPR.

* It is your responsibility to make sure you meet the minimum experience requirements prior to taking the exam.

*For Non-Resident Surplus Lines: Please refer to the non-resident jurisdictional agreement statute in 31A-23a-109.

Reinsurance Intermediary

UCA 31A-23a-102(8): “Reinsurance intermediary” means:

  • a reinsurance intermediary-broker; or
  • a reinsurance intermediary-manager.

UCA 31A-23a-102(9): “Reinsurance intermediary-broker” means a person other than an officer or employee of the ceding insurer, firm, association, or corporation who solicits, negotiates, or places reinsurance cessions or retrocessions on behalf of a ceding insurer without the authority or power to bind reinsurance on behalf of the insurer.

UCA 31A-23a-102(10): “Reinsurance intermediary-manager” means a person who:

  1. has authority to bind or who manages all or part of the assumed reinsurance business of a reinsurer, including the management of a separate division, department, or underwriting office; and
  2. acts as an agent for the reinsurer whether the person is known as a reinsurance intermediary-manager, manager, or other similar term.
    • Notwithstanding Subsection (10)(a), the following persons may not be considered reinsurance intermediary-managers for the purpose of this chapter with respect to the reinsurer:
      • an employee of the reinsurer;
      • a United States manager of the United States branch of an alien reinsurer;
      • an underwriting manager that, pursuant to contract:
        • manages all the reinsurance operations of the reinsurer;
        • is under common control with the reinsurer;
        • is subject to Chapter 16, Insurance Holding Companies; and
        • is not compensated based on the volume of premiums written; and
      • the manager of a group, association, pool, or organization of insurers that:
        • engage in joint underwriting or joint reinsurance; and
        • are subject to examination by the insurance commissioner of the state in which the manager’s principal business office is located.

Licensing: Pursuant to 31A-23a-801, the Utah Insurance Department licenses both individuals and organizations as Reinsurance Intermediaries. A producer license must be held first before the reinsurance intermediary license will be issued.

Residents or Non-residents may apply online at SIRCON or NIPR.

*We do not require a bond be submitted with the application.

Navigator

The application process for obtaining a Navigator license in Utah is as follows:

  1. The Utah Insurance Department requires all persons applying for a navigator license in Utah to first successfully complete the federal navigator training and certification program requirements administered through the United States Department of Human Services (HHS), including any applicable individual navigator training and examination requirements under that program. Once you have completed the HHS certification requirements, you may then apply for a navigator license. Proof of completing the certification will be submitted to the insurance department as part of the navigator license application. Instructions for documents required to be submitted to the department are included in the license application.
  2. The Insurance Department requires all individuals applying for a navigator license to be fingerprinted through the Department’s testing and fingerprint processing vendor, Prometric. Fingerprinting must be done at a Prometric center in Utah, using “live scan” technology, which digitally captures and transmits the fingerprints to the Utah Department of Public Safety, Bureau of Criminal Identification (BCI), and the Federal Bureau of Investigation (FBI). Make a fingerprinting appointment at a Prometric test center by visiting Prometric’s website. You must pay Prometric’s fingerprint processing fee ($6) at the Prometric center when you are fingerprinted.
  3. Apply for the license online from your home or office through SIRCON before arriving at the Prometric center for any required fingerprinting. Individuals can also apply online using a kiosk at the Prometric center. Payment for both the license application fee ($40 individual applicants/$50 business entity applicants) and the FBI/BCI fingerprint fee ($13.25 FBI/$15 BCI) must be made by credit card during the online license application process.
  4. Upon completing the online application, print out the Sircon confirmation page as proof you have paid the FBI/BCI fees. Give the confirmation page to the test center supervisor and your fingerprints will then be scanned.
  5. Fingerprint results will be returned to the Insurance Department. The Department will evaluate the results and the license application prior to issuing any license.
  6. Navigator licenses are valid for one year. Once your license has been approved and issued, you may print a hard copy of your license by going to SIRCON and clicking on the link titled Print a License”. To see if a new or renewal license has been approved and issued, go to SIRCON and click on “Check license application status” or “Check license renewal status”.

Managing General Agent

UCA 31A-23a-102(6)(a): “Managing general agent” means a person that:

  1. manages all or part of the insurance business of an insurer, including the management of a separate division, department, or underwriting office;
  2. acts as an agent for the insurer whether it is known as a managing general agent, manager, or other similar term;
  3. produces and underwrites an amount of gross direct written premium equal to, or more than 5% of, the policyholder surplus as reported in the last annual statement of the insurer in any one quarter or year:
    • with or without the authority;
    • separately or together with an affiliate; and
    • directly or indirectly; and
  4. A. adjusts or pays claims in excess of an amount determined by the commissioner; or
    B. negotiates reinsurance on behalf of the insurer. (b) Notwithstanding Subsection (6)(a), the following persons may not be considered as managing general agent for the purposes of this chapter:

    • an employee of the insurer;
    • a United States manager of the United States branch of an alien insurer;
    • an underwriting manager that, pursuant to contract:
      • manages all the insurance operations of the insurer;
      • is under common control with the insurer;
      • is subject to Chapter 16, Insurance Holding Companies; and
      • is not compensated based on the volume of premiums written; and
    • the attorney-in-fact authorized by and acting for the subscribers of a reciprocal insurer or inter-insurance exchange under powers of attorney.

Licensing: Pursuant to 31A-23a-601, the Utah Insurance Department licenses both individuals and organizations as Managing General Agents/Agencies. A producer license must be held first before the MGA license will be issued. Residents or non-residents may apply online at SIRCON or NIPR.

*We do not require a bond be submitted with the application.

Consultant

UCA 31A-1-301(90): “Insurance consultant” or “consultant” means a person who:

  • advises another person about insurance needs and coverages;
  • is compensated by the person advised on a basis not directly related to the insurance placed; and
  • except as provided in 31A-23a-501, is not compensated directly or indirectly by an insurer or producer for advice given.

Licensing: To qualify for a consultant license, you must have been acting in a capacity that would provide you with the preparation to act as an insurance consultant for an aggregate period of not less than three years during the four years immediately preceding the date of the application. Your qualifications must relate to the line of insurance for which you plan to consult.

It is your responsibility to make sure you meet the minimum experience requirements prior to taking the exam.

Adjuster

UCA Section 31A-26-201

“Insurance adjusting” or “adjusting” means directing the investigation, negotiation, or settlement of a claim under an insurance policy, on behalf of an insurer, policyholder, or a claimant under an insurance policy.

  • Company adjuster means a person employed by an insurer whose regular duties include insurance adjusting.
  • Independent adjuster means an insurance adjuster required to be licensed under 31A-26-201, who engages in insurance adjusting as a representative of insurers.
  • Public adjuster means a person required to be licensed under 31A-26-201, who engages in insurance adjusting as a representative of insureds and claimants under insurance policies.

Licensing: To qualify for an adjuster license, you must take and pass the appropriate exam. Fingerprinting is required for resident adjusters. *For non-resident adjusters, please see Non-Resident Adjuster Licensing Procedures.