It has recently come to our attention that some Utah producers have taken Utah residents across state lines into neighboring states to have them sign applications for insurance policies or annuity contracts that are not available in Utah, and which were not filed with the Department. Producers have reportedly informed some of the applicants that the policies or contracts are not available in Utah and therefore the application must be signed in a neighboring state in order to have a policy or contract be issued. In some instances, the insurance company then issued the policy or contract to the Utah resident on the neighboring state’s policy form which had not been filed in Utah.
Please be aware that per Utah Code Annotated (UCA) Section 31A-21-201, a form may not be used, sold, or offered for sale unless the form has been filed with the commissioner. Additionally, per UCA Section 31A-21-101, this requirement applies to all insurance policy and annuity contract forms, applications, and certificates that are: “(a) delivered or issued for delivery in this state; (b) on property ordinarily located in this state; (c) on persons residing in this state when the policy is issued; and (d) on business operations in this state”. Therefore, insurance companies and producers who use, sell, or offer for sale to persons residing in Utah, an insurance policy or contract that has not been filed in Utah, and is thus not available in Utah, do so in violation of Utah insurance law, even when the application was signed in another state.