Order Establishing Standards for Obtaining and a Process for Issuing a Temporary Resident Individual Producer License

ORDER 2020-1 State Office Building Suite 3110, Salt Lake City, UT 84114-6901  (801) 538-3800  Facsimile (801) 538-3829  www.insurance.utah.gov State of Utah GARY R. HERBERT Governor SPENCER J. COX Lieutenant Governor Insurance Department TODD E. KISER Insurance Commissioner UTAH INSURANCE COMMISSIONER 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 ___________________________ Todd E. Kiser Utah Insurance Commissioner Rev. 04/24/2020 Utah Insurance Department Certification of Compliance with Temporary License Requirements (to be completed and signed by an owner, partner, officer, or designated responsible licensed producer (DRLP) of sponsoring insurance company or agency) I, ______________________ (name of owner, partner, officer, or DRLP) , certify the accuracy of the following under penalty of Utah law: 1. I submit this Certification in support of the application of ___________________ (“Applicant”) for a temporary individual resident producer license. 2. If issued a temporary license, Applicant will be affiliated with and sponsored by the following licensed insurance company or licensed agency that is in good standing with the Department: _________________________ (name of sponsoring insurance company or agency, aka “Sponsor”). The affiliation and sponsorship will be in place for the duration of the temporary license period. Sponsor is responsible for Applicant’s acts occurring in the course and scope of the temporary licensure. 3. During the temporary license period, Applicant will be supervised on the job by a licensed individual producer who is in good standing with the Department and is affiliated with Sponsor. 4. If Applicant’s affiliation or sponsorship with Sponsor ends before the last day of the temporary license period, Sponsor will immediately notify the Department. 5. Applicant has successfully completed 40 hours of training in the line(s) of authority for which the 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. 6. I am an owner, partner, officer, or designated responsible licensed producer of Sponsor and am authorized to make this certification on Sponsor’s behalf. Dated: ______________________ __________________________________________ Signature of owner, partner, officer, or DRLP __________________________________________ Title or Position with Sponsoring Insurance Company or Agency