Key Takeaways
- The Utah Insurance Commissioner investigates complaints and can impose penalties including license revocation and fines up to $5,000 per violation
- Utah requires 24 hours of continuing education every 2 years, including 3 hours of ethics education
- Producers must disclose any criminal convictions, administrative actions, or pending charges on applications
- Utah has specific advertising standards requiring accuracy, clarity, and identification of the insurer
- The replacement regulation requires specific disclosures and comparison information when replacing existing policies
Last updated: January 2026
Consumer Protection and Regulatory Compliance
Utah has comprehensive consumer protection regulations enforced by the Utah Insurance Department. Producers must understand their compliance obligations to serve clients effectively and maintain their licenses.
The Utah Insurance Department
Role and Authority
The Utah Insurance Department, led by the Insurance Commissioner, is responsible for:
| Function | Description |
|---|---|
| Licensing | Issue, renew, suspend, and revoke producer licenses |
| Regulation | Establish rules for insurance transactions |
| Enforcement | Investigate violations and impose penalties |
| Consumer Protection | Handle complaints and protect public interest |
| Market Conduct | Examine insurer practices |
Commissioner's Powers
The Commissioner can:
- Investigate all claims and complaints of legal violations
- Examine insurer and producer records
- Issue cease and desist orders to stop violations
- Impose fines up to $5,000 per violation
- Suspend or revoke licenses for cause
- Refer matters to the Attorney General for prosecution
Complaint Process
| Step | Action |
|---|---|
| 1. Receipt | Consumer files complaint with Department |
| 2. Review | Department evaluates for jurisdiction |
| 3. Investigation | Evidence gathered, parties interviewed |
| 4. Resolution | Informal resolution or formal action |
| 5. Enforcement | Penalties imposed if warranted |
Producer Licensing Requirements
Initial Licensing
To become licensed in Utah, applicants must:
| Requirement | Details |
|---|---|
| Age | At least 18 years old |
| Education | Complete pre-licensing course |
| Examination | Pass state licensing exam |
| Background check | Fingerprinting and criminal history review |
| Application | Submit complete application with fees |
| Disclosure | Reveal all criminal/administrative history |
License Types
| License Line | Covers |
|---|---|
| Property | Real and personal property coverage |
| Casualty | Liability and related coverages |
| Personal Lines | Individual property and casualty |
| Life | Life insurance products |
| Health | Accident and health insurance |
Continuing Education Requirements
Utah requires continuing education for license renewal:
| Requirement | Specification |
|---|---|
| Hours required | 24 hours every 2 years |
| Ethics hours | 3 hours of ethics required |
| Renewal cycle | Biennial (every 2 years) |
| Carryover | No carryover of excess hours |
Disclosure Requirements
Producers MUST disclose:
- All criminal convictions (misdemeanors and felonies)
- Pending criminal charges
- Administrative actions in any jurisdiction
- Civil proceedings related to insurance
- Changes in status after initial licensing
Warning: Failure to disclose may result in denial of application or revocation of license after issuance.
Advertising Standards
General Requirements
All insurance advertising must be:
| Standard | Requirement |
|---|---|
| Truthful | No false or misleading statements |
| Clear | Understandable to ordinary consumers |
| Complete | Include material information |
| Identifiable | Clearly identify the insurer |
| Not deceptive | Avoid misleading impressions |
Prohibited Advertising Practices
| Prohibited | Example |
|---|---|
| False testimonials | Fake or misleading endorsements |
| Untrue statements | Exaggerating benefits or coverage |
| Incomplete comparison | Hiding unfavorable facts |
| Misleading statistics | Using data deceptively |
| Unfair disparagement | False criticism of competitors |
Required Disclosures in Advertising
| Advertisement Type | Required Disclosure |
|---|---|
| All advertising | Name of insurer |
| Rate quotes | Basis for rate (if conditional) |
| Guarantee claims | Specific limitations |
| Testimonials | If compensated |
Replacement Regulations
When Replacement Rules Apply
Replacement regulations apply when:
- A new policy will replace an existing policy
- The existing policy will be surrendered, lapsed, or reduced
- Funds from existing policy will be used for new policy
Required Disclosures
When replacement is proposed, producer must:
| Disclosure | Purpose |
|---|---|
| Replacement notice | Inform client replacement is occurring |
| Comparison statement | Show differences between policies |
| Surrender cost disclosure | Reveal penalties for leaving existing policy |
| Waiting period warning | Explain new policy incontestability periods |
Suitability Determination
Before recommending replacement, producer must determine:
- Is the new policy suitable for client's needs?
- Are there surrender charges or penalties on existing policy?
- Will benefits be lost (e.g., grandfathered provisions)?
- Is the client's health status a concern for new underwriting?
- Is there a legitimate reason for the replacement?
Documentation Requirements
| Document | Retention |
|---|---|
| Replacement forms | 5 years |
| Comparison information | 5 years |
| Client acknowledgments | 5 years |
| Correspondence | 5 years |
Privacy and Confidentiality
Protected Information
Producers must protect:
- Personal identification information
- Financial account information
- Health information
- Insurance application details
- Claims information
Privacy Requirements
| Requirement | Application |
|---|---|
| Notice | Inform clients of privacy practices |
| Consent | Obtain permission before sharing |
| Security | Protect information from unauthorized access |
| Disposal | Properly destroy records when no longer needed |
Information Sharing Rules
| Sharing Type | Permitted? |
|---|---|
| With insurer for underwriting | Yes |
| With third parties for marketing | Only with consent |
| For claims investigation | Yes (related parties) |
| With law enforcement (subpoena) | Yes |
| Casual disclosure | Never |
Penalties for Violations
Administrative Penalties
| Violation | Potential Penalty |
|---|---|
| First offense | Warning, fine, or short suspension |
| Repeat offense | Increased fines, longer suspension |
| Serious violation | License revocation |
| Pattern of violations | Permanent bar from industry |
Monetary Penalties
Under Utah Code 31A-2-308:
| Violator Type | Maximum Penalty |
|---|---|
| Individual producer | Up to $2,500 per violation |
| Other persons/entities | Up to $5,000 per violation |
| Profit recovery | Up to twice the profit gained |
Important: Each day a violation continues may be considered a separate violation.
License Actions
| Action | Effect |
|---|---|
| Suspension | Temporary inability to conduct business |
| Revocation | Permanent loss of license |
| Probation | Continued license with conditions |
| Denial | Application rejected |
Consumer Rights in Utah
Right to Information
Consumers have the right to:
- Receive clear explanation of coverage
- Understand premium calculations
- Know producer's compensation arrangements
- Receive copies of policies and endorsements
Right to Fair Treatment
Consumers are entitled to:
- Non-discriminatory treatment
- Timely response to inquiries
- Fair claims handling
- Honest representation
Right to Complain
Consumers can:
- File complaints with Utah Insurance Department
- Request investigation of producer/insurer conduct
- Receive response to complaints
- Seek remedies for violations
How to File a Complaint
| Method | Contact |
|---|---|
| Online | insurance.utah.gov |
| Phone | (801) 538-3800 |
| Utah Insurance Department, Salt Lake City | |
| Department complaint form |
Producer Obligation: Producers must cooperate fully with Department investigations and respond truthfully to all inquiries.
Test Your Knowledge
How many hours of continuing education must Utah P&C producers complete every two years?
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Test Your Knowledge
What is the maximum penalty the Utah Insurance Commissioner can impose on an individual producer per violation?
A
B
C
D
Test Your Knowledge
When recommending a policy replacement, a Utah producer must provide all of the following EXCEPT:
A
B
C
D
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