Utah insurance law is in Title 31A of the Utah Code. The Department's rules are in Utah Admin. Code R590. Producer licensing is in 31A-23a, policy rules in 31A-21 and 31A-22, and claims in 31A-26. This guide covers the Utah rules the state portion of every exam tests. General concepts are in the national Insurance Regulation guide.

About the exam

• Utah's exams are given by Prometric under contract with the Insurance Department (Licensing Information Bulletin, effective September 25, 2025).
• The bulletin doesn't publish a passing score.
• Utah sells single-line and combined exams for both families of lines.

• No prelicensing course is required.
• Apply within 90 days of passing, or retake the exam.
• First-time resident applicants are fingerprinted.

The regulator

• The Utah Insurance Department is headed by the Commissioner. The Commissioner is appointed by the Governor with the Senate's consent and may be removed at the Governor's pleasure (31A-2-102).
• The Commissioner's orders are effective only if they're in writing and signed (31A-2-201).
• The Commissioner must examine insurers at least once every 5 years, or use an alternative examination (31A-2-203).

Penalties (31A-2-308)

• Forfeitures:
  • up to $2,500 per violation for individual producers, adjusters and consultants
  • up to $5,000 for others
  • plus up to twice the profit gained from the violation
• Each day an order is violated counts as a separate violation.
• A court may add up to $10,000 per day of continued noncompliance.
• Intentionally violating the code or an order is a class B misdemeanor.

Insurers

• Domestic = organized under Utah law. Foreign = domiciled outside Utah, which includes alien insurers (31A-1-301).
• An insurer needs a certificate of authority (31A-4-103).
• Admitted insurers pay 2.25% premium tax (59-9-101).

Producer licensing (31A-23a)

Lines and license structure

• A license has at least one license type and one line of authority (31A-23a-103, 31A-23a-106).
• Lines include life, accident and health, property, casualty (which includes surety bonds) and personal lines.
• Selling a policy without a license doesn't make the contract invalid. The unlicensed person bears the consequences.
• Variable contracts require the life line plus a Utah broker-dealer agent license. The line ends the day the securities license does (31A-23a-206).

Qualifications

• You must be at least 18, competent and trustworthy, and intend in good faith to do the business (31A-23a-107).
• The exam is waived for someone licensed for the same line elsewhere who applies within 90 days of becoming a Utah resident (31A-23a-108).
• Limited lines need no exam.
• Nonresidents: good standing at home is required. Utah can't charge nonresidents higher fees (31A-23a-109).

Errors and omissions

• Resident individual producers must carry E&O at all times: $250,000 per claim / $500,000 aggregate (R590-244-5).
• It can come from an agency policy or an exclusive insurer's written agreement (31A-23a-203.5).

Temporary license: up to 180 days without an exam (31A-23a-114). Examples include a surviving spouse or court-appointed representative.

Keeping the license

• Term: expires the last day of your birth month every 2 years (R590-244-9).
• Report within 30 days:
  • changes of address, phone or business email (31A-23a-412)
  • administrative actions, counted from the final disposition (31A-23a-105)
  • criminal prosecutions and civil actions, counted from the initial court appearance (31A-23a-105)
• Assumed name: notify the Commissioner before using it (31A-23a-110).
• Continuing education (31A-23a-202; R590-142):
  • 24 hours every 2 years, including 3 hours of ethics
  • at least half in classroom hours
  • no more than half from insurer-provided courses
  • no carryover
  • an hour is 50 minutes
  • association membership counts for 2 hours a year, at most
  • instructors earn twice the course hours
  • nonresidents meet Utah CE by meeting their home state's CE
  • licensees first licensed before December 31, 1988, without a lapse of over a year, may request an exemption
  • keep CE records 2 years after the period ends
• Flood: selling flood insurance requires at least 3 hours of NFIP training. It can count toward CE but isn't itself a renewal requirement (31A-23a-203).
• Lapse: a license lapses for missing CE, fees or a complete renewal. You may request reinstatement within 1 year. Military or other hardship can support a waiver (31A-23a-113).

Appointments (R590-244-11, -12)

• A producer must be appointed by an insurer, or designated by an agency, before doing business.
• Insurer deadlines:
  • file appointments within 15 days after the contract is signed or the first application arrives
  • file terminations within 30 days of the effective date
  • tell the producer about the termination and its reason within 15 days after filing
• Agency designations are filed within 15 days.
• Insurers that report the cause of a termination in good faith are immune (31A-23a-115).

Discipline (31A-23a-111, -112)

• The Commissioner may revoke, limit or deny a license, or suspend it for 12 months or less.
• Probation lasts no more than 24 months.
• Grounds include:
  • forgery
  • using notes on the exam
  • being more than 60 days past due on a final judgment
• A voluntarily surrendered license can be reinstated only within the same license period, and surrender doesn't stop discipline.

Fiduciary duties and compensation

• A licensee is a trustee for money collected for insurers or insureds (31A-23a-409).
  • No commingling.
  • Money not forwarded by the close of the next business day goes into a trust account. That account must be separate from operating and personal accounts (R590-170-4). It may earn interest for the licensee.
  • Diverting trust money is theft.
• Knowingly failing to forward premium is insurance fraud (31A-23a-411.1).
• A premium paid to the producer who placed the policy counts as received by the insurer (31A-23a-410).
• Commissions may go only to people licensed in Utah for that type of insurance (31A-23a-504).
  • Referral fees to unlicensed people can't depend on a sale.
  • Renewal commissions to former licensees are allowed.
• Controlled business: no compensation on it unless your other business in the past 12 months exceeded it in premium (31A-23a-502). Controlled business covers you, relatives to the second degree, your employer and its employees.
• Acting for both insurer and insured: you can't act as producer for both on the same matter without the client's prior written consent after full disclosure (31A-23a-401).

Unfair practices

• False or misleading communications (31A-23a-402):
  • incomplete information that misleads
  • assuring specific future dividends
  • implying government backing
• Unfair discrimination unless it's based on risk or expense (31A-23a-402).
• Boycott, coercion and intimidation.
• Restricting a buyer's choice of insurer when coverage is a condition of a deal.
• Inducements (rebating) (31A-23a-402.5):
  • Prohibited: anything not specified in or directly related to the contract.
  • Allowed: usual social courtesies not conditioned on a quote or purchase.
  • Allowed: interest-free premium credit for up to 90 days.
  • A licensee can't absorb the surplus lines tax.
• Twisting (R590-146-4).
• Marketing (R590-154, R590-252):
  • Licensees must disclose that they're insurance licensees.
  • They can't claim the Department approved a product.
  • They can't use "consultant" titles unless licensed as a consultant.
  • They can't use self-conferred senior designations.
• Inherently unsuitable sales can be voided by the buyer within 2 years (31A-23a-403).
• Fraud (31A-31):
  • Insurers report suspected fraud within 90 days of forming a good-faith belief, through NICB, NAIC or the Department.
  • Good-faith reporters are immune.

Claims (31A-26; R590-190)

• A denial must cite the specific provision relied on.
• The unfair claims statute (31A-26-303) creates no private cause of action.

Guaranty associations

Surplus lines (31A-15)

• Placed by a licensed surplus lines producer. Property or casualty surplus lines authority requires the underlying line.
• Documents must say there's no guaranty association protection.
• The tax is 4.25% (31A-3-301).
• Nonadmitted insurers can't write Utah workers compensation (31A-15-103).

Common exam traps

• Exams are by Prometric, with no published passing score. There's no prelicensing course. Apply within 90 days of passing.
• CE: 24 hours with 3 ethics, half classroom, no carryover.
• Address, phone or email changes are reported within 30 days.
• Producer forfeiture: up to $2,500 per violation. Suspension: up to 12 months. Probation: up to 24 months.
• Premium not forwarded goes into the trust account by the next business day.
• Insurers report fraud within 90 days.