1. (1) If the commissioner finds that the acquiring person has not substantially complied with the requirements of this chapter in acquiring control of a domestic insurer, the commissioner may require the acquiring person to sell the acquiring person's stock of the domestic insurer in the manner specified in Subsection (2).

2. (2)

   1. (a) The commissioner shall effect the sale required by Subsection (1) in the manner that, under the particular circumstances, appears most likely to result in the payment of the full market value for the stock by persons who have the collective competence, experience, financial resources, and integrity to obtain approval under Subsection 31A-16-103(8).
   2. (b) Sales made under this section are subject to approval by a court with jurisdiction under Title 78A, Judiciary and Judicial Administration, which court has the authority to effect the terms of the sale.

3. (3)

   1. (a) The proceeds from sales a person makes under this section shall be distributed first to the person required by this section to sell the stock, but only up to the amount the person originally paid for the securities.
   2. (b) Additional sale proceeds shall be deposited into the General Fund.
4. (4) The person required to sell and persons related to or affiliated with the seller may not purchase the stock at the sale conducted under this section.

5. (5) A director or officer of an insurance holding company system violates this chapter if the director or officer knowingly:

   1. (a) participates in or assents to a transaction or investment that:

      1. (i) has not been properly reported or submitted in accordance with:

         1. (A) Subsections 31A-16-105(1) and (2); or
         2. (B) Subsection 31A-16-106(1)(b); or
      2. (ii) otherwise violates this chapter; or
   2. (b) permits any of the officers or agents of the insurer to engage in a transaction or investment described in Subsection (5)(a).

6. (6)

   1. (a) When the commissioner suspects that any insurer or any director, officer, employee, or agent of the insurer, has committed a willful violation of this chapter, the commissioner may refer the violation to the appropriate prosecutor.

   2. (b)

      1. (i) An insurer that willfully violates this chapter may be fined not more than $20,000.

      2. (ii) Any individual who willfully violates this chapter is guilty of a third degree felony, and upon conviction may be:

         1. (A) fined in that person's individual capacity not more than $5,000;
         2. (B) imprisoned; or
         3. (C) both fined and imprisoned.
7. (7) This section does not limit the other sanctions applicable to violations of this title under Section 31A-2-308.

Amended by Chapter 45, 2026 General Session