1. (1) An organization licensed as an adjuster under Section 31A-26-203 shall designate an individual who has an individual adjuster license to act on the organization's behalf in order for the licensee to do business for the organization in this state.

2. (2) An organization licensed under this chapter shall report to the commissioner, at intervals and in the form the commissioner establishes by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:

   1. (a) a new designation; and
   2. (b) a terminated designation.
3. (3) An organization licensed under this chapter shall notify an individual licensee that the individual's designation has been terminated by the organization and of the reason for the termination at an interval and in the form the commissioner establishes by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

4. (4)

   1. (a) An organization licensed under this chapter shall report to the commissioner the cause of termination of a designation if:

      1. (i) the reason for termination is a reason described in Subsection 31A-26-213(5)(b); or

      2. (ii) the organization has knowledge that the individual licensee is found to have engaged in an activity described in Subsection 31A-26-213(5)(b) by:

         1. (A) a court;
         2. (B) a government body; or
         3. (C) a self-regulatory organization, which the commissioner may define by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
   2. (b) The information provided the commissioner under Subsection (4)(a) is a private record under Title 63G, Chapter 2, Government Records Access and Management Act.
   3. (c) An organization is immune from civil action, civil penalty, or damages if the organization complies in good faith with this Subsection (4) in reporting to the commissioner the cause of termination of a designation.
   4. (d) Notwithstanding any other provision in this section, an organization is not immune from an action or resulting penalty imposed on the reporting organization as a result of a proceeding brought by or on behalf of the department if the action is based on evidence other than the report submitted in compliance with this Subsection (4).
5. (5) An organization licensed under this chapter may act in a capacity for which it is licensed only through an individual who is licensed under this chapter to act in the same capacity.
6. (6) An organization licensed under this chapter shall designate and report promptly to the commissioner the name of the designated responsible licensed individual who has authority to act on behalf of the organization in all matters pertaining to compliance with this title and orders of the commissioner.
7. (7) If an agency has a contract with or designates a licensee in a report submitted under Subsection (2) or (6), there is a rebuttable presumption that the contracted or designated licensee acts on behalf of the agency.

8. (8)

   1. (a) When a license is held by an organization, both the organization itself and an individual contracted or designated under the license shall, for purposes of this section, be considered to be the holders of the organization license.

   2. (b) If an individual designated under the organization license commits an act or fails to perform a duty that is a ground for suspending, revoking, or limiting the organization license, the commissioner may assess a forfeiture against, suspend, revoke, or limit the license of, or take a combination of these actions against:

      1. (i) that individual;

      2. (ii) the organization, if the organization:

         1. (A) is reckless or negligent in its supervision of the individual; or
         2. (B) knowingly participates in the act or failure to act that is the ground for assessing a forfeiture or suspending, revoking, or limiting the license; or

      3. (iii)

         1. (A) the individual; and
         2. (B) the organization, if the organization meets the requirements of Subsection (8)(b)(ii).

Amended by Chapter 168, 2017 General Session