R590. Insurance, Administration.R590-281. License Application Submitted by an Individual Who Has a Criminal Conviction or Pending Proceeding.
R590-281-1. Authority.
This rule is promulgated by the commissioner pursuant to Section 31A-2-201.
R590-281-2. Purpose and Scope.
(1) The purpose of this rule is to set eligibility requirements for a license applicant who has a criminal conviction or a pending proceeding.
(2) This rule applies to a license applicant who has a criminal conviction or a pending proceeding.
R590-281-3. Definitions.
Terms used in this rule are defined in Section 31A-1-301. Additional terms are defined as follows:
(1) "Criminal conviction" means a felony, or a misdemeanor involving fraud, misrepresentation, theft, or dishonesty, that results in:
(a) judgment of guilt entered by a court;
(b) an admission;
(c) a guilty plea;
(d) a no contest plea;
(e) a proceeding involving a plea in abeyance; or
(f) another deferred adjudication agreement that has not yet been dismissed.
(2) "License" means an initial license issued by the commissioner.
(3) "License applicant" means an individual applying for a license under:
(a) Title 31A, Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries;
(b) Title 31A, Chapter 23b, Navigator License Act;
(c) Title 31A, Chapter 25, Third Party Administrators; or
(d) Title 31A, Chapter 26, Insurance Adjusters.
(4) "Proceeding" means:
(a) a criminal proceeding in which an individual is charged with a felony, or a misdemeanor involving fraud, misrepresentation, theft, or dishonesty; or
(b) an administrative, civil, or regulatory enforcement proceeding in which an individual is alleged to have engaged in conduct involving fraud, misrepresentation, theft, or dishonesty.
R590-281-4. Eligibility to Apply for a License.
(1) Except as provided in Subsections (3) through (5), an individual who has a criminal conviction is eligible to apply for a license if:
(a) the individual has completed probation, parole, or has been released from incarceration;
(b) the individual has no criminal proceeding pending;
(c) the individual has paid in full all fines and interest ordered by the court related to the criminal conviction;
(d) the individual has paid in full all restitution ordered by the court related to the criminal conviction; and
(e) the following time periods have elapsed from the date the individual was convicted, released from incarceration, parole, or probation, or the expiration of the probationary term, whichever occurred last:
(i) seven years in the case of a felony;
(ii) five years in the case of a class A misdemeanor;
(iii) four years in the case of a class B misdemeanor; or
(iv) three years in the case of any other misdemeanor.
(2) Any pending administrative, civil, criminal, or regulatory proceeding must be resolved before an individual is eligible to apply for a license.
(3) Subsection (1) does not apply to:
(a) a juvenile adjudication; or
(b) an individual whose criminal charge was dismissed pursuant to a plea in abeyance agreement under Title 77, Chapter 2a, Pleas in Abeyance.
(4) The department will give effect to a conviction for a lower degree of offense pursuant to Section 76-3-402.
(5)(a)(i) An individual convicted of violating the federal Violent Crime Control and Law Enforcement Act of 1994, 18 U.S.C. Sec. 1033, or who under 18 U.S.C. Sec. 1033 has been convicted of a felony involving dishonesty or breach of trust, may not apply for a license without first obtaining written consent from the commissioner to engage or participate in the business of insurance.
(ii) The policy and application for written consent are available on the department's website, https://insurance.utah.gov.
(b) An individual who obtains written consent may apply for a license, subject to all other license application requirements.
(c) An application for written consent is required even if:
(i) a felony conviction involving dishonesty or breach of trust has been dismissed pursuant to a plea in abeyance agreement under Title 77, Chapter 2a, Pleas in Abeyance;
