31A-27a-112 - Unrecorded obligations and defenses of affiliates.
31A-27a-112. Unrecorded obligations and defenses of affiliates.
(1) This section applies to a person who in relation to an insurer is:
(a) an affiliate;
(b) a controlled or controlling person; or
(c) a present or former officer, manager, director, trustee, or shareholder.
(2) In a proceeding or claim by the receiver, a person described in Subsection (1) may notassert a defense unless evidence of the defense:
(a) is recorded in the records of the insurer at or about the time the event giving rise tothe defense occurs; and
(b) if required by statutory accounting practices and procedures, is timely reported on theinsurer's official financial statements filed with the commissioner.
(3) A person described in Subsection (1) may not assert a claim, unless the obligation:
(a) is recorded in the records of the insurer at or about the time the obligation is incurred;and
(b) if required by statutory accounting practices and procedures, is timely reported on theinsurer's official financial statements filed with the commissioner.
(4) A claim by the receiver against a person described in Subsection (1) that is made onthe basis of an unrecorded or unreported transaction is not barred by this section.
Enacted by Chapter 309, 2007 General Session