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Current as of January 01, 2025 | Updated by Findlaw Staff
(1) An affiliated business arrangement between a person and a title entity violates Section 8 of RESPA for purposes of state law if:
(a) the title entity does not have sufficient capital and net worth in a reserve account in the title entity's name; or
(b) more than 70% of the title entity's annual title insurance business is affiliated business on or after the later of:
(i) two years after the title entity begins an affiliated business arrangement; or
(ii) June 1, 2021.
(2) In addition to Subsection (1), the division may find that an affiliated business arrangement between a person and a title entity violates Section 8 of RESPA after evaluating and weighing the following factors in light of the specific facts before the division:
(a) whether the title entity:
(i) is staffed with the title entity's own employees to conduct title insurance business;
(ii) manages the title entity's own business affairs;
(iii) has a physical office for business that is separate from any producer's or associate's office and pays market rent;
(iv) provides the essential functions of title insurance business for a fee, including incurring the risks and receiving the rewards of any comparable title entity; and
(v) performs the essential functions of title insurance business itself;
(b) if the title entity contracts with another person to perform a portion of the title entity's title insurance business, whether the contract:
(i) is with an independent third party; and
(ii) provides payment for the services that bears a reasonable relationship to the value of the services or goods received; and
(c) whether the person from whom the title entity receives referrals under the affiliated business arrangement also sends title insurance business to other title entities.
Cite this article: FindLaw.com - Utah Code Title 31A. Insurance Code § 31A-23a-1003. Affiliated business arrangements - last updated January 01, 2025 | https://codes.findlaw.com/ut/title-31a-insurance-code/ut-code-sect-31a-23a-1003/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.
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