Supervision of management changes

(1) (a) Immediately after the selection of a person as a director or principal officer, the insurer shall report to the commissioner: (i) the name of the person selected as a director or principal officer of a corporation; and (ii) pertinent biographical and other data that the commissioner requires by rule. (b) For five years after the initial issuance of a certificate of authority to a corporation, the commissioner may, within 30 days after receipt of a report under Subsection (1)(a), disapprove any person selected who fails to satisfy the commissioner that the person: (i) is trustworthy; and (ii) has the competence and experience necessary to discharge that person's responsibilities. (2) (a) Whenever a director or principal officer of a corporation is removed under a provision listed in Subsection (2)(b), the insurer shall immediately report to the commissioner: (i) the removal; and (ii) a statement of the reasons for the removal. (b) Subsection (2)(a) applies to a removal under: (i) Subsection 16-6a-820(4); (ii) Section 16-10a-808; (iii) Section 16-10a-832; and (iv) Subsection 31A-5-409(4). (3) The commissioner may order the removal of a director or officer if the commissioner finds, after a hearing, that: (a) a director or officer: (i) is incompetent; (ii) untrustworthy; (iii) is not qualified under Section 31A-5-409; or (iv) has wilfully violated: (A) this title; (B) a rule adopted under Subsection 31A-2-201(3); or (C) an order issued under Subsection 31A-2-201(4); and (b) the circumstances described in Subsection (3)(a) endangers the interests of: (i) insureds; or (ii) the public.