R590-244-3. Definitions

  For the purpose of this rule the commissioner adopts the definitions as set forth in Subsections 31A-1-301, 31A-23a-102, 31A-23b-102, 31A-26-102, and 31A-35-102 and the following:

  (1) "Active license" means a license under which a licensee has been granted authority by the commissioner to engage in some activity that is part of or related to the insurance business.

  (2) "Inactive license" means a formerly active license where a licensee is no longer authorized by the commissioner to engage in some activity that is part of or related to the insurance business.

  (3) "Lapse" means the inactivation of an active license by expiration of the period for which the license was issued or by operation of law.

  (4) "License application" means information submitted by a license applicant to provide information about the license applicant that is used by the commissioner to evaluate the applicant's qualifications and decide whether to:

  (a) issue or decline to issue a license;

  (b) add or decline to add an additional line of authority to an active license;

  (c) renew or decline to renew an active license; or

  (d) reinstate or decline to reinstate an inactive license.

  (5) "Line of authority" means a line of insurance of a particular subject matter area within a license type for which the commissioner may grant authority to do business.

  (6) "License type" means a category of license identifying a specific functional area of insurance activity for which the commissioner may grant authority to do business.

  (7) "NIPR" means an electronic application software provided by the National Insurance Producer Registry (NIPR).

  (8) "Reinstate" means the activation of an inactive license within 365 days of the inactivation date.

  (9) "Renewal" means the continuation of an active license from one two-year licensing period to another, except that the licensing period for a bail bond agency is one year.

  (10) "Resident," for the purpose of a resident insurance license in this state, means a person who claims this state as the person's home state in which the person maintains the principal:

  (a) place of residence; or

  (b) place of business, and

  (c) is licensed to do insurance business.

  (11) "SIRCON" means an electronic application software provided by Sircon Corporation or its acquiring parent company, Vertafore, Inc.

  (12) "Termination for cause" means

  (a) an insurer or an agency has ended its relationship with a licensee or has cancelled the licensee's authority to act on behalf of the insurer or agency for one of the reasons identified in 31A-23a-111(5); or

  (b) a licensee has been found to have engaged in any of the activities identified in 31A-23a-111(5), 31A-23b-401(4), 31A-26-213(5), by a court, government body, or self-regulatory organization authorized by law.