Section 31A-27a-112 - Unrecorded obligations and defenses of affiliates(1) This section applies to a person who in relation to an insurer is: (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 not assert 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 to the defense occurs; and(b) if required by statutory accounting practices and procedures, is timely reported on the insurer'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 the insurer's official financial statements filed with the commissioner.(4) A claim by the receiver against a person described in Subsection (1) that is made on the basis of an unrecorded or unreported transaction is not barred by this section.Enacted by Chapter 309, 2007 General Session.