H.B. 167

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AMENDMENTS RELATED TO THE WORKERS'
2 COMPENSATION
3 1998 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Gerry A. Adair
6 AN ACT RELATING TO INSURANCE; AMENDING PROVISIONS RELATED TO THE
7 LEGAL NATURE AND POWERS OF THE WORKERS' COMPENSATION FUND OF
8 UTAH; ADDRESSING PARTICIPATION BY THE FUND AND SUBSIDIARIES; AND
9 MAKING TECHNICAL CORRECTIONS.
10 This act affects sections of Utah Code Annotated 1953 as follows:
11 AMENDS:
12 31A-33-102, as last amended by Chapter 375, Laws of Utah 1997
13 31A-33-103.5, as enacted by Chapters 204 and 375, Laws of Utah 1997
14 31A-33-105, as renumbered and amended by Chapter 240, Laws of Utah 1996
15 31A-33-118, as enacted by Chapter 240, Laws of Utah 1996
16 Be it enacted by the Legislature of the state of Utah:
17 Section 1. Section 31A-33-102 is amended to read:
18 31A-33-102. Establishment of the Workers' Compensation Fund and the Injury
19 Fund.
20 (1) (a) There is created a nonprofit, quasi-public corporation to be known as the Workers'
21 Compensation Fund of Utah.
22 (b) The [purpose] purposes of the fund [is] are to:
23 (i) insure Utah employers against liability for compensation based on job-related
24 accidental injuries and occupational diseases; [and]
25 (ii) assure payment of this compensation to Utah employees who are entitled to it under
26 Title 34A, Chapters 2, Workers' Compensation Act, and 3, Utah Occupational Disease Act; and
27 (iii) write workers' compensation insurance pursuant to Section 31A-22-1001.

1 (2) (a) There is created an Injury Fund[, which] that shall be maintained by the Workers'
2 Compensation Fund.
3 (b) The Injury Fund shall consist of all assets acquired from premiums and penalties paid
4 into the Injury Fund and interest and dividends earned on those assets.
5 (c) The Injury Fund is the sole source of monies to:
6 (i) pay losses sustained on account of the insurance provided; and
7 (ii) pay salaries and other expenses of the Workers' Compensation Fund in accordance
8 with this chapter.
9 Section 2. Section 31A-33-103.5 is amended to read:
10 31A-33-103.5. Powers of Fund -- Limitations.
11 (1) The fund may form or acquire [subsidiaries] a subsidiary:
12 (a) in accordance with Section 31A-33-107; and
13 (b) except as limited by [Subsections (2) and (3)] this section and applicable insurance
14 rules and statutes.
15 (2) [(a)] Subject to applicable insurance rules and statutes, the [Workers' Compensation
16 Fund of Utah, or its subsidiaries,] fund may [offer] only offer workers' compensation insurance
17 or workers' compensation products and services in Utah and other states [until the Legislature
18 enacts legislation addressing the recommendations of a legislatively authorized study of the fund's
19 authority, if any, to offer insurance products or services other than workers' compensation
20 insurance products or services either directly, through a subsidiary, or through a joint venture] to
21 the extent necessary to:
22 (a) insure Utah employers against liability for compensation based on job-related
23 accidental injuries and occupational diseases; or
24 (b) assure payment of compensation based on job-related accidental injuries and
25 occupational disease for Utah employees who are entitled to it under Title 34A, Chapters 2 and
26 3.
27 [(b)] (3) A subsidiary of the [Workers' Compensation Fund of Utah] fund may offer
28 workers' compensation insurance coverage:
29 (a) only in a state other than Utah; and
30 (b) subject to the limitations on the fund under Subsection (2).
31 [(3) There is a moratorium until July 1, 2000, on the Workers' Compensation Fund of

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1 Utah's authority, if any, to offer health insurance services including medical, surgical, hospital, and
2 other ancillary medical expenses, by any means including directly, through a subsidiary, or
3 through a joint venture.]
4 Section 3. Section 31A-33-105 is amended to read:
5 31A-33-105. Price of insurance -- Liability of state.
6 (1) The Workers' Compensation Fund shall provide workers' compensation insurance at
7 an actuarially sound price, which the board shall determine.
8 (2) The state:
9 (a) is not liable for the expenses, liabilities, or debts of:
10 (i) the Workers' Compensation Fund[,]; or
11 (ii) a subsidiary of the fund; and
12 (b) may not use any assets of the Injury Fund for any purpose.
13 Section 4. Section 31A-33-118 is amended to read:
14 31A-33-118. Scope of chapter.
15 The placement of this chapter in this title may not be construed to[: (1)] change the
16 Workers' Compensation Fund's legal nature or purpose as set forth in this chapter[; or].
17 [(2) change the Workers' Compensation Fund's obligation to write workers' compensation
18 insurance pursuant to Section 31A-22-1001.]




Legislative Review Note
as of 2-9-98 9:54 AM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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