H.B. 148

1

NONPROFIT INSURERS
2 2002 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Afton B. Bradshaw
5 This act modifies the Insurance Code to address the applicability of the Insurance Code to
6 nonprofit insurers. This act makes technical changes.
7 This act affects sections of Utah Code Annotated 1953 as follows:
8 AMENDS:
9 31A-10-201, as enacted by Chapter 204, Laws of Utah 1986
10 31A-10-203, as last amended by Chapter 245, Laws of Utah 1994
11 REPEALS:
12 31A-10-202, as enacted by Chapter 204, Laws of Utah 1986
13 Be it enacted by the Legislature of the state of Utah:
14 Section 1. Section 31A-10-201 is amended to read:
15 31A-10-201. Definition.
16 As used in this part[,]:
17 (1) (a) "Nonprofit educational insurer" means a nonprofit insurer that:
18 (i) (A) is incorporated under Chapter 5, Domestic Stock and Mutual Insurance
19 Corporations; or
20 (B) is admitted under Chapter 14 [which], Foreign Insurers; and
21 (ii) exists for the purpose of aiding and strengthening nonprofit educational and research
22 institutions by providing them and their employees with annuities and insurance.
23 (b) An insurer is not a nonprofit educational insurer if [it] that insurer provides annuities
24 or insurance to persons other than:
25 (i) a nonprofit educational and research [institutions and their employees] institution; or
26 (ii) an employee of a nonprofit educational and research institution.
27 (2) (a) "Nonprofit entity insurer" means a nonprofit insurer that:

28 (i) (A) is incorporated under Chapter 5, Domestic Stock and Mutual Insurance
29 Corporations; or
30 (B) is admitted under Chapter 14, Foreign Insurers;
31 (ii) issues annuity contracts only to:
32 (A) (I) a governmental entity; or
33 (II) a nonprofit organization; or
34 (B) an employee of a:
35 (I) governmental entity; or
36 (II) nonprofit organization; and
37 (iii) does not issue any contract that h [ contains ] PAYS A BENEFIT BASED ON h a guarantee
37a as to:
38 (A) principal;
39 (B) interest rate;
40 (C) return on investment;
41 (D) mortality; or
42 (E) morbidity.
43 (b) A nonprofit entity insurer includes a nonprofit educational insurer if the nonprofit
44 educational insurer does not issue any contract described in Subsection (2)(a)(iii).
45 Section 2. Section 31A-10-203 is amended to read:
46 31A-10-203. Applicability of other provisions.
47 (1) Except as provided in this section[,]:
48 (a) a domestic nonprofit h EDUCATIONAL OR h [educational insurers are] entity insurer is
48a subject to the same
49 provisions applicable to other domestic insurers[,]; and
50 (b) a nondomestic nonprofit h EDUCATIONAL OR h [educational insurers are] entity insurer
50a is subject to the same
51 provisions applicable to other nondomestic insurers.
52 (2) Chapter 28, Guaranty Associations, does not apply to [the] a nonprofit educational
53 insurer's:
54 (a) annuity business [nor to]; or
55 (b) annuitants [of nonprofit educational insurers].
56 [(3) Nonprofit educational insurers that do not issue contracts containing guarantees as
57 to principal, interest rate, return on investment, mortality, and morbidity are]
58 (3) A nonprofit entity insurer is not subject to:

59 (a) Section 31A-5-211 ;
60 (b) Section 31A-5-217 ;
61 (c) Subsection 31A-14-205 (1)(a);
62 (d) Chapter 17, Determination of Financial Condition;
63 (e) Chapter 18, Investments;
64 (f) Section 31A-20-106 ;
65 (g) Chapter 21, Insurance Contracts in General, if:
66 (i) [their] the nonprofit entity insurer's contract forms have been approved by the
67 appropriate regulatory authorities in [their] the nonprofit entity insurer's state of domicile; and
68 (ii) [these] the contract forms described in Subsection (3)(g)(i) are standard forms
69 generally issued by those nonprofit educational insurers in the United States; [or]
70 (h) Chapter 22[.], Contracts in Specific Lines; or
71 (i) Chapter 28, Guaranty Associations.
72 Section 3. Repealer.
73 This act repeals:
74 Section 31A-10-202, Purposes of part.




Legislative Review Note
as of 1-14-02 12:50 PM

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

Office of Legislative Research and General Counsel