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H.B. 374 Enrolled

                 

INSURANCE PRODUCERS AMENDMENTS

                 
2003 GENERAL SESSION

                 
STATE OF UTAH

                 
Sponsor: James A. Dunnigan

                  This act modifies the Insurance Code. The act provides definitions and substitutes the
                  term producer for the terms agent and broker with respect to certain insurance licenses.
                  The act renumbers and modifies the chapter of the Insurance Code dealing with
                  insurance marketing and licensing. The act further modifies insurance licensing and
                  application procedures, licensing requirements, and license types. The act modifies
                  guidelines for termination, lapsing, probation, or surrender with respect to a license.
                  The act enacts guidelines for the appointment and listing of an individual or agency
                  producer or managing general agent. The act modifies certain continuing education and
                  training period requirements. The act modifies provisions relating to an agency license
                  and designation. The act designates certain failures to forward a premium to an insured
                  as insurance fraud. The act modifies guidelines for licensee compensation. The act
                  makes technical changes. This act provides an effective date. This act contains a
                  coordination clause.
                  This act affects sections of Utah Code Annotated 1953 as follows:
                  AMENDS:
                      7-1-901, as enacted by Chapter 393, Laws of Utah 1998
                      31A-1-104, as last amended by Chapter 131, Laws of Utah 1999
                      31A-1-301, as last amended by Chapters 71 and 308, Laws of Utah 2002
                      31A-2-205, as last amended by Chapter 2, Laws of Utah 1987
                      31A-2-214, as last amended by Chapter 71, Laws of Utah 2002
                      31A-2-308, as last amended by Chapters 130 and 131, Laws of Utah 1999
                      31A-2-309, as last amended by Chapter 91, Laws of Utah 1987
                      31A-3-303, as last amended by Chapter 230, Laws of Utah 1992
                      31A-4-106, as last amended by Chapter 131, Laws of Utah 1999
                      31A-5-207, as last amended by Chapter 277, Laws of Utah 1992


                      31A-5-218, as last amended by Chapter 131, Laws of Utah 1999
                      31A-6a-103, as last amended by Chapter 130, Laws of Utah 1999
                      31A-6a-108, as enacted by Chapter 203, Laws of Utah 1992
                      31A-8-103, as last amended by Chapter 308, Laws of Utah 2002
                      31A-11-101, as last amended by Chapter 204, Laws of Utah 1986
                      31A-11-102, as last amended by Chapter 116, Laws of Utah 2001
                      31A-11-104, as last amended by Chapter 10, Laws of Utah 1997
                      31A-11-107, as last amended by Chapter 204, Laws of Utah 1986
                      31A-14-211, as last amended by Chapter 9, Laws of Utah 1996, Second Special Session
                      31A-15-102, as enacted by Chapter 242, Laws of Utah 1985
                      31A-15-103, as last amended by Chapter 185, Laws of Utah 2002
                      31A-15-104, as enacted by Chapter 242, Laws of Utah 1985
                      31A-15-111, as last amended by Chapter 185, Laws of Utah 1997
                      31A-15-204, as last amended by Chapter 305, Laws of Utah 1993
                      31A-15-207, as enacted by Chapter 258, Laws of Utah 1992
                      31A-15-210, as enacted by Chapter 258, Laws of Utah 1992
                      31A-15-212, as last amended by Chapter 305, Laws of Utah 1993
                      31A-17-608, as last amended by Chapter 116, Laws of Utah 2001
                      31A-19a-209, as last amended by Chapter 308, Laws of Utah 2002
                      31A-19a-216, as enacted by Chapter 130, Laws of Utah 1999
                      31A-20-110, as enacted by Chapter 242, Laws of Utah 1985
                      31A-21-302, as last amended by Chapter 204, Laws of Utah 1986
                      31A-21-305, as enacted by Chapter 242, Laws of Utah 1985
                      31A-21-404, as last amended by Chapter 116, Laws of Utah 2001
                      31A-26-201, as last amended by Chapter 20, Laws of Utah 1995
                      31A-27-103, as last amended by Chapter 308, Laws of Utah 2002
                      31A-27-316, as enacted by Chapter 242, Laws of Utah 1985
                      31A-27-324, as enacted by Chapter 242, Laws of Utah 1985

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                      31A-30-104, as last amended by Chapter 308, Laws of Utah 2002
                      31A-35-102, as last amended by Chapter 259, Laws of Utah 2000
                      31A-35-301, as last amended by Chapter 259, Laws of Utah 2000
                      31A-35-401, as last amended by Chapter 259, Laws of Utah 2000
                      31A-35-402, as last amended by Chapter 259, Laws of Utah 2000
                      31A-35-403, as enacted by Chapter 293, Laws of Utah 1998
                      31A-35-502, as last amended by Chapter 259, Laws of Utah 2000
                      31A-35-503, as last amended by Chapter 259, Laws of Utah 2000
                      31A-35-601, as enacted by Chapter 293, Laws of Utah 1998
                      31A-35-603, as last amended by Chapter 259, Laws of Utah 2000
                      31A-35-604, as last amended by Chapter 259, Laws of Utah 2000
                      31A-35-605, as enacted by Chapter 293, Laws of Utah 1998
                      31A-35-606, as enacted by Chapter 293, Laws of Utah 1998
                      31A-35-608, as last amended by Chapter 9, Laws of Utah 2001
                      31A-35-701, as last amended by Chapter 259, Laws of Utah 2000
                      31A-35-702, as last amended by Chapter 259, Laws of Utah 2000
                      31A-35-703, as last amended by Chapter 259, Laws of Utah 2000
                      31A-35-704, as last amended by Chapter 259, Laws of Utah 2000
                      34A-2-104, as last amended by Chapter 171, Laws of Utah 2001
                      35A-4-205, as last amended by Chapter 21, Laws of Utah 1999
                      41-12a-303.2, as last amended by Chapter 345, Laws of Utah 2000
                      57-1-39, as last amended by Chapter 40, Laws of Utah 2002
                      59-9-101, as last amended by Chapter 71, Laws of Utah 2002
                      63-2-202, as last amended by Chapter 256, Laws of Utah 2001
                      63-2-302 (Effective 07/01/03), as last amended by Chapters 63 and 191, Laws of Utah
                  2002
                      63-2-302 (Superseded 07/01/03), as last amended by Chapter 63, Laws of Utah 2002
                      63-55b-131, as last amended by Chapter 3, Laws of Utah 2001

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                      73-1-10, as last amended by Chapter 241, Laws of Utah 2001
                      73-18c-304, as enacted by Chapter 348, Laws of Utah 1997
                      76-10-915, as last amended by Chapter 141, Laws of Utah 1999
                  ENACTS:
                      31A-1-110, Utah Code Annotated 1953
                      31A-23a-113, Utah Code Annotated 1953
                      31A-23a-115, Utah Code Annotated 1953
                      31A-23a-301, Utah Code Annotated 1953
                      31A-23a-411, Utah Code Annotated 1953
                  RENUMBERS AND AMENDS:
                      31A-23a-101, (Renumbered from 31A-23-101, as last amended by Chapter 116, Laws of
                  Utah 2001)
                      31A-23a-102, (Renumbered from 31A-23-102, as last amended by Chapter 308, Laws of
                  Utah 2002)
                      31A-23a-103, (Renumbered from 31A-23-201, as last amended by Chapter 116, Laws of
                  Utah 2001)
                      31A-23a-104, (Renumbered from 31A-23-202, as last amended by Chapter 185, Laws of
                  Utah 2002)
                      31A-23a-105, (Renumbered from 31A-23-203, as last amended by Chapter 116, Laws of
                  Utah 2001)
                      31A-23a-106, (Renumbered from 31A-23-204, as last amended by Chapter 308, Laws of
                  Utah 2002)
                      31A-23a-107, (Renumbered from 31A-23-205, as last amended by Chapter 10, Laws of
                  Utah 1997)
                      31A-23a-108, (Renumbered from 31A-23-207, as last amended by Chapter 116, Laws of
                  Utah 2001)
                      31A-23a-109, (Renumbered from 31A-23-209, as last amended by Chapter 116, Laws of
                  Utah 2001)

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                      31A-23a-110, (Renumbered from 31A-23-212, as last amended by Chapter 116, Laws of
                  Utah 2001)
                      31A-23a-111, (Renumbered from 31A-23-216, as last amended by Chapter 308, Laws of
                  Utah 2002)
                      31A-23a-112, (Renumbered from 31A-23-217, as last amended by Chapter 185, Laws of
                  Utah 1997)
                      31A-23a-114, (Renumbered from 31A-23-218, as last amended by Chapter 116, Laws of
                  Utah 2001)
                      31A-23a-116, (Renumbered from 31A-23-405, as last amended by Chapter 131, Laws of
                  Utah 1999)
                      31A-23a-201, (Renumbered from 31A-23-201.5, as enacted by Chapter 116, Laws of
                  Utah 2001)
                      31A-23a-202, (Renumbered from 31A-23-206, as last amended by Chapter 308, Laws of
                  Utah 2002)
                      31A-23a-203, (Renumbered from 31A-23-208, as last amended by Chapter 261, Laws of
                  Utah 1989)
                      31A-23a-204, (Renumbered from 31A-23-211, as last amended by Chapter 308, Laws of
                  Utah 2002)
                      31A-23a-205, (Renumbered from 31A-23-211.5, as enacted by Chapter 293, Laws of
                  Utah 1998)
                      31A-23a-206, (Renumbered from 31A-23-211.7, as last amended by Chapter 116, Laws
                  of Utah 2001)
                      31A-23a-207, (Renumbered from 31A-23-214, as enacted by Chapter 242, Laws of Utah
                  1985)
                      31A-23a-302, (Renumbered from 31A-23-219, as last amended by Chapter 114, Laws of
                  Utah 2000)
                      31A-23a-401, (Renumbered from 31A-23-301, as last amended by Chapter 261, Laws of
                  Utah 1989)

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                      31A-23a-402, (Renumbered from 31A-23-302, as last amended by Chapter 308, Laws of
                  Utah 2002)
                      31A-23a-403, (Renumbered from 31A-23-303, as last amended by Chapter 116, Laws of
                  Utah 2001)
                      31A-23a-404, (Renumbered from 31A-23-304, as enacted by Chapter 242, Laws of Utah
                  1985)
                      31A-23a-405, (Renumbered from 31A-23-305, as last amended by Chapter 293, Laws of
                  Utah 1998)
                      31A-23a-406, (Renumbered from 31A-23-307, as last amended by Chapter 308, Laws of
                  Utah 2002)
                      31A-23a-407, (Renumbered from 31A-23-308, as last amended by Chapter 308, Laws of
                  Utah 2002)
                      31A-23a-408, (Renumbered from 31A-23-309, as last amended by Chapter 230, Laws of
                  Utah 1992)
                      31A-23a-409, (Renumbered from 31A-23-310, as last amended by Chapter 116, Laws of
                  Utah 2001)
                      31A-23a-410, (Renumbered from 31A-23-311, as last amended by Chapter 344, Laws of
                  Utah 1995)
                      31A-23a-412, (Renumbered from 31A-23-312, as last amended by Chapter 116, Laws of
                  Utah 2001)
                      31A-23a-413, (Renumbered from 31A-23-313, as enacted by Chapter 242, Laws of Utah
                  1985)
                      31A-23a-414, (Renumbered from 31A-23-314, as enacted by Chapter 242, Laws of Utah
                  1985)
                      31A-23a-415, (Renumbered from 31A-23-315, as last amended by Chapter 260, Laws of
                  Utah 2002)
                      31A-23a-416, (Renumbered from 31A-23-316, as enacted by Chapter 329, Laws of Utah
                  1998)

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                      31A-23a-417, (Renumbered from 31A-23-317, as enacted by Chapter 116, Laws of Utah
                  2001)
                      31A-23a-501, (Renumbered from 31A-23-401, as last amended by Chapter 293, Laws of
                  Utah 1998)
                      31A-23a-502, (Renumbered from 31A-23-402, as last amended by Chapter 204, Laws of
                  Utah 1986)
                      31A-23a-503, (Renumbered from 31A-23-403, as last amended by Chapter 76, Laws of
                  Utah 1995)
                      31A-23a-504, (Renumbered from 31A-23-404, as last amended by Chapter 116, Laws of
                  Utah 2001)
                      31A-23a-505, (Renumbered from 31A-23-406, as enacted by Chapter 242, Laws of Utah
                  1985)
                      31A-23a-601, (Renumbered from 31A-23-501, as last amended by Chapter 305, Laws of
                  Utah 1993)
                      31A-23a-602, (Renumbered from 31A-23-502, as enacted by Chapter 258, Laws of Utah
                  1992)
                      31A-23a-603, (Renumbered from 31A-23-503, as last amended by Chapter 308, Laws of
                  Utah 2002)
                      31A-23a-604, (Renumbered from 31A-23-504, as enacted by Chapter 258, Laws of Utah
                  1992)
                      31A-23a-605, (Renumbered from 31A-23-505, as enacted by Chapter 258, Laws of Utah
                  1992)
                      31A-23a-701, (Renumbered from 31A-23-601, as last amended by Chapter 308, Laws of
                  Utah 2002)
                      31A-23a-702, (Renumbered from 31A-23-602, as last amended by Chapter 305, Laws of
                  Utah 1993)
                      31A-23a-703, (Renumbered from 31A-23-603, as enacted by Chapter 258, Laws of Utah
                  1992)

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                      31A-23a-704, (Renumbered from 31A-23-604, as enacted by Chapter 258, Laws of Utah
                  1992)
                      31A-23a-801, (Renumbered from 31A-23-701, as enacted by Chapter 258, Laws of Utah
                  1992)
                      31A-23a-802, (Renumbered from 31A-23-702, as last amended by Chapter 116, Laws of
                  Utah 2001)
                      31A-23a-803, (Renumbered from 31A-23-703, as enacted by Chapter 258, Laws of Utah
                  1992)
                      31A-23a-804, (Renumbered from 31A-23-704, as enacted by Chapter 258, Laws of Utah
                  1992)
                      31A-23a-805, (Renumbered from 31A-23-705, as last amended by Chapter 116, Laws of
                  Utah 2001)
                      31A-23a-806, (Renumbered from 31A-23-706, as enacted by Chapter 258, Laws of Utah
                  1992)
                      31A-23a-807, (Renumbered from 31A-23-707, as enacted by Chapter 258, Laws of Utah
                  1992)
                      31A-23a-808, (Renumbered from 31A-23-708, as enacted by Chapter 258, Laws of Utah
                  1992)
                      31A-23a-809, (Renumbered from 31A-23-709, as enacted by Chapter 258, Laws of Utah
                  1992)
                  REPEALS:
                      31A-23-103, as last amended by Chapter 261, Laws of Utah 1989
                      31A-23-215, as last amended by Chapter 131, Laws of Utah 1999
                  Be it enacted by the Legislature of the state of Utah:
                      Section 1. Section 7-1-901 is amended to read:
                       7-1-901. Authorized insurance activities of depository institutions.
                      (1) A depository institution authorized to do business in this state under this title may
                  directly, or indirectly through a subsidiary or affiliate, engage in the following insurance

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                  activities:
                      (a) engage in the insurance business as defined under Section 31A-1-301 except as may
                  be limited by federal law;
                      (b) act as an insurance [agent, broker,] producer or consultant as defined under Section
                  31A-1-301 ; or
                      (c) engage in insurance adjusting as defined in Section 31A-26-102 .
                      (2) A depository institution, subsidiary, or affiliate, that engages in insurance activities
                  authorized under Subsection (1) shall be subject to Title 31A, Insurance Code.
                      Section 2. Section 31A-1-104 is amended to read:
                       31A-1-104. Authorization to do insurance business.
                      A person may not engage in the following without complying with this title:
                      (1) do an insurance business as defined under Section 31A-1-301 ;
                      (2) act as an insurance [agent, broker,] producer or consultant as defined under Section
                  31A-1-301 ; or
                      (3) engage in insurance adjusting as defined under Section 31A-26-102 .
                      Section 3. Section 31A-1-110 is enacted to read:
                      31A-1-110. Scope of a license.
                      Unless a license is designated as limited, a license authorizes the person holding the
                  license to transact business for all products within a line of authority.
                      Section 4. Section 31A-1-301 is amended to read:
                       31A-1-301. Definitions.
                      As used in this title, unless otherwise specified:
                      (1) (a) "Accident and health insurance" means insurance to provide protection against
                  economic losses resulting from:
                      (i) a medical condition including:
                      (A) medical care expenses; or
                      (B) the risk of disability;
                      (ii) accident; or

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                      (iii) sickness.
                      (b) "Accident and health insurance":
                      (i) includes a contract with disability contingencies including:
                      (A) an income replacement contract;
                      (B) a health care contract;
                      (C) an expense reimbursement contract;
                      (D) a credit accident and health contract;
                      (E) a continuing care contract; and
                      (F) long-term care contracts; and
                      (ii) may provide:
                      (A) hospital coverage;
                      (B) surgical coverage;
                      (C) medical coverage; or
                      (D) loss of income coverage.
                      (c) "Accident and health insurance" does not include workers' compensation insurance.
                      (2) "Actuary" is as defined by the commissioner by rule, made in accordance with Title
                  63, Chapter 46a, Utah Administrative Rulemaking Act.
                      [(2)] (3) "Administrator" is defined in Subsection [(121)] (149).
                      [(3)] (4) "Adult" means a natural person who has attained the age of at least 18 years.
                      [(4)] (5) "Affiliate" means any person who controls, is controlled by, or is under common
                  control with, another person. A corporation is an affiliate of another corporation, regardless of
                  ownership, if substantially the same group of natural persons manages the corporations.
                      (6) "Agency" means:
                      (a) a person other than an individual, including a sole proprietorship by which a natural
                  person does business under an assumed name; and
                      (b) an insurance organization licensed or required to be licensed under Section
                  31A-23a-301 .
                      [(5)] (7) "Alien insurer" means an insurer domiciled outside the United States.

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                      [(6)] (8) "Amendment" means an endorsement to an insurance policy or certificate.
                      [(7)] (9) "Annuity" means an agreement to make periodical payments for a period certain
                  or over the lifetime of one or more natural persons if the making or continuance of all or some of
                  the series of the payments, or the amount of the payment, is dependent upon the continuance of
                  human life.
                      [(8)] (10) "Application" means a document:
                      (a) completed by an applicant to provide information about the risk to be insured; and
                      (b) that contains information that is used by the insurer to:
                      (i) evaluate risk; and
                      (ii) decide whether to:
                      (A) insure the risk under:
                      (I) the coverages as originally offered; or
                      (II) a modification of the coverage as originally offered; or
                      (B) decline to insure the risk.
                      [(9)] (11) "Articles" or "articles of incorporation" means the original articles, special
                  laws, charters, amendments, restated articles, articles of merger or consolidation, trust
                  instruments, and other constitutive documents for trusts and other entities that are not
                  corporations, and amendments to any of these.
                      [(10)] (12) "Bail bond insurance" means a guarantee that a person will attend court when
                  required, or will obey the orders or judgment of the court, as a condition to the release of that
                  person from confinement.
                      [(11)] (13) "Binder" is defined in Section 31A-21-102 .
                      [(12)] (14) "Board," "board of trustees," or "board of directors" means the group of
                  persons with responsibility over, or management of, a corporation, however designated.
                      (15) "Business entity" means a corporation, association, partnership, limited liability
                  company, limited liability partnership, or other legal entity.
                      [(13)] (16) "Business of insurance" is defined in Subsection [(68)] (80).
                      [(14)] (17) "Business plan" means the information required to be supplied to the

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                  commissioner under Subsections 31A-5-204 (2)(i) and (j), including the information required
                  when these subsections are applicable by reference under:
                      (a) Section 31A-7-201 ;
                      (b) Section 31A-8-205 ; or
                      (c) Subsection 31A-9-205 (2).
                      [(15)] (18) "Bylaws" means the rules adopted for the regulation or management of a
                  corporation's affairs, however designated and includes comparable rules for trusts and other
                  entities that are not corporations.
                      (19) "Captive insurance company" means:
                      (a) an insurance company:
                      (i) owned by another organization; and
                      (ii) whose exclusive purpose is to insure risks of the parent organization and affiliated
                  companies; or
                      (b) in the case of groups and associations, an insurance organization:
                      (i) owned by the insureds; and
                      (ii) whose exclusive purpose is to insure risks of:
                      (A) member organizations;
                      (B) group members; and
                      (C) affiliates of:
                      (I) member organizations; or
                      (II) group members.
                      [(16)] (20) "Casualty insurance" means liability insurance as defined in Subsection [(75)]
                  (90).
                      [(17)] (21) "Certificate" means evidence of insurance given to:
                      (a) an insured under a group insurance policy; or
                      (b) a third party.
                      [(18)] (22) "Certificate of authority" is included within the term "license."
                      [(19)] (23) "Claim," unless the context otherwise requires, means a request or demand on

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                  an insurer for payment of benefits according to the terms of an insurance policy.
                      [(20)] (24) "Claims-made coverage" means an insurance contract or provision limiting
                  coverage under a policy insuring against legal liability to claims that are first made against the
                  insured while the policy is in force.
                      [(21)] (25) (a) "Commissioner" or "commissioner of insurance" means Utah's insurance
                  commissioner.
                      (b) When appropriate, the terms listed in Subsection [(21)] (25)(a) apply to the equivalent
                  supervisory official of another jurisdiction.
                      [(22)] (26) (a) "Continuing care insurance" means insurance that:
                      (i) provides board and lodging;
                      (ii) provides one or more of the following services:
                      (A) personal services;
                      (B) nursing services;
                      (C) medical services; or
                      (D) other health-related services; and
                      (iii) provides the coverage described in Subsection [(22)] (26)(a)(i) under an agreement
                  effective:
                      (A) for the life of the insured; or
                      (B) for a period in excess of one year.
                      (b) Insurance is continuing care insurance regardless of whether or not the board and
                  lodging are provided at the same location as the services described in Subsection [(22)]
                  (26)(a)(ii).
                      [(23)] (27) (a) "Control," "controlling," "controlled," or "under common control" means
                  the direct or indirect possession of the power to direct or cause the direction of the management
                  and policies of a person. This control may be:
                      (i) by contract;
                      (ii) by common management;
                      (iii) through the ownership of voting securities; or

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                      (iv) by a means other than those described in Subsections [(23)] (27)(a)(i) through (iii).
                      (b) There is no presumption that an individual holding an official position with another
                  person controls that person solely by reason of the position.
                      (c) A person having a contract or arrangement giving control is considered to have
                  control despite the illegality or invalidity of the contract or arrangement.
                      (d) There is a rebuttable presumption of control in a person who directly or indirectly
                  owns, controls, holds with the power to vote, or holds proxies to vote 10% or more of the voting
                  securities of another person.
                      (28) "Controlled insurer" means a licensed insurer that is either directly or indirectly
                  controlled by a producer.
                      (29) "Controlling person" means any person, firm, association, or corporation that
                  directly or indirectly has the power to direct or cause to be directed, the management, control, or
                  activities of a reinsurance intermediary.
                      (30) "Controlling producer" means a producer who directly or indirectly controls an
                  insurer.
                      [(24)] (31) (a) "Corporation" means insurance corporation, except when referring to:
                      (i) a corporation doing business as an insurance [broker, consultant,] producer, limited
                  line producer, consultant, managing general agent, reinsurance intermediary, third party
                  administrator, or adjuster under:
                      (A) Chapter [23] 23a, Insurance Marketing - Licensing [Agents, Brokers] Producers,
                  Consultants, and Reinsurance Intermediaries; [and]
                      (B) Chapter 25, Third Party Administrators; and
                      [(B)] (C) Chapter 26, Insurance Adjusters; or
                      (ii) a noninsurer that is part of a holding company system under Chapter 16, Insurance
                  Holding Companies.
                      (b) "Stock corporation" means stock insurance corporation.
                      (c) "Mutual" or "mutual corporation" means a mutual insurance corporation.
                      [(25)] (32) "Credit accident and health insurance" means insurance on a debtor to

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                  provide indemnity for payments coming due on a specific loan or other credit transaction while
                  the debtor is disabled.
                      [(26)] (33) (a) "Credit insurance" means [surety insurance under which mortgagees and
                  other creditors are indemnified against losses caused by the default of debtors.] insurance offered
                  in connection with an extension of credit that is limited to partially or wholly extinguishing that
                  credit obligation.
                      (b) "Credit insurance" includes:
                      (i) credit accident and health insurance;
                      (ii) credit life insurance;
                      (iii) credit property insurance;
                      (iv) credit unemployment insurance;
                      (v) guaranteed automobile protection insurance;
                      (vi) involuntary unemployment insurance;
                      (vii) mortgage accident and health insurance;
                      (viii) mortgage guaranty insurance; and
                      (ix) mortgage life insurance.
                      [(27)] (34) "Credit life insurance" means insurance on the life of a debtor in connection
                  with [a loan or other credit transaction.] an extension of credit that pays a person if the debtor
                  dies.
                      (35) "Credit property insurance" means insurance:
                      (a) offered in connection with an extension of credit; and
                      (b) that protects the property until the debt is paid.
                      (36) "Credit unemployment insurance" means insurance:
                      (a) offered in connection with an extension of credit; and
                      (b) that provides indemnity if the debtor is unemployed for payments coming due on a:
                      (i) specific loan; or
                      (ii) credit transaction.
                      (37) "Creditable coverage" is as defined in 45 C.F.R. 146.113(a).

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                      [(28)] (38) "Creditor" means a person, including an insured, having any claim, whether:
                      (a) matured;
                      (b) unmatured;
                      (c) liquidated;
                      (d) unliquidated;
                      (e) secured;
                      (f) unsecured;
                      (g) absolute;
                      (h) fixed; or
                      (i) contingent.
                      [(29)] (39) (a) "Customer service representative" means a person that provides insurance
                  services and insurance product information:
                      (i) for [its agent, broker,] the customer service representative's producer or consultant
                  employer; and
                      (ii) to [its] the customer service representative's employer's customer, client, or
                  organization.
                      (b) A customer service representative may only operate within the scope of authority of
                  [its agent, broker,] the customer service representative's producer or consultant employer.
                      [(30)] (40) "Deadline" means the final date or time:
                      (a) imposed by:
                      (i) statute;
                      (ii) rule; or
                      (iii) order; and
                      (b) by which a required filing or payment must be received by the department.
                      [(31)] (41) "Deemer clause" means a provision under this title under which upon the
                  occurrence of a condition precedent, the commissioner is deemed to have taken a specific action.
                  If the statute so provides, the condition precedent may be the commissioner's failure to take a
                  specific action.

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                      [(32)] (42) "Degree of relationship" means the number of steps between two persons
                  determined by counting the generations separating one person from a common ancestor and then
                  counting the generations to the other person.
                      [(33)] (43) "Department" means the Insurance Department.
                      [(34)] (44) "Director" means a member of the board of directors of a corporation.
                      [(35)] (45) "Disability" means a physiological or psychological condition that partially or
                  totally limits an individual's ability to:
                      (a) perform the duties of:
                      (i) that individual's occupation; or
                      (ii) any occupation for which the individual is reasonably suited by education, training,
                  or experience; or
                      (b) perform two or more of the following basic activities of daily living:
                      (i) eating;
                      (ii) toileting;
                      (iii) transferring;
                      (iv) bathing; or
                      (v) dressing.
                      (46) "Disability income insurance" is defined in Subsection (71).
                      [(36)] (47) "Domestic insurer" means an insurer organized under the laws of this state.
                      [(37)] (48) "Domiciliary state" means the state in which an insurer:
                      (a) is incorporated;
                      (b) is organized; or
                      (c) in the case of an alien insurer, enters into the United States.
                      [(38)] (49) (a) "Eligible employee" means:
                      (i) an employee who:
                      (A) works on a full-time basis; and
                      (B) has a normal work week of 30 or more hours; or
                      (ii) a person described in Subsection [(38)] (49)(b).

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                      (b) "Eligible employee" includes, if the individual is included under a health benefit plan
                  of a small employer:
                      (i) a sole proprietor;
                      (ii) a partner in a partnership; or
                      (iii) an independent contractor.
                      (c) "Eligible employee" does not include, unless eligible under Subsection [(38)] (49)(b):
                      (i) an individual who works on a temporary or substitute basis for a small employer;
                      (ii) an employer's spouse; or
                      (iii) a dependent of an employer.
                      [(39)] (50) "Employee" means any individual employed by an employer.
                      [(40)] (51) "Employee benefits" means one or more benefits or services provided to:
                      (a) employees; or
                      (b) dependents of employees.
                      [(41)] (52) (a) "Employee welfare fund" means a fund:
                      (i) established or maintained, whether directly or through trustees, by:
                      (A) one or more employers;
                      (B) one or more labor organizations; or
                      (C) a combination of employers and labor organizations; and
                      (ii) that provides employee benefits paid or contracted to be paid, other than income from
                  investments of the fund, by or on behalf of an employer doing business in this state or for the
                  benefit of any person employed in this state.
                      (b) "Employee welfare fund" includes a plan funded or subsidized by user fees or tax
                  revenues.
                      [(42)] (53) "Endorsement" means a written agreement attached to a policy or certificate
                  to modify one or more of the provisions of the policy or certificate.
                      (54) (a) "Escrow" means:
                      (i) a real estate settlement or real estate closing conducted by a third party pursuant to the
                  requirements of a written agreement between the parties in a real estate transaction; or

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                      (ii) a settlement or closing involving:
                      (A) a mobile home;
                      (B) a grazing right;
                      (C) a water right; or
                      (D) other personal property authorized by the commissioner.
                      (b) "Escrow" includes the act of conducting a:
                      (i) real estate settlement; or
                      (ii) real estate closing.
                      [(43)] (55) "Excludes" is not exhaustive and does not mean that other things are not also
                  excluded. The items listed are representative examples for use in interpretation of this title.
                      [(44)] (56) "Expense reimbursement insurance" means insurance:
                      (a) written to provide payments for expenses relating to hospital confinements resulting
                  from illness or injury; and
                      (b) written:
                      (i) as a daily limit for a specific number of days in a hospital; and
                      (ii) to have a one or two day waiting period following a hospitalization.
                      [(45)] (57) "Fidelity insurance" means insurance guaranteeing the fidelity of persons
                  holding positions of public or private trust.
                      [(46)] (58) (a) "Filed" means that a filing is:
                      (i) submitted to the department as required by and in accordance with any applicable
                  statute, rule, or filing order;
                      (ii) received by the department within the time period provided in the applicable statute,
                  rule, or filing order; and
                      (iii) accompanied [with the applicable one or more filing fees required] by the
                  appropriate fee in accordance with:
                      (A) Section 31A-3-103 ; or
                      (B) rule.
                      (b) "Filed" does not include a filing that is rejected by the department because it is not

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                  submitted in accordance with Subsection [(46)] (58)(a).
                      [(47)] (59) "Filing," when used as a noun, means an item required to be filed with the
                  department including:
                      (a) a policy;
                      (b) a rate;
                      (c) a form;
                      (d) a document;
                      (e) a plan;
                      (f) a manual;
                      (g) an application;
                      (h) a report;
                      (i) a certificate;
                      (j) an endorsement;
                      (k) an actuarial certification;
                      (l) a licensee annual statement;
                      (m) a licensee renewal application; or
                      (n) an advertisement.
                      [(48)] (60) "First party insurance" means an insurance policy or contract in which the
                  insurer agrees to pay claims submitted to it by the insured for the insured's losses.
                      [(49)] (61) "Foreign insurer" means an insurer domiciled outside of this state, including
                  an alien insurer.
                      [(50)] (62) (a) "Form" means one of the following prepared for general use:
                      (i) a policy;
                      (ii) a certificate;
                      (iii) an application; or
                      (iv) an outline of coverage.
                      (b) "Form" does not include a document specially prepared for use in an individual case.
                      [(51)] (63) "Franchise insurance" means individual insurance policies provided through a

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                  mass marketing arrangement involving a defined class of persons related in some way other than
                  through the purchase of insurance.
                      (64) "General lines of authority" include:
                      (a) the general lines of insurance in Subsection (65);
                      (b) title insurance under one of the following sublines of authority:
                      (i) search, including authority to act as a title marketing representative;
                      (ii) escrow, including authority to act as a title marketing representative;
                      (iii) search and escrow, including authority to act as a title marketing representative; and
                      (iv) title marketing representative only;
                      (c) surplus lines;
                      (d) workers' compensation; and
                      (e) any other line of insurance that the commissioner considers necessary to recognize in
                  the public interest.
                      (65) "General lines of insurance" include:
                      (a) accident and health;
                      (b) casualty;
                      (c) life;
                      (d) personal lines;
                      (e) property; and
                      (f) variable contracts, including variable life and annuity.
                      [(52)] (66) "Group health plan" means an employee welfare benefit plan to the extent
                  that the plan provides medical care:
                      (a) (i) to employees; or
                      (ii) to a dependent of an employee; and
                      (b) (i) directly;
                      (ii) through insurance reimbursement; or
                      (iii) through any other method.
                      (67) "Guaranteed automobile protection insurance" means insurance offered in

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                  connection with an extension of credit that pays the difference in amount between the insurance
                  settlement and the balance of the loan if the insured automobile is a total loss.
                      [(53)] (68) "Health benefit plan" means a policy or certificate for health care insurance,
                  except that health benefit plan does not include coverage:
                      (a) solely for:
                      (i) accident;
                      (ii) dental;
                      (iii) vision;
                      (iv) Medicare supplement;
                      (v) long-term care; or
                      (vi) income replacement; or
                      (b) that is:
                      (i) offered and marketed as supplemental health insurance;
                      (ii) not offered or marketed as a substitute for:
                      (A) hospital or medical expense insurance; or
                      (B) major medical expense insurance; and
                      (iii) solely for:
                      (A) a specified disease;
                      (B) hospital confinement indemnity; or
                      (C) limited benefit plan.
                      [(54)] (69) "Health care" means any of the following intended for use in the diagnosis,
                  treatment, mitigation, or prevention of a human ailment or impairment:
                      (a) professional services;
                      (b) personal services;
                      (c) facilities;
                      (d) equipment;
                      (e) devices;
                      (f) supplies; or

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                      (g) medicine.
                      [(55)] (70) (a) "Health care insurance" or "health insurance" means insurance providing:
                      (i) health care benefits; or
                      (ii) payment of incurred health care expenses.
                      (b) "Health care insurance" or "health insurance" does not include accident and health
                  insurance providing benefits for:
                      (i) replacement of income;
                      (ii) short-term accident;
                      (iii) fixed indemnity;
                      (iv) credit accident and health;
                      (v) supplements to liability;
                      (vi) workers' compensation;
                      (vii) automobile medical payment;
                      (viii) no-fault automobile;
                      (ix) equivalent self-insurance; or
                      (x) any type of accident and health insurance coverage that is a part of or attached to
                  another type of policy.
                      [(56)] (71) "Income replacement insurance" or "disability income insurance" means
                  insurance written to provide payments to replace income lost from accident or sickness.
                      [(57)] (72) "Indemnity" means the payment of an amount to offset all or part of an
                  insured loss.
                      [(58)] (73) "Independent adjuster" means an insurance adjuster required to be licensed
                  under Section 31A-26-201 who engages in insurance adjusting as a representative of insurers.
                      [(59)] (74) "Independently procured insurance" means insurance procured under Section
                  31A-15-104 .
                      [(60)] (75) "Individual" means a natural person.
                      [(61)] (76) "Inland marine insurance" includes insurance covering:
                      (a) property in transit on or over land;

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                      (b) property in transit over water by means other than boat or ship;
                      (c) bailee liability;
                      (d) fixed transportation property such as bridges, electric transmission systems, radio and
                  television transmission towers and tunnels; and
                      (e) personal and commercial property floaters.
                      [(62)] (77) "Insolvency" means that:
                      (a) an insurer is unable to pay its debts or meet its obligations as they mature;
                      (b) an insurer's total adjusted capital is less than the insurer's mandatory control level
                  RBC under Subsection 31A-17-601 (8)(c); or
                      (c) an insurer is determined to be hazardous under this title.
                      [(63)] (78) (a) "Insurance" means:
                      (i) an arrangement, contract, or plan for the transfer of a risk or risks from one or more
                  persons to one or more other persons; or
                      (ii) an arrangement, contract, or plan for the distribution of a risk or risks among a group
                  of persons that includes the person seeking to distribute that person's risk.
                      (b) "Insurance" includes:
                      (i) risk distributing arrangements providing for compensation or replacement for
                  damages or loss through the provision of services or benefits in kind;
                      (ii) contracts of guaranty or suretyship entered into by the guarantor or surety as a
                  business and not as merely incidental to a business transaction; and
                      (iii) plans in which the risk does not rest upon the person who makes the arrangements,
                  but with a class of persons who have agreed to share it.
                      [(64)] (79) "Insurance adjuster" means a person who directs the investigation,
                  negotiation, or settlement of a claim under an insurance policy other than life insurance or an
                  annuity, on behalf of an insurer, policyholder, or a claimant under an insurance policy.
                      [(65) "Interinsurance exchange" is defined in Subsection (109).]
                      [(66) Except as provided in Subsection 31A-23-201.5 (1), "insurance agent" or "agent"
                  means a person who represents insurers in soliciting, negotiating, or placing insurance.]

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                      [(67) Except as provided in Subsection 31A-23-201.5 (1), "insurance broker" or "broker"
                  means a person who:]
                      [(a) acts in procuring insurance on behalf of an applicant for insurance or an insured;
                  and]
                      [(b) does not act on behalf of the insurer except by collecting premiums or performing
                  other ministerial acts.]
                      [(68)] (80) "Insurance business" or "business of insurance" includes:
                      (a) providing health care insurance, as defined in Subsection [(55)] (70), by organizations
                  that are or should be licensed under this title;
                      (b) providing benefits to employees in the event of contingencies not within the control
                  of the employees, in which the employees are entitled to the benefits as a right, which benefits
                  may be provided either:
                      (i) by single employers or by multiple employer groups; or
                      (ii) through trusts, associations, or other entities;
                      (c) providing annuities, including those issued in return for gifts, except those provided
                  by persons specified in Subsections 31A-22-1305 (2) and (3);
                      (d) providing the characteristic services of motor clubs as outlined in Subsection [(82)]
                  (106);
                      (e) providing other persons with insurance as defined in Subsection [(63)] (78);
                      (f) making as insurer, guarantor, or surety, or proposing to make as insurer, guarantor, or
                  surety, any contract or policy of title insurance;
                      (g) transacting or proposing to transact any phase of title insurance, including
                  solicitation, negotiation preliminary to execution, execution of a contract of title insurance,
                  insuring, and transacting matters subsequent to the execution of the contract and arising out of it,
                  including reinsurance; and
                      (h) doing, or proposing to do, any business in substance equivalent to Subsections [(68)]
                  (80)(a) through (g) in a manner designed to evade the provisions of this title.
                      [(69)] (81) [Except as provided in Subsection 31A-23-201.5 (1), "insurance] "Insurance

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                  consultant" or "consultant" means a person who:
                      (a) advises other persons about insurance needs and coverages;
                      (b) is compensated by the person advised on a basis not directly related to the insurance
                  placed; and
                      (c) except as provided in Section 31A-23a-501 , is not compensated directly or indirectly
                  by an insurer[, agent, or broker] or producer for advice given.
                      [(70)] (82) "Insurance holding company system" means a group of two or more affiliated
                  persons, at least one of whom is an insurer.
                      (83) (a) "Insurance producer" or "producer" means a person licensed or required to be
                  licensed under the laws of this state to sell, solicit, or negotiate insurance.
                      (b) With regards to the selling, soliciting, or negotiating of an insurance product to an
                  insurance customer or an insured:
                      (i) "producer for the insurer" means a producer who is compensated directly or indirectly
                  by an insurer for selling, soliciting, or negotiating any product of that insurer; and
                      (ii) "producer for the insured" means a producer who:
                      (A) is compensated directly and only by an insurance customer or an insured; and
                      (B) receives no compensation directly or indirectly from an insurer for selling, soliciting,
                  or negotiating any product of that insurer to an insurance customer or insured.
                      [(71)] (84) (a) "Insured" means a person to whom or for whose benefit an insurer makes
                  a promise in an insurance policy and includes:
                      (i) policyholders;
                      (ii) subscribers;
                      (iii) members; and
                      (iv) beneficiaries.
                      (b) The definition in Subsection [(71)] (84)(a):
                      (i) applies only to this title; and
                      (ii) does not define the meaning of this word as used in insurance policies or certificates.
                      [(72)] (85) (a) (i) "Insurer" means any person doing an insurance business as a principal

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                  including:
                      (A) fraternal benefit societies;
                      (B) issuers of gift annuities other than those specified in Subsections 31A-22-1305 (2)
                  and (3);
                      (C) motor clubs;
                      (D) employee welfare plans; and
                      (E) any person purporting or intending to do an insurance business as a principal on that
                  person's own account.
                      (ii) "Insurer" does not include a governmental entity, as defined in Section 63-30-2 , to
                  the extent it is engaged in the activities described in Section 31A-12-107 .
                      (b) "Admitted insurer" is defined in Subsection [(125)] (153)(b).
                      (c) "Alien insurer" is defined in Subsection [(5)] (7).
                      (d) "Authorized insurer" is defined in Subsection [(125)] (153)(b).
                      (e) "Domestic insurer" is defined in Subsection [(36)] (47).
                      (f) "Foreign insurer" is defined in Subsection [(49)] (61).
                      (g) "Nonadmitted insurer" is defined in Subsection [(125)] (153)(a).
                      (h) "Unauthorized insurer" is defined in Subsection [(125)] (153)(a).
                      (86) "Interinsurance exchange" is defined in Subsection (135).
                      (87) "Involuntary unemployment insurance" means insurance:
                      (a) offered in connection with an extension of credit;
                      (b) that provides indemnity if the debtor is involuntarily unemployed for payments
                  coming due on a:
                      (i) specific loan; or
                      (ii) credit transaction.
                      [(73)] (88) "Large employer," in connection with a health benefit plan, means an
                  employer who, with respect to a calendar year and to a plan year:
                      (a) employed an average of at least 51 eligible employees on each business day during
                  the preceding calendar year; and

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                      (b) employs at least two employees on the first day of the plan year.
                      [(74)] (89) (a) Except for a retainer contract or legal assistance described in Section
                  31A-1-103 , "legal expense insurance" means insurance written to indemnify or pay for specified
                  legal expenses.
                      (b) "Legal expense insurance" includes arrangements that create reasonable expectations
                  of enforceable rights.
                      (c) "Legal expense insurance" does not include the provision of, or reimbursement for,
                  legal services incidental to other insurance coverages.
                      [(75)] (90) (a) "Liability insurance" means insurance against liability:
                      (i) for death, injury, or disability of any human being, or for damage to property,
                  exclusive of the coverages under:
                      (A) Subsection [(79)] (100) for medical malpractice insurance;
                      (B) Subsection [(102)] (127) for professional liability insurance; and
                      (C) Subsection [(128)] (157) for workers' compensation insurance;
                      (ii) for medical, hospital, surgical, and funeral benefits to persons other than the insured
                  who are injured, irrespective of legal liability of the insured, when issued with or supplemental to
                  insurance against legal liability for the death, injury, or disability of human beings, exclusive of
                  the coverages under:
                      (A) Subsection [(79)] (100) for medical malpractice insurance;
                      (B) Subsection [(102)] (127) for professional liability insurance; and
                      (C) Subsection [(128)] (157) for workers' compensation insurance;
                      (iii) for loss or damage to property resulting from accidents to or explosions of boilers,
                  pipes, pressure containers, machinery, or apparatus;
                      (iv) for loss or damage to any property caused by the breakage or leakage of sprinklers,
                  water pipes and containers, or by water entering through leaks or openings in buildings; or
                      (v) for other loss or damage properly the subject of insurance not within any other kind
                  or kinds of insurance as defined in this chapter, if such insurance is not contrary to law or public
                  policy.

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                      (b) "Liability insurance" includes:
                      (i) vehicle liability insurance as defined in Subsection [(126)] (155);
                      (ii) residential dwelling liability insurance as defined in Subsection [(111)] (138); and
                      (iii) making inspection of, and issuing certificates of inspection upon, elevators, boilers,
                  machinery, and apparatus of any kind when done in connection with insurance on them.
                      [(76)] (91) (a) "License" means the authorization issued by the [insurance] commissioner
                  [under this title] to engage in some activity that is part of or related to the insurance business.
                      (b) "License" includes certificates of authority issued to insurers.
                      [(77)] (92) (a) "Life insurance" means insurance on human lives and insurances
                  pertaining to or connected with human life.
                      (b) The business of life insurance includes:
                      (i) granting death benefits;
                      (ii) granting annuity benefits;
                      (iii) granting endowment benefits;
                      (iv) granting additional benefits in the event of death by accident;
                      (v) granting additional benefits to safeguard the policy against lapse in the event of
                  disability; and
                      (vi) providing optional methods of settlement of proceeds.
                      (93) "Limited license" means a license that:
                      (a) is issued for a specific product of insurance; and
                      (b) limits an individual or agency to transact only for that product or insurance.
                      (94) "Limited line credit insurance" includes the following forms of insurance:
                      (a) credit life;
                      (b) credit accident and health;
                      (c) credit property;
                      (d) credit unemployment;
                      (e) involuntary unemployment;
                      (f) mortgage life;

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                      (g) mortgage guaranty;
                      (h) mortgage accident and health;
                      (i) guaranteed automobile protection; and
                      (j) any other form of insurance offered in connection with an extension of credit that:
                      (i) is limited to partially or wholly extinguishing the credit obligation; and
                      (ii) the commissioner determines by rule should be designated as a form of limited line
                  credit insurance.
                      (95) "Limited line credit insurance producer" means a person who sells, solicits, or
                  negotiates one or more forms of limited line credit insurance coverage to individuals through a
                  master, corporate, group, or individual policy.
                      (96) "Limited line insurance" includes:
                      (a) bail bond;
                      (b) limited line credit insurance;
                      (c) legal expense insurance;
                      (d) motor club insurance;
                      (e) rental car-related insurance;
                      (f) travel insurance; and
                      (g) any other form of limited insurance that the commissioner determines by rule should
                  be designated a form of limited line insurance.
                      (97) "Limited lines authority" includes:
                      (a) the lines of insurance listed in Subsection (96); and
                      (b) a customer service representative.
                      (98) "Limited lines producer" means a person who sells, solicits, or negotiates limited
                  lines insurance.
                      [(78)] (99) (a) "Long-term care insurance" means an insurance policy or rider advertised,
                  marketed, offered, or designated to provide coverage:
                      (i) in a setting other than an acute care unit of a hospital;
                      (ii) for not less than 12 consecutive months for each covered person on the basis of:

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                      (A) expenses incurred;
                      (B) indemnity;
                      (C) prepayment; or
                      (D) another method;
                      (iii) for one or more necessary or medically necessary services that are:
                      (A) diagnostic;
                      (B) preventative;
                      (C) therapeutic;
                      (D) rehabilitative;
                      (E) maintenance; or
                      (F) personal care; and
                      (iv) that may be issued by:
                      (A) an insurer;
                      (B) a fraternal benefit society;
                      (C) (I) a nonprofit health hospital; and
                      (II) a medical service corporation;
                      (D) a prepaid health plan;
                      (E) a health maintenance organization; or
                      (F) an entity similar to the entities described in Subsections [(78)] (99)(a)(iv)(A) through
                  (E) to the extent that the entity is otherwise authorized to issue life or health care insurance.
                      (b) "Long-term care insurance" includes:
                      (i) any of the following that provide directly or supplement long-term care insurance:
                      (A) a group or individual annuity or rider; or
                      (B) a life insurance policy or rider;
                      (ii) a policy or rider that provides for payment of benefits based on:
                      (A) cognitive impairment; or
                      (B) functional capacity; or
                      (iii) a qualified long-term care insurance contract.

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                      (c) "Long-term care insurance" does not include:
                      (i) a policy that is offered primarily to provide basic Medicare supplement coverage;
                      (ii) basic hospital expense coverage;
                      (iii) basic medical/surgical expense coverage;
                      (iv) hospital confinement indemnity coverage;
                      (v) major medical expense coverage;
                      (vi) income replacement or related asset-protection coverage;
                      (vii) accident only coverage;
                      (viii) coverage for a specified:
                      (A) disease; or
                      (B) accident;
                      (ix) limited benefit health coverage; or
                      (x) a life insurance policy that accelerates the death benefit to provide the option of a
                  lump sum payment:
                      (A) if the following are not conditioned on the receipt of long-term care:
                      (I) benefits; or
                      (II) eligibility; and
                      (B) the coverage is for one or more the following qualifying events:
                      (I) terminal illness;
                      (II) medical conditions requiring extraordinary medical intervention; or
                      (III) permanent institutional confinement.
                      [(79)] (100) "Medical malpractice insurance" means insurance against legal liability
                  incident to the practice and provision of medical services other than the practice and provision of
                  dental services.
                      [(80)] (101) "Member" means a person having membership rights in an insurance
                  corporation.
                      [(81)] (102) "Minimum capital" or "minimum required capital" means the capital that
                  must be constantly maintained by a stock insurance corporation as required by statute.

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                      (103) "Mortgage accident and health insurance" means insurance offered in connection
                  with an extension of credit that provides indemnity for payments coming due on a mortgage
                  while the debtor is disabled.
                      (104) "Mortgage guaranty insurance" means surety insurance under which mortgagees
                  and other creditors are indemnified against losses caused by the default of debtors.
                      (105) "Mortgage life insurance" means insurance on the life of a debtor in connection
                  with an extension of credit that pays if the debtor dies.
                      [(82)] (106) "Motor club" means a person:
                      (a) licensed under:
                      (i) Chapter 5, Domestic Stock and Mutual Insurance Corporations;
                      (ii) Chapter 11, Motor Clubs; or
                      (iii) Chapter 14, Foreign Insurers; and
                      (b) that promises for an advance consideration to provide for a stated period of time:
                      (i) legal services under Subsection 31A-11-102 (1)(b);
                      (ii) bail services under Subsection 31A-11-102 (1)(c); or
                      (iii) trip reimbursement, towing services, emergency road services, stolen automobile
                  services, a combination of these services, or any other services given in Subsections
                  31A-11-102 (1)(b) through (f).
                      [(83)] (107) "Mutual" means mutual insurance corporation.
                      [(84)] (108) "Network plan" means health care insurance:
                      (a) that is issued by an insurer; and
                      (b) under which the financing and delivery of medical care is provided, in whole or in
                  part, through a defined set of providers under contract with the insurer, including the financing
                  and delivery of items paid for as medical care.
                      [(85)] (109) "Nonparticipating" means a plan of insurance under which the insured is not
                  entitled to receive dividends representing shares of the surplus of the insurer.
                      [(86)] (110) "Ocean marine insurance" means insurance against loss of or damage to:
                      (a) ships or hulls of ships;

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                      (b) goods, freight, cargoes, merchandise, effects, disbursements, profits, moneys,
                  securities, choses in action, evidences of debt, valuable papers, bottomry, respondentia interests,
                  or other cargoes in or awaiting transit over the oceans or inland waterways;
                      (c) earnings such as freight, passage money, commissions, or profits derived from
                  transporting goods or people upon or across the oceans or inland waterways; or
                      (d) a vessel owner or operator as a result of liability to employees, passengers, bailors,
                  owners of other vessels, owners of fixed objects, customs or other authorities, or other persons in
                  connection with maritime activity.
                      [(87)] (111) "Order" means an order of the commissioner.
                      [(88)] (112) "Outline of coverage" means a summary that explains an accident and health
                  insurance policy.
                      [(89)] (113) "Participating" means a plan of insurance under which the insured is entitled
                  to receive dividends representing shares of the surplus of the insurer.
                      [(90)] (114) "Participation," as used in a health benefit plan, means a requirement
                  relating to the minimum percentage of eligible employees that must be enrolled in relation to the
                  total number of eligible employees of an employer reduced by each eligible employee who
                  voluntarily declines coverage under the plan because the employee has other health care
                  insurance coverage.
                      [(91)] (115) "Person" includes an individual, partnership, corporation, incorporated or
                  unincorporated association, joint stock company, trust, reciprocal, syndicate, or any similar entity
                  or combination of entities acting in concert.
                      (116) "Personal lines insurance" means property and casualty insurance coverage sold
                  for primarily noncommercial purposes to:
                      (a) individuals; and
                      (b) families.
                      [(92)] (117) "Plan sponsor" is as defined in 29 U.S.C. Sec. 1002(16)(B).
                      [(93)] (118) "Plan year" means:
                      (a) the year that is designated as the plan year in:

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                      (i) the plan document of a group health plan; or
                      (ii) a summary plan description of a group health plan;
                      (b) if the plan document or summary plan description does not designate a plan year or
                  there is no plan document or summary plan description:
                      (i) the year used to determine deductibles or limits;
                      (ii) the policy year, if the plan does not impose deductibles or limits on a yearly basis; or
                      (iii) the employer's taxable year if:
                      (A) the plan does not impose deductibles or limits on a yearly basis; and
                      (B) (I) the plan is not insured; or
                      (II) the insurance policy is not renewed on an annual basis; or
                      (c) in a case not described in Subsection [(93)] (118)(a) or (b), the calendar year.
                      [(94)] (119) (a) (i) "Policy" means any document, including attached endorsements and
                  riders, purporting to be an enforceable contract, which memorializes in writing some or all of the
                  terms of an insurance contract.
                      (ii) "Policy" includes a service contract issued by:
                      (A) a motor club under Chapter 11, Motor Clubs;
                      (B) a service contract provided under Chapter 6a, Service Contracts; and
                      (C) a corporation licensed under:
                      (I) Chapter 7, Nonprofit Health Service Insurance Corporations; or
                      (II) Chapter 8, Health Maintenance Organizations and Limited Health Plans.
                      (iii) "Policy" does not include:
                      (A) a certificate under a group insurance contract; or
                      (B) a document that does not purport to have legal effect.
                      (b) (i) "Group insurance policy" means a policy covering a group of persons that is issued
                  to a policyholder on behalf of the group, for the benefit of group members who are selected under
                  procedures defined in the policy or in agreements which are collateral to the policy.
                      (ii) A group insurance policy may include members of the policyholder's family or
                  dependents.

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                      (c) "Blanket insurance policy" means a group policy covering classes of persons without
                  individual underwriting, where the persons insured are determined by definition of the class with
                  or without designating the persons covered.
                      [(95)] (120) "Policyholder" means the person who controls a policy, binder, or oral
                  contract by ownership, premium payment, or otherwise.
                      [(96)] (121) "Policy illustration" means a presentation or depiction that includes
                  nonguaranteed elements of a policy of life insurance over a period of years.
                      [(97)] (122) "Policy summary" means a synopsis describing the elements of a life
                  insurance policy.
                      [(98)] (123) "Preexisting condition," in connection with a health benefit plan, means:
                      (a) a condition for which medical advice, diagnosis, care, or treatment was recommended
                  or received during the six months immediately preceding the earlier of:
                      (i) the enrollment date; or
                      (ii) the effective date of coverage; or
                      (b) for an individual insurance policy, a pregnancy existing on the effective date of
                  coverage.
                      [(99)] (124) (a) "Premium" means the monetary consideration for an insurance policy,
                  and includes assessments, membership fees, required contributions, or monetary consideration,
                  however designated.
                      (b) Consideration paid to third party administrators for their services is not "premium,"
                  though amounts paid by third party administrators to insurers for insurance on the risks
                  administered by the third party administrators are "premium."
                      [(100)] (125) "Principal officers" of a corporation means the officers designated under
                  Subsection 31A-5-203 (3).
                      [(101)] (126) "Proceedings" includes actions and special statutory proceedings.
                      [(102)] (127) "Professional liability insurance" means insurance against legal liability
                  incident to the practice of a profession and provision of any professional services.
                      [(103)] (128) "Property insurance" means insurance against loss or damage to real or

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                  personal property of every kind and any interest in that property, from all hazards or causes, and
                  against loss consequential upon the loss or damage including vehicle comprehensive and vehicle
                  physical damage coverages, but excluding inland marine insurance and ocean marine insurance
                  as defined under Subsections [(61)] (76) and [(86)] (110).
                      [(104)] (129) "Qualified long-term care insurance contract" or "federally tax qualified
                  long-term care insurance contract" means:
                      (a) an individual or group insurance contract that meets the requirements of Section
                  7702B(b), Internal Revenue Code; or
                      (b) the portion of a life insurance contract that provides long-term care insurance:
                      (i) (A) by rider; or
                      (B) as a part of the contract; and
                      (ii) that satisfies the requirements of Section 7702B(b) and (e), Internal Revenue Code.
                      (130) "Qualified United States financial institution" means an institution that:
                      (a) is:
                      (i) organized under the laws of the United States or any state; or
                      (ii) in the case of a United States office of a foreign banking organization, licensed under
                  the laws of the United States or any state;
                      (b) is regulated, supervised, and examined by United States federal or state authorities
                  having regulatory authority over banks and trust companies; and
                      (c) meets the standards of financial condition and standing that are considered necessary
                  and appropriate to regulate the quality of financial institutions whose letters of credit will be
                  acceptable to the commissioner as determined by:
                      (i) the commissioner by rule; or
                      (ii) the Securities Valuation Office of the National Association of Insurance
                  Commissioners.
                      [(105)] (131) (a) "Rate" means:
                      (i) the cost of a given unit of insurance; or
                      (ii) for property-casualty insurance, that cost of insurance per exposure unit either

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                  expressed as:
                      (A) a single number; or
                      (B) a pure premium rate, adjusted before any application of individual risk variations
                  based on loss or expense considerations to account for the treatment of:
                      (I) expenses;
                      (II) profit; and
                      (III) individual insurer variation in loss experience.
                      (b) "Rate" does not include a minimum premium.
                      [(106)] (132) (a) Except as provided in Subsection [(106)] (132)(b), "rate service
                  organization" means any person who assists insurers in rate making or filing by:
                      (i) collecting, compiling, and furnishing loss or expense statistics;
                      (ii) recommending, making, or filing rates or supplementary rate information; or
                      (iii) advising about rate questions, except as an attorney giving legal advice.
                      (b) "Rate service organization" does not mean:
                      (i) an employee of an insurer;
                      (ii) a single insurer or group of insurers under common control;
                      (iii) a joint underwriting group; or
                      (iv) a natural person serving as an actuarial or legal consultant.
                      [(107)] (133) "Rating manual" means any of the following used to determine initial and
                  renewal policy premiums:
                      (a) a manual of rates;
                      (b) classifications;
                      (c) rate-related underwriting rules; and
                      (d) rating formulas that describe steps, policies, and procedures for determining initial
                  and renewal policy premiums.
                      [(108)] (134) "Received by the department" means:
                      (a) except as provided in Subsection [(108)] (134)(b), the date delivered to and stamped
                  received by the department, whether delivered:

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                      (i) in person; or
                      [(ii) by a delivery service; or]
                      [(iii)] (ii) electronically; and
                      (b) if [an item with a department imposed deadline is] delivered to the department by a
                  delivery service, the delivery service's postmark date or pick-up date unless otherwise stated in:
                      (i) statute;
                      (ii) rule; or
                      (iii) a specific filing order.
                      [(109)] (135) "Reciprocal" or "interinsurance exchange" means any unincorporated
                  association of persons:
                      (a) operating through an attorney-in-fact common to all of them; and
                      (b) exchanging insurance contracts with one another that provide insurance coverage on
                  each other.
                      [(110)] (136) "Reinsurance" means an insurance transaction where an insurer, for
                  consideration, transfers any portion of the risk it has assumed to another insurer. In referring to
                  reinsurance transactions, this title sometimes refers to:
                      (a) the insurer transferring the risk as the "ceding insurer"; and
                      (b) the insurer assuming the risk as the:
                      (i) "assuming insurer"; or
                      (ii) "assuming reinsurer."
                      (137) "Reinsurer" means any person, firm, association, or corporation licensed in this
                  state as an insurer with the authority to assume reinsurance.
                      [(111)] (138) "Residential dwelling liability insurance" means insurance against liability
                  resulting from or incident to the ownership, maintenance, or use of a residential dwelling that is a
                  detached single family residence or multifamily residence up to four units.
                      [(112)] (139) "Retrocession" means reinsurance with another insurer of a liability
                  assumed under a reinsurance contract. A reinsurer "retrocedes" when it reinsures with another
                  insurer part of a liability assumed under a reinsurance contract.

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                      [(113)] (140) "Rider" means an endorsement to:
                      (a) an insurance policy; or
                      (b) an insurance certificate.
                      [(114)] (141) (a) "Security" means any:
                      (i) note;
                      (ii) stock;
                      (iii) bond;
                      (iv) debenture;
                      (v) evidence of indebtedness;
                      (vi) certificate of interest or participation in any profit-sharing agreement;
                      (vii) collateral-trust certificate;
                      (viii) preorganization certificate or subscription;
                      (ix) transferable share;
                      (x) investment contract;
                      (xi) voting trust certificate;
                      (xii) certificate of deposit for a security;
                      (xiii) certificate of interest of participation in an oil, gas, or mining title or lease or in
                  payments out of production under such a title or lease;
                      (xiv) commodity contract or commodity option;
                      (xv) any certificate of interest or participation in, temporary or interim certificate for,
                  receipt for, guarantee of, or warrant or right to subscribe to or purchase any of the items listed in
                  Subsections [(114)] (141)(a)(i) through (xiv); or
                      (xvi) any other interest or instrument commonly known as a security.
                      (b) "Security" does not include:
                      (i) any insurance or endowment policy or annuity contract under which an insurance
                  company promises to pay money in a specific lump sum or periodically for life or some other
                  specified period; or
                      (ii) a burial certificate or burial contract.

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                      [(115)] (142) "Self-insurance" means any arrangement under which a person provides for
                  spreading its own risks by a systematic plan.
                      (a) Except as provided in this Subsection [(115)] (142), self-insurance does not include
                  an arrangement under which a number of persons spread their risks among themselves.
                      (b) Self-insurance does include an arrangement by which a governmental entity, as
                  defined in Section 63-30-2 , undertakes to indemnify its employees for liability arising out of the
                  employees' employment.
                      (c) Self-insurance does include an arrangement by which a person with a managed
                  program of self-insurance and risk management undertakes to indemnify its affiliates,
                  subsidiaries, directors, officers, or employees for liability or risk which is related to the
                  relationship or employment.
                      (d) Self-insurance does not include any arrangement with independent contractors.
                      (143) "Sell" means to exchange a contract of insurance:
                      (a) by any means;
                      (b) for money or its equivalent; and
                      (c) on behalf of an insurance company.
                      [(116)] (144) "Short-term care insurance" means any insurance policy or rider advertised,
                  marketed, offered, or designed to provide coverage that is similar to long-term care insurance but
                  that provides coverage for less than 12 consecutive months for each covered person.
                      [(117)] (145) "Small employer," in connection with a health benefit plan, means an
                  employer who, with respect to a calendar year and to a plan year:
                      (a) employed an average of at least two employees but not more than 50 eligible
                  employees on each business day during the preceding calendar year; and
                      (b) employs at least two employees on the first day of the plan year.
                      [(118)] (146) (a) "Subsidiary" of a person means an affiliate controlled by that person
                  either directly or indirectly through one or more affiliates or intermediaries.
                      (b) "Wholly owned subsidiary" of a person is a subsidiary of which all of the voting
                  shares are owned by that person either alone or with its affiliates, except for the minimum

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                  number of shares the law of the subsidiary's domicile requires to be owned by directors or others.
                      [(119)] (147) Subject to Subsection [(63)] (78)(b), "surety insurance" includes:
                      (a) a guarantee against loss or damage resulting from failure of principals to pay or
                  perform their obligations to a creditor or other obligee;
                      (b) bail bond insurance; and
                      (c) fidelity insurance.
                      [(120)] (148) (a) "Surplus" means the excess of assets over the sum of paid-in capital and
                  liabilities.
                      (b) (i) "Permanent surplus" means the surplus of a mutual insurer that has been
                  designated by the insurer as permanent.
                      (ii) Sections 31A-5-211 , 31A-7-201 , 31A-8-209 , 31A-9-209 , and 31A-14-209 require
                  that mutuals doing business in this state maintain specified minimum levels of permanent
                  surplus.
                      (iii) Except for assessable mutuals, the minimum permanent surplus requirement is
                  essentially the same as the minimum required capital requirement that applies to stock insurers.
                      (c) "Excess surplus" means:
                      (i) for life or accident and health insurers, health organizations, and property and casualty
                  insurers as defined in Section 31A-17-601 , the lesser of:
                      (A) that amount of an insurer's or health organization's total adjusted capital, as defined
                  in Subsection [(123)] (151), that exceeds the product of:
                      (I) 2.5; and
                      (II) the sum of the insurer's or health organization's minimum capital or permanent
                  surplus required under Section 31A-5-211 , 31A-9-209 , or 31A-14-205 ; or
                      (B) that amount of an insurer's or health organization's total adjusted capital, as defined
                  in Subsection [(123)] (151), that exceeds the product of:
                      (I) 3.0; and
                      (II) the authorized control level RBC as defined in Subsection 31A-17-601 (8)(a); and
                      (ii) for monoline mortgage guaranty insurers, financial guaranty insurers, and title

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                  insurers, that amount of an insurer's paid-in-capital and surplus that exceeds the product of:
                      (A) 1.5; and
                      (B) the insurer's total adjusted capital required by Subsection 31A-17-609 (1).
                      [(121)] (149) "Third party administrator" or "administrator" means any person who
                  collects charges or premiums from, or who, for consideration, adjusts or settles claims of
                  residents of the state in connection with insurance coverage, annuities, or service insurance
                  coverage, except:
                      (a) a union on behalf of its members;
                      (b) a person administering any:
                      (i) pension plan subject to the federal Employee Retirement Income Security Act of
                  1974;
                      (ii) governmental plan as defined in Section 414(d), Internal Revenue Code; or
                      (iii) nonelecting church plan as described in Section 410(d), Internal Revenue Code;
                      (c) an employer on behalf of the employer's employees or the employees of one or more
                  of the subsidiary or affiliated corporations of the employer;
                      (d) an insurer licensed under Chapter 5, 7, 8, 9, or 14, but only for a line of insurance for
                  which the insurer holds a license in this state; or
                      (e) a person licensed or exempt from licensing under Chapter [23] 23a, Insurance
                  Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries, or Chapter 26,
                  Insurance Adjusters, whose activities are limited to those authorized under the license the person
                  holds or for which the person is exempt.
                      [(122)] (150) "Title insurance" means the insuring, guaranteeing, or indemnifying of
                  owners of real or personal property or the holders of liens or encumbrances on that property, or
                  others interested in the property against loss or damage suffered by reason of liens or
                  encumbrances upon, defects in, or the unmarketability of the title to the property, or invalidity or
                  unenforceability of any liens or encumbrances on the property.
                      [(123)] (151) "Total adjusted capital" means the sum of an insurer's or health
                  organization's statutory capital and surplus as determined in accordance with:

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                      (a) the statutory accounting applicable to the annual financial statements required to be
                  filed under Section 31A-4-113 ; and
                      (b) any other items provided by the RBC instructions, as RBC instructions is defined in
                  Section 31A-17-601 .
                      [(124)] (152) (a) "Trustee" means "director" when referring to the board of directors of a
                  corporation.
                      (b) "Trustee," when used in reference to an employee welfare fund, means an individual,
                  firm, association, organization, joint stock company, or corporation, whether acting individually
                  or jointly and whether designated by that name or any other, that is charged with or has the
                  overall management of an employee welfare fund.
                      [(125)] (153) (a) "Unauthorized insurer," "unadmitted insurer," or "nonadmitted insurer"
                  means an insurer:
                      (i) not holding a valid certificate of authority to do an insurance business in this state; or
                      (ii) transacting business not authorized by a valid certificate.
                      (b) "Admitted insurer" or "authorized insurer" means an insurer:
                      (i) holding a valid certificate of authority to do an insurance business in this state; and
                      (ii) transacting business as authorized by a valid certificate.
                      (154) "Underwrite" means the authority to accept or reject risk on behalf of the insurer.
                      [(126)] (155) "Vehicle liability insurance" means insurance against liability resulting
                  from or incident to ownership, maintenance, or use of any land vehicle or aircraft, exclusive of
                  vehicle comprehensive and vehicle physical damage coverages under Subsection [(103)] (128).
                      [(127)] (156) "Voting security" means a security with voting rights, and includes any
                  security convertible into a security with a voting right associated with it.
                      [(128)] (157) "Workers' compensation insurance" means:
                      (a) insurance for indemnification of employers against liability for compensation based
                  on:
                      (i) compensable accidental injuries; and
                      (ii) occupational disease disability;

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                      (b) employer's liability insurance incidental to workers' compensation insurance and
                  written in connection with it; and
                      (c) insurance assuring to the persons entitled to workers' compensation benefits the
                  compensation provided by law.
                      Section 5. Section 31A-2-205 is amended to read:
                       31A-2-205. Examination costs.
                      (1) (a) Except as provided in Subsection (3), examinees that are insurers, rate service
                  organizations, or the subsidiaries of either shall reimburse the Insurance Department for the
                  reasonable costs of examinations made under Sections 31A-2-203 and 31A-2-204 . The
                  following costs shall be reimbursed:
                      (i) actual travel expenses[,];
                      (ii) reasonable living expense allowance[,];
                      (iii) compensation at reasonable rates for all professionals reasonably employed for the
                  examination under Subsection (4)[,];
                      (iv) the administration and supervisory expense of the Insurance Department and the
                  attorney general's office[,]; and
                      (v) an amount necessary to cover fringe benefits authorized by the commissioner or
                  provided by law. In determining rates, the commissioner shall consider the rates recommended
                  by the National Association of Insurance Commissioners and outlined in the examination manual
                  sponsored by the association.
                      (b) Subsection (1) applies to surplus lines [brokers] producers to the extent that the
                  examinations are of their surplus lines business.
                      (2) An insurer requesting the examination of one of its [agents] producers shall pay the
                  cost of the examination. Otherwise, the department shall pay the cost of examining licensees
                  other than those specified under Subsection (1).
                      (3) On the examinee's request or at the commissioner's discretion, the Insurance
                  Department may pay all or part of the costs of an examination whenever the commissioner finds
                  that because of the frequency of examinations or the financial condition of the examinee,

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                  imposition of the costs would place an unreasonable burden on the examinee. The commissioner
                  shall include in his annual report information about any instance in which the commissioner has
                  applied this Subsection (3).
                      (4) Technical experts employed under Subsection 31A-2-203 (3) shall present to the
                  commissioner a statement of all expenses incurred by them in conjunction with an examination.
                  The examined insurer shall, at the commissioner's direction, pay to the technical experts or
                  specialists the actual travel expenses, reasonable living expenses, and compensation at customary
                  rates for expenses necessarily incurred as approved by the commissioner. The examined insurer
                  shall reimburse department examiners for their actual travel expenses and reasonable living
                  expenses and shall reimburse the department for the compensation of department examiners
                  involved in the examination. The examined insurer shall certify the consolidated account of all
                  charges and expenses for the examination. One copy shall be retained by the insurer and the
                  other shall be filed with the department as a public record. An annual report of examination
                  charges paid by examined insurers directly to persons employed under Subsection 31A-2-203 (3)
                  or to department examiners shall be included with the department's budget request, but amounts
                  paid directly by examined insurers to persons employed under Subsection 31A-2-203 (3) or to
                  department examiners may not be deducted from the department's appropriation.
                      (5) The amount payable under Subsection (1) is due ten days after the examinee has been
                  served with a detailed account of the costs. Payments received by the department under this
                  Subsection (5) shall be handled as provided by Subsection 31A-3-101 .
                      (6) The commissioner may require an examinee under Subsection (1), or an insurer
                  requesting an examination under Subsection (2), either before or during an examination, to make
                  deposits with the state treasurer to pay the costs of examination. Any deposit made under this
                  Subsection (6) shall be held in trust by the state treasurer until applied to pay the Insurance
                  Department the costs payable under this section. If a deposit exceeds examination costs, the state
                  treasurer shall refund the surplus.
                      (7) Domestic insurers may offset the examination expenses paid under this section
                  against premium taxes under Subsection 59-9-102 (2).

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                      Section 6. Section 31A-2-214 is amended to read:
                       31A-2-214. Market assistance programs -- Joint underwriting associations.
                      (1) (a) The commissioner may by rule implement a market assistance program whereby
                  all licensed insurers and [agents] producers may pool their information as to the available
                  markets if the commissioner finds that in any part of this state:
                      (i) a line of insurance:
                      (A) is not generally available in the marketplace; or
                      (B) is priced in such a manner as to severely limit its availability; and
                      (ii) the public interest requires availability of the line of insurance described in
                  Subsection (1)(a)(i).
                      (b) Insurers doing business in this state may, at their own instance or at the request of the
                  commissioner, prepare and submit to the commissioner, for the commissioner's approval and
                  adoption, voluntary plans providing any line of insurance coverage for all or any part of this state
                  in which:
                      (i) the line of insurance:
                      (A) is not generally available in the voluntary market; or
                      (B) is priced in such a manner as to severely limit its availability; and
                      (ii) the public interest requires the availability of the coverage described in Subsection
                  (1)(b)(i).
                      (2) (a) If the commissioner finds after notice and hearing that a market assistance
                  program formed under Subsection (1)(a) or (b) has not met the needs it was intended to address,
                  the commissioner may by rule form a joint underwriting association to make available the
                  insurance to applicants who are in good faith entitled to but unable to procure this insurance
                  through ordinary methods.
                      (b) The commissioner shall allow any market assistance program formed under
                  Subsection (1)(a) or (b) a minimum of 30 days operation before the commissioner forms a joint
                  underwriting association.
                      (c) The commissioner may not adopt a rule forming a joint underwriting association

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                  under Subsection (2)(a) unless the commissioner finds as a result of the hearing that:
                      (i) a certain coverage is not available or that the price for that coverage is no longer
                  commensurate with the risk in this state; and
                      (ii) the coverage is:
                      (A) vital to the economic health of this state;
                      (B) vital to the quality of life in this state;
                      (C) vital in maintaining competition in insurance in this state; or
                      (D) the number of people affected is significant enough to justify its creation.
                      (d) The commissioner may not adopt a rule forming a joint underwriting association
                  under Subsection (2)(a) on the basis that:
                      (i) applicants for particular lines of insurance are unable to pay a premium that is
                  commensurate with the risk involved; or
                      (ii) the number of applicants or people affected is too small to justify its creation.
                      (e) Each joint underwriting association formed under Subsection (2)(a) shall require
                  participation by all insurers licensed and engaged in writing that line of insurance or any
                  component of that line of insurance within this state.
                      (f) Each association formed under Subsection (2)(a) shall:
                      (i) give consideration to:
                      (A) the need for adequate and readily accessible coverage;
                      (B) alternative methods of improving the market affected;
                      (C) the preference of the insurers and [agents] producers;
                      (D) the inherent limitations of the insurance mechanism;
                      (E) the need for reasonable underwriting standards; and
                      (F) the requirement of reasonable loss prevention measures;
                      (ii) establish procedures that will create minimum interference with the voluntary
                  market;
                      (iii) allocate the burden imposed by the association equitably and efficiently among the
                  insurers doing business in this state;

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                      (iv) establish procedures for applicants and participants to have grievances reviewed by
                  an impartial body;
                      (v) provide for the method of classifying risks and making and filing applicable rates;
                  and
                      (vi) specify:
                      (A) the basis of participation of insurers and [agents] producers in the association;
                      (B) the conditions under which risks must be accepted; and
                      (C) the commission rates to be paid for insurance business placed with the association.
                      (g) Any deficit in an association in any year shall be recouped by rate increases for the
                  association, applicable prospectively.
                      (h) Any surplus in excess of the loss reserves of the association in any year shall be
                  distributed either by rate decreases or by distribution to the members of the association on a
                  pro-rata basis.
                      (3) Notwithstanding Subsection (2), the commissioner may not create a joint
                  underwriting association under Subsection (2) for:
                      (a) life insurance;
                      (b) annuities;
                      (c) accident and health insurance;
                      (d) ocean marine insurance;
                      (e) medical malpractice insurance;
                      (f) earthquake insurance;
                      (g) workers' compensation insurance; or
                      (h) private passenger automobile liability insurance.
                      (4) Every insurer and [agent] producer participating in a joint underwriting association
                  adopted by the commissioner under Subsection (2) shall provide the services prescribed by the
                  association to any person seeking coverage of the kind available in the plan, including full
                  information about the requirements and procedures for obtaining coverage with the association.
                      (5) If the commissioner finds that the lack of cooperating insurers or [agents] producers

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                  in an area makes the functioning of the association difficult, the commissioner may order the
                  association to:
                      (a) establish branch service offices;
                      (b) make special contracts for provision of the service; or
                      (c) take other appropriate steps to ensure that service is available.
                      (6) (a) The association may issue policies for a period of one year.
                      (b) If, at the end of any one year period, the commissioner determines that the market
                  conditions justify the continued existence of the association, the commissioner may reauthorize
                  its existence.
                      (c) In reauthorizing the association in accordance with this Subsection (6), the
                  commissioner shall follow the procedure set forth in Subsection (2).
                      Section 7. Section 31A-2-308 is amended to read:
                       31A-2-308. Enforcement penalties and procedures.
                      (1) (a) A person who violates any insurance statute or rule or any order issued under
                  Subsection 31A-2-201 (4) shall forfeit to the state twice the amount of any profit gained from the
                  violation, in addition to any other forfeiture or penalty imposed.
                      (b) (i) The commissioner may order an individual [agent, broker] producer, limited line
                  producer, customer service representative, managing general agent, reinsurance intermediary,
                  adjuster, or insurance consultant who violates an insurance statute or rule to forfeit to the state
                  not more than $2,500 for each violation.
                      (ii) The commissioner may order any other person who violates an insurance statute or
                  rule to forfeit to the state not more than $5,000 for each violation.
                      (c) (i) The commissioner may order an individual [agent, broker] producer, limited line
                  producer, customer service representative, managing general agent, reinsurance intermediary,
                  adjuster, or insurance consultant who violates an order issued under Subsection 31A-2-201 (4) to
                  forfeit to the state not more than $2,500 for each violation. Each day the violation continues is a
                  separate violation.
                      (ii) The commissioner may order any other person who violates an order issued under

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                  Subsection 31A-2-201 (4) to forfeit to the state not more than $5,000 for each violation. Each
                  day the violation continues is a separate violation.
                      (d) The commissioner may accept or compromise any forfeiture under this Subsection
                  (1) until after a complaint is filed under Subsection (2). After the filing of the complaint, only the
                  attorney general may compromise the forfeiture.
                      (2) When a person fails to comply with an order issued under Subsection 31A-2-201 (4),
                  including a forfeiture order, the commissioner may file an action in any court of competent
                  jurisdiction or obtain a court order or judgment:
                      (a) enforcing the commissioner's order;
                      (b) (i) directing compliance with the commissioner's order and restraining further
                  violation of the order; and
                      (ii) subjecting the person ordered to the procedures and sanctions available to the court
                  for punishing contempt if the failure to comply continues; or
                      (c) imposing a forfeiture in an amount the court considers just, up to $10,000 for each
                  day the failure to comply continues after the filing of the complaint until judgment is rendered.
                      (3) The Utah Rules of Civil Procedure govern actions brought under Subsection (2),
                  except that the commissioner may file a complaint seeking a court-ordered forfeiture under
                  Subsection (2)(c) no sooner than two weeks after giving written notice of the commissioner's
                  intention to proceed under Subsection (2)(c). The commissioner's order issued under Subsection
                  31A-2-201 (4) may contain a notice of intention to seek a court-ordered forfeiture if the
                  commissioner's order is disobeyed.
                      (4) If, after a court order is issued under Subsection (2), the person fails to comply with
                  the commissioner's order or judgment:
                      (a) the commissioner may certify the fact of the failure to the court by affidavit; and
                      (b) the court may, after a hearing following at least five days written notice to the parties
                  subject to the order or judgment, amend the order or judgment to add the forfeiture or forfeitures,
                  as prescribed in Subsection (2)(c), until the person complies.
                      (5) (a) The proceeds of all forfeitures under this section, including collection expenses,

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                  shall be paid into the General Fund.
                      (b) The expenses of collection shall be credited to the Insurance Department's budget.
                      (c) The attorney general's budget shall be credited to the extent the Insurance Department
                  reimburses the attorney general's office for its collection expenses under this section.
                      (6) (a) Forfeitures and judgments under this section bear interest at the rate charged by
                  the United States Internal Revenue Service for past due taxes on the:
                      (i) date of entry of the commissioner's order under Subsection (1); or
                      (ii) date of judgment under Subsection (2).
                      (b) Interest accrues from the later of the dates described in Subsection (6)(a) until the
                  forfeiture and accrued interest are fully paid.
                      (7) A forfeiture may not be imposed under Subsection (2)(c) if:
                      (a) at the time the forfeiture action is commenced, the person was in compliance with the
                  commissioner's order; or
                      (b) the violation of the order occurred during the order's suspension.
                      (8) The commissioner may seek an injunction as an alternative to issuing an order under
                  Subsection 31A-2-201 (4).
                      (9) (a) A person is guilty of a class B misdemeanor if that person:
                      (i) intentionally violates:
                      (A) an insurance statute or rule of this state; or
                      (B) an order issued under Subsection 31A-2-201 (4);
                      (ii) intentionally permits a person over whom that person has authority to violate:
                      (A) an insurance statute or rule of this state; or
                      (B) an order issued under Subsection 31A-2-201 (4); or
                      (iii) intentionally aids any person in violating:
                      (A) an insurance statute or rule of this state; or
                      (B) an order issued under Subsection 31A-2-201 (4).
                      (b) Unless a specific criminal penalty is provided elsewhere in this title, the person may
                  be fined not more than:

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                      (i) $10,000 if a corporation; or
                      (ii) $5,000 if a person other than a corporation.
                      (c) If the person is an individual, the person may, in addition, be imprisoned for up to one
                  year.
                      (d) As used in this Subsection (9), "intentionally" has the same meaning as under
                  Subsection 76-2-103 (1).
                      (10)(a) After a hearing, the commissioner may, in whole or in part, revoke, suspend,
                  place on probation, limit, or refuse to renew the licensee's license or certificate of authority:
                      (i) when a licensee of the department, other than a domestic insurer:
                      (A) persistently or substantially violates the insurance law; or
                      (B) violates an order of the commissioner under Subsection 31A-2-201 (4);
                      (ii) if there are grounds for delinquency proceedings against the licensee under Section
                  31A-27-301 or Section 31A-27-307 ; or
                      (iii) if the licensee's methods and practices in the conduct of the licensee's business
                  endanger, or the licensee's financial resources are inadequate to safeguard, the legitimate interests
                  of the licensee's customers and the public.
                      (b) Additional license termination or probation provisions for licensees other than
                  insurers are set forth in Sections 31A-19a-303 , 31A-19a-304 , [ 31A-23-216 ] 31A-23a-111 ,
                  [ 31A-23-217 ] 31A-23a-112 , 31A-25-208 , 31A-25-209 , 31A-26-213 , 31A-26-214 , 31A-35-501 ,
                  and 31A-35-503 .
                      (11) The enforcement penalties and procedures set forth in this section are not exclusive,
                  but are cumulative of other rights and remedies the commissioner has pursuant to applicable law.
                      Section 8. Section 31A-2-309 is amended to read:
                       31A-2-309. Service of process through state officer.
                      (1) The commissioner, or the lieutenant governor when the subject proceeding is brought
                  by the state, is the agent for receipt of service of any summons, notice, order, pleading, or any
                  other legal process relating to a Utah court or administrative agency upon the following:
                      (a) all insurers authorized to do business in this state, while authorized to do business in

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                  this state, and thereafter in any proceeding arising from or related to any transaction having a
                  connection with this state;
                      (b) all surplus lines insurers for any proceeding arising out of a contract of insurance that
                  is subject to the surplus lines law, or out of a certificate, cover note, or other confirmation of that
                  type of insurance;
                      (c) all unauthorized insurers or other persons assisting unauthorized insurers under
                  Subsection 31A-15-102 (1) by doing an act specified in Subsection 31A-15-102 (2), for a
                  proceeding arising out of the transaction that is subject to the unauthorized insurance law;
                      (d) any nonresident [agent, broker] producer, consultant, adjuster, and third party
                  administrator, while authorized to do business in this state, and thereafter in any proceeding
                  arising from or related to any transaction having a connection with this state; and
                      (e) any reinsurer submitting to the commissioner's jurisdiction under Subsection
                  31A-17-404 (7).
                      (2) Each licensed insurer by applying for and receiving a certificate of authority, each
                  surplus lines insurer by entering into a contract subject to the surplus lines law, each
                  unauthorized insurer by doing in this state any of the acts prohibited by Section 31A-15-101 , and
                  each nonresident [agent, broker] producer, consultant, adjuster, and third party administrator is
                  considered to have irrevocably appointed the commissioner and lieutenant governor as his agents
                  in accordance with Subsection (1).
                      (3) The commissioner and lieutenant governor are also agents for the executors,
                  administrators or personal representatives, receivers, trustees, or other successors in interest of
                  the persons specified under Subsection (1).
                      (4) Litigants serving process on the commissioner or lieutenant governor under this
                  section shall pay the fee applicable under Section 31A-3-103 .
                      (5) The right to substituted service under this section does not limit the right to serve a
                  summons, notice, order, pleading, demand, or other process upon a person in any other manner
                  provided by law.
                      Section 9. Section 31A-3-303 is amended to read:

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                       31A-3-303. Payment of tax.
                      (1) The insurer, all [brokers] producers involved in the transaction, and the policyholder
                  are jointly and severally liable for the payment of the taxes required under Section 31A-3-301 .
                  The policyholder's liability for payment of the premium tax under Section 31A-3-301 ends when
                  the policyholder pays the tax to the [broker] producer or insurer. The insurer and all [brokers]
                  producers involved in the transaction are jointly and severally liable for the payment of the
                  additional tax required under Section 31A-3-302 . Except for the tax under Section 31A-3-302 ,
                  the taxes under this part shall be paid by the policyholder who shall be billed specifically for the
                  tax when billed for the premium. Except for the tax imposed under Section 31A-3-302 ,
                  absorption of the tax by the [agent, broker,] producer or insurer is an unfair method of
                  competition under Section [ 31A-23-302 ] 31A-23a-402 .
                      (2) The commissioner shall by rule prescribe accounting and reporting forms and
                  procedures for insurers, [brokers] producers, and policyholders to use in determining the amount
                  of taxes owed under this part, and the manner and time of payment. If a tax is not paid within the
                  time prescribed under the commissioner's rule, a penalty shall be imposed of 25% of the tax due,
                  plus 1-1/2% per month from the time of default until full payment of the tax.
                      (3) Upon making a record of its actions, and upon reasonable cause shown, the Tax
                  Commissioner may waive, reduce, or compromise any of the penalties or interest imposed under
                  this part.
                      (4) If a policy covers risks that are only partially located in this state, for computation of
                  tax under this part the premium shall be reasonably allocated among the states on the basis of risk
                  locations. However, all premiums with respect to surplus lines insurance received in this state by
                  a surplus lines [broker] producer or charged on policies written or negotiated in or from this state
                  are taxable in full under this part, subject to a credit for any tax actually paid in another state to
                  the extent of a reasonable allocation on the basis of risk locations.
                      (5) All premium taxes collected under this part by a [broker] producer or by an insurer
                  are the property of this state.
                      (6) If the property of any [broker] producer is seized under any process in a court in this

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                  state, or if his business is suspended by the action of creditors or put into the hands of an
                  assignee, receiver, or trustee, all taxes and penalties due this state under this part are preferred
                  claims and the state is to that extent a preferred creditor.
                      Section 10. Section 31A-4-106 is amended to read:
                       31A-4-106. Provision of health care.
                      (1) As used in this section, "health care provider" has the same definition as in Section
                  78-14-3 .
                      (2) Except under Subsection (3) or (4), a person may not directly or indirectly provide
                  health care, or arrange for, manage, or administer the provision or arrangement of, collect
                  advance payments for, or compensate providers of health care unless authorized to do so or
                  employed by someone authorized to do so under Chapter 5, 7, 8, 9, or 14.
                      (3) Subsection (2) does not apply to:
                      (a) a natural person or professional corporation that alone or with others professionally
                  associated with the natural person or professional corporation, and without receiving
                  consideration for services in advance of the need for a particular service, provides the service
                  personally with the aid of nonprofessional assistants;
                      (b) a health care facility as defined in Section 26-21-2 which:
                      (i) is licensed or exempt from licensing under Title 26, Chapter 21; and
                      (ii) does not engage in health care insurance as defined under Section 31A-1-301 ;
                      (c) a person who files with the commissioner under Section 31A-1-105 a certificate from
                  the United States Department of Labor, or other evidence satisfactory to the commissioner,
                  showing that the laws of Utah are preempted under Section 514 of the Employee Retirement
                  Income Security Act of 1974 or other federal law;
                      (d) a person licensed under Chapter [23] 23a, Insurance Marketing - Licensing
                  Producers, Consultants, and Reinsurance Intermediaries, who[: (i)] has arranged for the insurance
                  of all services under:
                      [(A)] (i) Subsection (2) by an insurer authorized to do business in Utah;
                      [(B)] (ii) Section 31A-15-103 ; or

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                      [(C)] (iii) works for an uninsured employer that complies with Chapter 13; or
                      (e) an employer that self-funds its obligations to provide health care services or
                  indemnity for its employees if the employer complies with Chapter 13.
                      (4) A person may not provide administrative or management services for any other
                  person subject to Subsection (2) and not exempt under Subsection (3) unless the person is an
                  authorized insurer under Chapter 5, 7, 8, 9, or 14, or complies with Chapter 25.
                      (5) It is unlawful for any insurer or person providing, administering, or managing health
                  care insurance under Chapter 5, 7, 8, 9, or 14 to enter into a contract that limits a health care
                  provider's ability to advise the health care provider's patients or clients fully about treatment
                  options or other issues that affect the health care of the health care provider's patients or clients.
                      Section 11. Section 31A-5-207 is amended to read:
                       31A-5-207. Powers under organization permit.
                      (1) While its organization permit is in effect a stock corporation may:
                      (a) register stock under Section 31A-5-302 , solicit subscriptions subject to Section
                  16-10a-620 , accept payment for the subscriptions in cash or, with the approval of the
                  commissioner, in other property constituting a permitted investment under Chapter 18, and issue
                  receipts for payments made at values approved by the commissioner, but no certificates for
                  shares may be issued until a certificate of authority has been issued; and
                      (b) transact all other business necessary and appropriate in the organization of the
                  planned insurance enterprise.
                      (2) While its organization permit is in effect a mutual may:
                      (a) register mutual bonds under Section 31A-5-302 , solicit applications for qualifying
                  insurance policies under Subsection 31A-5-211 (5), solicit subscriptions for mutual bonds and
                  contribution notes and accept payment for the subscriptions in cash or, with the approval of the
                  commissioner, in property constituting a permitted investment under Chapter 18, and issue
                  receipts for payments made at values approved by the commissioner, but no policies or bonds are
                  effective or may be issued until a certificate of authority has been issued; and
                      (b) transact all other business necessary and appropriate in the organization of the

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                  planned insurance enterprise.
                      (3) (a) The existence of the organization permit may not be used as an inducement in any
                  solicitation.
                      (b) No person may knowingly, with intent to deceive, exhibit any false document or
                  account regarding the affairs of any organization under Section 31A-5-204 or make any
                  misrepresentation about its affairs.
                      (4) Solicitations under this section may be made for stock or bond subscriptions only by
                  persons registered under Title 61, Chapter 1, as broker-dealers or agents. Solicitations under this
                  section may be made for qualifying insurance policies only by persons licensed under Chapter
                  [23] 23a, Insurance Marketing - Licensing Producers, Consultants, and Reinsurance
                  Intermediaries, as insurance [agents] producers. Before any solicitation, the solicitor shall obtain
                  from the commissioner a license to solicit, after paying the fee applicable under Section
                  31A-3-103 .
                      (5) This section does not apply to stock or mutual insurance corporations already in
                  existence on July 1, 1986.
                      Section 12. Section 31A-5-218 is amended to read:
                       31A-5-218. Subsidiaries.
                      (1) Subject to the limitations under Subsection 31A-18-106 (1)(k), an insurance
                  corporation may form or acquire subsidiaries to do any lawful insurance business.
                      (2) An insurance corporation may form or acquire subsidiaries to hold or manage any
                  assets that it might hold or manage directly.
                      (3) (a) An insurance corporation may form or acquire subsidiaries to perform functions
                  or provide services that are ancillary to its insurance operations.
                      (b) A subsidiary is an ancillary subsidiary if it is engaged principally in one or more of
                  the following:
                      (i) acting as an insurance [agent or broker] producer;
                      (ii) investing, reinvesting, or trading in securities, or acting as a securities broker, dealer,
                  or marketing representative;

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                      (iii) managing investment companies registered under the federal Investment Company
                  Act of 1940, as amended, including related sales and services;
                      (iv) providing investment advice and services;
                      (v) acting as administrative agent for a government instrumentality performing an
                  insurance, public assistance, or related function;
                      (vi) providing services related to insurance operations, including accounting, actuarial,
                  pension administration, appraisal, auditing, claims adjusting, collection, data processing,
                  communications, loss prevention, premium financing, safety engineering, and underwriting
                  services;
                      (vii) holding or managing property used by the corporation, alone or with its affiliates for
                  the convenient transaction of its business;
                      (viii) engaging in the motor club business under Chapter 11, Motor Clubs;
                      (ix) engaging in the business of any institution subject to the jurisdiction of the
                  Department of Financial Institutions under Title 7, Financial Institutions;
                      (x) providing similar services or performing similar activities which the commissioner
                  declares ancillary by rule; and
                      (xi) owning corporations that would be authorized as subsidiaries under Subsections
                  (3)(b)(i) through (3)(b)(ix) and under Subsections (1) and (2).
                      (4) An insurance corporation may form or acquire subsidiaries other than those under
                  Subsections (1) through (3), but only to the extent the insurer has excess surplus as defined under
                  Section 31A-1-301 .
                      (5) (a) An insurance corporation shall notify the commissioner immediately following
                  the formation or acquisition of a subsidiary under this section.
                      (b) Chapter 16 provides additional requirements that are applicable to the acquisition of
                  certain subsidiaries.
                      Section 13. Section 31A-6a-103 is amended to read:
                       31A-6a-103. Requirements for doing business.
                      (1) Service contracts may not be issued, sold, or offered for sale in this state unless the

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                  service contract is insured under a service contract reimbursement insurance policy issued by an
                  insurer authorized to do business in this state, or a recognized surplus lines carrier.
                      (2) (a) Service contracts may not be issued, sold, or offered for sale unless a true and
                  correct copy of the service contract and the provider's reimbursement insurance policy have been
                  filed with the commissioner. Copies of contracts and policies must be filed no less than 30 days
                  prior to the issuance, sale offering for sale, or use of the service contract or reimbursement
                  insurance policy in this state.
                      (b) Each modification of the terms of any service contract or reimbursement insurance
                  policy must also be filed 30 days prior to its use in this state. Each filing must be accompanied
                  by a filing fee as required under Subsection 31A-3-103 , or the filing shall be rejected.
                      (c) Persons complying with this chapter are not required to comply with:
                      (i) Subsections 31A-21-201 (1) and [ 31A-23-302 ] 31A-23a-402 (3); or
                      (ii) Chapter 19a, Utah Rate Regulation Act.
                      (3) (a) Premiums collected on service contracts are not subject to premium taxes.
                      (b) Premiums collected by issuers of reimbursement insurance policies are subject to
                  premium taxes.
                      (4) Persons marketing, selling, or offering to sell service contracts for service contract
                  providers that comply with this chapter are exempt from the licensing requirements of this title.
                      (5) Service contract providers complying with this chapter are not required to comply
                  with:
                      (a) Chapter 5, Domestic Stock and Mutual Insurance Corporations;
                      (b) Chapter 7, Nonprofit Health Service Insurance Corporations;
                      (c) Chapter 8, Health Maintenance Organizations and Limited Health Plans;
                      (d) Chapter 9, Insurance Fraternals;
                      (e) Chapter 10, Annuities;
                      (f) Chapter 11, Motor Clubs;
                      (g) Chapter 12, State Risk Management Fund;
                      (h) Chapter 13, Employee Welfare Funds and Plans;

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                      (i) Chapter 14, Foreign Insurers;
                      (j) Chapter 19a, Utah Rate Regulation Act;
                      (k) Chapter 25, Third Party Administrators; and
                      (l) Chapter 28, Guaranty Associations.
                      Section 14. Section 31A-6a-108 is amended to read:
                       31A-6a-108. Obligation of reimbursement insurance issuers.
                      Providers under this chapter are considered to be the agent of the issuer of the
                  reimbursement insurance for purposes of Section [ 31A-23-311 ] 31A-23a-410 . In cases where a
                  provider is acting as an administrator and enlists other providers, the provider acting as the
                  administrator shall notify the issuer of the reimbursement insurance of the other providers.
                      Section 15. Section 31A-8-103 is amended to read:
                       31A-8-103. Applicability to other provisions of law.
                      (1) (a) Except for exemptions specifically granted under this title, an organization is
                  subject to regulation under all of the provisions of this title.
                      (b) Notwithstanding any provision of this title, an organization licensed under this
                  chapter:
                      (i) is wholly exempt from:
                      (A) Chapter 7, Nonprofit Health Service Insurance Corporations;
                      (B) Chapter 9, Insurance Fraternals;
                      (C) Chapter 10, Annuities;
                      (D) Chapter 11, Motor Clubs;
                      (E) Chapter 12, State Risk Management Fund;
                      (F) Chapter 13, Employee Welfare Funds and Plans;
                      (G) Chapter 19a, Utah Rate Regulation Act; and
                      (H) Chapter 28, Guaranty Associations; and
                      (ii) not subject to:
                      (A) Chapter 3, Department Funding, Fees, and Taxes, except for Part I;
                      (B) Section 31A-4-107 ;

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                      (C) Chapter 5, Domestic Stock and Mutual Insurance Corporations, except for provisions
                  specifically made applicable by this chapter;
                      (D) Chapter 14, Foreign Insurers, except for provisions specifically made applicable by
                  this chapter;
                      (E) Chapter 17, Determination of Financial Condition, except:
                      (I) Parts II and VI; or
                      (II) as made applicable by the commissioner by rule consistent with this chapter;
                      (F) Chapter 18, Investments, except as made applicable by the commissioner by rule
                  consistent with this chapter; and
                      (G) Chapter 22, Contracts in Specific Lines, except for Parts VI, VII, and XII.
                      (2) The commissioner may by rule waive other specific provisions of this title that the
                  commissioner considers inapplicable to health maintenance organizations or limited health plans,
                  upon a finding that the waiver will not endanger the interests of:
                      (a) enrollees;
                      (b) investors; or
                      (c) the public.
                      (3) Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act, and Title 16, Chapter
                  10a, Utah Revised Business Corporation Act, do not apply to an organization except as
                  specifically made applicable by:
                      (a) this chapter;
                      (b) a provision referenced under this chapter; or
                      (c) a rule adopted by the commissioner to deal with corporate law issues of health
                  maintenance organizations that are not settled under this chapter.
                      (4) (a) Whenever in this chapter, Chapter 5, or Chapter 14 is made applicable to an
                  organization, the application is:
                      (i) of those provisions that apply to a mutual corporation if the organization is nonprofit;
                  and
                      (ii) of those that apply to a stock corporation if the organization is for profit.

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                      (b) When Chapter 5 or 14 is made applicable to an organization under this chapter,
                  "mutual" means nonprofit organization.
                      (5) Solicitation of enrollees by an organization is not a violation of any provision of law
                  relating to solicitation or advertising by health professionals if that solicitation is made in
                  accordance with:
                      (a) this chapter; and
                      (b) Chapter [23] 23a, Insurance Marketing - Licensing [Agents, Brokers] Producers,
                  Consultants, and Reinsurance Intermediaries.
                      (6) This title does not prohibit any health maintenance organization from meeting the
                  requirements of any federal law that enables the health maintenance organization to:
                      (a) receive federal funds; or
                      (b) obtain or maintain federal qualification status.
                      (7) Except as provided in Section 31A-8-501 , an organization is exempt from statutes in
                  this title or department rules that restrict or limit the organization's freedom of choice in
                  contracting with or selecting health care providers, including Section 31A-22-618 .
                      (8) An organization is exempt from the assessment or payment of premium taxes imposed
                  by Sections 59-9-101 through 59-9-104 .
                      Section 16. Section 31A-11-101 is amended to read:
                       31A-11-101. Prohibition of unauthorized motor clubs.
                      (1) No person may act as a motor club, except:
                      (a) a corporation authorized under Chapter 5 or 14 which actually engages in the
                  insurance of automobiles against liability, physical damage, or both; or
                      (b) a corporation or division of a corporation authorized under this chapter.
                      (2) No person is acting as a motor club merely by offering travel-related services that do
                  not constitute insurance, or by arranging, through [agents] producers qualified under Chapter
                  [23,] 23a, Insurance Marketing - Licensing Producers, Consultants, and Reinsurance
                  Intermediaries, for insurance coverages underwritten by insurers authorized to do business in this
                  state.

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                      Section 17. Section 31A-11-102 is amended to read:
                       31A-11-102. Activities of motor clubs.
                      (1) Motor clubs authorized under this chapter may provide or arrange for the following
                  services:
                      (a) service as [agent or broker] producer in obtaining insurance coverage from authorized
                  insurers, subject to Chapter [23] 23a, Insurance Marketing - Licensing Producers, Consultants,
                  and Reinsurance Intermediaries;
                      (b) provision of, or payment for, legal services and costs in the defense of traffic offenses
                  or other legal problems connected with the ownership or use of a motor vehicle, provided the
                  maximum amount payable for any one incident is not more than 100 times the annual charge for
                  the motor club contract;
                      (c) guaranteed arrest bond certificates and cash bond guarantees as specified under
                  Section 31A-11-112 ;
                      (d) payment of specified expenses resulting from an automobile accident, other than
                  expenses for personal injury or for damage to an automobile, provided the maximum amount
                  payable for any one accident is not more than 100 times the annual charge for the motor club
                  contract;
                      (e) towing and emergency road services and theft services; and
                      (f) any services relating to travel not involving the transfer and distribution of risk.
                      (2) Unless they are also insurers under Chapter 5 or 14, motor clubs may not provide any
                  liability or physical damage insurance or insurance of life or accident and health, whether or not
                  related to motor vehicles.
                      (3) If a motor club is a separate division of a corporation, the activities of the other
                  divisions of the corporation are not limited by this section, if the motor club division complies
                  with Subsection 31A-11-106 (3).
                      Section 18. Section 31A-11-104 is amended to read:
                       31A-11-104. Applicability of other portions of the Insurance Code.
                      In addition to this chapter, motor clubs are subject to the applicable sections of Chapters

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                  1, 2, 4, 16, 21, 22, 26, and 27, Part I of Chapter 3, Parts I, [III] IV, and [IV] V of Chapter [23]
                  23a, Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries,
                  and Section [ 31A-23-214 ] 31A-23a-207 . Sections 31A-14-204 and 31A-14-216 apply to
                  nondomestic motor clubs. Section 31A-5-401 applies to domestic motor clubs. Sections
                  31A-5-105 , 31A-5-106 , and 31A-5-216 apply to both domestic and nondomestic motor clubs.
                  Both domestic and nondomestic motor clubs are subject to the Insurance Department fees under
                  Section 31A-3-103 . Other provisions of the Insurance Code apply to motor clubs only as
                  specifically provided in this chapter.
                      Section 19. Section 31A-11-107 is amended to read:
                       31A-11-107. Issuance of certificate of authority -- Reinsurance of excess services.
                      (1) The commissioner shall issue a certificate applied for under Section 31A-11-106 if he
                  finds that:
                      (a) the corporation is able to negotiate, execute, and carry out the motor club business in
                  a sound, reliable, and ongoing manner;
                      (b) the reinsurance requirements of Subsection (2) are satisfied; and
                      (c) all other applicable requirements of law are satisfied.
                      (2) If a motor club provides legal expense service other than that authorized in
                  Subsection 31A-11-102 (1)(b), or other trip reimbursement service than that authorized in
                  Subsection 31A-11-102 (1)(d), or bail service other than that authorized under Section
                  31A-11-112 , it must fully reinsure the excess service with an insurer authorized under Chapter 5
                  or 14. That insurer must assume direct liability to the insured, and must fully comply with
                  Chapter [23] 23a, Insurance Marketing - Licensing Producers, Consultants, and Reinsurance
                  Intermediaries.
                      Section 20. Section 31A-14-211 is amended to read:
                       31A-14-211. Restrictions on foreign title insurers.
                      (1) An authorized foreign title insurer may not insure property in this state except:
                      (a) through a title insurance [agent] producer who is a resident in Utah;
                      (b) through a bona fide branch office in Utah under the direction and control of the title

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                  insurer that pays all the expenses of the branch office including compensation of all employees;
                  or
                      (c) through a subsidiary title insurer authorized to do business in Utah.
                      (2) This section does not apply to reinsurance.
                      Section 21. Section 31A-15-102 is amended to read:
                       31A-15-102. Assisting unauthorized insurers.
                      (1) No person may do any act enumerated under Subsection (2) who knows or should
                  know that the act may assist in the illegal placement of insurance with an unauthorized insurer or
                  the subsequent servicing of an insurance policy illegally placed with an unauthorized insurer.
                      (2) An act performed by mail is performed both at the place of mailing and at the place
                  of delivery. Any of the following acts, whether performed by mail or otherwise, fall within the
                  prohibition of Subsection (1):
                      (a) soliciting, making, or proposing to make an insurance contract;
                      (b) taking, receiving, or forwarding an application for insurance;
                      (c) collecting or receiving, in full or in part, an insurance premium;
                      (d) issuing or delivering an insurance policy or other evidence of an insurance contract
                  except as a messenger not employed by the insurer, or an insurance [agent, or a broker] producer;
                      (e) doing any of the following in connection with the solicitation, negotiation, procuring,
                  or effectuation of insurance coverage for another: inspecting risks, setting rates, advertising,
                  disseminating information, or advising on risk management;
                      (f) publishing or disseminating any advertisement encouraging the placement or
                  servicing of insurance that would violate Subsection (1); however this provision does not apply
                  to publication or dissemination to an audience primarily outside Utah that also reaches persons in
                  Utah unless the extension to persons inside Utah can be conveniently avoided without substantial
                  expense other than loss of revenue; nor does it apply to regional or national network programs on
                  radio or television unless they originate in Utah;
                      (g) investigating, settling, adjusting, or litigating claims; or
                      (h) representing or assisting any person to do an unauthorized insurance business or to

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                  procure insurance from an unauthorized insurer.
                      (3) Subsection (1) does not prohibit:
                      (a) an attorney acting for a client;
                      (b) a full-time salaried employee of an insured acting in the capacity of an insurance
                  buyer or manager; or
                      (c) insurance activities described under Section 31A-15-103 .
                      (4) Any act performed in Utah which is prohibited under this section constitutes
                  appointment of the commissioner or the lieutenant governor as agent for service of process under
                  Sections 31A-2-309 and 31A-2-310 .
                      Section 22. Section 31A-15-103 is amended to read:
                       31A-15-103. Surplus lines insurance -- Unauthorized insurers.
                      (1) Notwithstanding Section 31A-15-102 , a foreign insurer that has not obtained a
                  certificate of authority to do business in this state under Section 31A-14-202 may negotiate for
                  and make insurance contracts with persons in this state and on risks located in this state, subject
                  to the limitations and requirements of this section.
                      (2) For contracts made under this section, the insurer may, in this state, inspect the risks
                  to be insured, collect premiums and adjust losses, and do all other acts reasonably incidental to
                  the contract, through employees or through independent contractors.
                      (3) (a) Subsections (1) and (2) do not permit any person to solicit business in this state on
                  behalf of an insurer that has no certificate of authority.
                      (b) Any insurance placed with a nonadmitted insurer shall be placed with a surplus lines
                  [broker] producer licensed under Chapter [23] 23a, Insurance Marketing - Licensing Producers,
                  Consultants, and Reinsurance Intermediaries.
                      (c) The commissioner may by rule prescribe how a surplus lines [broker] producer may:
                      (i) pay or permit the payment, commission, or other remuneration on insurance placed by
                  the surplus lines [broker] producer under authority of the surplus lines [broker's] producer's
                  license to one holding a license to act as an insurance [agent] producer; and
                      (ii) advertise the availability of the surplus lines [broker's] producer's services in

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                  procuring, on behalf of persons seeking insurance, contracts with nonadmitted insurers.
                      (4) For contracts made under this section, nonadmitted insurers are subject to Sections
                  [ 31A-23-302 ] 31A-23a-402 and [ 31A-26-303 ] 31A-23a-403 and the rules adopted under those
                  sections.
                      (5) A nonadmitted insurer may not issue workers' compensation insurance coverage to
                  employers located in this state, except for stop loss coverages issued to employers securing
                  workers' compensation under Subsection 34A-2-201 (3).
                      (6) (a) The commissioner may by rule prohibit making contracts under Subsection (1) for
                  a specified class of insurance if authorized insurers provide an established market for the class in
                  this state that is adequate and reasonably competitive.
                      (b) The commissioner may by rule place restrictions and limitations on and create special
                  procedures for making contracts under Subsection (1) for a specified class of insurance if there
                  have been abuses of placements in the class or if the policyholders in the class, because of
                  limited financial resources, business experience, or knowledge, cannot protect their own interests
                  adequately.
                      (c) The commissioner may prohibit an individual insurer from making any contract under
                  Subsection (1) and all insurance [agents and brokers] producers from dealing with the insurer if:
                      (i) the insurer has willfully violated this section, Section 31A-4-102 , [ 31A-23-302 ]
                  31A-23a-402 , or 31A-26-303 , or any rule adopted under any of these sections;
                      (ii) the insurer has failed to pay the fees and taxes specified under Section 31A-3-301 ; or
                      (iii) the commissioner has reason to believe that the insurer is in an unsound condition or
                  is operated in a fraudulent, dishonest, or incompetent manner or in violation of the law of its
                  domicile.
                      (d) (i) The commissioner may issue lists of unauthorized foreign insurers whose solidity
                  the commissioner doubts, or whose practices the commissioner considers objectionable.
                      (ii) The commissioner shall issue lists of unauthorized foreign insurers the commissioner
                  considers to be reliable and solid.
                      (iii) In addition to the lists described in Subsections (6)(d)(i) and (ii), the commissioner

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                  may issue other relevant evaluations of unauthorized insurers.
                      (iv) An action may not lie against the commissioner or any employee of the department
                  for any written or oral communication made in, or in connection with the issuance of, the lists or
                  evaluations described in this Subsection (6)(d).
                      (e) A foreign unauthorized insurer shall be listed on the commissioner's "reliable" list
                  only if the unauthorized insurer:
                      (i) has delivered a request to the commissioner to be on the list;
                      (ii) has established satisfactory evidence of good reputation and financial integrity;
                      (iii) has delivered to the commissioner a copy of its current annual statement certified by
                  the insurer and continues each subsequent year to file its annual statements with the
                  commissioner within 60 days of its filing with the insurance regulatory authority where it is
                  domiciled;
                      (iv) (A) is in substantial compliance with the solvency standards in Chapter 17, Part VI,
                  Risk-Based Capital, or maintains capital and surplus of at least $15,000,000, whichever is
                  greater, and maintains in the United States an irrevocable trust fund in either a national bank or a
                  member of the Federal Reserve System, or maintains a deposit meeting the statutory deposit
                  requirements for insurers in the state where it is made, which trust fund or deposit:
                      (I) shall be in an amount not less than $2,500,000 for the protection of all of the insurer's
                  policyholders in the United States;
                      (II) may consist of cash, securities, or investments of substantially the same character and
                  quality as those which are "qualified assets" under Section 31A-17-201 ; and
                      (III) may include as part of the trust arrangement a letter of credit that qualifies as
                  acceptable security under Subsection 31A-17-404 (3)(c)(iii); or
                      (B) in the case of any "Lloyd's" or other similar incorporated or unincorporated group of
                  alien individual insurers, maintains a trust fund that:
                      (I) shall be in an amount not less than $50,000,000 as security to its full amount for all
                  policyholders and creditors in the United States of each member of the group;
                      (II) may consist of cash, securities, or investments of substantially the same character and

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                  quality as those which are "qualified assets" under Section 31A-17-201 ; and
                      (III) may include as part of this trust arrangement a letter of credit that qualifies as
                  acceptable security under Subsection 31A-17-404 (3)(c)(iii); and
                      (v) for an alien insurer not domiciled in the United States or a territory of the United
                  States, is listed on the Quarterly Listing of Alien Insurers maintained by the National Association
                  of Insurance Commissioners International Insurers Department.
                      (7) A surplus lines [broker] producer may not, either knowingly or without reasonable
                  investigation of the financial condition and general reputation of the insurer, place insurance
                  under this section with financially unsound insurers or with insurers engaging in unfair practices,
                  or with otherwise substandard insurers, unless the [broker] producer gives the applicant notice in
                  writing of the known deficiencies of the insurer or the limitations on his investigation, and
                  explains the need to place the business with that insurer. A copy of this notice shall be kept in
                  the office of the [broker] producer for at least five years. To be financially sound, an insurer
                  shall satisfy standards that are comparable to those applied under the laws of this state to
                  authorized insurers. Insurers on the "doubtful or objectionable" list under Subsection (6)(d) and
                  insurers not on the commissioner's "reliable" list under Subsection (6)(e) are presumed
                  substandard.
                      (8) A policy issued under this section shall include a description of the subject of the
                  insurance and indicate the coverage, conditions, and term of the insurance, the premium charged
                  and premium taxes to be collected from the policyholder, and the name and address of the
                  policyholder and insurer. If the direct risk is assumed by more than one insurer, the policy shall
                  state the names and addresses of all insurers and the portion of the entire direct risk each has
                  assumed. All policies issued under the authority of this section shall have attached or affixed to
                  the policy the following statement: "The insurer issuing this policy does not hold a certificate of
                  authority to do business in this state and thus is not fully subject to regulation by the Utah
                  insurance commissioner. This policy receives no protection from any of the guaranty
                  associations created under Title 31A, Chapter 28."
                      (9) Upon placing a new or renewal coverage under this section, the [broker] surplus lines

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                  producer shall promptly deliver to the policyholder or his agent evidence of the insurance
                  consisting either of the policy as issued by the insurer or, if the policy is not then available, a
                  certificate, cover note, or other confirmation of insurance complying with Subsection (8).
                      (10) If the commissioner finds it necessary to protect the interests of insureds and the
                  public in this state, the commissioner may by rule subject policies issued under this section to as
                  much of the regulation provided by this title as is required for comparable policies written by
                  authorized foreign insurers.
                      (11) (a) Each surplus lines transaction in this state shall be examined to determine
                  whether it complies with:
                      (i) the surplus lines tax levied under Chapter 3;
                      (ii) the solicitation limitations of Subsection (3);
                      (iii) the requirement of Subsection (3) that placement be through a surplus lines [broker]
                  producer;
                      (iv) placement limitations imposed under Subsections (6)(a), (b), and (c); and
                      (v) the policy form requirements of Subsections (8) and (10).
                      (b) The examination described in Subsection (11)(a) shall take place as soon as
                  practicable after the transaction. The surplus lines [broker] producer shall submit to the
                  examiner information necessary to conduct the examination within a period specified by rule.
                      (c) The examination described in Subsection (11)(a) may be conducted by the
                  commissioner or by an advisory organization created under Section 31A-15-111 and authorized
                  by the commissioner to conduct these examinations. The commissioner is not required to
                  authorize any additional advisory organizations to conduct examinations under this Subsection
                  (11)(c). The commissioner's authorization of one or more advisory organizations to act as
                  examiners under this Subsection (11)(c) shall be by rule. In addition, the authorization shall be
                  evidenced by a contract, on a form provided by the commissioner, between the authorized
                  advisory organization and the department.
                      (d) The person conducting the examination described in Subsection (11)(a) shall collect a
                  stamping fee of an amount not to exceed 1% of the policy premium payable in connection with

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                  the transaction. Stamping fees collected by the commissioner shall be deposited in the General
                  Fund. The commissioner shall establish this fee by rule. Stamping fees collected by an advisory
                  organization are the property of the advisory organization to be used in paying the expenses of
                  the advisory organization. Liability for paying the stamping fee is as required under Subsection
                  31A-3-303 (1) for taxes imposed under Section 31A-3-301 . The commissioner shall adopt a rule
                  dealing with the payment of stamping fees. If stamping fees are not paid when due, the
                  commissioner or advisory organization may impose a penalty of 25% of the fee due, plus 1-1/2%
                  per month from the time of default until full payment of the fee. Fees relative to policies
                  covering risks located partially in this state shall be allocated in the same manner as under
                  Subsection 31A-3-303 (4).
                      (e) The commissioner, representatives of the department, advisory organizations,
                  representatives and members of advisory organizations, authorized insurers, and surplus lines
                  insurers are not liable for damages on account of statements, comments, or recommendations
                  made in good faith in connection with their duties under this Subsection (11)(e) or under Section
                  31A-15-111 .
                      (f) Examinations conducted under this Subsection (11) and the documents and materials
                  related to the examinations are confidential.
                      Section 23. Section 31A-15-104 is amended to read:
                       31A-15-104. Direct placement of insurance.
                      (1) Subject to this section, any person seeking insurance may obtain it from an
                  unauthorized insurer if no [agent or broker] producer resident doing business in Utah is involved
                  and if negotiations occur primarily outside Utah. Negotiations by mail occur within Utah if a
                  letter or other document containing insurance-related solicitations or negotiations is sent from or
                  to a Utah address. Negotiations by telephone take place within Utah if one of the parties to the
                  conversation is in Utah.
                      (2) Each policyholder who procures or renews insurance otherwise subject to this code
                  from any insurer not authorized to do business in Utah, other than insurance procured under
                  Section 31A-15-103 and the renewal of guaranteed renewable insurance lawfully issued outside

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                  Utah, shall within 60 days after the insurance is procured or renewed, report to the commissioner
                  in the form required by the commissioner and pay the taxes specified by Section 31A-3-301 .
                      (3) (a) Any insurance on personal property sold on the installment plan, under a
                  conditional sales contract, or an equivalent security agreement under the Uniform Commercial
                  Code which charges the buyer, as a part of the consideration in the agreement of sale for
                  insurance on the property, shall be placed with an insurer authorized to do business in Utah.
                      (b) Whenever the law of Utah requires a person to purchase insurance on risks in Utah, it
                  shall be obtained from an insurer authorized to do business in Utah, or under Section
                  31A-15-103 .
                      Section 24. Section 31A-15-111 is amended to read:
                       31A-15-111. Surplus lines advisory organizations.
                      (1) Advisory organizations of surplus lines [brokers] producers may be formed to:
                      (a) facilitate and encourage compliance by its members with the laws of this state and the
                  rules of the commissioner relative to surplus lines insurance;
                      (b) if authorized by the commissioner, perform and report to the commissioner on the
                  confidential examinations and assess and receive the stamping fees described in Subsection
                  31A-15-103 (11);
                      (c) make recommendations to the commissioner concerning classes of insurance for
                  which a rule under Subsection 31A-15-103 (6)(a) is appropriate;
                      (d) investigate "abuses of placements," as described in Subsection 31A-15-103 (6)(b), and
                  provide recommendations to the commissioner concerning rules under Subsection
                  31A-15-103 (6)(b);
                      (e) bring to the commissioner's attention the existence of grounds for issuing an order
                  under Subsection 31A-15-103 (6)(c) concerning a particular unauthorized insurer;
                      (f) provide recommendations to the commissioner concerning unauthorized insurers
                  which should be listed on a "doubtful or objectionable" list under Subsection 31A-15-103 (6)(d);
                      (g) provide comments to the commissioner concerning whether an unauthorized insurer
                  has a good reputation and financial integrity under Subsection 31A-15-103 (6)(d)(ii);

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                      (h) provide recommendations to the commissioner concerning rules under Subsection
                  31A-15-103 (10) necessary to protect the interests of insureds and the public; and
                      (i) receive and disseminate to its members information relative to surplus lines
                  coverages.
                      (2) Every advisory organization formed under this section shall file with the
                  commissioner:
                      (a) a copy of its constitution, articles of agreement or association or articles of
                  incorporation, and any amendments to these documents;
                      (b) a copy of its bylaws and any other writing governing the organization's activities and
                  any amendments to these documents;
                      (c) a list of the names and addresses of residents of this state upon whom notices or
                  orders of the commissioner or processes issued at his direction may be served, with changes in
                  this list to be filed within ten days of a change; and
                      (d) an agreement, on a form provided by the commissioner and executed by the advisory
                  organization, that the commissioner may examine the advisory organization in accordance with
                  the provisions of Sections 31A-2-203 , 31A-2-204 , and 31A-2-205 .
                      (3) The commissioner may by rule or order require each person licensed as a surplus
                  lines [broker] producer under Chapter [23] 23a, Insurance Marketing - Licensing Producers,
                  Consultants, and Reinsurance Intermediaries, to be a member of one or more specified advisory
                  organizations operating under this section. The commissioner may make compliance with the
                  rule or order a condition to continued licensure as a surplus lines [broker] producer.
                      (4) The comments and recommendations given the commissioner under Subsection (1)
                  are merely advisory. The formation of an advisory organization under this section does not alter
                  the commissioner's authority under this chapter.
                      Section 25. Section 31A-15-204 is amended to read:
                       31A-15-204. Risk retention groups not chartered in this state -- Designation of
                  commissioner as agent -- Compliance with unfair claims settlement practices act --
                  Deceptive, false, or fraudulent practices -- Examination regarding financial condition --

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                  Prohibitions -- Penalties -- Operation prior to enactment of this part.
                      (1) Risk retention groups chartered and licensed in other states and seeking to do
                  business as a risk retention group in this state shall comply with the following:
                      (a) Before offering insurance in this state a risk retention group shall submit to the
                  commissioner:
                      (i) a statement identifying the states in which the group is chartered and licensed as a
                  liability insurance company, its charter date, its principal place of business, and any other
                  information, including information on its membership, the commissioner may require to verify
                  that the group is a qualified risk retention group as defined in Subsection 31A-15-202 (11); and
                      (ii) a copy of its plan of operations or feasibility study and revisions of the plan or study
                  submitted to the state in which the risk retention group is chartered and licensed, except a plan or
                  study is not required for any line or classification of liability insurance that:
                      (A) was defined in the Product Liability Risk Retention Act of 1981 before October 27,
                  1986; and
                      (B) was offered before that date by any risk retention group that had been chartered and
                  operating for not less than three years before that date.
                      (b) The risk retention group shall submit to the commissioner a copy of any revision to
                  its plan or study required by Subsection 31A-15-203 (2) at the same time it submits the revision
                  of its chartering state.
                      (c) The risk retention group shall submit, on a form approved by the commissioner, a
                  statement of registration and a notice designating the commissioner as agent for the purpose of
                  receiving service of legal documents or process.
                      (d) The risk retention group shall pay annual license fees [in this state equal to the license
                  fees required of an admitted liability insurer licensed to transact business in this state] required
                  by Section 31A-3-103 .
                      (2) Any risk retention group doing business in this state shall submit to the
                  commissioner:
                      (a) a copy of the group's financial statement submitted to the state in which the risk

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                  retention group is chartered and licensed, which shall be certified by an independent public
                  accountant and shall contain a statement of opinion on loss and loss adjustment expense reserves
                  made by a member of the American Academy of Actuaries or a loss reserve specialist qualified
                  under criteria approved by the commissioner;
                      (b) a copy of each examination of the risk retention group as certified by the
                  commissioner or public official conducting the examination;
                      (c) if the commissioner requests, a copy of any information or document pertaining to
                  any outside audit performed with respect to the risk retention group; and
                      (d) any other information required to verify the group's continuing qualification as a risk
                  retention group within the definition in Subsection 31A-15-202 (11).
                      (3) (a) Each risk retention group shall pay premium taxes and taxes on premiums of
                  direct business for risks resident or located within this state, and shall report to the Utah State
                  Tax Commission the net premiums written for risks resident or located within this state. Each
                  risk retention group shall be subject to taxation, and any applicable fines and penalties related to
                  taxation, on the same basis as a foreign admitted insurer.
                      (b) To the extent licensed [agents or brokers] producers are utilized pursuant to Section
                  31A-15-212 , they shall report to the commissioner the premiums for direct business for all risks
                  resident or located within this state that the [agents or brokers] producers have placed with, or on
                  behalf of, a risk retention group not chartered in this state.
                      (c) To the extent that insurance [agents or brokers] producers are utilized pursuant to
                  Section 31A-15-212 they shall keep a complete and separate record of all policies procured from
                  each risk retention group. The record shall be open to examination by the commissioner, as
                  provided under Section [ 31A-23-312 ] 31A-23a-412 . These records shall include the following
                  for each policy and each kind of insurance provided under each policy:
                      (i) the limit of liability;
                      (ii) the time period covered;
                      (iii) the effective date;
                      (iv) the name of the risk retention group that issued the policy;

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                      (v) the gross premium charged;
                      (vi) the amount of any returned premiums; and
                      (vii) additional information required by the insurance commissioner.
                      (4) Each risk retention group and its agents and representatives shall comply with the
                  Unfair Claims Settlement Practices Act, including Section 31A-15-207 , Title 31A, Chapter 26,
                  Part 3, Claim Practices, and any other provision of law relating to claims settlement practices.
                      (5) Each risk retention group shall comply with the laws of this state regarding deceptive,
                  false, and fraudulent acts, practices regulated under Title 31A, Chapter [23] 23a, Part [3] 4,
                  Marketing Practices, and any other provision of law relating to deceptive, false, or fraudulent
                  practices. The commissioner may only obtain an injunction regarding the conduct described in
                  this subsection from a court of competent jurisdiction.
                      (6) If the commissioner of the jurisdiction in which the group is chartered and licensed
                  has not initiated an examination or does not initiate an examination within 60 days after a request
                  by the commissioner of this state, the risk retention group shall submit to an examination by the
                  commissioner of this state to determine its financial condition. Any examination conducted under
                  this subsection shall be coordinated to avoid unjustified repetition and shall be conducted in an
                  expeditious manner and in accordance with the NAIC's Examiner Handbook.
                      (7) Each application form for insurance from a risk retention group and each policy and
                  certificate issued by a risk retention group shall contain the following notice in ten-point type on
                  its front and declaration pages:
                 
"NOTICE

                      This policy is issued by your risk retention group. Your risk retention group may not be
                  subject to all of the insurance laws and regulations of your state. State insurance insolvency
                  guaranty funds are not available for your risk retention group."
                      (8) The following acts by a risk retention group are prohibited:
                      (a) the solicitation or sale of insurance by a risk retention group to any person who is not
                  eligible for membership in the group; and
                      (b) the solicitation or sale of insurance by, or operation of, a risk retention group that is

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                  in hazardous financial condition or financially impaired.
                      (9) A risk retention group may not do business in this state if an insurance company is
                  directly or indirectly a member or owner of the risk retention group, unless all members of the
                  group are insurance companies.
                      (10) The terms of any insurance policy issued by a risk retention group may not provide,
                  or be construed to provide, coverage prohibited generally by statute of this state or declared
                  unlawful by the Utah Supreme Court.
                      (11) A risk retention group not chartered in this state and doing business in this state
                  shall comply with a lawful order issued in a voluntary dissolution proceeding or in a delinquency
                  proceeding commenced by any state's insurance commissioner if there has been a finding of
                  financial impairment after an examination under Subsection (6).
                      (12) A risk retention group that violates any provision of this part is subject to fines and
                  penalties applicable to licensed insurers generally, including revocation of its right to do business
                  in this state.
                      (13) In addition to complying with the requirements of this section, each risk retention
                  group operating in this state before the effective date of this part shall comply with Subsection
                  (1)(a) within 30 days after the effective date of this part.
                      Section 26. Section 31A-15-207 is amended to read:
                       31A-15-207. Purchasing groups -- Exemption from certain laws.
                      A purchasing group and its insurers are subject to all applicable laws of this state, except
                  that a purchasing group and its insurers are exempt, in regard to liability insurance for the
                  purchasing group, from any law that would:
                      (1) prohibit the establishment of a purchasing group;
                      (2) make it unlawful for an insurer to provide, or offer to provide, to a purchasing group
                  or its members insurance on a basis providing advantages based on their loss and expense
                  experience not afforded to other persons with respect to rates, policy forms, coverages, or other
                  matters;
                      (3) prohibit a purchasing group or its members from purchasing insurance on a group

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                  basis described in Subsection (2);
                      (4) prohibit a purchasing group from obtaining insurance on a group basis because the
                  group has not been in existence for a minimum period of time or because any member has not
                  belonged to the group for a minimum period of time;
                      (5) require that a purchasing group must have a minimum number of members, common
                  ownership or affiliation, or certain legal form;
                      (6) require that a certain percentage of a purchasing group must obtain insurance on a
                  group basis;
                      (7) otherwise discriminate against a purchasing group or any of its members; or
                      (8) require that any insurance policy issued to a purchasing group or any of its members
                  be countersigned by an insurance [agent or broker] producer residing in this state.
                      Section 27. Section 31A-15-210 is amended to read:
                       31A-15-210. Purchasing group taxation.
                      Premium taxes and taxes on premiums paid for coverage of risks resident or located in
                  this state by a purchasing group or any members of the purchasing groups are imposed and must
                  be paid as follows:
                      (1) If the insurer is an admitted insurer, taxes are imposed on the insurer at the same rate
                  and in the same manner and subject to the same procedures, interest, and penalties that apply to
                  premium taxes and other taxes imposed on other admitted liability insurers relative to coverage
                  of risks resident or located in this state.
                      (2) If the insurer is an approved, nonadmitted surplus lines insurer, taxes are imposed on
                  the licensed [broker] producer who effected coverage on risks resident or located in this state at
                  the same rate and in the same manner and subject to the same procedures, interest, and penalties
                  that apply to taxes imposed on other licensed [brokers] producers effecting coverage with
                  approved, nonadmitted surplus lines insurers on risks resident or located in this state.
                      Section 28. Section 31A-15-212 is amended to read:
                       31A-15-212. Duty of producers to obtain license -- Risk retention groups --
                  Purchasing groups.

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                      (1) A person may do the following only if he is licensed as an insurance agent or broker
                  or is exempt from licensure under Title 31A, Chapter [23] 23a, Insurance Marketing - Licensing
                  [Agents, Brokers] Producers, Consultants, and Reinsurance Intermediaries:
                      (a) solicit, negotiate, or procure liability insurance in this state from a risk retention
                  group;
                      (b) solicit, negotiate, or procure liability insurance in this state for a purchasing group
                  from an authorized insurer or a risk retention group; and
                      (c) solicit, negotiate, or procure liability insurance coverage in this state for any member
                  of a purchasing group under a purchasing group's policy.
                      (2) A person may solicit, negotiate, or procure liability insurance from an insurer not
                  authorized to do business in this state on behalf of a purchasing group located in this state only if
                  he is licensed as a surplus lines [broker] producer or is exempt [for] from licensure under Title
                  31A, Chapter [23] 23a, Insurance Marketing - Licensing [Agents, Brokers] Producers,
                  Consultants, and Reinsurance Intermediaries.
                      (3) The requirement of residence in this state does not apply for purposes of acting as [an
                  agent or broker] a producer for a risk retention group or purchasing group under Subsections (1)
                  and (2).
                      (4) On business placed with a risk retention group or written through a purchasing group,
                  each person licensed under this title shall provide to each prospective insured the notice required
                  by Subsection 31A-15-204 (7) in the case of a risk retention group, and by Subsection
                  31A-15-209 (1) in the case of a purchasing group.
                      (5) Solicitation for membership in a purchasing group is not of itself a solicitation for
                  insurance.
                      Section 29. Section 31A-17-608 is amended to read:
                       31A-17-608. Confidentiality -- Prohibition on announcements -- Prohibition on use
                  in ratemaking.
                      (1) (a) The commissioner shall keep confidential to the extent that information in a report
                  or plan is not required to be included in a publicly available annual statement schedule, any detail

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                  in an RBC report or RBC plan including the results or report of any examination or analysis of an
                  insurer or health organization performed pursuant to this part, that is filed by a domestic or
                  foreign insurer or health organization with the commissioner or any corrective order issued by
                  the commissioner pursuant to examination or analysis.
                      (b) Information kept confidential under Subsection (1)(a) may not be made public or be
                  subject to subpoena, other than by the commissioner and then only for the purpose of
                  enforcement actions taken by the commissioner pursuant to this part or any other provision of the
                  insurance laws of this state.
                      (2) (a) Except as otherwise required under this part, any insurer or health organization,
                  [agent, broker] producer, or other person engaged in any manner in the insurance business may
                  not publish, disseminate, circulate or place before the public, or cause, directly or indirectly, the
                  publishing, disseminating, circulating or placing before the public including, in a newspaper,
                  magazine, other publication, a notice, circular, pamphlet, letter, or poster, or over any radio or
                  television station, an advertisement, announcement, or statement containing an assertion,
                  representation, or statement with regard to the RBC levels of any insurer or health organization,
                  or of any component derived in the calculation.
                      (b) If any materially false statement with respect to the comparison regarding an insurer's
                  or health organization's total adjusted capital to its RBC levels, or an inappropriate comparison of
                  any other amount to the insurer's or health organization's RBC levels is published in any written
                  publication and the insurer or health organization is able to demonstrate to the commissioner
                  with substantial proof the falsity of the statement or the inappropriateness, the insurer or health
                  organization may publish an announcement in a written publication if the sole purpose of the
                  announcement is to rebut the materially false statement or inappropriate comparison.
                      (3) The commissioner may not use an RBC instruction, report, plan, or revised plan:
                      (a) for ratemaking;
                      (b) as evidence in any rate proceeding; or
                      (c) to calculate or derive any element of an appropriate premium level or rate of return
                  for any line of insurance or coverage that an insurer or health organization or any affiliate is

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                  authorized to write or cover.
                      Section 30. Section 31A-19a-209 is amended to read:
                       31A-19a-209. Special provisions for title insurance.
                      (1) In addition to the considerations in determining compliance with rate standards and
                  rating methods as set forth in Sections 31A-19a-201 and 31A-19a-202 , the commissioner shall
                  also consider the costs and expenses incurred by title insurance companies, agencies, and
                  [agents] producers peculiar to the business of title insurance including:
                      (a) the maintenance of title plants; and
                      (b) the searching and examining of public records to determine insurability of title to real
                  redevelopment property.
                      (2) (a) Every title insurance company, agency, and title insurance [agent] producer shall
                  file with the commissioner a schedule of the escrow charges that it proposes to use in this state
                  for services performed in connection with the issuance of policies of title insurance.
                      (b) The filing required by Subsection (2)(a) shall state the effective date of this schedule,
                  which may not be less than 30 calendar days after the date of filing.
                      (3) A title insurance company, agency, or [agent] producer may not file or use any rate or
                  other charge relating to the business of title insurance, including rates or charges filed for escrow
                  that would cause the title insurance company, agency, or [agent] producer to:
                      (a) operate at less than the cost of doing:
                      (i) the insurance business; or
                      (ii) the escrow business; or
                      (b) fail to adequately underwrite a title insurance policy.
                      (4) (a) All or any of the schedule of rates or schedule of charges, including the schedule
                  of escrow charges, may be changed or amended at any time, subject to the limitations in this
                  Subsection (4).
                      (b) Each change or amendment shall:
                      (i) be filed with the commissioner; and
                      (ii) state the effective date of the change or amendment, which may not be less than 30

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                  calendar days after the date of filing.
                      (c) Any change or amendment remains in force for a period of at least 90 calendar days
                  from its effective date.
                      (5) While the schedule of rates and schedule of charges are effective, a copy of each shall
                  be:
                      (a) retained in each of the offices of:
                      (i) the insurance company in this state;
                      (ii) its [agents] producers in this state; and
                      (b) upon request, furnished to the public.
                      (6) Except in accordance with the schedules of rates and charges filed with the
                  commissioner, a title insurance company, agency, or [agent] producer may not make or impose
                  any premium or other charge:
                      (a) in connection with the issuance of a policy of title insurance; or
                      (b) for escrow services performed in connection with the issuance of a policy of title
                  insurance.
                      Section 31. Section 31A-19a-216 is amended to read:
                       31A-19a-216. Charging of rates.
                      An authorized insurer, licensed insurance [agent] producer, employee, other
                  representative of an authorized insurer[, or licensed insurance broker] may not knowingly:
                      (1) charge or demand a rate or receive a premium that departs from the rates, rating
                  plans, classifications, schedules, rules, and standards in effect on behalf of the insurer; or
                      (2) issue or make any policy or contract involving a violation of Subsection (1).
                      Section 32. Section 31A-20-110 is amended to read:
                       31A-20-110. Underwriting rules for title insurance.
                      (1) No title insurance policy may be written until the title insurer or its [agent] producer
                  has conducted a reasonable search and examination of the title and has made a determination of
                  insurability of title under sound underwriting principles. Evidence of this search and reasonable
                  determination shall be retained in the files of the title insurer or its [agent] producer for not less

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                  than 15 years after the policy has been issued, either in its original form or as recorded by any
                  process which can accurately and reliably reproduce the original. This section does not apply to
                  a company assuming liability through a contract of reinsurance, or to a company acting as
                  coinsurer, if another coinsuring company has complied with this section.
                      (2) No title insurance policy may be issued except by a title insurance company or by [an
                  agent] a producer licensed under Section [ 31A-23-203 ] 31A-23a-105 .
                      (3) This section is enforceable only by the commissioner. It does not create, eliminate, or
                  modify any private cause of action or remedy.
                      Section 33. Section 31A-21-302 is amended to read:
                       31A-21-302. Premiums.
                      (1) Subject to Section 31A-21-310 and Subsection 31A-21-106 (1), the policy shall
                  clearly state the amount of the total premium or shall explain in detail how it is calculated. Any
                  fee, charge, or other consideration that is not part of the premium shall be disclosed and
                  explained in writing to the insured. The disclosure and explanation shall be clearly stated either
                  on the policy, or on the insurer's billing to the insured. The premium need not be contained in a
                  certificate issued under a group policy. This Subsection (1) does not preclude premium
                  adjustments or changes upon the renewal or endorsement of an existing policy. However, the
                  renewal or endorsement notice shall contain or be accompanied by a statement of the renewal or
                  endorsement premium or credit.
                      (2) Except as provided in Chapter [23] 23a, Insurance Marketing - Licensing Producers,
                  Consultants, and Reinsurance Intermediaries, no person may charge or receive any consideration
                  for the insurance policy which is not stated in Subsection (1).
                      (3) No person may knowingly collect any excessive amount as a premium or any amount
                  for insurance which is not in the course of processing. Any amount unknowingly collected shall
                  be returned immediately on learning of the mistake. Prepayment of premiums pursuant to the
                  policy is not an excessive collection. Insurance is in the course of processing if an application
                  has been made for it which is being considered by the insurer, even though it has not yet been
                  accepted or rejected.

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                      Section 34. Section 31A-21-305 is amended to read:
                       31A-21-305. Cancellation upon request of a premium finance company.
                      (1) As used in this section:
                      (a) "Insurance premium finance company" means a person engaged in the business of
                  entering into premium finance agreements.
                      (b) "Premium finance agreement" means an agreement by which an insured or
                  prospective insured promises to pay to an insurance premium finance company the amount
                  advanced or to be advanced under the agreement to an insurer or to an insurance [agent or
                  broker] producer in payment of premiums on an insurance policy, together with a service charge,
                  an interest charge, or both.
                      (2) When a premium finance agreement contains a power of attorney or other authority
                  enabling the insurance premium finance company to cancel any insurance policy listed in the
                  agreement, the following applies:
                      (a) Not less than ten days' written notice of the intent of the insurance premium finance
                  company to order cancellation of the insurance policy, unless the policyholder's default is cured
                  prior to the date stated in the notice, shall be delivered or mailed first-class to the policyholder.
                  The insurance [agent or insurance broker] producer indicated on the premium finance agreement
                  shall also be given the same notice.
                      (b) Pursuant to the power of attorney or other authority, evidence of which is delivered to
                  the insurer, the insurance premium finance company may order cancellation on behalf of the
                  insured. This cancellation shall be effected by mailing to the insurer a written notice stating
                  when the cancellation is effective. The insurance policy shall be cancelled as if the notice of
                  cancellation had been given by the insured, but without requiring the return of the insurance
                  policy. The insurance premium finance company shall also send a copy of the same notice to the
                  insured at his last known address and to the insurance [agent or insurance broker] producer
                  indicated on the premium finance agreement.
                      (c) Where statutory, rule, or contractual restrictions provide that the insurance policy may
                  not be cancelled unless notice is given to a governmental agency, mortgagee, or other third party,

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                  the insurer shall give the prescribed notice on behalf of itself or the insured to that governmental
                  agency, mortgagee, or other third party within a reasonable time after the day it receives the
                  notice of cancellation from the premium finance company. When any statutory, rule, or
                  contractual restrictions require the continuation of insurance beyond the effective date of
                  cancellation specified by the premium finance company, the insurance is limited to the coverage
                  required by those restrictions and to the persons those restrictions are designed to protect.
                      (d) Whenever a financed insurance policy is cancelled, the insurer shall return any
                  unearned premiums due under the insurance policy to the insurance premium finance company
                  for the account of the insured, and this action by the insurer satisfies the insurer's obligations
                  under the insurance policy which relate to the return of unearned premiums. If the crediting of
                  return premiums to the account of the insured results in a surplus over the amount due from the
                  insured, the premium finance company shall refund that excess to the insured if it exceeds $5.
                      (3) No filing of the premium finance agreement or recording of a premium finance
                  transaction is necessary to perfect the validity of the agreement as a secured transaction as against
                  creditors, subsequent purchasers, pledgees, encumbrancers, successors, or assigns.
                      Section 35. Section 31A-21-404 is amended to read:
                       31A-21-404. Out-of-state insurers.
                      Any insurer extending mass marketed life or accident and health insurance under a group
                  or blanket policy issued outside of this state to residents of this state shall, with respect to the
                  mass marketed life or accident and health insurance policy:
                      (1) comply with Sections [ 31A-23-302 and 31A-23-303 ] 31A-23a-402 and 31A-23a-403
                  and Part III of Chapter 26; and
                      (2) upon the commissioner's request, deliver to the commissioner a copy of any mass
                  marketed life or accident and health insurance policy, certificates issued under these policies, and
                  advertising material used in this state in connection with the policy.
                      Section 36. Section 31A-23a-101 , which is renumbered from Section 31A-23-101 is
                  renumbered and amended to read:
                 
CHAPTER 23a. INSURANCE MARKETING - LICENSING PRODUCERS,


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CONSULTANTS, AND REINSURANCE INTERMEDIARIES

                 
Part 1. General Provisions

                       [31A-23-101].     31A-23a-101. Purposes.
                      The purposes of this chapter include:
                      (1) promoting the professional competence of insurance [agents, brokers, and] producers,
                  limited line producers, customer service representatives, consultants, managing general agents,
                  and reinsurance intermediaries;
                      (2) providing maximum freedom of marketing methods for insurance, consistent with the
                  interests of the Utah public;
                      (3) preserving and encouraging competition at the consumer level;
                      (4) regulating insurance marketing practices in conformity with the general purposes of
                  this title; [and]
                      (5) governing the qualifications and procedures for the licensing of insurance
                  producers[.], limited line producers, customer service representatives, consultants, managing
                  general agents, and reinsurance intermediaries; and
                      (6) promoting uniform licensing requirements between the several states.
                      Section 37. Section 31A-23a-102 , which is renumbered from Section 31A-23-102 is
                  renumbered and amended to read:
                       [31A-23-102].     31A-23a-102. Definitions.
                      As used in this chapter:
                      [(1) "Actuary" means a person who is a member in good standing of the American
                  Academy of Actuaries.]
                      [(2) "Agency" means a person other than an individual, and includes a sole
                  proprietorship by which a natural person does business under an assumed name.]
                      [(3) "Broker" means an insurance broker or any other person, firm, association, or
                  corporation that for any compensation, commission, or other thing of value acts or aids in any
                  manner in soliciting, negotiating, or procuring the making of any insurance contract on behalf of
                  an insured other than itself.]

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                      [(4)] (1) "Bail bond [agent] producer" means [an individual] a person who:
                      (a) is appointed by [an authorized bail bond]:
                      (i) a surety insurer [or appointed by a licensed] that issues bail bonds; or
                      (ii) a bail bond surety company licensed under Chapter 35;
                      (b) is designated to execute or countersign undertakings of bail in connection with
                  judicial proceedings; and
                      [(b)] (c) [who] receives or is promised money or other things of value for [this service]
                  engaging in an act described in Subsection (1)(b).
                      [(5) "Captive insurer" means:]
                      [(a) an insurance company owned by another organization whose exclusive purpose is to
                  insure risks of the parent organization and affiliated companies; or]
                      [(b) in the case of groups and associations, an insurance organization owned by the
                  insureds whose exclusive purpose is to insure risks of member organizations, group members,
                  and their affiliates.]
                      [(6) "Controlled insurer" means a licensed insurer that is either directly or indirectly
                  controlled by a broker.]
                      [(7) "Controlling broker" means a broker who either directly or indirectly controls an
                  insurer.]
                      [(8) "Controlling person" means any person, firm, association, or corporation that
                  directly or indirectly has the power to direct or cause to be directed, the management, control, or
                  activities of a reinsurance intermediary.]
                      [(9) (a) "Escrow" means:]
                      [(i) a real estate settlement or real estate closing conducted by a third party pursuant to
                  the requirements of a written agreement between the parties in a real estate transaction; or]
                      [(ii) a settlement or closing involving:]
                      [(A) a mobile home;]
                      [(B) a grazing right;]
                      [(C) a water right; or]

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                      [(D) other personal property authorized by the commissioner.]
                      [(b) "Escrow" includes the act of conducting a:]
                      [(i) real estate settlement; or]
                      [(ii) real estate closing.]
                      (2) "Escrow" means a license subline of authority in conjunction with the title insurance
                  line of authority that allows a person to conduct escrow as defined in Section 31A-1-301 .
                      [(10)] (3) "Home state" means any state or territory of the United States or the District of
                  Columbia in which an insurance producer:
                      (a) maintains the insurance producer's principal:
                      (i) place of residence; or
                      (ii) place of business; and
                      (b) is licensed to act as an insurance producer.
                      [(11)] (4) "Insurer" is as defined in Section 31A-1-301 , except the following persons or
                  similar persons are not insurers for purposes of Part [6] 7, [Broker] Producer Controlled Insurers:
                      (a) all risk retention groups as defined in:
                      (i) the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499;
                      (ii) the Risk Retention Act, 15 U.S.C. Sec. 3901 et seq.; and
                      (iii) Chapter 15, Part II, Risk Retention Groups Act;
                      (b) all residual market pools and joint underwriting authorities or associations; and
                      (c) all captive insurers.
                      [(12)] (5) "License" is defined in Section 31A-1-301 .
                      [(13) "Limited license" means a license that:]
                      [(a) is issued for a specific product of insurance; and]
                      [(b) limits an individual or agency to transact only for that product or insurance.]
                      [(14) "Limited line insurance" includes:]
                      [(a) bail bond;]
                      [(b) limited line credit insurance;]
                      [(c) legal expense insurance;]

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                      [(d) motor club insurance;]
                      [(e) rental car-related insurance;]
                      [(f) travel insurance; and]
                      [(g) any other form of limited insurance that the commissioner determines by rule should
                  be designated a form of limited line insurance.]
                      [(15) "Limited line credit insurance" includes the following forms of insurance:]
                      [(a) credit life;]
                      [(b) credit accident and health;]
                      [(c) credit property;]
                      [(d) credit unemployment;]
                      [(e) involuntary unemployment;]
                      [(f) mortgage life;]
                      [(g) mortgage guaranty;]
                      [(h) mortgage accident and health;]
                      [(i) guaranteed automobile protection; and]
                      [(j) any other form of insurance offered in connection with an extension of credit that:]
                      [(i) is limited to partially or wholly extinguishing that credit obligation; and]
                      [(ii) the commissioner determines by rule should be designated as a form of limited line
                  credit insurance.]
                      [(16) "Limited line credit insurance producer" means a person who sells, solicits, or
                  negotiates one or more forms of limited line credit insurance coverage to individuals through a
                  master, corporate, group, or individual policy.]
                      [(17) "Limited lines insurance" includes:]
                      [(a) the lines of insurance listed in Subsection (14); or]
                      [(b) any other line of insurance that the commissioner considers necessary to recognize in
                  the public interest.]
                      [(18) "Limited lines producer" means a person authorized to sell, solicit, or negotiate
                  limited lines insurance.]

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                      [(19)] (6) (a) "Managing general agent" means any person, firm, association, or
                  corporation that:
                      (i) manages all or part of the insurance business of an insurer, including the management
                  of a separate division, department, or underwriting office;
                      (ii) acts as an agent for the insurer whether it is known as a managing general agent,
                  manager, or other similar term;
                      (iii) with or without the authority, either separately or together with affiliates, directly or
                  indirectly produces and underwrites an amount of gross direct written premium equal to, or more
                  than 5% of, the policyholder surplus as reported in the last annual statement of the insurer in any
                  one quarter or year; and
                      (iv) (A) adjusts or pays claims in excess of an amount determined by the commissioner;
                  or
                      (B) negotiates reinsurance on behalf of the insurer.
                      (b) Notwithstanding Subsection [(19)] (6)(a), the following persons may not be
                  considered as managing general agent for the purposes of this chapter:
                      (i) an employee of the insurer;
                      (ii) a United States manager of the United States branch of an alien insurer;
                      (iii) an underwriting manager that, pursuant to contract:
                      (A) manages all the insurance operations of the insurer;
                      (B) is under common control with the insurer;
                      (C) is subject to Chapter 16, Insurance Holding Companies; and
                      (D) is not compensated based on the volume of premiums written; and
                      (iv) the attorney-in-fact authorized by and acting for the subscribers of a reciprocal
                  insurer or inter-insurance exchange under powers of attorney.
                      [(20)] (7) "Negotiate" means the act of conferring directly with or offering advice
                  directly to a purchaser or prospective purchaser of a particular contract of insurance concerning
                  any of the substantive benefits, terms, or conditions of the contract if the person engaged in that
                  act:

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                      (a) sells insurance; or
                      (b) obtains insurance from insurers for purchasers.
                      [(21) "Personal lines" means property and casualty insurance coverage sold to
                  individuals and families for primarily noncommercial purposes.]
                      [(22) "Producer" means a person required to be licensed under the laws of this state to
                  sell, solicit, or negotiate insurance.]
                      [(23) "Qualified United States financial institution" means an institution that:]
                      [(a) is organized or, in the case of a United States office of a foreign banking
                  organization licensed, under the laws of the United States or any state;]
                      [(b) is regulated, supervised, and examined by United States federal or state authorities
                  having regulatory authority over banks and trust companies; and]
                      [(c) meets the standards of financial condition and standing that are considered necessary
                  and appropriate to regulate the quality of financial institutions whose letters of credit will be
                  acceptable to the commissioner as determined by:]
                      [(i) the commissioner; or]
                      [(ii) the Securities Valuation Office of the National Association of Insurance
                  Commissioners.]
                      [(24)] (8) "Reinsurance intermediary" means a reinsurance intermediary-broker or a
                  reinsurance intermediary-manager as these terms are defined in Subsections [(25)] (9) and [(26)]
                  (10).
                      [(25)] (9) "Reinsurance intermediary-broker" means a person other than an officer or
                  employee of the ceding insurer, firm, association, or corporation who solicits, negotiates, or
                  places reinsurance cessions or retrocessions on behalf of a ceding insurer without the authority or
                  power to bind reinsurance on behalf of the insurer.
                      [(26)] (10) (a) "Reinsurance intermediary-manager" means a person, firm, association, or
                  corporation who:
                      (i) has authority to bind or who manages all or part of the assumed reinsurance business
                  of a reinsurer, including the management of a separate division, department, or underwriting

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                  office; and
                      (ii) acts as an agent for the reinsurer whether the person, firm, association, or corporation
                  is known as a reinsurance intermediary-manager, manager, or other similar term.
                      (b) Notwithstanding Subsection [(26)] (10)(a), the following persons may not be
                  considered reinsurance intermediary-managers for the purpose of this chapter with respect to the
                  reinsurer:
                      (i) an employee of the reinsurer;
                      (ii) a United States manager of the United States branch of an alien reinsurer;
                      (iii) an underwriting manager that, pursuant to contract:
                      (A) manages all the reinsurance operations of the reinsurer;
                      (B) is under common control with the reinsurer;
                      (C) is subject to Chapter 16, Insurance Holding Companies; and
                      (D) is not compensated based on the volume of premiums written; and
                      (iv) the manager of a group, association, pool, or organization of insurers that:
                      (A) engage in joint underwriting or joint reinsurance; and
                      (B) are subject to examination by the insurance commissioner of the state in which the
                  manager's principal business office is located.
                      [(27) "Reinsurer" means any person, firm, association, or corporation duly licensed in
                  this state as an insurer with the authority to assume reinsurance.]
                      [(28)] (11) "Search" means a license [category] subline of authority in conjunction with
                  the title insurance line of authority that allows a person to issue title insurance commitments or
                  policies on behalf of a title insurer.
                      [(29)] (12) "Sell" means to exchange a contract of insurance:
                      (a) by any means;
                      (b) for money or its equivalent; and
                      (c) on behalf of an insurance company.
                      [(30)] (13) "Solicit" means[:    (a)] attempting to sell [insurance; or]:
                      [(b) asking or urging a person to apply:]

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                      [(i) for] (a) a particular kind of insurance; and
                      [(ii)] (b) from a particular insurance company.
                      [(31) "Surplus lines broker" means a person licensed under Subsection 31A-23-204 (5) to
                  place insurance with unauthorized insurers in accordance with Section 31A-15-103 .]
                      [(32)] (14) "Terminate" means:
                      (a) the cancellation of the relationship between:
                      (i) an insurance producer; and
                      (ii) a particular insurer; or
                      (b) the termination of the producer's authority to transact insurance on behalf of a
                  particular insurance company.
                      [(33)] (15) "Title marketing representative" means a person who:
                      (a) represents a title insurer in soliciting, requesting, or negotiating the placing of:
                      (i) title insurance; or
                      (ii) escrow services; and
                      (b) does not have a search or escrow license as provided in Section [ 31A-23-204 ]
                  31A-23a-106 .
                      [(34) "Underwrite" means the authority to accept or reject risk on behalf of the insurer.]
                      [(35)] (16) "Uniform application" means the version of the National Association of
                  Insurance Commissioner's uniform application for resident and nonresident producer licensing at
                  the time the application is filed.
                      [(36)] (17) "Uniform business entity application" means the version of the National
                  Association of Insurance Commissioner's uniform business entity application for resident and
                  nonresident business entities at the time the application is filed.
                      Section 38. Section 31A-23a-103 , which is renumbered from Section 31A-23-201 is
                  renumbered and amended to read:
                       [31A-23-201].     31A-23a-103. Requirement of license.
                      (1) (a) Unless exempted from the licensing requirement under Section [ 31A-23-201.5 ]
                  31A-23a-201 or [ 31A-23-214 ] 31A-23a-207 , a person may not perform, offer to perform, or

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                  advertise any service as [an agent, broker, or] a producer, limited line producer, customer service
                  representative, consultant, managing general agent, or reinsurance intermediary in Utah, without
                  a valid individual or agency license issued under [Section 31A-23-203 ] this chapter.
                      (b) A valid license includes at least one license type and one line of authority pertaining
                  to that license type.
                      [(b)] (c) A person may not utilize the services of another as [an] a producer, limited line
                  producer, customer service representative, consultant, managing general agent, [broker,] or
                  [consultant] reinsurance intermediary if that person knows or should know that the other does not
                  have a license as required by law.
                      (2) This part may not be construed to require an insurer to obtain an insurance producer
                  license.
                      (3) An insurance contract is not invalid as a result of a violation of this section.
                      Section 39. Section 31A-23a-104 , which is renumbered from Section 31A-23-202 is
                  renumbered and amended to read:
                       [31A-23-202].     31A-23a-104. Application for resident or nonresident
                  individual license -- Application for resident or nonresident agency license.
                      (1) (a) Subject to Subsection (2) [the] an application for [a resident] an individual license
                  as [an agent, a broker, or a] a producer, limited line producer, customer service representative,
                  consultant, managing general agent, or reinsurance intermediary shall be:
                      (i) made to the commissioner on forms and in a manner the commissioner prescribes;
                  and
                      (ii) accompanied by [an applicable] a license fee that is not refunded if the application is
                  denied[; and] or, if incomplete, is never completed by the applicant.
                      [(b) the application for a nonresident license as an agent, a broker, or a consultant shall
                  be:]
                      [(i) made on the uniform application; and]
                      [(ii) accompanied by an applicable fee that is not refunded if the application is denied.]
                      (b) Nonresident individual producer applicants may use the National Association of

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                  Insurance Commissioners Uniform Application for Individual Nonresident License.
                      (2) An application described in Subsection (1)(a) shall provide:
                      (a) information about the applicant's identity;
                      (b) the applicant's[: (i)] Social Security number[; or];
                      [(ii) federal employer identification number;]
                      (c) the applicant's personal history, experience, education, and business record;
                      (d) [if the applicant is a natural person,] whether the applicant is 18 years of age or older;
                      (e) whether the applicant has committed an act that is a ground for denial, suspension, or
                  revocation as set forth in Section [ 31A-23-216 ] 31A-23a-105 or 31A-23a-111 ; and
                      (f) any other information the commissioner reasonably requires.
                      (3) The commissioner may require any documents reasonably necessary to verify the
                  information contained in an application.
                      (4) The following [are private records under Subsection 63-2-302 (1)(a)(vii), an
                  applicant's] information contained in an application filed under this section is a private record
                  under Title 63, Chapter 2, Government Records Access and Management Act:
                      (a) an applicant's Social Security number; or
                      (b) an applicant's federal employer identification number.
                      (5) (a) Subject to Subsection (5)(c) an application for an agency license as a producer,
                  limited line producer, customer service representative, consultant, managing general agent, or
                  reinsurance intermediary shall be:
                      (i) made to the commissioner on forms and in a manner the commissioner prescribes;
                  and
                      (ii) accompanied by a license fee that is not refunded if the application is denied, or, if
                  incomplete, is never completed by the applicant.
                      (b) Nonresident producer agency applicants may use the National Association of
                  Insurance Commissioners Uniform Application for Business Entity Nonresident
                  License/Registration.
                      (c) An application described in Subsection (5)(a) shall provide:

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                      (i) information about the applicant's identity;
                      (ii) the applicant's federal employer identification number;
                      (iii) the designated responsible licensed producer;
                      (iv) the identity of all owners, partners, officers, and directors;
                      (v) whether the applicant has committed an act that is a ground for denial, suspension, or
                  revocation as set forth in Section 31A-23a-105 or 31A-23a-111 ; and
                      (vi) any other information the commissioner reasonably requires.
                      (d) The commissioner may require any documents reasonably necessary to verify the
                  information contained in an application.
                      (e) An applicant's federal employer identification number is a private record under Title
                  63, Chapter 2, Government Records Access and Management Act.
                      Section 40. Section 31A-23a-105 , which is renumbered from Section 31A-23-203 is
                  renumbered and amended to read:
                       [31A-23-203].     31A-23a-105. General requirements for individual and agency
                  license issuance and renewal.
                      (1) The commissioner shall issue or renew a license to act as [an agent, broker, or] a
                  producer, limited line producer, customer service representative, consultant, managing general
                  agent, or reinsurance intermediary to any person who, as to the license type and line of authority
                  classification applied for under Section [ 31A-23-204 ] 31A-23a-106 :
                      (a) has satisfied the character requirements under Section [ 31A-23-205 ] 31A-23a-107 ;
                      (b) has satisfied any applicable continuing education requirements under Section
                  [ 31A-23-206 ] 31A-23a-202 ;
                      (c) has satisfied any applicable examination requirements under Section [ 31A-23-207 ]
                  31A-23a-108 ;
                      (d) has satisfied any applicable training period requirements under Section [ 31A-23-208 ]
                  31A-23a-203 ;
                      (e) if a nonresident:
                      (i) has complied with Section [ 31A-23-209 ] 31A-23a-109 ; and

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                      (ii) holds an active similar license in that person's state of residence;
                      (f) [as to applicants] if an applicant for [licenses to act as] a title insurance [agents]
                  producer license, has satisfied the requirements of [Section 31A-23-211 ] Sections 31A-23a-203
                  and 31A-23a-204 ; and
                      (g) has paid the applicable fees under Section 31A-3-103 .
                      (2) (a) This Subsection (2) applies to the following persons:
                      (i) an applicant for a pending [producer's] individual or agency producer, limited line
                  producer, customer service representative, consultant, managing general agent, or reinsurance
                  intermediary license; or
                      (ii) a licensed individual or agency producer, limited line producer, customer service
                  representative, consultant, managing general agent, or reinsurance intermediary.
                      (b) A person described in Subsection (2)(a) shall report to the commissioner:
                      (i) any administrative action taken against the person:
                      (A) in another jurisdiction; or
                      (B) by another regulatory agency in this state; and
                      (ii) any criminal prosecution taken against the person in any jurisdiction.
                      (c) The report required by Subsection (2)(b) shall:
                      (i) be filed:
                      (A) at the time the person files the application for [a producer's] an individual or agency
                  license; or
                      (B) within 30 days of the initiation of an action or prosecution described in Subsection
                  (2)(b); and
                      (ii) include a copy of the complaint or other relevant legal documents related to the
                  action or prosecution described in Subsection (2)(b).
                      (3) (a) The department may request:
                      (i) criminal background information maintained pursuant to Title 53, Chapter 10, Part 2,
                  from the Bureau of Criminal Identification; and
                      (ii) complete Federal Bureau of Investigation criminal background checks through the

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                  national criminal history system.
                      (b) Information obtained by the department from the review of criminal history records
                  received under Subsection (3)(a) shall be used by the department for the purposes of:
                      (i) determining if a person satisfies the character requirements under Section
                  [ 31A-23-205 ] 31A-23a-107 for issuance or renewal of a license;
                      (ii) determining if a person has failed to maintain the character requirements under
                  Section [ 31A-23-205 ] 31A-23a-107 ; and
                      (iii) preventing persons who violate the federal Violent Crime Control and Law
                  Enforcement Act of 1994, 18 U.S.C. Secs. 1033 and 1034, from engaging in the business of
                  insurance in the state.
                      (c) If the department requests the criminal background information, the department shall:
                      (i) pay to the Department of Public Safety the costs incurred by the Department of Public
                  Safety in providing the department criminal background information under Subsection (3)(a)(i);
                      (ii) pay to the Federal Bureau of Investigation the costs incurred by the Federal Bureau of
                  Investigation in providing the department criminal background information under Subsection
                  (3)(a)(ii); and
                      (iii) charge the person applying for a license or for renewal of a license a fee equal to the
                  aggregate of Subsections (3)(c)(i) and (ii).
                      (4) To become a resident licensee in accordance with Section 31A-23a-104 and this
                  section, a person licensed as an insurance producer, limited line producer, customer service
                  representative, consultant, managing general agent, or reinsurance intermediary in another state
                  who moves to this state shall apply within 90 days of establishing legal residence in this state.
                      Section 41. Section 31A-23a-106 , which is renumbered from Section 31A-23-204 is
                  renumbered and amended to read:
                       [31A-23-204].     31A-23a-106. License types.
                      A resident or nonresident license issued under this chapter shall be issued under the
                  [classifications] license types described under Subsections (1) through [(6)] (7). [These
                  classifications] License types and lines of authority pertaining to each license type describe the

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                  type of licensee and the lines of business that licensee may sell, solicit, or negotiate. License
                  types are intended to describe the matters to be considered under any education, examination, and
                  training required of license applicants under Sections [ 31A-23-206 through 31A-23-208 ]
                  31A-23a-108 , 31A-23a-202 , and 31A-23a-203 .
                      (1) [An agent and broker] A producer license [classification] type includes the following
                  lines of authority:
                      (a) life insurance, including nonvariable contracts;
                      (b) variable contracts, including variable life and annuity, if the producer has the life
                  insurance line of authority;
                      (c) accident and health insurance, including contracts issued to policyholders under
                  Chapter 7 or 8;
                      (d) property[/liability] insurance[, which includes:];
                      [(i) property insurance;]
                      [(ii) liability insurance;]
                      [(iii)] (e) casualty insurance, including surety and other bonds; [and]
                      [(iv) policies containing any combination of these coverages;]
                      [(e)] (f) title insurance under one or more of the following categories:
                      (i) search, including authority to act as a title marketing representative;
                      (ii) escrow, including authority to act as a title marketing representative;
                      (iii) search and escrow, including authority to act as a title marketing representative; and
                      (iv) title marketing representative only;
                      [(f)] (g) workers' compensation insurance; [and]
                      [(g)] (h) personal lines insurance; and
                      (i) surplus lines, if the producer has the property or casualty or both lines of authority.
                      (2) A limited line producer license [classification] type includes the following limited
                  lines of authority:
                      (a) limited line credit insurance;
                      (b) travel insurance;

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                      (c) motor club insurance;
                      (d) car rental related insurance;
                      (e) legal expense insurance; and
                      (f) bail bond [agent; and] producer.
                      [(g) customer service representative.]
                      (3) A [consultant] customer service representative license [classification] type includes
                  the following lines of authority, if held by the customer service representative's employer
                  producer:
                      (a) life insurance, including nonvariable contracts;
                      [(b) variable contracts;]
                      [(c)] (b) accident and health insurance, including contracts issued to policyholders under
                  Chapter 7 or 8;
                      [(d)] (c) property[/liability] insurance[, which includes:];
                      (d) casualty insurance, including surety and other bonds;
                      [(i) property insurance;]
                      [(ii) liability insurance;]
                      [(iii) surety and other bonds; and]
                      [(iv) policies containing any combination of these coverages; and]
                      (e) workers' compensation insurance[.];
                      (f) personal lines insurance; and
                      (g) surplus lines, if the employer producer has the property or casualty or both lines of
                  authority.
                      (4) A consultant license type includes the following lines of authority:
                      (a) life insurance, including nonvariable contracts;
                      (b) variable contracts, including variable life and annuity, if the consultant has the life
                  insurance line of authority;
                      (c) accident and health insurance, including contracts issued to policyholders under
                  Chapter 7 or 8;

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                      (d) property insurance;
                      (e) casualty insurance, including surety and other bonds;
                      (f) workers' compensation insurance; and
                      (g) personal lines insurance.
                      (5) A managing general agent license type includes the following lines of authority:
                      (a) life insurance, including nonvariable contracts;
                      (b) variable contracts, including variable life and annuity, if the managing general agent
                  has the life insurance line of authority;
                      (c) accident and health insurance, including contracts issued to policyholders under
                  Chapter 7 or 8;
                      (d) property insurance;
                      (e) casualty insurance, including surety and other bonds;
                      (f) workers' compensation insurance; and
                      (g) personal lines insurance.
                      (6) A reinsurance intermediary license type includes the following lines of authority:
                      (a) life insurance, including nonvariable contracts;
                      (b) variable contracts, including variable life and annuity, if the reinsurance intermediary
                  has the life insurance line of authority;
                      (c) accident and health insurance, including contracts issued to policyholders under
                  Chapter 7 or 8;
                      (d) property insurance;
                      (e) casualty insurance, including surety and other bonds;
                      (f) workers' compensation insurance; and
                      (g) personal lines insurance.
                      [(4)] (7) A holder of licenses under Subsections (1)[(a)], (4), (5), and [(1)(c)] (6) has all
                  qualifications necessary to act as a holder of a license under [Subsection] Subsections (2)[(a)]
                  and (3).
                      [(5) (a) Upon satisfying the additional applicable requirements, a holder of a brokers

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                  license may obtain a license to act as a surplus lines broker.]
                      [(b) A license to act as a surplus lines broker gives the holder the authority to arrange
                  insurance contracts with unauthorized insurers under Section 31A-15-103 , but only as to the
                  types of insurance under Subsection (1) for which the broker holds a brokers license.]
                      [(6)] (8) The commissioner may by rule recognize other [agent, broker,] producer,
                  limited [license] line producer, [or] customer service representative, consultant [license
                  classifications], managing general agent, or reinsurance intermediary lines of authority as to
                  kinds of insurance not listed under Subsections (1)[, (2), and (3)] through (6).
                      (9) The variable contracts, including variable life and annuity line of authority requires:
                      (a) licensure as a registered agent or broker by the National Association of Securities
                  Dealers (NASD); and
                      (b) current registration with a securities broker/dealer.
                      (10) A surplus lines producer is a producer who has a surplus lines line of authority.
                      Section 42. Section 31A-23a-107 , which is renumbered from Section 31A-23-205 is
                  renumbered and amended to read:
                       [31A-23-205].     31A-23a-107. Character requirements.
                      Each applicant for a license under this chapter shall show to the commissioner that:
                      (1) the applicant has the intent in good faith, to engage in the type of business that the
                  license applied for would permit;
                      (2) if a natural person, the applicant is competent and trustworthy; or, if the applicant is
                  an agency, all the partners, directors, or principal officers or persons having comparable powers
                  are trustworthy, and that it will transact business in such a way that all acts that may only be
                  performed by a licensed [agent] producer, limited line producer, customer service representative,
                  consultant, managing general agent, [broker, surplus lines broker, or consultant] or reinsurance
                  intermediary are performed exclusively by natural persons who are licensed under this chapter to
                  transact that type of business and [listed] designated on the agency's license [under Subsection
                  31A-23-212 (1)(d)];
                      (3) the applicant intends to comply with Section [ 31A-23-402 ] 31A-23a-502 ; and

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                      (4) if a natural person, the applicant is at least 18 years of age.
                      Section 43. Section 31A-23a-108 , which is renumbered from Section 31A-23-207 is
                  renumbered and amended to read:
                       [31A-23-207].     31A-23a-108. Examination requirements.
                      (1) (a) The commissioner may require applicants for any particular [class of] license type
                  under Section [ 31A-23-204 ] 31A-23a-106 to pass [an] a line of authority examination as a
                  requirement for a license, except that an examination may not be required of applicants for:
                      (i) licenses under [Subsection 31A-23-204 ] Subsections 31A-23a-106 (2) and (3); or
                      (ii) other limited line license [classifications] lines of authority recognized by the
                  commissioner by rule as provided in Subsection [ 31A-23-204 (6)] 31A-23a-106 (8).
                      (b) The examination described in Subsection (1)(a):
                      (i) shall reasonably relate to the [specific classes] line of authority for which it is
                  prescribed; and
                      (ii) may be administered by the commissioner or as otherwise specified by rule.
                      (2) The commissioner shall waive the requirement of an examination for a nonresident
                  applicant who:
                      (a) applies for an insurance producer license in this state;
                      (b) has been licensed for the same line of authority in another state; and
                      (c) (i) is licensed in the state described in Subsection (2)(b) at the time the applicant
                  applies for an insurance producer license in this state; or
                      (ii) if the application is received within 90 days of the cancellation of the applicant's
                  previous license:
                      (A) the prior state certifies that at the time of cancellation, the applicant was in good
                  standing in that state; or
                      (B) the state's producer database records maintained by the National Association of
                  Insurance Commissioners or the National Association of Insurance Commissioner's affiliates or
                  subsidiaries, indicates that the producer is or was licensed in good standing for the line of
                  authority requested.

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                      (3) [(a) To become a resident licensee in accordance with Sections 31A-23-202 and
                  31A-23-203 , a person licensed as an insurance producer in another state] A nonresident producer
                  licensee who moves to this state [shall make application] and applies for a resident license within
                  90 days of establishing legal residence in this state shall be exempt from any line of authority
                  examination that the producer was authorized on the producer's nonresident producer license,
                  except where the commissioner determines otherwise by rule.
                      [(b) A person who becomes a resident licensee under Subsection (3)(a) may not be
                  required to meet prelicensing education or examination requirements to obtain any line of
                  authority previously held in the prior state unless:]
                      [(i) the prior state would require a prior resident of this state to meet the prior state's
                  prelicensing education or examination requirements to become a resident licensee; or]
                      [(ii) the commissioner imposes the requirements by rule.]
                      (4) This section's requirement may only be applied to applicants who are natural persons.
                      Section 44. Section 31A-23a-109 , which is renumbered from Section 31A-23-209 is
                  renumbered and amended to read:
                       [31A-23-209].     31A-23a-109. Nonresident jurisdictional agreement.
                      (1) (a) If a nonresident license applicant has a valid producer, limited line producer,
                  customer service representative, consultant, managing general agent, or reinsurance intermediary
                  license from the nonresident license applicant's home state and the conditions of Subsection
                  (1)(b) are met, the commissioner shall:
                      (i) waive [any] all license [requirement] requirements for a license under this chapter;
                  and
                      (ii) issue the nonresident license applicant a nonresident [producer] license.
                      (b) Subsection (1)(a) applies if:
                      (i) the nonresident license applicant:
                      (A) is licensed as a resident in the nonresident license applicant's home state at the time
                  the nonresident license applicant applies for a nonresident producer, limited line producer,
                  customer service representative, consultant, managing general agent, or reinsurance intermediary

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                  license;
                      (B) has submitted the proper request for licensure;
                      (C) has submitted to the commissioner:
                      (I) the application for licensure that the nonresident license applicant submitted to the
                  applicant's home state; or
                      (II) a completed uniform application; and
                      (D) has paid the applicable fees under Section 31A-3-103 ; and
                      (ii) the nonresident license applicant's license in the applicant's home state is in good
                  standing[; and].
                      [(iii) the nonresident license applicant's home state awards nonresident producer licenses
                  to residents of this state on the same basis as this state awards licenses to residents of that home
                  state.]
                      (2) A nonresident applicant applying under Subsection (1) shall in addition to complying
                  with all license requirements for a license under this chapter execute, in a form acceptable to the
                  commissioner, an agreement to be subject to the jurisdiction of the Utah commissioner and
                  courts on any matter related to the applicant's insurance activities in this state, on the basis of:
                      (a) service of process under Sections 31A-2-309 and 31A-2-310 ; or
                      (b) service authorized:
                      (i) in the Utah Rules of Civil Procedure; or
                      (ii) under Section 78-27-25 .
                      (3) The commissioner may verify [the] a producer's licensing status through the producer
                  database maintained by:
                      (a) the National Association of Insurance Commissioners; or
                      (b) an affiliate or subsidiary of the National Association of Insurance Commissioners.
                      (4) The commissioner may not assess a greater fee for an insurance license or related
                  service to a person not residing in this state solely on the fact that the person does not reside in
                  this state.
                      Section 45. Section 31A-23a-110 , which is renumbered from Section 31A-23-212 is

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                  renumbered and amended to read:
                       [31A-23-212].     31A-23a-110. Form and contents of license.
                      (1) Licenses issued under this chapter shall be in the form the commissioner prescribes
                  and shall set forth:
                      (a) the name, address, and telephone number of the licensee;
                      (b) the license [classifications] types and lines of authority under Section [ 31A-23-204 ]
                  31A-23a-106 ;
                      (c) the date of license issuance; and
                      (d) any other information the commissioner considers necessary.
                      (2) [An insurance producer] A licensee under this chapter doing business under any other
                  name than the [producer's] licensee's legal name shall notify the commissioner prior to using the
                  assumed name in this state.
                      [(3) (a) An agency shall be licensed as an agency if the agency acts as:]
                      [(i) an agent;]
                      [(ii) a broker;]
                      [(iii) a surplus lines broker;]
                      [(iv) a managing general agent; or]
                      [(v) a consultant.]
                      [(b) The agency license issued under Subsection (3)(a) shall set forth the names of all
                  natural persons licensed under this chapter who are authorized to act in those capacities for the
                  agency in this state.]
                      [(4) (a) So far as is practicable, the commissioner shall issue a single license to each
                  agent, broker, or consultant for a single fee.]
                      [(b) For purposes of the fee described in Subsection (4)(a), the less expensive license is
                  included within the most expensive license.]
                      Section 46. Section 31A-23a-111 , which is renumbered from Section 31A-23-216 is
                  renumbered and amended to read:
                       [31A-23-216].     31A-23a-111. Termination of license.

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                      (1) A license type issued under this chapter remains in force until:
                      (a) revoked[,] or suspended[, or limited under Subsection (2);(b) lapsed] under
                  Subsection [(3)] (4);
                      [(c)] (b) surrendered to and accepted by the commissioner in lieu of administrative
                  action; [or]
                      [(d)] (c) the licensee dies or is adjudicated incompetent as defined under:
                      (i) Title 75, Chapter 5, Part 3, Guardians of Incapacitated Persons; or
                      (ii) Title 75, Chapter 5, Part 4, Protection of Property of Persons Under Disability and