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H.B. 403 Enrolled

             1     

BAILBOND AMENDMENTS

             2     
2006 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Gregory H. Hughes

             5     
Senate Sponsor: L. Alma Mansell

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Insurance Code and the Code of Criminal Procedure regarding
             10      bail bond securities.
             11      Highlighted Provisions:
             12          This bill:
             13          .    amends the definition of "bail bond insurance";
             14          .    allows a bail bond company to pay a bond forfeiture prior to judgment;
             15          .    amends the process regarding posting proof of a surety bond;
             16          .    provides that for purposes of the sureties on an undertaking, a plea in abeyance is
             17      considered to be the same as a guilty plea;
             18          .    provides that the bail bond surety is not responsible regarding suspended or deferred
             19      sentencing;
             20          .    amends the court procedure for notifying the surety when a defendant fails to post
             21      bail;
             22          .    amends the procedures for forfeiting or reinstating a bond if a defendant misses a
             23      court date;
             24          .    provides that the court may enter a judgment in the surety's name, and not in the
             25      name of an individual owner, principal, or employee of the surety; and
             26          .    provides procedures for bond revocation.
             27      Monies Appropriated in this Bill:
             28          None
             29      Other Special Clauses:


             30          This bill coordinates with H.B. 272, Insurance Law Amendments, by providing that
             31      certain amendments in this bill supersede the amendments in H.B. 272.
             32      Utah Code Sections Affected:
             33      AMENDS:
             34          31A-1-301, as last amended by Chapter 78, Laws of Utah 2005
             35          31A-35-504, as last amended by Chapter 219, Laws of Utah 2005
             36          77-20-7, as last amended by Chapter 293, Laws of Utah 1998
             37          77-20b-101, as last amended by Chapter 91, Laws of Utah 2004
             38          77-20b-104, as last amended by Chapter 245, Laws of Utah 2001
             39      ENACTS:
             40          77-20b-105, Utah Code Annotated 1953
             41     
             42      Be it enacted by the Legislature of the state of Utah:
             43          Section 1. Section 31A-1-301 is amended to read:
             44           31A-1-301. Definitions.
             45          As used in this title, unless otherwise specified:
             46          (1) (a) "Accident and health insurance" means insurance to provide protection against
             47      economic losses resulting from:
             48          (i) a medical condition including:
             49          (A) medical care expenses; or
             50          (B) the risk of disability;
             51          (ii) accident; or
             52          (iii) sickness.
             53          (b) "Accident and health insurance":
             54          (i) includes a contract with disability contingencies including:
             55          (A) an income replacement contract;
             56          (B) a health care contract;
             57          (C) an expense reimbursement contract;


             58          (D) a credit accident and health contract;
             59          (E) a continuing care contract; and
             60          (F) a long-term care contract; and
             61          (ii) may provide:
             62          (A) hospital coverage;
             63          (B) surgical coverage;
             64          (C) medical coverage; or
             65          (D) loss of income coverage.
             66          (c) "Accident and health insurance" does not include workers' compensation insurance.
             67          (2) "Actuary" is as defined by the commissioner by rule, made in accordance with Title
             68      63, Chapter 46a, Utah Administrative Rulemaking Act.
             69          (3) "Administrator" is defined in Subsection (155).
             70          (4) "Adult" means a natural person who has attained the age of at least 18 years.
             71          (5) "Affiliate" means any person who controls, is controlled by, or is under common
             72      control with, another person. A corporation is an affiliate of another corporation, regardless of
             73      ownership, if substantially the same group of natural persons manages the corporations.
             74          (6) "Agency" means:
             75          (a) a person other than an individual, including a sole proprietorship by which a natural
             76      person does business under an assumed name; and
             77          (b) an insurance organization licensed or required to be licensed under Section
             78      31A-23a-301 .
             79          (7) "Alien insurer" means an insurer domiciled outside the United States.
             80          (8) "Amendment" means an endorsement to an insurance policy or certificate.
             81          (9) "Annuity" means an agreement to make periodical payments for a period certain or
             82      over the lifetime of one or more natural persons if the making or continuance of all or some of
             83      the series of the payments, or the amount of the payment, is dependent upon the continuance of
             84      human life.
             85          (10) "Application" means a document:


             86          (a) (i) completed by an applicant to provide information about the risk to be insured;
             87      and
             88          (ii) that contains information that is used by the insurer to evaluate risk and decide
             89      whether to:
             90          (A) insure the risk under:
             91          (I) the coverages as originally offered; or
             92          (II) a modification of the coverage as originally offered; or
             93          (B) decline to insure the risk; or
             94          (b) used by the insurer to gather information from the applicant before issuance of an
             95      annuity contract.
             96          (11) "Articles" or "articles of incorporation" means the original articles, special laws,
             97      charters, amendments, restated articles, articles of merger or consolidation, trust instruments,
             98      and other constitutive documents for trusts and other entities that are not corporations, and
             99      amendments to any of these.
             100          (12) "Bail bond insurance" means a guarantee that a person will attend court when
             101      required, [or will obey the orders or judgment of the court] up to and including surrender of the
             102      person in execution of any sentence imposed under Subsection 77-20-7 (1), as a condition to the
             103      release of that person from confinement.
             104          (13) "Binder" is defined in Section 31A-21-102 .
             105          (14) "Board," "board of trustees," or "board of directors" means the group of persons
             106      with responsibility over, or management of, a corporation, however designated.
             107          (15) "Business entity" means a corporation, association, partnership, limited liability
             108      company, limited liability partnership, or other legal entity.
             109          (16) "Business of insurance" is defined in Subsection (82).
             110          (17) "Business plan" means the information required to be supplied to the
             111      commissioner under Subsections 31A-5-204 (2)(i) and (j), including the information required
             112      when these subsections are applicable by reference under:
             113          (a) Section 31A-7-201 ;


             114          (b) Section 31A-8-205 ; or
             115          (c) Subsection 31A-9-205 (2).
             116          (18) "Bylaws" means the rules adopted for the regulation or management of a
             117      corporation's affairs, however designated and includes comparable rules for trusts and other
             118      entities that are not corporations.
             119          (19) "Captive insurance company" means:
             120          (a) an insurance company:
             121          (i) owned by another organization; and
             122          (ii) whose exclusive purpose is to insure risks of the parent organization and affiliated
             123      companies; or
             124          (b) in the case of groups and associations, an insurance organization:
             125          (i) owned by the insureds; and
             126          (ii) whose exclusive purpose is to insure risks of:
             127          (A) member organizations;
             128          (B) group members; and
             129          (C) affiliates of:
             130          (I) member organizations; or
             131          (II) group members.
             132          (20) "Casualty insurance" means liability insurance as defined in Subsection (94).
             133          (21) "Certificate" means evidence of insurance given to:
             134          (a) an insured under a group insurance policy; or
             135          (b) a third party.
             136          (22) "Certificate of authority" is included within the term "license."
             137          (23) "Claim," unless the context otherwise requires, means a request or demand on an
             138      insurer for payment of benefits according to the terms of an insurance policy.
             139          (24) "Claims-made coverage" means an insurance contract or provision limiting
             140      coverage under a policy insuring against legal liability to claims that are first made against the
             141      insured while the policy is in force.


             142          (25) (a) "Commissioner" or "commissioner of insurance" means Utah's insurance
             143      commissioner.
             144          (b) When appropriate, the terms listed in Subsection (25)(a) apply to the equivalent
             145      supervisory official of another jurisdiction.
             146          (26) (a) "Continuing care insurance" means insurance that:
             147          (i) provides board and lodging;
             148          (ii) provides one or more of the following services:
             149          (A) personal services;
             150          (B) nursing services;
             151          (C) medical services; or
             152          (D) other health-related services; and
             153          (iii) provides the coverage described in Subsection (26)(a)(i) under an agreement
             154      effective:
             155          (A) for the life of the insured; or
             156          (B) for a period in excess of one year.
             157          (b) Insurance is continuing care insurance regardless of whether or not the board and
             158      lodging are provided at the same location as the services described in Subsection (26)(a)(ii).
             159          (27) (a) "Control," "controlling," "controlled," or "under common control" means the
             160      direct or indirect possession of the power to direct or cause the direction of the management
             161      and policies of a person. This control may be:
             162          (i) by contract;
             163          (ii) by common management;
             164          (iii) through the ownership of voting securities; or
             165          (iv) by a means other than those described in Subsections (27)(a)(i) through (iii).
             166          (b) There is no presumption that an individual holding an official position with another
             167      person controls that person solely by reason of the position.
             168          (c) A person having a contract or arrangement giving control is considered to have
             169      control despite the illegality or invalidity of the contract or arrangement.


             170          (d) There is a rebuttable presumption of control in a person who directly or indirectly
             171      owns, controls, holds with the power to vote, or holds proxies to vote 10% or more of the
             172      voting securities of another person.
             173          (28) "Controlled insurer" means a licensed insurer that is either directly or indirectly
             174      controlled by a producer.
             175          (29) "Controlling person" means any person that directly or indirectly has the power to
             176      direct or cause to be directed, the management, control, or activities of a reinsurance
             177      intermediary.
             178          (30) "Controlling producer" means a producer who directly or indirectly controls an
             179      insurer.
             180          (31) (a) "Corporation" means an insurance corporation, except when referring to:
             181          (i) a corporation doing business:
             182          (A) as:
             183          (I) an insurance producer;
             184          (II) a limited line producer;
             185          (III) a consultant;
             186          (IV) a managing general agent;
             187          (V) a reinsurance intermediary;
             188          (VI) a third party administrator; or
             189          (VII) an adjuster; and
             190          (B) under:
             191          (I) Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and
             192      Reinsurance Intermediaries;
             193          (II) Chapter 25, Third Party Administrators; or
             194          (III) Chapter 26, Insurance Adjusters; or
             195          (ii) a noninsurer that is part of a holding company system under Chapter 16, Insurance
             196      Holding Companies.
             197          (b) "Stock corporation" means a stock insurance corporation.


             198          (c) "Mutual" or "mutual corporation" means a mutual insurance corporation.
             199          (32) "Creditable coverage" has the same meaning as provided in federal regulations
             200      adopted pursuant to the Health Insurance Portability and Accountability Act of 1996, Pub. L.
             201      104-191, 110 Stat. 1936.
             202          (33) "Credit accident and health insurance" means insurance on a debtor to provide
             203      indemnity for payments coming due on a specific loan or other credit transaction while the
             204      debtor is disabled.
             205          (34) (a) "Credit insurance" means insurance offered in connection with an extension of
             206      credit that is limited to partially or wholly extinguishing that credit obligation.
             207          (b) "Credit insurance" includes:
             208          (i) credit accident and health insurance;
             209          (ii) credit life insurance;
             210          (iii) credit property insurance;
             211          (iv) credit unemployment insurance;
             212          (v) guaranteed automobile protection insurance;
             213          (vi) involuntary unemployment insurance;
             214          (vii) mortgage accident and health insurance;
             215          (viii) mortgage guaranty insurance; and
             216          (ix) mortgage life insurance.
             217          (35) "Credit life insurance" means insurance on the life of a debtor in connection with
             218      an extension of credit that pays a person if the debtor dies.
             219          (36) "Credit property insurance" means insurance:
             220          (a) offered in connection with an extension of credit; and
             221          (b) that protects the property until the debt is paid.
             222          (37) "Credit unemployment insurance" means insurance:
             223          (a) offered in connection with an extension of credit; and
             224          (b) that provides indemnity if the debtor is unemployed for payments coming due on a:
             225          (i) specific loan; or


             226          (ii) credit transaction.
             227          (38) "Creditor" means a person, including an insured, having any claim, whether:
             228          (a) matured;
             229          (b) unmatured;
             230          (c) liquidated;
             231          (d) unliquidated;
             232          (e) secured;
             233          (f) unsecured;
             234          (g) absolute;
             235          (h) fixed; or
             236          (i) contingent.
             237          (39) (a) "Customer service representative" means a person that provides insurance
             238      services and insurance product information:
             239          (i) for the customer service representative's:
             240          (A) producer; or
             241          (B) consultant employer; and
             242          (ii) to the customer service representative's employer's:
             243          (A) customer;
             244          (B) client; or
             245          (C) organization.
             246          (b) A customer service representative may only operate within the scope of authority of
             247      the customer service representative's producer or consultant employer.
             248          (40) "Deadline" means the final date or time:
             249          (a) imposed by:
             250          (i) statute;
             251          (ii) rule; or
             252          (iii) order; and
             253          (b) by which a required filing or payment must be received by the department.


             254          (41) "Deemer clause" means a provision under this title under which upon the
             255      occurrence of a condition precedent, the commissioner is deemed to have taken a specific
             256      action. If the statute so provides, the condition precedent may be the commissioner's failure to
             257      take a specific action.
             258          (42) "Degree of relationship" means the number of steps between two persons
             259      determined by counting the generations separating one person from a common ancestor and
             260      then counting the generations to the other person.
             261          (43) "Department" means the Insurance Department.
             262          (44) "Director" means a member of the board of directors of a corporation.
             263          (45) "Disability" means a physiological or psychological condition that partially or
             264      totally limits an individual's ability to:
             265          (a) perform the duties of:
             266          (i) that individual's occupation; or
             267          (ii) any occupation for which the individual is reasonably suited by education, training,
             268      or experience; or
             269          (b) perform two or more of the following basic activities of daily living:
             270          (i) eating;
             271          (ii) toileting;
             272          (iii) transferring;
             273          (iv) bathing; or
             274          (v) dressing.
             275          (46) "Disability income insurance" is defined in Subsection (73).
             276          (47) "Domestic insurer" means an insurer organized under the laws of this state.
             277          (48) "Domiciliary state" means the state in which an insurer:
             278          (a) is incorporated;
             279          (b) is organized; or
             280          (c) in the case of an alien insurer, enters into the United States.
             281          (49) (a) "Eligible employee" means:


             282          (i) an employee who:
             283          (A) works on a full-time basis; and
             284          (B) has a normal work week of 30 or more hours; or
             285          (ii) a person described in Subsection (49)(b).
             286          (b) "Eligible employee" includes, if the individual is included under a health benefit
             287      plan of a small employer:
             288          (i) a sole proprietor;
             289          (ii) a partner in a partnership; or
             290          (iii) an independent contractor.
             291          (c) "Eligible employee" does not include, unless eligible under Subsection (49)(b):
             292          (i) an individual who works on a temporary or substitute basis for a small employer;
             293          (ii) an employer's spouse; or
             294          (iii) a dependent of an employer.
             295          (50) "Employee" means any individual employed by an employer.
             296          (51) "Employee benefits" means one or more benefits or services provided to:
             297          (a) employees; or
             298          (b) dependents of employees.
             299          (52) (a) "Employee welfare fund" means a fund:
             300          (i) established or maintained, whether directly or through trustees, by:
             301          (A) one or more employers;
             302          (B) one or more labor organizations; or
             303          (C) a combination of employers and labor organizations; and
             304          (ii) that provides employee benefits paid or contracted to be paid, other than income
             305      from investments of the fund, by or on behalf of an employer doing business in this state or for
             306      the benefit of any person employed in this state.
             307          (b) "Employee welfare fund" includes a plan funded or subsidized by user fees or tax
             308      revenues.
             309          (53) "Endorsement" means a written agreement attached to a policy or certificate to


             310      modify one or more of the provisions of the policy or certificate.
             311          (54) "Enrollment date," with respect to a health benefit plan, means the first day of
             312      coverage or, if there is a waiting period, the first day of the waiting period.
             313          (55) (a) "Escrow" means:
             314          (i) a real estate settlement or real estate closing conducted by a third party pursuant to
             315      the requirements of a written agreement between the parties in a real estate transaction; or
             316          (ii) a settlement or closing involving:
             317          (A) a mobile home;
             318          (B) a grazing right;
             319          (C) a water right; or
             320          (D) other personal property authorized by the commissioner.
             321          (b) "Escrow" includes the act of conducting a:
             322          (i) real estate settlement; or
             323          (ii) real estate closing.
             324          (56) "Escrow agent" means:
             325          (a) an insurance producer with:
             326          (i) a title insurance line of authority; and
             327          (ii) an escrow subline of authority; or
             328          (b) a person defined as an escrow agent in Section 7-22-101 .
             329          (57) "Excludes" is not exhaustive and does not mean that other things are not also
             330      excluded. The items listed are representative examples for use in interpretation of this title.
             331          (58) "Expense reimbursement insurance" means insurance:
             332          (a) written to provide payments for expenses relating to hospital confinements resulting
             333      from illness or injury; and
             334          (b) written:
             335          (i) as a daily limit for a specific number of days in a hospital; and
             336          (ii) to have a one or two day waiting period following a hospitalization.
             337          (59) "Fidelity insurance" means insurance guaranteeing the fidelity of persons holding


             338      positions of public or private trust.
             339          (60) (a) "Filed" means that a filing is:
             340          (i) submitted to the department as required by and in accordance with any applicable
             341      statute, rule, or filing order;
             342          (ii) received by the department within the time period provided in the applicable
             343      statute, rule, or filing order; and
             344          (iii) accompanied by the appropriate fee in accordance with:
             345          (A) Section 31A-3-103 ; or
             346          (B) rule.
             347          (b) "Filed" does not include a filing that is rejected by the department because it is not
             348      submitted in accordance with Subsection (60)(a).
             349          (61) "Filing," when used as a noun, means an item required to be filed with the
             350      department including:
             351          (a) a policy;
             352          (b) a rate;
             353          (c) a form;
             354          (d) a document;
             355          (e) a plan;
             356          (f) a manual;
             357          (g) an application;
             358          (h) a report;
             359          (i) a certificate;
             360          (j) an endorsement;
             361          (k) an actuarial certification;
             362          (l) a licensee annual statement;
             363          (m) a licensee renewal application; or
             364          (n) an advertisement.
             365          (62) "First party insurance" means an insurance policy or contract in which the insurer


             366      agrees to pay claims submitted to it by the insured for the insured's losses.
             367          (63) "Foreign insurer" means an insurer domiciled outside of this state, including an
             368      alien insurer.
             369          (64) (a) "Form" means one of the following prepared for general use:
             370          (i) a policy;
             371          (ii) a certificate;
             372          (iii) an application; or
             373          (iv) an outline of coverage.
             374          (b) "Form" does not include a document specially prepared for use in an individual
             375      case.
             376          (65) "Franchise insurance" means individual insurance policies provided through a
             377      mass marketing arrangement involving a defined class of persons related in some way other
             378      than through the purchase of insurance.
             379          (66) "General lines of authority" include:
             380          (a) the general lines of insurance in Subsection (67);
             381          (b) title insurance under one of the following sublines of authority:
             382          (i) search, including authority to act as a title marketing representative;
             383          (ii) escrow, including authority to act as a title marketing representative;
             384          (iii) search and escrow, including authority to act as a title marketing representative;
             385      and
             386          (iv) title marketing representative only;
             387          (c) surplus lines;
             388          (d) workers' compensation; and
             389          (e) any other line of insurance that the commissioner considers necessary to recognize
             390      in the public interest.
             391          (67) "General lines of insurance" include:
             392          (a) accident and health;
             393          (b) casualty;


             394          (c) life;
             395          (d) personal lines;
             396          (e) property; and
             397          (f) variable contracts, including variable life and annuity.
             398          (68) "Group health plan" means an employee welfare benefit plan to the extent that the
             399      plan provides medical care:
             400          (a) (i) to employees; or
             401          (ii) to a dependent of an employee; and
             402          (b) (i) directly;
             403          (ii) through insurance reimbursement; or
             404          (iii) through any other method.
             405          (69) "Guaranteed automobile protection insurance" means insurance offered in
             406      connection with an extension of credit that pays the difference in amount between the
             407      insurance settlement and the balance of the loan if the insured automobile is a total loss.
             408          (70) (a) Except as provided in Subsection (70)(b), "health benefit plan" means a policy
             409      or certificate that:
             410          (i) provides health care insurance;
             411          (ii) provides major medical expense insurance; or
             412          (iii) is offered as a substitute for hospital or medical expense insurance such as:
             413          (A) a hospital confinement indemnity; or
             414          (B) a limited benefit plan.
             415          (b) "Health benefit plan" does not include a policy or certificate that:
             416          (i) provides benefits solely for:
             417          (A) accident;
             418          (B) dental;
             419          (C) income replacement;
             420          (D) long-term care;
             421          (E) a Medicare supplement;


             422          (F) a specified disease;
             423          (G) vision; or
             424          (H) a short-term limited duration; or
             425          (ii) is offered and marketed as supplemental health insurance.
             426          (71) "Health care" means any of the following intended for use in the diagnosis,
             427      treatment, mitigation, or prevention of a human ailment or impairment:
             428          (a) professional services;
             429          (b) personal services;
             430          (c) facilities;
             431          (d) equipment;
             432          (e) devices;
             433          (f) supplies; or
             434          (g) medicine.
             435          (72) (a) "Health care insurance" or "health insurance" means insurance providing:
             436          (i) health care benefits; or
             437          (ii) payment of incurred health care expenses.
             438          (b) "Health care insurance" or "health insurance" does not include accident and health
             439      insurance providing benefits for:
             440          (i) replacement of income;
             441          (ii) short-term accident;
             442          (iii) fixed indemnity;
             443          (iv) credit accident and health;
             444          (v) supplements to liability;
             445          (vi) workers' compensation;
             446          (vii) automobile medical payment;
             447          (viii) no-fault automobile;
             448          (ix) equivalent self-insurance; or
             449          (x) any type of accident and health insurance coverage that is a part of or attached to


             450      another type of policy.
             451          (73) "Income replacement insurance" or "disability income insurance" means insurance
             452      written to provide payments to replace income lost from accident or sickness.
             453          (74) "Indemnity" means the payment of an amount to offset all or part of an insured
             454      loss.
             455          (75) "Independent adjuster" means an insurance adjuster required to be licensed under
             456      Section 31A-26-201 who engages in insurance adjusting as a representative of insurers.
             457          (76) "Independently procured insurance" means insurance procured under Section
             458      31A-15-104 .
             459          (77) "Individual" means a natural person.
             460          (78) "Inland marine insurance" includes insurance covering:
             461          (a) property in transit on or over land;
             462          (b) property in transit over water by means other than boat or ship;
             463          (c) bailee liability;
             464          (d) fixed transportation property such as bridges, electric transmission systems, radio
             465      and television transmission towers and tunnels; and
             466          (e) personal and commercial property floaters.
             467          (79) "Insolvency" means that:
             468          (a) an insurer is unable to pay its debts or meet its obligations as they mature;
             469          (b) an insurer's total adjusted capital is less than the insurer's mandatory control level
             470      RBC under Subsection 31A-17-601 (8)(c); or
             471          (c) an insurer is determined to be hazardous under this title.
             472          (80) (a) "Insurance" means:
             473          (i) an arrangement, contract, or plan for the transfer of a risk or risks from one or more
             474      persons to one or more other persons; or
             475          (ii) an arrangement, contract, or plan for the distribution of a risk or risks among a
             476      group of persons that includes the person seeking to distribute that person's risk.
             477          (b) "Insurance" includes:


             478          (i) risk distributing arrangements providing for compensation or replacement for
             479      damages or loss through the provision of services or benefits in kind;
             480          (ii) contracts of guaranty or suretyship entered into by the guarantor or surety as a
             481      business and not as merely incidental to a business transaction; and
             482          (iii) plans in which the risk does not rest upon the person who makes the arrangements,
             483      but with a class of persons who have agreed to share it.
             484          (81) "Insurance adjuster" means a person who directs the investigation, negotiation, or
             485      settlement of a claim under an insurance policy other than life insurance or an annuity, on
             486      behalf of an insurer, policyholder, or a claimant under an insurance policy.
             487          (82) "Insurance business" or "business of insurance" includes:
             488          (a) providing health care insurance, as defined in Subsection (72), by organizations that
             489      are or should be licensed under this title;
             490          (b) providing benefits to employees in the event of contingencies not within the control
             491      of the employees, in which the employees are entitled to the benefits as a right, which benefits
             492      may be provided either:
             493          (i) by single employers or by multiple employer groups; or
             494          (ii) through trusts, associations, or other entities;
             495          (c) providing annuities, including those issued in return for gifts, except those provided
             496      by persons specified in Subsections 31A-22-1305 (2) and (3);
             497          (d) providing the characteristic services of motor clubs as outlined in Subsection (110);
             498          (e) providing other persons with insurance as defined in Subsection (80);
             499          (f) making as insurer, guarantor, or surety, or proposing to make as insurer, guarantor,
             500      or surety, any contract or policy of title insurance;
             501          (g) transacting or proposing to transact any phase of title insurance, including:
             502          (i) solicitation;
             503          (ii) negotiation preliminary to execution;
             504          (iii) execution of a contract of title insurance;
             505          (iv) insuring; and


             506          (v) transacting matters subsequent to the execution of the contract and arising out of
             507      the contract, including reinsurance; and
             508          (h) doing, or proposing to do, any business in substance equivalent to Subsections
             509      (82)(a) through (g) in a manner designed to evade the provisions of this title.
             510          (83) "Insurance consultant" or "consultant" means a person who:
             511          (a) advises other persons about insurance needs and coverages;
             512          (b) is compensated by the person advised on a basis not directly related to the insurance
             513      placed; and
             514          (c) except as provided in Section 31A-23a-501 , is not compensated directly or
             515      indirectly by an insurer or producer for advice given.
             516          (84) "Insurance holding company system" means a group of two or more affiliated
             517      persons, at least one of whom is an insurer.
             518          (85) (a) "Insurance producer" or "producer" means a person licensed or required to be
             519      licensed under the laws of this state to sell, solicit, or negotiate insurance.
             520          (b) With regards to the selling, soliciting, or negotiating of an insurance product to an
             521      insurance customer or an insured:
             522          (i) "producer for the insurer" means a producer who is compensated directly or
             523      indirectly by an insurer for selling, soliciting, or negotiating any product of that insurer; and
             524          (ii) "producer for the insured" means a producer who:
             525          (A) is compensated directly and only by an insurance customer or an insured; and
             526          (B) receives no compensation directly or indirectly from an insurer for selling,
             527      soliciting, or negotiating any product of that insurer to an insurance customer or insured.
             528          (86) (a) "Insured" means a person to whom or for whose benefit an insurer makes a
             529      promise in an insurance policy and includes:
             530          (i) policyholders;
             531          (ii) subscribers;
             532          (iii) members; and
             533          (iv) beneficiaries.


             534          (b) The definition in Subsection (86)(a):
             535          (i) applies only to this title; and
             536          (ii) does not define the meaning of this word as used in insurance policies or
             537      certificates.
             538          (87) (a) (i) "Insurer" means any person doing an insurance business as a principal
             539      including:
             540          (A) fraternal benefit societies;
             541          (B) issuers of gift annuities other than those specified in Subsections 31A-22-1305 (2)
             542      and (3);
             543          (C) motor clubs;
             544          (D) employee welfare plans; and
             545          (E) any person purporting or intending to do an insurance business as a principal on
             546      that person's own account.
             547          (ii) "Insurer" does not include a governmental entity to the extent it is engaged in the
             548      activities described in Section 31A-12-107 .
             549          (b) "Admitted insurer" is defined in Subsection (159)(b).
             550          (c) "Alien insurer" is defined in Subsection (7).
             551          (d) "Authorized insurer" is defined in Subsection (159)(b).
             552          (e) "Domestic insurer" is defined in Subsection (47).
             553          (f) "Foreign insurer" is defined in Subsection (63).
             554          (g) "Nonadmitted insurer" is defined in Subsection (159)(a).
             555          (h) "Unauthorized insurer" is defined in Subsection (159)(a).
             556          (88) "Interinsurance exchange" is defined in Subsection (139).
             557          (89) "Involuntary unemployment insurance" means insurance:
             558          (a) offered in connection with an extension of credit;
             559          (b) that provides indemnity if the debtor is involuntarily unemployed for payments
             560      coming due on a:
             561          (i) specific loan; or


             562          (ii) credit transaction.
             563          (90) "Large employer," in connection with a health benefit plan, means an employer
             564      who, with respect to a calendar year and to a plan year:
             565          (a) employed an average of at least 51 eligible employees on each business day during
             566      the preceding calendar year; and
             567          (b) employs at least two employees on the first day of the plan year.
             568          (91) "Late enrollee," with respect to an employer health benefit plan, means an
             569      individual whose enrollment is a late enrollment.
             570          (92) "Late enrollment," with respect to an employer health benefit plan, means
             571      enrollment of an individual other than:
             572          (a) on the earliest date on which coverage can become effective for the individual
             573      under the terms of the plan; or
             574          (b) through special enrollment.
             575          (93) (a) Except for a retainer contract or legal assistance described in Section
             576      31A-1-103 , "legal expense insurance" means insurance written to indemnify or pay for
             577      specified legal expenses.
             578          (b) "Legal expense insurance" includes arrangements that create reasonable
             579      expectations of enforceable rights.
             580          (c) "Legal expense insurance" does not include the provision of, or reimbursement for,
             581      legal services incidental to other insurance coverages.
             582          (94) (a) "Liability insurance" means insurance against liability:
             583          (i) for death, injury, or disability of any human being, or for damage to property,
             584      exclusive of the coverages under:
             585          (A) Subsection (104) for medical malpractice insurance;
             586          (B) Subsection (131) for professional liability insurance; and
             587          (C) Subsection (164) for workers' compensation insurance;
             588          (ii) for medical, hospital, surgical, and funeral benefits to persons other than the
             589      insured who are injured, irrespective of legal liability of the insured, when issued with or


             590      supplemental to insurance against legal liability for the death, injury, or disability of human
             591      beings, exclusive of the coverages under:
             592          (A) Subsection (104) for medical malpractice insurance;
             593          (B) Subsection (131) for professional liability insurance; and
             594          (C) Subsection (164) for workers' compensation insurance;
             595          (iii) for loss or damage to property resulting from accidents to or explosions of boilers,
             596      pipes, pressure containers, machinery, or apparatus;
             597          (iv) for loss or damage to any property caused by the breakage or leakage of sprinklers,
             598      water pipes and containers, or by water entering through leaks or openings in buildings; or
             599          (v) for other loss or damage properly the subject of insurance not within any other kind
             600      or kinds of insurance as defined in this chapter, if such insurance is not contrary to law or
             601      public policy.
             602          (b) "Liability insurance" includes:
             603          (i) vehicle liability insurance as defined in Subsection (161);
             604          (ii) residential dwelling liability insurance as defined in Subsection (142); and
             605          (iii) making inspection of, and issuing certificates of inspection upon, elevators,
             606      boilers, machinery, and apparatus of any kind when done in connection with insurance on
             607      them.
             608          (95) (a) "License" means the authorization issued by the commissioner to engage in
             609      some activity that is part of or related to the insurance business.
             610          (b) "License" includes certificates of authority issued to insurers.
             611          (96) (a) "Life insurance" means insurance on human lives and insurances pertaining to
             612      or connected with human life.
             613          (b) The business of life insurance includes:
             614          (i) granting death benefits;
             615          (ii) granting annuity benefits;
             616          (iii) granting endowment benefits;
             617          (iv) granting additional benefits in the event of death by accident;


             618          (v) granting additional benefits to safeguard the policy against lapse in the event of
             619      disability; and
             620          (vi) providing optional methods of settlement of proceeds.
             621          (97) "Limited license" means a license that:
             622          (a) is issued for a specific product of insurance; and
             623          (b) limits an individual or agency to transact only for that product or insurance.
             624          (98) "Limited line credit insurance" includes the following forms of insurance:
             625          (a) credit life;
             626          (b) credit accident and health;
             627          (c) credit property;
             628          (d) credit unemployment;
             629          (e) involuntary unemployment;
             630          (f) mortgage life;
             631          (g) mortgage guaranty;
             632          (h) mortgage accident and health;
             633          (i) guaranteed automobile protection; and
             634          (j) any other form of insurance offered in connection with an extension of credit that:
             635          (i) is limited to partially or wholly extinguishing the credit obligation; and
             636          (ii) the commissioner determines by rule should be designated as a form of limited line
             637      credit insurance.
             638          (99) "Limited line credit insurance producer" means a person who sells, solicits, or
             639      negotiates one or more forms of limited line credit insurance coverage to individuals through a
             640      master, corporate, group, or individual policy.
             641          (100) "Limited line insurance" includes:
             642          (a) bail bond;
             643          (b) limited line credit insurance;
             644          (c) legal expense insurance;
             645          (d) motor club insurance;


             646          (e) rental car-related insurance;
             647          (f) travel insurance; and
             648          (g) any other form of limited insurance that the commissioner determines by rule
             649      should be designated a form of limited line insurance.
             650          (101) "Limited lines authority" includes:
             651          (a) the lines of insurance listed in Subsection (100); and
             652          (b) a customer service representative.
             653          (102) "Limited lines producer" means a person who sells, solicits, or negotiates limited
             654      lines insurance.
             655          (103) (a) "Long-term care insurance" means an insurance policy or rider advertised,
             656      marketed, offered, or designated to provide coverage:
             657          (i) in a setting other than an acute care unit of a hospital;
             658          (ii) for not less than 12 consecutive months for each covered person on the basis of:
             659          (A) expenses incurred;
             660          (B) indemnity;
             661          (C) prepayment; or
             662          (D) another method;
             663          (iii) for one or more necessary or medically necessary services that are:
             664          (A) diagnostic;
             665          (B) preventative;
             666          (C) therapeutic;
             667          (D) rehabilitative;
             668          (E) maintenance; or
             669          (F) personal care; and
             670          (iv) that may be issued by:
             671          (A) an insurer;
             672          (B) a fraternal benefit society;
             673          (C) (I) a nonprofit health hospital; and


             674          (II) a medical service corporation;
             675          (D) a prepaid health plan;
             676          (E) a health maintenance organization; or
             677          (F) an entity similar to the entities described in Subsections (103)(a)(iv)(A) through (E)
             678      to the extent that the entity is otherwise authorized to issue life or health care insurance.
             679          (b) "Long-term care insurance" includes:
             680          (i) any of the following that provide directly or supplement long-term care insurance:
             681          (A) a group or individual annuity or rider; or
             682          (B) a life insurance policy or rider;
             683          (ii) a policy or rider that provides for payment of benefits based on:
             684          (A) cognitive impairment; or
             685          (B) functional capacity; or
             686          (iii) a qualified long-term care insurance contract.
             687          (c) "Long-term care insurance" does not include:
             688          (i) a policy that is offered primarily to provide basic Medicare supplement coverage;
             689          (ii) basic hospital expense coverage;
             690          (iii) basic medical/surgical expense coverage;
             691          (iv) hospital confinement indemnity coverage;
             692          (v) major medical expense coverage;
             693          (vi) income replacement or related asset-protection coverage;
             694          (vii) accident only coverage;
             695          (viii) coverage for a specified:
             696          (A) disease; or
             697          (B) accident;
             698          (ix) limited benefit health coverage; or
             699          (x) a life insurance policy that accelerates the death benefit to provide the option of a
             700      lump sum payment:
             701          (A) if the following are not conditioned on the receipt of long-term care:


             702          (I) benefits; or
             703          (II) eligibility; and
             704          (B) the coverage is for one or more the following qualifying events:
             705          (I) terminal illness;
             706          (II) medical conditions requiring extraordinary medical intervention; or
             707          (III) permanent institutional confinement.
             708          (104) "Medical malpractice insurance" means insurance against legal liability incident
             709      to the practice and provision of medical services other than the practice and provision of dental
             710      services.
             711          (105) "Member" means a person having membership rights in an insurance
             712      corporation.
             713          (106) "Minimum capital" or "minimum required capital" means the capital that must be
             714      constantly maintained by a stock insurance corporation as required by statute.
             715          (107) "Mortgage accident and health insurance" means insurance offered in connection
             716      with an extension of credit that provides indemnity for payments coming due on a mortgage
             717      while the debtor is disabled.
             718          (108) "Mortgage guaranty insurance" means surety insurance under which mortgagees
             719      and other creditors are indemnified against losses caused by the default of debtors.
             720          (109) "Mortgage life insurance" means insurance on the life of a debtor in connection
             721      with an extension of credit that pays if the debtor dies.
             722          (110) "Motor club" means a person:
             723          (a) licensed under:
             724          (i) Chapter 5, Domestic Stock and Mutual Insurance Corporations;
             725          (ii) Chapter 11, Motor Clubs; or
             726          (iii) Chapter 14, Foreign Insurers; and
             727          (b) that promises for an advance consideration to provide for a stated period of time:
             728          (i) legal services under Subsection 31A-11-102 (1)(b);
             729          (ii) bail services under Subsection 31A-11-102 (1)(c); or


             730          (iii) trip reimbursement, towing services, emergency road services, stolen automobile
             731      services, a combination of these services, or any other services given in Subsections
             732      31A-11-102 (1)(b) through (f).
             733          (111) "Mutual" means a mutual insurance corporation.
             734          (112) "Network plan" means health care insurance:
             735          (a) that is issued by an insurer; and
             736          (b) under which the financing and delivery of medical care is provided, in whole or in
             737      part, through a defined set of providers under contract with the insurer, including the financing
             738      and delivery of items paid for as medical care.
             739          (113) "Nonparticipating" means a plan of insurance under which the insured is not
             740      entitled to receive dividends representing shares of the surplus of the insurer.
             741          (114) "Ocean marine insurance" means insurance against loss of or damage to:
             742          (a) ships or hulls of ships;
             743          (b) goods, freight, cargoes, merchandise, effects, disbursements, profits, moneys,
             744      securities, choses in action, evidences of debt, valuable papers, bottomry, respondentia
             745      interests, or other cargoes in or awaiting transit over the oceans or inland waterways;
             746          (c) earnings such as freight, passage money, commissions, or profits derived from
             747      transporting goods or people upon or across the oceans or inland waterways; or
             748          (d) a vessel owner or operator as a result of liability to employees, passengers, bailors,
             749      owners of other vessels, owners of fixed objects, customs or other authorities, or other persons
             750      in connection with maritime activity.
             751          (115) "Order" means an order of the commissioner.
             752          (116) "Outline of coverage" means a summary that explains an accident and health
             753      insurance policy.
             754          (117) "Participating" means a plan of insurance under which the insured is entitled to
             755      receive dividends representing shares of the surplus of the insurer.
             756          (118) "Participation," as used in a health benefit plan, means a requirement relating to
             757      the minimum percentage of eligible employees that must be enrolled in relation to the total


             758      number of eligible employees of an employer reduced by each eligible employee who
             759      voluntarily declines coverage under the plan because the employee has other group health care
             760      insurance coverage.
             761          (119) "Person" includes an individual, partnership, corporation, incorporated or
             762      unincorporated association, joint stock company, trust, limited liability company, reciprocal,
             763      syndicate, or any similar entity or combination of entities acting in concert.
             764          (120) "Personal lines insurance" means property and casualty insurance coverage sold
             765      for primarily noncommercial purposes to:
             766          (a) individuals; and
             767          (b) families.
             768          (121) "Plan sponsor" is as defined in 29 U.S.C. Sec. 1002(16)(B).
             769          (122) "Plan year" means:
             770          (a) the year that is designated as the plan year in:
             771          (i) the plan document of a group health plan; or
             772          (ii) a summary plan description of a group health plan;
             773          (b) if the plan document or summary plan description does not designate a plan year or
             774      there is no plan document or summary plan description:
             775          (i) the year used to determine deductibles or limits;
             776          (ii) the policy year, if the plan does not impose deductibles or limits on a yearly basis;
             777      or
             778          (iii) the employer's taxable year if:
             779          (A) the plan does not impose deductibles or limits on a yearly basis; and
             780          (B) (I) the plan is not insured; or
             781          (II) the insurance policy is not renewed on an annual basis; or
             782          (c) in a case not described in Subsection (122)(a) or (b), the calendar year.
             783          (123) (a) (i) "Policy" means any document, including attached endorsements and riders,
             784      purporting to be an enforceable contract, which memorializes in writing some or all of the
             785      terms of an insurance contract.


             786          (ii) "Policy" includes a service contract issued by:
             787          (A) a motor club under Chapter 11, Motor Clubs;
             788          (B) a service contract provided under Chapter 6a, Service Contracts; and
             789          (C) a corporation licensed under:
             790          (I) Chapter 7, Nonprofit Health Service Insurance Corporations; or
             791          (II) Chapter 8, Health Maintenance Organizations and Limited Health Plans.
             792          (iii) "Policy" does not include:
             793          (A) a certificate under a group insurance contract; or
             794          (B) a document that does not purport to have legal effect.
             795          (b) (i) "Group insurance policy" means a policy covering a group of persons that is
             796      issued to a policyholder on behalf of the group, for the benefit of group members who are
             797      selected under procedures defined in the policy or in agreements which are collateral to the
             798      policy.
             799          (ii) A group insurance policy may include members of the policyholder's family or
             800      dependents.
             801          (c) "Blanket insurance policy" means a group policy covering classes of persons
             802      without individual underwriting, where the persons insured are determined by definition of the
             803      class with or without designating the persons covered.
             804          (124) "Policyholder" means the person who controls a policy, binder, or oral contract
             805      by ownership, premium payment, or otherwise.
             806          (125) "Policy illustration" means a presentation or depiction that includes
             807      nonguaranteed elements of a policy of life insurance over a period of years.
             808          (126) "Policy summary" means a synopsis describing the elements of a life insurance
             809      policy.
             810          (127) "Preexisting condition," with respect to a health benefit plan:
             811          (a) means a condition that was present before the effective date of coverage, whether or
             812      not any medical advice, diagnosis, care, or treatment was recommended or received before that
             813      day; and


             814          (b) does not include a condition indicated by genetic information unless an actual
             815      diagnosis of the condition by a physician has been made.
             816          (128) (a) "Premium" means the monetary consideration for an insurance policy.
             817          (b) "Premium" includes, however designated:
             818          (i) assessments;
             819          (ii) membership fees;
             820          (iii) required contributions; or
             821          (iv) monetary consideration.
             822          (c) (i) Consideration paid to third party administrators for their services is not
             823      "premium."
             824          (ii) Amounts paid by third party administrators to insurers for insurance on the risks
             825      administered by the third party administrators are "premium."
             826          (129) "Principal officers" of a corporation means the officers designated under
             827      Subsection 31A-5-203 (3).
             828          (130) "Proceedings" includes actions and special statutory proceedings.
             829          (131) "Professional liability insurance" means insurance against legal liability incident
             830      to the practice of a profession and provision of any professional services.
             831          (132) "Property insurance" means insurance against loss or damage to real or personal
             832      property of every kind and any interest in that property, from all hazards or causes, and against
             833      loss consequential upon the loss or damage including vehicle comprehensive and vehicle
             834      physical damage coverages, but excluding inland marine insurance and ocean marine insurance
             835      as defined under Subsections (78) and (114).
             836          (133) "Qualified long-term care insurance contract" or "federally tax qualified
             837      long-term care insurance contract" means:
             838          (a) an individual or group insurance contract that meets the requirements of Section
             839      7702B(b), Internal Revenue Code; or
             840          (b) the portion of a life insurance contract that provides long-term care insurance:
             841          (i) (A) by rider; or


             842          (B) as a part of the contract; and
             843          (ii) that satisfies the requirements of Sections 7702B(b) and (e), Internal Revenue
             844      Code.
             845          (134) "Qualified United States financial institution" means an institution that:
             846          (a) is:
             847          (i) organized under the laws of the United States or any state; or
             848          (ii) in the case of a United States office of a foreign banking organization, licensed
             849      under the laws of the United States or any state;
             850          (b) is regulated, supervised, and examined by United States federal or state authorities
             851      having regulatory authority over banks and trust companies; and
             852          (c) meets the standards of financial condition and standing that are considered
             853      necessary and appropriate to regulate the quality of financial institutions whose letters of credit
             854      will be acceptable to the commissioner as determined by:
             855          (i) the commissioner by rule; or
             856          (ii) the Securities Valuation Office of the National Association of Insurance
             857      Commissioners.
             858          (135) (a) "Rate" means:
             859          (i) the cost of a given unit of insurance; or
             860          (ii) for property-casualty insurance, that cost of insurance per exposure unit either
             861      expressed as:
             862          (A) a single number; or
             863          (B) a pure premium rate, adjusted before any application of individual risk variations
             864      based on loss or expense considerations to account for the treatment of:
             865          (I) expenses;
             866          (II) profit; and
             867          (III) individual insurer variation in loss experience.
             868          (b) "Rate" does not include a minimum premium.
             869          (136) (a) Except as provided in Subsection (136)(b), "rate service organization" means


             870      any person who assists insurers in rate making or filing by:
             871          (i) collecting, compiling, and furnishing loss or expense statistics;
             872          (ii) recommending, making, or filing rates or supplementary rate information; or
             873          (iii) advising about rate questions, except as an attorney giving legal advice.
             874          (b) "Rate service organization" does not mean:
             875          (i) an employee of an insurer;
             876          (ii) a single insurer or group of insurers under common control;
             877          (iii) a joint underwriting group; or
             878          (iv) a natural person serving as an actuarial or legal consultant.
             879          (137) "Rating manual" means any of the following used to determine initial and
             880      renewal policy premiums:
             881          (a) a manual of rates;
             882          (b) classifications;
             883          (c) rate-related underwriting rules; and
             884          (d) rating formulas that describe steps, policies, and procedures for determining initial
             885      and renewal policy premiums.
             886          (138) "Received by the department" means:
             887          (a) except as provided in Subsection (138)(b), the date delivered to and stamped
             888      received by the department, whether delivered:
             889          (i) in person; or
             890          (ii) electronically; and
             891          (b) if delivered to the department by a delivery service, the delivery service's postmark
             892      date or pick-up date unless otherwise stated in:
             893          (i) statute;
             894          (ii) rule; or
             895          (iii) a specific filing order.
             896          (139) "Reciprocal" or "interinsurance exchange" means any unincorporated association
             897      of persons:


             898          (a) operating through an attorney-in-fact common to all of them; and
             899          (b) exchanging insurance contracts with one another that provide insurance coverage
             900      on each other.
             901          (140) "Reinsurance" means an insurance transaction where an insurer, for
             902      consideration, transfers any portion of the risk it has assumed to another insurer. In referring to
             903      reinsurance transactions, this title sometimes refers to:
             904          (a) the insurer transferring the risk as the "ceding insurer"; and
             905          (b) the insurer assuming the risk as the:
             906          (i) "assuming insurer"; or
             907          (ii) "assuming reinsurer."
             908          (141) "Reinsurer" means any person licensed in this state as an insurer with the
             909      authority to assume reinsurance.
             910          (142) "Residential dwelling liability insurance" means insurance against liability
             911      resulting from or incident to the ownership, maintenance, or use of a residential dwelling that is
             912      a detached single family residence or multifamily residence up to four units.
             913          (143) "Retrocession" means reinsurance with another insurer of a liability assumed
             914      under a reinsurance contract. A reinsurer "retrocedes" when it reinsures with another insurer
             915      part of a liability assumed under a reinsurance contract.
             916          (144) "Rider" means an endorsement to:
             917          (a) an insurance policy; or
             918          (b) an insurance certificate.
             919          (145) (a) "Security" means any:
             920          (i) note;
             921          (ii) stock;
             922          (iii) bond;
             923          (iv) debenture;
             924          (v) evidence of indebtedness;
             925          (vi) certificate of interest or participation in any profit-sharing agreement;


             926          (vii) collateral-trust certificate;
             927          (viii) preorganization certificate or subscription;
             928          (ix) transferable share;
             929          (x) investment contract;
             930          (xi) voting trust certificate;
             931          (xii) certificate of deposit for a security;
             932          (xiii) certificate of interest of participation in an oil, gas, or mining title or lease or in
             933      payments out of production under such a title or lease;
             934          (xiv) commodity contract or commodity option;
             935          (xv) any certificate of interest or participation in, temporary or interim certificate for,
             936      receipt for, guarantee of, or warrant or right to subscribe to or purchase any of the items listed
             937      in Subsections (145)(a)(i) through (xiv); or
             938          (xvi) any other interest or instrument commonly known as a security.
             939          (b) "Security" does not include:
             940          (i) any of the following under which an insurance company promises to pay money in a
             941      specific lump sum or periodically for life or some other specified period:
             942          (A) insurance;
             943          (B) endowment policy; or
             944          (C) annuity contract; or
             945          (ii) a burial certificate or burial contract.
             946          (146) "Self-insurance" means any arrangement under which a person provides for
             947      spreading its own risks by a systematic plan.
             948          (a) Except as provided in this Subsection (146), "self-insurance" does not include an
             949      arrangement under which a number of persons spread their risks among themselves.
             950          (b) "Self-insurance" includes:
             951          (i) an arrangement by which a governmental entity undertakes to indemnify its
             952      employees for liability arising out of the employees' employment; and
             953          (ii) an arrangement by which a person with a managed program of self-insurance and


             954      risk management undertakes to indemnify its affiliates, subsidiaries, directors, officers, or
             955      employees for liability or risk which is related to the relationship or employment.
             956          (c) "Self-insurance" does not include any arrangement with independent contractors.
             957          (147) "Sell" means to exchange a contract of insurance:
             958          (a) by any means;
             959          (b) for money or its equivalent; and
             960          (c) on behalf of an insurance company.
             961          (148) "Short-term care insurance" means any insurance policy or rider advertised,
             962      marketed, offered, or designed to provide coverage that is similar to long-term care insurance
             963      but that provides coverage for less than 12 consecutive months for each covered person.
             964          (149) "Significant break in coverage" means a period of 63 consecutive days during
             965      each of which an individual does not have any creditable coverage.
             966          (150) "Small employer," in connection with a health benefit plan, means an employer
             967      who, with respect to a calendar year and to a plan year:
             968          (a) employed an average of at least two employees but not more than 50 eligible
             969      employees on each business day during the preceding calendar year; and
             970          (b) employs at least two employees on the first day of the plan year.
             971          (151) "Special enrollment period," in connection with a health benefit plan, has the
             972      same meaning as provided in federal regulations adopted pursuant to the Health Insurance
             973      Portability and Accountability Act of 1996, Pub. L. No. 104-191, 110 Stat. 1936.
             974          (152) (a) "Subsidiary" of a person means an affiliate controlled by that person either
             975      directly or indirectly through one or more affiliates or intermediaries.
             976          (b) "Wholly owned subsidiary" of a person is a subsidiary of which all of the voting
             977      shares are owned by that person either alone or with its affiliates, except for the minimum
             978      number of shares the law of the subsidiary's domicile requires to be owned by directors or
             979      others.
             980          (153) Subject to Subsection (80)(b), "surety insurance" includes:
             981          (a) a guarantee against loss or damage resulting from failure of principals to pay or


             982      perform their obligations to a creditor or other obligee;
             983          (b) bail bond insurance; and
             984          (c) fidelity insurance.
             985          (154) (a) "Surplus" means the excess of assets over the sum of paid-in capital and
             986      liabilities.
             987          (b) (i) "Permanent surplus" means the surplus of a mutual insurer that has been
             988      designated by the insurer as permanent.
             989          (ii) Sections 31A-5-211 , 31A-7-201 , 31A-8-209 , 31A-9-209 , and 31A-14-209 require
             990      that mutuals doing business in this state maintain specified minimum levels of permanent
             991      surplus.
             992          (iii) Except for assessable mutuals, the minimum permanent surplus requirement is
             993      essentially the same as the minimum required capital requirement that applies to stock insurers.
             994          (c) "Excess surplus" means:
             995          (i) for life or accident and health insurers, health organizations, and property and
             996      casualty insurers as defined in Section 31A-17-601 , the lesser of:
             997          (A) that amount of an insurer's or health organization's total adjusted capital, as defined
             998      in Subsection (157), that exceeds the product of:
             999          (I) 2.5; and
             1000          (II) the sum of the insurer's or health organization's minimum capital or permanent
             1001      surplus required under Section 31A-5-211 , 31A-9-209 , or 31A-14-205 ; or
             1002          (B) that amount of an insurer's or health organization's total adjusted capital, as defined
             1003      in Subsection (157), that exceeds the product of:
             1004          (I) 3.0; and
             1005          (II) the authorized control level RBC as defined in Subsection 31A-17-601 (8)(a); and
             1006          (ii) for monoline mortgage guaranty insurers, financial guaranty insurers, and title
             1007      insurers, that amount of an insurer's paid-in-capital and surplus that exceeds the product of:
             1008          (A) 1.5; and
             1009          (B) the insurer's total adjusted capital required by Subsection 31A-17-609 (1).


             1010          (155) "Third party administrator" or "administrator" means any person who collects
             1011      charges or premiums from, or who, for consideration, adjusts or settles claims of residents of
             1012      the state in connection with insurance coverage, annuities, or service insurance coverage,
             1013      except:
             1014          (a) a union on behalf of its members;
             1015          (b) a person administering any:
             1016          (i) pension plan subject to the federal Employee Retirement Income Security Act of
             1017      1974;
             1018          (ii) governmental plan as defined in Section 414(d), Internal Revenue Code; or
             1019          (iii) nonelecting church plan as described in Section 410(d), Internal Revenue Code;
             1020          (c) an employer on behalf of the employer's employees or the employees of one or
             1021      more of the subsidiary or affiliated corporations of the employer;
             1022          (d) an insurer licensed under Chapter 5, 7, 8, 9, or 14, but only for a line of insurance
             1023      for which the insurer holds a license in this state; or
             1024          (e) a person:
             1025          (i) licensed or exempt from licensing under:
             1026          (A) Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and
             1027      Reinsurance Intermediaries; or
             1028          (B) Chapter 26, Insurance Adjusters; and
             1029          (ii) whose activities are limited to those authorized under the license the person holds
             1030      or for which the person is exempt.
             1031          (156) "Title insurance" means the insuring, guaranteeing, or indemnifying of owners of
             1032      real or personal property or the holders of liens or encumbrances on that property, or others
             1033      interested in the property against loss or damage suffered by reason of liens or encumbrances
             1034      upon, defects in, or the unmarketability of the title to the property, or invalidity or
             1035      unenforceability of any liens or encumbrances on the property.
             1036          (157) "Total adjusted capital" means the sum of an insurer's or health organization's
             1037      statutory capital and surplus as determined in accordance with:


             1038          (a) the statutory accounting applicable to the annual financial statements required to be
             1039      filed under Section 31A-4-113 ; and
             1040          (b) any other items provided by the RBC instructions, as RBC instructions is defined in
             1041      Section 31A-17-601 .
             1042          (158) (a) "Trustee" means "director" when referring to the board of directors of a
             1043      corporation.
             1044          (b) "Trustee," when used in reference to an employee welfare fund, means an
             1045      individual, firm, association, organization, joint stock company, or corporation, whether acting
             1046      individually or jointly and whether designated by that name or any other, that is charged with
             1047      or has the overall management of an employee welfare fund.
             1048          (159) (a) "Unauthorized insurer," "unadmitted insurer," or "nonadmitted insurer"
             1049      means an insurer:
             1050          (i) not holding a valid certificate of authority to do an insurance business in this state;
             1051      or
             1052          (ii) transacting business not authorized by a valid certificate.
             1053          (b) "Admitted insurer" or "authorized insurer" means an insurer:
             1054          (i) holding a valid certificate of authority to do an insurance business in this state; and
             1055          (ii) transacting business as authorized by a valid certificate.
             1056          (160) "Underwrite" means the authority to accept or reject risk on behalf of the insurer.
             1057          (161) "Vehicle liability insurance" means insurance against liability resulting from or
             1058      incident to ownership, maintenance, or use of any land vehicle or aircraft, exclusive of vehicle
             1059      comprehensive and vehicle physical damage coverages under Subsection (132).
             1060          (162) "Voting security" means a security with voting rights, and includes any security
             1061      convertible into a security with a voting right associated with the security.
             1062          (163) "Waiting period" for a health benefit plan means the period that must pass before
             1063      coverage for an individual, who is otherwise eligible to enroll under the terms of the health
             1064      benefit plan, can become effective.
             1065          (164) "Workers' compensation insurance" means:


             1066          (a) insurance for indemnification of employers against liability for compensation based
             1067      on:
             1068          (i) compensable accidental injuries; and
             1069          (ii) occupational disease disability;
             1070          (b) employer's liability insurance incidental to workers' compensation insurance and
             1071      written in connection with workers' compensation insurance; and
             1072          (c) insurance assuring to the persons entitled to workers' compensation benefits the
             1073      compensation provided by law.
             1074          Section 2. Section 31A-35-504 is amended to read:
             1075           31A-35-504. Failure to pay bail bond forfeiture -- Grounds for suspension and
             1076      revocation of bail bond surety license.
             1077          (1) As used in this section:
             1078          (a) "Company" means a bail bond surety company.
             1079          (b) "Judgment" means a judgment of bond forfeiture issued under Section 77-20b-104 .
             1080          (2) (a) (i) A company shall pay a judgment not later than 15 days following service of
             1081      notice upon the company from a prosecutor of the entry of the judgment.
             1082          (ii) A company may pay a bond forfeiture to the court prior to judgment.
             1083          (b) A prosecutor who does not receive proof of or notice of payment of the judgment
             1084      within 15 days after the service of notice to the company of a judgment shall notify the
             1085      commissioner of the failure to pay the judgment.
             1086          (c) If notice of entry of judgment is served upon the company by mail, three additional
             1087      days are added to the 15 days provided in Subsections (2)(a), (2)(b), and (2)(d).
             1088          (d) A prosecutor may not proceed under Subsection (2)(b) if a company [provides
             1089      notice of], within 15 days after service of notice of the entry of judgment is served:
             1090          (i) files a motion to set aside the judgment or [notice of] files an application for an
             1091      extraordinary writ [filed within 15 days after the day on which service of notice of the entry of
             1092      a judgment is served.]; and
             1093          (ii) provides proof that the surety has posted the judgment amount with the court in the


             1094      form of cash, a cashier's check, or certified funds.
             1095          (e) [For purposes of] As used in this section, the filing of the following [shall toll] tolls
             1096      the time within which a company is required to pay a judgment if the motion or application is
             1097      filed within 15 days after the day on which service of notice of the entry of a judgment is
             1098      served:
             1099          (i) a motion to set aside a judgment; or
             1100          (ii) an application for extraordinary writ.
             1101          (3) The commissioner shall suspend the license of the company not later than five days
             1102      following receipt of notice from a prosecutor of the company's failure to pay the judgment.
             1103          (4) If the prosecutor receives proof of or notice of payment of the judgment during the
             1104      suspension period under Subsection (3), the prosecutor shall immediately notify the
             1105      commissioner of the payment. The notice shall be in writing and by the most expeditious
             1106      means possible, including facsimile or other electronic means.
             1107          (5) The commissioner shall lift a suspension under Subsection (3) within five days of
             1108      the day on which all of the following conditions are met:
             1109          (a) the suspension has been in place for no fewer than 14 days;
             1110          (b) the commissioner has received written notice of payment of the unpaid forfeiture
             1111      from the prosecutor; and
             1112          (c) the commissioner has received:
             1113          (i) no other notice of any unpaid forfeiture from a prosecutor; or
             1114          (ii) if a notice of unpaid forfeiture is received, written notice from the prosecutor that
             1115      the unpaid forfeiture has been paid.
             1116          (6) The commissioner shall commence an administrative proceeding and revoke the
             1117      license of a company that fails to meet the conditions under Subsection (5) within 60 days
             1118      following the initial date of suspension.
             1119          (7) This section does not restrict or otherwise affect the rights of a prosecutor to
             1120      commence collection proceedings under Subsection 77-20b-104 (5).
             1121          Section 3. Section 77-20-7 is amended to read:


             1122           77-20-7. Duration of liability on undertaking -- Notices to sureties -- Exoneration
             1123      if charges not filed.
             1124          (1) (a) The principal and the sureties on the written undertaking are liable [thereon] on
             1125      the undertaking during all proceedings and for all court appearances required of the defendant
             1126      up to and including the surrender of the defendant in execution of any sentence imposed
             1127      irrespective of any contrary provision in the undertaking. [(2) Notice of any required
             1128      appearance by the defendant may be given by the court to the sureties who shall thereupon
             1129      cause the defendant's appearance as required.] Any failure of the defendant to appear up to and
             1130      including execution of sentence when required is a breach of the conditions of the undertaking
             1131      or bail and subjects it to forfeiture irrespective of whether or not notice of appearance was
             1132      given to the sureties.
             1133          (b) For purposes of this section, an order of the court accepting a plea in abeyance
             1134      agreement and holding that plea in abeyance pursuant to Title 77, Chapter 2a, Pleas in
             1135      Abeyance, is considered to be the same as a sentencing upon a guilty plea.
             1136          (c) Any suspended or deferred sentencing is not the responsibility of the surety and the
             1137      bond is exonerated without any motion, upon acceptance of the court and the defendant of a
             1138      plea in abeyance, probation, fine payments, post sentencing reviews, or any other deferred
             1139      sentencing reviews or any other deferred sentencing agreement.
             1140          (d) If a surety issues a bond after the execution of sentence, the surety is liable on the
             1141      undertaking during all proceedings and for all court appearances required of the defendant up
             1142      to and including the next execution of sentence imposed under Subsection 77-20-7 (1).
             1143          [(3)] (2) If no information or indictment charging a person with an offense is filed in
             1144      court within 120 days after the date of the bail undertaking or cash receipt, the court may
             1145      relieve a person from conditions of release at the person's request, and the bond or undertaking
             1146      is exonerated without further order of the court unless the prosecutor requests an extension of
             1147      time before the end of the 120-day period by:
             1148          (a) filing a notice for extension with the court; and
             1149          (b) serving the notice for extension upon the sureties and the person or his attorney.


             1150          [(4)] (3) A court may extend bail and conditions of release for good cause.
             1151          [(5)] (4) Subsection [(3)] (2) does not prohibit the filing of charges against a person at
             1152      any time.
             1153          Section 4. Section 77-20b-101 is amended to read:
             1154           77-20b-101. Entry of nonappearance -- Notice to surety -- Release of surety on
             1155      failure of timely notice.
             1156          (1) If a defendant who has posted bail fails to appear before the appropriate court when
             1157      required and the court [issues] chooses to order forfeiture of the bail, the court shall issue a
             1158      bench warrant [or directs] that includes the original case number. The court shall also direct
             1159      that the surety be given notice of the nonappearance[, the]. The clerk of the court shall:
             1160          (a) mail notice of nonappearance by certified mail, return receipt requested, within 30
             1161      days to the address of the surety [who posted the bond] or its agent as listed on the bond;
             1162          (b) notify the surety or its agent as listed on the bond of the name, address, telephone
             1163      number, and fax number of the prosecutor;
             1164          (c) deliver a copy of the notice sent under Subsection (1)(a) to the prosecutor's office at
             1165      the same time notice is sent under Subsection (1)(a); and
             1166          (d) ensure that the name, address, and telephone number of the surety or its agent as
             1167      listed on the bond is stated on the bench warrant.
             1168          (2) The prosecutor may mail notice of nonappearance by certified mail, return receipt
             1169      requested, to the address of the surety or its agent as listed on the bond within 37 days after the
             1170      date of the defendant's failure to appear.
             1171          (3) If notice of nonappearance is not mailed to a surety or its agent as listed on the
             1172      bond, other than the defendant, in accordance with Subsection (1) or (2), the surety is relieved
             1173      of further obligation under the bond if the surety's current name and address or the current
             1174      name and address of the surety's agent are on the bail bond in the court's file.
             1175          (4) (a) (i) If a defendant appears in court within seven days after a missed, scheduled
             1176      court appearance, [even though the court has ordered the bond forfeited,] the court may
             1177      reinstate the bond without further notice to the bond company.


             1178          (ii) If the defendant, while in custody, appears on the case for which the bond was
             1179      posted, the court may not reinstate the bond without the consent of the bond company.
             1180          (b) If a defendant fails to appear within seven days after a scheduled court appearance
             1181      [and the court has ordered the bond forfeited], the court may not reinstate the bond without the
             1182      consent of the surety.
             1183          (c) If the defendant is arrested and booked into a county jail booking facility pursuant
             1184      to a warrant for failure to appear on the original charges, the surety may file a motion with the
             1185      court to exonerate the bond. The surety shall deliver a copy of the motion to the prosecutor.
             1186          (d) Unless the court makes a finding of good cause why the bond should not be
             1187      exonerated, it shall exonerate the bond if:
             1188          (i) the surety has delivered the defendant to the county jail booking facility in the
             1189      county where the original charge is pending;
             1190          (ii) the defendant has been released on a bond secured from a subsequent surety for the
             1191      original charge and the failure to appear;
             1192          (iii) after an arrest, the defendant has escaped from jail or has been released on the
             1193      defendant's own recognizance, pursuant to a pretrial release, under a court order regulating jail
             1194      capacity, or by a sheriff's release under Section 17-22-5.5 ; [or]
             1195          (iv) the surety has transported or agreed to pay for the transportation of the defendant
             1196      from a location outside of the county back to the county where the original charge is pending,
             1197      and the payment is in an amount equal to government transportation expenses listed in Section
             1198      76-3-201 [.]; or
             1199          (v) the surety demonstrates by a preponderance of the evidence that:
             1200          (A) at the time the surety issued the bond, it had made reasonable efforts to determine
             1201      that the defendant was legally present in the United States;
             1202          (B) a reasonable person would have concluded, based on the surety's determination,
             1203      that the defendant was legally present in the United States; and
             1204          (C) the surety has failed to bring the defendant before the court because the defendant
             1205      is in federal custody or has been deported.


             1206          (e) Under circumstances not otherwise provided for in this section, the court may
             1207      exonerate the bond if it finds that the prosecutor has been given reasonable notice of a surety's
             1208      motion and there is good cause for the bond to be exonerated.
             1209          (f) If a surety's bond has been exonerated under this section and the surety remains
             1210      liable for the cost of transportation of the defendant, the surety may take custody of the
             1211      defendant for the purpose of transporting the defendant to the jurisdiction where the charge is
             1212      pending.
             1213          Section 5. Section 77-20b-104 is amended to read:
             1214           77-20b-104. Forfeiture of bail.
             1215          (1) If a surety fails to bring the defendant before the court within the time provided in
             1216      Section 77-20b-102 , the prosecuting attorney may request the forfeiture of the bail by:
             1217          (a) filing a motion for bail forfeiture with the court, supported by proof of notice to the
             1218      surety of the defendant's nonappearance; and
             1219          (b) mailing a copy of the motion to the surety.
             1220          (2) A court shall enter judgment of bail forfeiture without further notice if it finds by a
             1221      preponderance of the evidence:
             1222          (a) the defendant failed to appear as required;
             1223          (b) the surety was given notice of the defendant's nonappearance in accordance with
             1224      Section 77-20b-101 ;
             1225          (c) the surety failed to bring the defendant to the court within the six-month period
             1226      under Section 77-20b-102 ; and
             1227          (d) the prosecutor has complied with the notice requirements under Subsection (1).
             1228          (3) If the surety shows by a preponderance of the evidence that it has failed to bring the
             1229      defendant before the court because the defendant is deceased through no act of the surety, the
             1230      court may not enter judgment of bail forfeiture and the bond is exonerated.
             1231          (4) The amount of bail forfeited is the face amount of the bail bond, but if the
             1232      defendant is in the custody of another jurisdiction and the state extradites or intends to extradite
             1233      the defendant, the court may reduce the amount forfeited to the actual or estimated costs of


             1234      returning the defendant to the court's jurisdiction. A judgment under [this] Subsection [(4)] (5)
             1235      shall:
             1236          (a) identify the surety against whom judgment is granted;
             1237          (b) specify the amount of bail forfeited;
             1238          (c) grant the forfeiture of the bail; and
             1239          (d) be docketed by the clerk of the court in the civil judgment docket.
             1240          (5) A prosecutor may immediately commence collection proceedings to execute a
             1241      judgment of bond forfeiture against the assets of the surety.
             1242          Section 6. Section 77-20b-105 is enacted to read:
             1243          77-20b-105. Revocation of bond.
             1244          The surety is entitled to obtain the exoneration of its bond prior to judgment by
             1245      providing written proof to the court and the prosecutor that:
             1246          (1) the defendant has been booked for failure to appear regarding the charge for which
             1247      the bond was issued; or
             1248          (2) the defendant is in custody and the surety has served the defendant's bond
             1249      revocation on the custodial authority.
             1250          Section 7. Coordinating H.B. 403 with H.B. 272 -- Superseding amendments.
             1251          If this H.B. 403 and H.B. 272, Insurance Law Amendments, both pass, it is the intent of
             1252      the Legislature that the amendments to Subsection 31A-1-301 (12) in this bill supersede the
             1253      amendments to Subsection 31A-1-301 (12) in H.B. 272 when the Office of Legislative
             1254      Research and General Counsel prepares the Utah Code database for publication.


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