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First Substitute H.B. 39

This document includes Senate 3rd Reading Floor Amendments incorporated into the bill on Thu, Feb 18, 2010 at 11:43 AM by rday. -->

Senator Wayne L. Niederhauser proposes the following substitute bill:


             1     
INSURANCE RELATED AMENDMENTS

             2     
2010 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: James A. Dunnigan

             5     
Senate Sponsor: Wayne L. Niederhauser

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Insurance Code and related provisions to make various
             10      amendments.
             11      Highlighted Provisions:
             12          This bill:
             13          .    modifies definitions;
             14          .    addresses fees, nonlapsing money, and the creation of restricted accounts;
             15          .    removes outdated language related to reporting;
             16          .    allows a member of the Title and Escrow Commission to continue to serve until
             17      replaced;
             18          .    modifies duties of the Title and Escrow Commission;
             19          .    modifies provisions related to variable contract law;
             20          .    modifies provisions related to approval of forms;
             21          .    addresses requirements for purchasing groups;
             22          .    clarifies language related to underinsured motorist coverage;
             22a      S.     .    addresses dependent coverage; .S
             23          .    modifies provisions related to catastrophic coverage of mental health conditions;
             24          .    addresses issuance of group or blanket accident and health insurance;
             25          .    modifies Utah's mini-COBRA provisions;


             26          .    addresses special enrollment periods relating to Medicaid and Children's Health
             27      Insurance Program;
             28          .    addresses provisions related to licensure and insurance adjusting;
             29          .    addresses licensee compensation;
             30          .    modifies definitions related to life settlements;
             31          .    provides for rulemaking and other processes related to surrender of a professional
             32      employer organization license;
             33          .    addresses the board of directors for the Utah Defined Contribution Risk Adjuster;
             34      and
             35          .    makes technical and conforming amendments.
             36      Monies Appropriated in this Bill:
             37          None
             38      Other Special Clauses:
             39          This bill provides an effective date S. and limited retrospective operation. .S .
             40      Utah Code Sections Affected:
             41      AMENDS:
             42          31A-1-301, as last amended by Laws of Utah 2009, Chapter 349
             43          31A-2-403, as last amended by Laws of Utah 2008, Chapter 345
             44          31A-2-404, as last amended by Laws of Utah 2008, Chapter 382
             45          31A-3-103, as last amended by Laws of Utah 2009, Chapters 183 and 368
             46          31A-3-104, as last amended by Laws of Utah 2006, Chapter 117
             47          31A-3-304 (Superseded 07/01/10), as last amended by Laws of Utah 2009, Chapter
             48      183
             49          31A-3-304 (Effective 07/01/10), as last amended by Laws of Utah 2009, Chapter 183
             50          31A-5-217.5, as enacted by Laws of Utah 1992, Chapter 230
             51          31A-15-208, as enacted by Laws of Utah 1992, Chapter 258
             52          31A-20-106, as enacted by Laws of Utah 1985, Chapter 242
             53          31A-21-201, as last amended by Laws of Utah 2005, Chapter 123
             54          31A-21-301, as last amended by Laws of Utah 2001, Chapter 116
             55          31A-22-305.3, as last amended by Laws of Utah 2009, Chapter 231
             56          31A-22-411, as last amended by Laws of Utah 1991, Chapter 74
             56a      S.     31A-22-610.5, as last amended by Laws of Utah 2008, Chapter 3 .S


             57          31A-22-625, as last amended by Laws of Utah 2008, Chapters 345 and 382
             58          31A-22-701, as last amended by Laws of Utah 2007, Chapter 307
             59          31A-22-722, as last amended by Laws of Utah 2009, Chapter 12
             60          31A-22-722.5, as enacted by Laws of Utah 2009, Chapter 274
             61          31A-23a-415, as last amended by Laws of Utah 2007, Chapter 325
             62          31A-23a-501, as last amended by Laws of Utah 2009, Chapters 12 and 274
             63          31A-26-201, as last amended by Laws of Utah 2003, Chapter 298
             64          31A-35-401, as last amended by Laws of Utah 2009, Chapter 183
             65          31A-35-406, as last amended by Laws of Utah 2009, Chapters 183 and 349
             66          31A-36-102, as last amended by Laws of Utah 2009, Chapter 355
             67          31A-40-103, as enacted by Laws of Utah 2008, Chapter 318
             68          31A-40-302, as enacted by Laws of Utah 2008, Chapter 318
             69          31A-42-201, as enacted by Laws of Utah 2009, Chapter 12
             70          63J-1-602, as enacted by Laws of Utah 2009, Chapter 368
             71      ENACTS:
             72          31A-3-105, Utah Code Annotated 1953
             73          31A-22-725, Utah Code Annotated 1953
             74          31A-40-307, Utah Code Annotated 1953
             75      Uncodified Material Affected:
             76      ENACTS UNCODIFIED MATERIAL
             77     
             78      Be it enacted by the Legislature of the state of Utah:
             79          Section 1. Section 31A-1-301 is amended to read:
             80           31A-1-301. Definitions.
             81          As used in this title, unless otherwise specified:
             82          (1) (a) "Accident and health insurance" means insurance to provide protection against
             83      economic losses resulting from:
             84          (i) a medical condition including:
             85          (A) a medical care expense; or
             86          (B) the risk of disability;
             87          (ii) accident; or


             88          (iii) sickness.
             89          (b) "Accident and health insurance":
             90          (i) includes a contract with disability contingencies including:
             91          (A) an income replacement contract;
             92          (B) a health care contract;
             93          (C) an expense reimbursement contract;
             94          (D) a credit accident and health contract;
             95          (E) a continuing care contract; and
             96          (F) a long-term care contract; and
             97          (ii) may provide:
             98          (A) hospital coverage;
             99          (B) surgical coverage;
             100          (C) medical coverage;
             101          (D) loss of income coverage;
             102          (E) prescription drug coverage;
             103          (F) dental coverage; or
             104          (G) vision coverage.
             105          (c) "Accident and health insurance" does not include workers' compensation insurance.
             106          (2) "Actuary" is as defined by the commissioner by rule, made in accordance with Title
             107      63G, Chapter 3, Utah Administrative Rulemaking Act.
             108          (3) "Administrator" is defined in Subsection (159).
             109          (4) "Adult" means an individual who has attained the age of at least 18 years.
             110          (5) "Affiliate" means a person who controls, is controlled by, or is under common
             111      control with, another person. A corporation is an affiliate of another corporation, regardless of
             112      ownership, if substantially the same group of individuals manage the corporations.
             113          (6) "Agency" means:
             114          (a) a person other than an individual, including a sole proprietorship by which an
             115      individual does business under an assumed name; and
             116          (b) an insurance organization licensed or required to be licensed under Section
             117      31A-23a-301 .
             118          (7) "Alien insurer" means an insurer domiciled outside the United States.


             119          (8) "Amendment" means an endorsement to an insurance policy or certificate.
             120          (9) "Annuity" means an agreement to make periodical payments for a period certain or
             121      over the lifetime of one or more individuals if the making or continuance of all or some of the
             122      series of the payments, or the amount of the payment, is dependent upon the continuance of
             123      human life.
             124          (10) "Application" means a document:
             125          (a) (i) completed by an applicant to provide information about the risk to be insured;
             126      and
             127          (ii) that contains information that is used by the insurer to evaluate risk and decide
             128      whether to:
             129          (A) insure the risk under:
             130          (I) the coverage as originally offered; or
             131          (II) a modification of the coverage as originally offered; or
             132          (B) decline to insure the risk; or
             133          (b) used by the insurer to gather information from the applicant before issuance of an
             134      annuity contract.
             135          (11) "Articles" or "articles of incorporation" means:
             136          (a) the original articles;
             137          (b) a special law;
             138          (c) a charter;
             139          (d) an amendment;
             140          (e) restated articles;
             141          (f) articles of merger or consolidation;
             142          (g) a trust instrument;
             143          (h) another constitutive document for a trust or other entity that is not a corporation;
             144      and
             145          (i) an amendment to an item listed in Subsections (11)(a) through (h).
             146          (12) "Bail bond insurance" means a guarantee that a person will attend court when
             147      required, up to and including surrender of the person in execution of a sentence imposed under
             148      Subsection 77-20-7 (1), as a condition to the release of that person from confinement.
             149          (13) "Binder" is defined in Section 31A-21-102 .


             150          (14) "Blanket insurance policy" means a group policy covering a defined class of
             151      persons:
             152          (a) without individual underwriting or application; and
             153          (b) that is determined by definition with or without designating each person covered.
             154          (15) "Board," "board of trustees," or "board of directors" means the group of persons
             155      with responsibility over, or management of, a corporation, however designated.
             156          (16) "Business entity" means:
             157          (a) a corporation;
             158          (b) an association;
             159          (c) a partnership;
             160          (d) a limited liability company;
             161          (e) a limited liability partnership; or
             162          (f) another legal entity.
             163          (17) "Business of insurance" is defined in Subsection (85).
             164          (18) "Business plan" means the information required to be supplied to the
             165      commissioner under Subsections 31A-5-204 (2)(i) and (j), including the information required
             166      when these subsections apply by reference under:
             167          (a) Section 31A-7-201 ;
             168          (b) Section 31A-8-205 ; or
             169          (c) Subsection 31A-9-205 (2).
             170          (19) (a) "Bylaws" means the rules adopted for the regulation or management of a
             171      corporation's affairs, however designated.
             172          (b) "Bylaws" includes comparable rules for a trust or other entity that is not a
             173      corporation.
             174          (20) "Captive insurance company" means:
             175          (a) an insurer:
             176          (i) owned by another organization; and
             177          (ii) whose exclusive purpose is to insure risks of the parent organization and an
             178      affiliated company; or
             179          (b) in the case of a group or association, an insurer:
             180          (i) owned by the insureds; and


             181          (ii) whose exclusive purpose is to insure risks of:
             182          (A) a member organization;
             183          (B) a group member; or
             184          (C) an affiliate of:
             185          (I) a member organization; or
             186          (II) a group member.
             187          (21) "Casualty insurance" means liability insurance.
             188          (22) "Certificate" means evidence of insurance given to:
             189          (a) an insured under a group insurance policy; or
             190          (b) a third party.
             191          (23) "Certificate of authority" is included within the term "license."
             192          (24) "Claim," unless the context otherwise requires, means a request or demand on an
             193      insurer for payment of a benefit according to the terms of an insurance policy.
             194          (25) "Claims-made coverage" means an insurance contract or provision limiting
             195      coverage under a policy insuring against legal liability to claims that are first made against the
             196      insured while the policy is in force.
             197          (26) (a) "Commissioner" or "commissioner of insurance" means Utah's insurance
             198      commissioner.
             199          (b) When appropriate, the terms listed in Subsection (26)(a) apply to the equivalent
             200      supervisory official of another jurisdiction.
             201          (27) (a) "Continuing care insurance" means insurance that:
             202          (i) provides board and lodging;
             203          (ii) provides one or more of the following:
             204          (A) a personal service;
             205          (B) a nursing service;
             206          (C) a medical service; or
             207          (D) any other health-related service; and
             208          (iii) provides the coverage described in this Subsection (27)(a) under an agreement
             209      effective:
             210          (A) for the life of the insured; or
             211          (B) for a period in excess of one year.


             212          (b) Insurance is continuing care insurance regardless of whether or not the board and
             213      lodging are provided at the same location as a service described in Subsection (27)(a)(ii).
             214          (28) (a) "Control," "controlling," "controlled," or "under common control" means the
             215      direct or indirect possession of the power to direct or cause the direction of the management
             216      and policies of a person. This control may be:
             217          (i) by contract;
             218          (ii) by common management;
             219          (iii) through the ownership of voting securities; or
             220          (iv) by a means other than those described in Subsections (28)(a)(i) through (iii).
             221          (b) There is no presumption that an individual holding an official position with another
             222      person controls that person solely by reason of the position.
             223          (c) A person having a contract or arrangement giving control is considered to have
             224      control despite the illegality or invalidity of the contract or arrangement.
             225          (d) There is a rebuttable presumption of control in a person who directly or indirectly
             226      owns, controls, holds with the power to vote, or holds proxies to vote 10% or more of the
             227      voting securities of another person.
             228          (29) "Controlled insurer" means a licensed insurer that is either directly or indirectly
             229      controlled by a producer.
             230          (30) "Controlling person" means a person that directly or indirectly has the power to
             231      direct or cause to be directed, the management, control, or activities of a reinsurance
             232      intermediary.
             233          (31) "Controlling producer" means a producer who directly or indirectly controls an
             234      insurer.
             235          (32) (a) "Corporation" means an insurance corporation, except when referring to:
             236          (i) a corporation doing business:
             237          (A) as:
             238          (I) an insurance producer;
             239          (II) a limited line producer;
             240          (III) a consultant;
             241          (IV) a managing general agent;
             242          (V) a reinsurance intermediary;


             243          (VI) a third party administrator; or
             244          (VII) an adjuster; and
             245          (B) under:
             246          (I) Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and
             247      Reinsurance Intermediaries;
             248          (II) Chapter 25, Third Party Administrators; or
             249          (III) Chapter 26, Insurance Adjusters; or
             250          (ii) a noninsurer that is part of a holding company system under Chapter 16, Insurance
             251      Holding Companies.
             252          (b) "Stock corporation" means a stock insurance corporation.
             253          (c) "Mutual" or "mutual corporation" means a mutual insurance corporation.
             254          (33) (a) "Creditable coverage" has the same meaning as provided in federal regulations
             255      adopted pursuant to the Health Insurance Portability and Accountability Act of 1996, Pub. L.
             256      104-191, 110 Stat. 1936.
             257          (b) "Creditable coverage" includes coverage that is offered through a public health plan
             258      such as:
             259          (i) the Primary Care Network Program under a Medicaid primary care network
             260      demonstration waiver obtained subject to Section 26-18-3 ;
             261          (ii) the Children's Health Insurance Program under Section 26-40-106 ; or
             262          (iii) the Ryan White Program Comprehensive AIDS Resources Emergency Act, Pub. L.
             263      101-381, and Ryan White HIV/AIDS Treatment Modernization Act of 2006, Pub. L. 109-415.
             264          (34) "Credit accident and health insurance" means insurance on a debtor to provide
             265      indemnity for payments coming due on a specific loan or other credit transaction while the
             266      debtor is disabled.
             267          (35) (a) "Credit insurance" means insurance offered in connection with an extension of
             268      credit that is limited to partially or wholly extinguishing that credit obligation.
             269          (b) "Credit insurance" includes:
             270          (i) credit accident and health insurance;
             271          (ii) credit life insurance;
             272          (iii) credit property insurance;
             273          (iv) credit unemployment insurance;


             274          (v) guaranteed automobile protection insurance;
             275          (vi) involuntary unemployment insurance;
             276          (vii) mortgage accident and health insurance;
             277          (viii) mortgage guaranty insurance; and
             278          (ix) mortgage life insurance.
             279          (36) "Credit life insurance" means insurance on the life of a debtor in connection with
             280      an extension of credit that pays a person if the debtor dies.
             281          (37) "Credit property insurance" means insurance:
             282          (a) offered in connection with an extension of credit; and
             283          (b) that protects the property until the debt is paid.
             284          (38) "Credit unemployment insurance" means insurance:
             285          (a) offered in connection with an extension of credit; and
             286          (b) that provides indemnity if the debtor is unemployed for payments coming due on a:
             287          (i) specific loan; or
             288          (ii) credit transaction.
             289          (39) "Creditor" means a person, including an insured, having a claim, whether:
             290          (a) matured;
             291          (b) unmatured;
             292          (c) liquidated;
             293          (d) unliquidated;
             294          (e) secured;
             295          (f) unsecured;
             296          (g) absolute;
             297          (h) fixed; or
             298          (i) contingent.
             299          (40) (a) "Customer service representative" means a person that provides an insurance
             300      service and insurance product information:
             301          (i) for the customer service representative's:
             302          (A) producer; or
             303          (B) consultant employer; and
             304          (ii) to the customer service representative's employer's:


             305          (A) customer;
             306          (B) client; or
             307          (C) organization.
             308          (b) A customer service representative may only operate within the scope of authority of
             309      the customer service representative's producer or consultant employer.
             310          (41) "Deadline" means a final date or time:
             311          (a) imposed by:
             312          (i) statute;
             313          (ii) rule; or
             314          (iii) order; and
             315          (b) by which a required filing or payment must be received by the department.
             316          (42) "Deemer clause" means a provision under this title under which upon the
             317      occurrence of a condition precedent, the commissioner is considered to have taken a specific
             318      action. If the statute so provides, a condition precedent may be the commissioner's failure to
             319      take a specific action.
             320          (43) "Degree of relationship" means the number of steps between two persons
             321      determined by counting the generations separating one person from a common ancestor and
             322      then counting the generations to the other person.
             323          (44) "Department" means the Insurance Department.
             324          (45) "Director" means a member of the board of directors of a corporation.
             325          (46) "Disability" means a physiological or psychological condition that partially or
             326      totally limits an individual's ability to:
             327          (a) perform the duties of:
             328          (i) that individual's occupation; or
             329          (ii) any occupation for which the individual is reasonably suited by education, training,
             330      or experience; or
             331          (b) perform two or more of the following basic activities of daily living:
             332          (i) eating;
             333          (ii) toileting;
             334          (iii) transferring;
             335          (iv) bathing; or


             336          (v) dressing.
             337          (47) "Disability income insurance" is defined in Subsection (76).
             338          (48) "Domestic insurer" means an insurer organized under the laws of this state.
             339          (49) "Domiciliary state" means the state in which an insurer:
             340          (a) is incorporated;
             341          (b) is organized; or
             342          (c) in the case of an alien insurer, enters into the United States.
             343          (50) (a) "Eligible employee" means:
             344          (i) an employee who:
             345          (A) works on a full-time basis; and
             346          (B) has a normal work week of 30 or more hours; or
             347          (ii) a person described in Subsection (50)(b).
             348          (b) "Eligible employee" includes, if the individual is included under a health benefit
             349      plan of a small employer:
             350          (i) a sole proprietor;
             351          (ii) a partner in a partnership; or
             352          (iii) an independent contractor.
             353          (c) "Eligible employee" does not include, unless eligible under Subsection (50)(b):
             354          (i) an individual who works on a temporary or substitute basis for a small employer;
             355          (ii) an employer's spouse; or
             356          (iii) a dependent of an employer.
             357          (51) "Employee" means an individual employed by an employer.
             358          (52) "Employee benefits" means one or more benefits or services provided to:
             359          (a) an employee; or
             360          (b) a dependent of an employee.
             361          (53) (a) "Employee welfare fund" means a fund:
             362          (i) established or maintained, whether directly or through a trustee, by:
             363          (A) one or more employers;
             364          (B) one or more labor organizations; or
             365          (C) a combination of employers and labor organizations; and
             366          (ii) that provides employee benefits paid or contracted to be paid, other than income


             367      from investments of the fund:
             368          (A) by or on behalf of an employer doing business in this state; or
             369          (B) for the benefit of a person employed in this state.
             370          (b) "Employee welfare fund" includes a plan funded or subsidized by a user fee or tax
             371      revenues.
             372          (54) "Endorsement" means a written agreement attached to a policy or certificate to
             373      modify the policy or certificate coverage.
             374          (55) "Enrollment date," with respect to a health benefit plan, means:
             375          (a) the first day of coverage; or
             376          (b) if there is a waiting period, the first day of the waiting period.
             377          (56) (a) "Escrow" means:
             378          (i) a real estate settlement or real estate closing conducted by a third party pursuant to
             379      the requirements of a written agreement between the parties in a real estate transaction; or
             380          (ii) a settlement or closing involving:
             381          (A) a mobile home;
             382          (B) a grazing right;
             383          (C) a water right; or
             384          (D) other personal property authorized by the commissioner.
             385          (b) "Escrow" includes the act of conducting a:
             386          (i) real estate settlement; or
             387          (ii) real estate closing.
             388          (57) "Escrow agent" means:
             389          (a) an insurance producer with:
             390          (i) a title insurance line of authority; and
             391          (ii) an escrow subline of authority; or
             392          (b) a person defined as an escrow agent in Section 7-22-101 .
             393          (58) (a) "Excludes" is not exhaustive and does not mean that another thing is not also
             394      excluded.
             395          (b) The items listed in a list using the term "excludes" are representative examples for
             396      use in interpretation of this title.
             397          (59) "Exclusion" means for the purposes of accident and health insurance that an


             398      insurer does not provide insurance coverage, for whatever reason, for one of the following:
             399          (a) a specific physical condition;
             400          (b) a specific medical procedure;
             401          (c) a specific disease or disorder; or
             402          (d) a specific prescription drug or class of prescription drugs.
             403          (60) "Expense reimbursement insurance" means insurance:
             404          (a) written to provide a payment for an expense relating to hospital confinement
             405      resulting from illness or injury; and
             406          (b) written:
             407          (i) as a daily limit for a specific number of days in a hospital; and
             408          (ii) to have a one or two day waiting period following a hospitalization.
             409          (61) "Fidelity insurance" means insurance guaranteeing the fidelity of a person holding
             410      a position of public or private trust.
             411          (62) (a) "Filed" means that a filing is:
             412          (i) submitted to the department as required by and in accordance with applicable
             413      statute, rule, or filing order;
             414          (ii) received by the department within the time period provided in applicable statute,
             415      rule, or filing order; and
             416          (iii) accompanied by the appropriate fee in accordance with:
             417          (A) Section 31A-3-103 ; or
             418          (B) rule.
             419          (b) "Filed" does not include a filing that is rejected by the department because it is not
             420      submitted in accordance with Subsection (62)(a).
             421          (63) "Filing," when used as a noun, means an item required to be filed with the
             422      department including:
             423          (a) a policy;
             424          (b) a rate;
             425          (c) a form;
             426          (d) a document;
             427          (e) a plan;
             428          (f) a manual;


             429          (g) an application;
             430          (h) a report;
             431          (i) a certificate;
             432          (j) an endorsement;
             433          (k) an actuarial certification;
             434          (l) a licensee annual statement;
             435          (m) a licensee renewal application;
             436          (n) an advertisement; or
             437          (o) an outline of coverage.
             438          (64) "First party insurance" means an insurance policy or contract in which the insurer
             439      agrees to pay a claim submitted to it by the insured for the insured's losses.
             440          (65) "Foreign insurer" means an insurer domiciled outside of this state, including an
             441      alien insurer.
             442          (66) (a) "Form" means one of the following prepared for general use:
             443          (i) a policy;
             444          (ii) a certificate;
             445          (iii) an application;
             446          (iv) an outline of coverage; or
             447          (v) an endorsement.
             448          (b) "Form" does not include a document specially prepared for use in an individual
             449      case.
             450          (67) "Franchise insurance" means an individual insurance policy provided through a
             451      mass marketing arrangement involving a defined class of persons related in some way other
             452      than through the purchase of insurance.
             453          (68) "General lines of authority" include:
             454          (a) the general lines of insurance in Subsection (69);
             455          (b) title insurance under one of the following sublines of authority:
             456          (i) search, including authority to act as a title marketing representative;
             457          (ii) escrow, including authority to act as a title marketing representative; and
             458          (iii) title marketing representative only;
             459          (c) surplus lines;


             460          (d) workers' compensation; and
             461          (e) any other line of insurance that the commissioner considers necessary to recognize
             462      in the public interest.
             463          (69) "General lines of insurance" include:
             464          (a) accident and health;
             465          (b) casualty;
             466          (c) life;
             467          (d) personal lines;
             468          (e) property; and
             469          (f) variable contracts, including variable life and annuity.
             470          (70) "Group health plan" means an employee welfare benefit plan to the extent that the
             471      plan provides medical care:
             472          (a) (i) to an employee; or
             473          (ii) to a dependent of an employee; and
             474          (b) (i) directly;
             475          (ii) through insurance reimbursement; or
             476          (iii) through another method.
             477          (71) (a) "Group insurance policy" means a policy covering a group of persons that is
             478      issued:
             479          (i) to a policyholder on behalf of the group; and
             480          (ii) for the benefit of a member of the group who is selected under a procedure defined
             481      in:
             482          (A) the policy; or
             483          (B) an agreement that is collateral to the policy.
             484          (b) A group insurance policy may include a member of the policyholder's family or a
             485      dependent.
             486          (72) "Guaranteed automobile protection insurance" means insurance offered in
             487      connection with an extension of credit that pays the difference in amount between the
             488      insurance settlement and the balance of the loan if the insured automobile is a total loss.
             489          (73) (a) Except as provided in Subsection (73)(b), "health benefit plan" means a policy
             490      or certificate that:


             491          (i) provides health care insurance;
             492          (ii) provides major medical expense insurance; or
             493          (iii) is offered as a substitute for hospital or medical expense insurance, such as:
             494          (A) a hospital confinement indemnity; or
             495          (B) a limited benefit plan.
             496          (b) "Health benefit plan" does not include a policy or certificate that:
             497          (i) provides benefits solely for:
             498          (A) accident;
             499          (B) dental;
             500          (C) income replacement;
             501          (D) long-term care;
             502          (E) a Medicare supplement;
             503          (F) a specified disease;
             504          (G) vision; or
             505          (H) a short-term limited duration; or
             506          (ii) is offered and marketed as supplemental health insurance.
             507          (74) "Health care" means any of the following intended for use in the diagnosis,
             508      treatment, mitigation, or prevention of a human ailment or impairment:
             509          (a) a professional service;
             510          (b) a personal service;
             511          (c) a facility;
             512          (d) equipment;
             513          (e) a device;
             514          (f) supplies; or
             515          (g) medicine.
             516          (75) (a) "Health care insurance" or "health insurance" means insurance providing:
             517          (i) a health care benefit; or
             518          (ii) payment of an incurred health care expense.
             519          (b) "Health care insurance" or "health insurance" does not include accident and health
             520      insurance providing a benefit for:
             521          (i) replacement of income;


             522          (ii) short-term accident;
             523          (iii) fixed indemnity;
             524          (iv) credit accident and health;
             525          (v) supplements to liability;
             526          (vi) workers' compensation;
             527          (vii) automobile medical payment;
             528          (viii) no-fault automobile;
             529          (ix) equivalent self-insurance; or
             530          (x) a type of accident and health insurance coverage that is a part of or attached to
             531      another type of policy.
             532          (76) "Income replacement insurance" or "disability income insurance" means insurance
             533      written to provide payments to replace income lost from accident or sickness.
             534          (77) "Indemnity" means the payment of an amount to offset all or part of an insured
             535      loss.
             536          (78) "Independent adjuster" means an insurance adjuster required to be licensed under
             537      Section 31A-26-201 who engages in insurance adjusting as a representative of an insurer.
             538          (79) "Independently procured insurance" means insurance procured under Section
             539      31A-15-104 .
             540          (80) "Individual" means a natural person.
             541          (81) "Inland marine insurance" includes insurance covering:
             542          (a) property in transit on or over land;
             543          (b) property in transit over water by means other than boat or ship;
             544          (c) bailee liability;
             545          (d) fixed transportation property such as bridges, electric transmission systems, radio
             546      and television transmission towers and tunnels; and
             547          (e) personal and commercial property floaters.
             548          (82) "Insolvency" means that:
             549          (a) an insurer is unable to pay its debts or meet its obligations as the debts and
             550      obligations mature;
             551          (b) an insurer's total adjusted capital is less than the insurer's mandatory control level
             552      RBC under Subsection 31A-17-601 (8)(c); or


             553          (c) an insurer is determined to be hazardous under this title.
             554          (83) (a) "Insurance" means:
             555          (i) an arrangement, contract, or plan for the transfer of a risk or risks from one or more
             556      persons to one or more other persons; or
             557          (ii) an arrangement, contract, or plan for the distribution of a risk or risks among a
             558      group of persons that includes the person seeking to distribute that person's risk.
             559          (b) "Insurance" includes:
             560          (i) a risk distributing arrangement providing for compensation or replacement for
             561      damages or loss through the provision of a service or a benefit in kind;
             562          (ii) a contract of guaranty or suretyship entered into by the guarantor or surety as a
             563      business and not as merely incidental to a business transaction; and
             564          (iii) a plan in which the risk does not rest upon the person who makes an arrangement,
             565      but with a class of persons who have agreed to share the risk.
             566          (84) "Insurance adjuster" means a person who directs the investigation, negotiation, or
             567      settlement of a claim under an insurance policy other than life insurance or an annuity, on
             568      behalf of an insurer, policyholder, or a claimant under an insurance policy.
             569          (85) "Insurance business" or "business of insurance" includes:
             570          (a) providing health care insurance by an organization that is or is required to be
             571      licensed under this title;
             572          (b) providing a benefit to an employee in the event of a contingency not within the
             573      control of the employee, in which the employee is entitled to the benefit as a right, which
             574      benefit may be provided either:
             575          (i) by a single employer or by multiple employer groups; or
             576          (ii) through one or more trusts, associations, or other entities;
             577          (c) providing an annuity:
             578          (i) including an annuity issued in return for a gift; and
             579          (ii) except an annuity provided by a person specified in Subsections 31A-22-1305 (2)
             580      and (3);
             581          (d) providing the characteristic services of a motor club as outlined in Subsection
             582      (113);
             583          (e) providing another person with insurance;


             584          (f) making as insurer, guarantor, or surety, or proposing to make as insurer, guarantor,
             585      or surety, a contract or policy of title insurance;
             586          (g) transacting or proposing to transact any phase of title insurance, including:
             587          (i) solicitation;
             588          (ii) negotiation preliminary to execution;
             589          (iii) execution of a contract of title insurance;
             590          (iv) insuring; [and]
             591          (v) transacting matters subsequent to the execution of the contract and arising out of
             592      the contract, including reinsurance; and
             593          (vi) transacting or proposing a life settlement; and
             594          (h) doing, or proposing to do, any business in substance equivalent to Subsections
             595      (85)(a) through (g) in a manner designed to evade this title.
             596          (86) "Insurance consultant" or "consultant" means a person who:
             597          (a) advises another person about insurance needs and coverages;
             598          (b) is compensated by the person advised on a basis not directly related to the insurance
             599      placed; and
             600          (c) except as provided in Section 31A-23a-501 , is not compensated directly or
             601      indirectly by an insurer or producer for advice given.
             602          (87) "Insurance holding company system" means a group of two or more affiliated
             603      persons, at least one of whom is an insurer.
             604          (88) (a) "Insurance producer" or "producer" means a person licensed or required to be
             605      licensed under the laws of this state to sell, solicit, or negotiate insurance.
             606          (b) With regards to the selling, soliciting, or negotiating of an insurance product to an
             607      insurance customer or an insured:
             608          (i) "producer for the insurer" means a producer who is compensated directly or
             609      indirectly by an insurer for selling, soliciting, or negotiating a product of that insurer; and
             610          (ii) "producer for the insured" means a producer who:
             611          (A) is compensated directly and only by an insurance customer or an insured; and
             612          (B) receives no compensation directly or indirectly from an insurer for selling,
             613      soliciting, or negotiating a product of that insurer to an insurance customer or insured.
             614          (89) (a) "Insured" means a person to whom or for whose benefit an insurer makes a


             615      promise in an insurance policy and includes:
             616          (i) a policyholder;
             617          (ii) a subscriber;
             618          (iii) a member; and
             619          (iv) a beneficiary.
             620          (b) The definition in Subsection (89)(a):
             621          (i) applies only to this title; and
             622          (ii) does not define the meaning of this word as used in an insurance policy or
             623      certificate.
             624          (90) (a) "Insurer" means a person doing an insurance business as a principal including:
             625          (i) a fraternal benefit society;
             626          (ii) an issuer of a gift annuity other than an annuity specified in Subsections
             627      31A-22-1305 (2) and (3);
             628          (iii) a motor club;
             629          (iv) an employee welfare plan; and
             630          (v) a person purporting or intending to do an insurance business as a principal on that
             631      person's own account.
             632          (b) "Insurer" does not include a governmental entity to the extent the governmental
             633      entity is engaged in an activity described in Section 31A-12-107 .
             634          (91) "Interinsurance exchange" is defined in Subsection (142).
             635          (92) "Involuntary unemployment insurance" means insurance:
             636          (a) offered in connection with an extension of credit; and
             637          (b) that provides indemnity if the debtor is involuntarily unemployed for payments
             638      coming due on a:
             639          (i) specific loan; or
             640          (ii) credit transaction.
             641          (93) "Large employer," in connection with a health benefit plan, means an employer
             642      who, with respect to a calendar year and to a plan year:
             643          (a) employed an average of at least 51 eligible employees on each business day during
             644      the preceding calendar year; and
             645          (b) employs at least two employees on the first day of the plan year.


             646          (94) "Late enrollee," with respect to an employer health benefit plan, means an
             647      individual whose enrollment is a late enrollment.
             648          (95) "Late enrollment," with respect to an employer health benefit plan, means
             649      enrollment of an individual other than:
             650          (a) on the earliest date on which coverage can become effective for the individual
             651      under the terms of the plan; or
             652          (b) through special enrollment.
             653          (96) (a) Except for a retainer contract or legal assistance described in Section
             654      31A-1-103 , "legal expense insurance" means insurance written to indemnify or pay for a
             655      specified legal expense.
             656          (b) "Legal expense insurance" includes an arrangement that creates a reasonable
             657      expectation of an enforceable right.
             658          (c) "Legal expense insurance" does not include the provision of, or reimbursement for,
             659      legal services incidental to other insurance coverage.
             660          (97) (a) "Liability insurance" means insurance against liability:
             661          (i) for death, injury, or disability of a human being, or for damage to property,
             662      exclusive of the coverages under:
             663          (A) Subsection (107) for medical malpractice insurance;
             664          (B) Subsection (134) for professional liability insurance; and
             665          (C) Subsection (168) for workers' compensation insurance;
             666          (ii) for a medical, hospital, surgical, and funeral benefit to a person other than the
             667      insured who is injured, irrespective of legal liability of the insured, when issued with or
             668      supplemental to insurance against legal liability for the death, injury, or disability of a human
             669      being, exclusive of the coverages under:
             670          (A) Subsection (107) for medical malpractice insurance;
             671          (B) Subsection (134) for professional liability insurance; and
             672          (C) Subsection (168) for workers' compensation insurance;
             673          (iii) for loss or damage to property resulting from an accident to or explosion of a
             674      boiler, pipe, pressure container, machinery, or apparatus;
             675          (iv) for loss or damage to property caused by:
             676          (A) the breakage or leakage of a sprinkler, water pipe, or water container; or


             677          (B) water entering through a leak or opening in a building; or
             678          (v) for other loss or damage properly the subject of insurance not within another kind
             679      of insurance as defined in this chapter, if the insurance is not contrary to law or public policy.
             680          (b) "Liability insurance" includes:
             681          (i) vehicle liability insurance;
             682          (ii) residential dwelling liability insurance; and
             683          (iii) making inspection of, and issuing a certificate of inspection upon, an elevator,
             684      boiler, machinery, or apparatus of any kind when done in connection with insurance on the
             685      elevator, boiler, machinery, or apparatus.
             686          (98) (a) "License" means authorization issued by the commissioner to engage in an
             687      activity that is part of or related to the insurance business.
             688          (b) "License" includes a certificate of authority issued to an insurer.
             689          (99) (a) "Life insurance" means:
             690          (i) insurance on a human life; and
             691          (ii) insurance pertaining to or connected with human life.
             692          (b) The business of life insurance includes:
             693          (i) granting a death benefit;
             694          (ii) granting an annuity benefit;
             695          (iii) granting an endowment benefit;
             696          (iv) granting an additional benefit in the event of death by accident;
             697          (v) granting an additional benefit to safeguard the policy against lapse; and
             698          (vi) providing an optional method of settlement of proceeds.
             699          (100) "Limited license" means a license that:
             700          (a) is issued for a specific product of insurance; and
             701          (b) limits an individual or agency to transact only for that product or insurance.
             702          (101) "Limited line credit insurance" includes the following forms of insurance:
             703          (a) credit life;
             704          (b) credit accident and health;
             705          (c) credit property;
             706          (d) credit unemployment;
             707          (e) involuntary unemployment;


             708          (f) mortgage life;
             709          (g) mortgage guaranty;
             710          (h) mortgage accident and health;
             711          (i) guaranteed automobile protection; and
             712          (j) another form of insurance offered in connection with an extension of credit that:
             713          (i) is limited to partially or wholly extinguishing the credit obligation; and
             714          (ii) the commissioner determines by rule should be designated as a form of limited line
             715      credit insurance.
             716          (102) "Limited line credit insurance producer" means a person who sells, solicits, or
             717      negotiates one or more forms of limited line credit insurance coverage to an individual through
             718      a master, corporate, group, or individual policy.
             719          (103) "Limited line insurance" includes:
             720          (a) bail bond;
             721          (b) limited line credit insurance;
             722          (c) legal expense insurance;
             723          (d) motor club insurance;
             724          (e) rental car-related insurance;
             725          (f) travel insurance;
             726          (g) crop insurance;
             727          (h) self-service storage insurance; and
             728          (i) another form of limited insurance that the commissioner determines by rule should
             729      be designated a form of limited line insurance.
             730          (104) "Limited lines authority" includes:
             731          (a) the lines of insurance listed in Subsection (103); and
             732          (b) a customer service representative.
             733          (105) "Limited lines producer" means a person who sells, solicits, or negotiates limited
             734      lines insurance.
             735          (106) (a) "Long-term care insurance" means an insurance policy or rider advertised,
             736      marketed, offered, or designated to provide coverage:
             737          (i) in a setting other than an acute care unit of a hospital;
             738          (ii) for not less than 12 consecutive months for a covered person on the basis of:


             739          (A) expenses incurred;
             740          (B) indemnity;
             741          (C) prepayment; or
             742          (D) another method;
             743          (iii) for one or more necessary or medically necessary services that are:
             744          (A) diagnostic;
             745          (B) preventative;
             746          (C) therapeutic;
             747          (D) rehabilitative;
             748          (E) maintenance; or
             749          (F) personal care; and
             750          (iv) that may be issued by:
             751          (A) an insurer;
             752          (B) a fraternal benefit society;
             753          (C) (I) a nonprofit health hospital; and
             754          (II) a medical service corporation;
             755          (D) a prepaid health plan;
             756          (E) a health maintenance organization; or
             757          (F) an entity similar to the entities described in Subsections (106)(a)(iv)(A) through (E)
             758      to the extent that the entity is otherwise authorized to issue life or health care insurance.
             759          (b) "Long-term care insurance" includes:
             760          (i) any of the following that provide directly or supplement long-term care insurance:
             761          (A) a group or individual annuity or rider; or
             762          (B) a life insurance policy or rider;
             763          (ii) a policy or rider that provides for payment of benefits on the basis of:
             764          (A) cognitive impairment; or
             765          (B) functional capacity; or
             766          (iii) a qualified long-term care insurance contract.
             767          (c) "Long-term care insurance" does not include:
             768          (i) a policy that is offered primarily to provide basic Medicare supplement coverage;
             769          (ii) basic hospital expense coverage;


             770          (iii) basic medical/surgical expense coverage;
             771          (iv) hospital confinement indemnity coverage;
             772          (v) major medical expense coverage;
             773          (vi) income replacement or related asset-protection coverage;
             774          (vii) accident only coverage;
             775          (viii) coverage for a specified:
             776          (A) disease; or
             777          (B) accident;
             778          (ix) limited benefit health coverage; or
             779          (x) a life insurance policy that accelerates the death benefit to provide the option of a
             780      lump sum payment:
             781          (A) if the following are not conditioned on the receipt of long-term care:
             782          (I) benefits; or
             783          (II) eligibility; and
             784          (B) the coverage is for one or more the following qualifying events:
             785          (I) terminal illness;
             786          (II) medical conditions requiring extraordinary medical intervention; or
             787          (III) permanent institutional confinement.
             788          (107) "Medical malpractice insurance" means insurance against legal liability incident
             789      to the practice and provision of a medical service other than the practice and provision of a
             790      dental service.
             791          (108) "Member" means a person having membership rights in an insurance
             792      corporation.
             793          (109) "Minimum capital" or "minimum required capital" means the capital that must be
             794      constantly maintained by a stock insurance corporation as required by statute.
             795          (110) "Mortgage accident and health insurance" means insurance offered in connection
             796      with an extension of credit that provides indemnity for payments coming due on a mortgage
             797      while the debtor is disabled.
             798          (111) "Mortgage guaranty insurance" means surety insurance under which a mortgagee
             799      or other creditor is indemnified against losses caused by the default of a debtor.
             800          (112) "Mortgage life insurance" means insurance on the life of a debtor in connection


             801      with an extension of credit that pays if the debtor dies.
             802          (113) "Motor club" means a person:
             803          (a) licensed under:
             804          (i) Chapter 5, Domestic Stock and Mutual Insurance Corporations;
             805          (ii) Chapter 11, Motor Clubs; or
             806          (iii) Chapter 14, Foreign Insurers; and
             807          (b) that promises for an advance consideration to provide for a stated period of time
             808      one or more:
             809          (i) legal services under Subsection 31A-11-102 (1)(b);
             810          (ii) bail services under Subsection 31A-11-102 (1)(c); or
             811          (iii) (A) trip reimbursement;
             812          (B) towing services;
             813          (C) emergency road services;
             814          (D) stolen automobile services;
             815          (E) a combination of the services listed in Subsections (113)(b)(iii)(A) through (D); or
             816          (F) other services given in Subsections 31A-11-102 (1)(b) through (f).
             817          (114) "Mutual" means a mutual insurance corporation.
             818          (115) "Network plan" means health care insurance:
             819          (a) that is issued by an insurer; and
             820          (b) under which the financing and delivery of medical care is provided, in whole or in
             821      part, through a defined set of providers under contract with the insurer, including the financing
             822      and delivery of an item paid for as medical care.
             823          (116) "Nonparticipating" means a plan of insurance under which the insured is not
             824      entitled to receive a dividend representing a share of the surplus of the insurer.
             825          (117) "Ocean marine insurance" means insurance against loss of or damage to:
             826          (a) ships or hulls of ships;
             827          (b) goods, freight, cargoes, merchandise, effects, disbursements, profits, moneys,
             828      securities, choses in action, evidences of debt, valuable papers, bottomry, respondentia
             829      interests, or other cargoes in or awaiting transit over the oceans or inland waterways;
             830          (c) earnings such as freight, passage money, commissions, or profits derived from
             831      transporting goods or people upon or across the oceans or inland waterways; or


             832          (d) a vessel owner or operator as a result of liability to employees, passengers, bailors,
             833      owners of other vessels, owners of fixed objects, customs or other authorities, or other persons
             834      in connection with maritime activity.
             835          (118) "Order" means an order of the commissioner.
             836          (119) "Outline of coverage" means a summary that explains an accident and health
             837      insurance policy.
             838          (120) "Participating" means a plan of insurance under which the insured is entitled to
             839      receive a dividend representing a share of the surplus of the insurer.
             840          (121) "Participation," as used in a health benefit plan, means a requirement relating to
             841      the minimum percentage of eligible employees that must be enrolled in relation to the total
             842      number of eligible employees of an employer reduced by each eligible employee who
             843      voluntarily declines coverage under the plan because the employee:
             844          (a) has other group health care insurance coverage; or
             845          (b) receives:
             846          (i) Medicare, under the Health Insurance for the Aged Act, Title XVIII of the Social
             847      Security Amendments of 1965; or
             848          (ii) another government health benefit.
             849          (122) "Person" includes:
             850          (a) an individual;
             851          (b) a partnership;
             852          (c) a corporation;
             853          (d) an incorporated or unincorporated association;
             854          (e) a joint stock company;
             855          (f) a trust;
             856          (g) a limited liability company;
             857          (h) a reciprocal;
             858          (i) a syndicate; or
             859          (j) another similar entity or combination of entities acting in concert.
             860          (123) "Personal lines insurance" means property and casualty insurance coverage sold
             861      for primarily noncommercial purposes to:
             862          (a) an individual; or


             863          (b) a family.
             864          (124) "Plan sponsor" is as defined in 29 U.S.C. Sec. 1002(16)(B).
             865          (125) "Plan year" means:
             866          (a) the year that is designated as the plan year in:
             867          (i) the plan document of a group health plan; or
             868          (ii) a summary plan description of a group health plan;
             869          (b) if the plan document or summary plan description does not designate a plan year or
             870      there is no plan document or summary plan description:
             871          (i) the year used to determine deductibles or limits;
             872          (ii) the policy year, if the plan does not impose deductibles or limits on a yearly basis;
             873      or
             874          (iii) the employer's taxable year if:
             875          (A) the plan does not impose deductibles or limits on a yearly basis; and
             876          (B) (I) the plan is not insured; or
             877          (II) the insurance policy is not renewed on an annual basis; or
             878          (c) in a case not described in Subsection (125)(a) or (b), the calendar year.
             879          (126) (a) "Policy" means a document, including [any] an attached endorsement or
             880      application that:
             881          (i) purports to be an enforceable contract; and
             882          (ii) memorializes in writing some or all of the terms of an insurance contract.
             883          (b) "Policy" includes a service contract issued by:
             884          (i) a motor club under Chapter 11, Motor Clubs;
             885          (ii) a service contract provided under Chapter 6a, Service Contracts; and
             886          (iii) a corporation licensed under:
             887          (A) Chapter 7, Nonprofit Health Service Insurance Corporations; or
             888          (B) Chapter 8, Health Maintenance Organizations and Limited Health Plans.
             889          (c) "Policy" does not include:
             890          (i) a certificate under a group insurance contract; or
             891          (ii) a document that does not purport to have legal effect.
             892          (127) "Policyholder" means a person who controls a policy, binder, or oral contract by
             893      ownership, premium payment, or otherwise.


             894          (128) "Policy illustration" means a presentation or depiction that includes
             895      nonguaranteed elements of a policy of life insurance over a period of years.
             896          (129) "Policy summary" means a synopsis describing the elements of a life insurance
             897      policy.
             898          (130) "Preexisting condition," with respect to a health benefit plan:
             899          (a) means a condition that was present before the effective date of coverage, whether or
             900      not medical advice, diagnosis, care, or treatment was recommended or received before that day;
             901      and
             902          (b) does not include a condition indicated by genetic information unless an actual
             903      diagnosis of the condition by a physician has been made.
             904          (131) (a) "Premium" means the monetary consideration for an insurance policy.
             905          (b) "Premium" includes, however designated:
             906          (i) an assessment;
             907          (ii) a membership fee;
             908          (iii) a required contribution; or
             909          (iv) monetary consideration.
             910          (c) (i) "Premium" does not include consideration paid to a third party administrator for
             911      the third party administrator's services.
             912          (ii) "Premium" includes an amount paid by a third party administrator to an insurer for
             913      insurance on the risks administered by the third party administrator.
             914          (132) "Principal officers" for a corporation means the officers designated under
             915      Subsection 31A-5-203 (3).
             916          (133) "Proceeding" includes an action or special statutory proceeding.
             917          (134) "Professional liability insurance" means insurance against legal liability incident
             918      to the practice of a profession and provision of a professional service.
             919          (135) (a) Except as provided in Subsection (135)(b), "property insurance" means
             920      insurance against loss or damage to real or personal property of every kind and any interest in
             921      that property:
             922          (i) from all hazards or causes; and
             923          (ii) against loss consequential upon the loss or damage including vehicle
             924      comprehensive and vehicle physical damage coverages.


             925          (b) "Property insurance" does not include:
             926          (i) inland marine insurance; and
             927          (ii) ocean marine insurance.
             928          (136) "Qualified long-term care insurance contract" or "federally tax qualified
             929      long-term care insurance contract" means:
             930          (a) an individual or group insurance contract that meets the requirements of Section
             931      7702B(b), Internal Revenue Code; or
             932          (b) the portion of a life insurance contract that provides long-term care insurance:
             933          (i) (A) by rider; or
             934          (B) as a part of the contract; and
             935          (ii) that satisfies the requirements of Sections 7702B(b) and (e), Internal Revenue
             936      Code.
             937          (137) "Qualified United States financial institution" means an institution that:
             938          (a) is:
             939          (i) organized under the laws of the United States or any state; or
             940          (ii) in the case of a United States office of a foreign banking organization, licensed
             941      under the laws of the United States or any state;
             942          (b) is regulated, supervised, and examined by a United States federal or state authority
             943      having regulatory authority over a bank or trust company; and
             944          (c) meets the standards of financial condition and standing that are considered
             945      necessary and appropriate to regulate the quality of a financial institution whose letters of credit
             946      will be acceptable to the commissioner as determined by:
             947          (i) the commissioner by rule; or
             948          (ii) the Securities Valuation Office of the National Association of Insurance
             949      Commissioners.
             950          (138) (a) "Rate" means:
             951          (i) the cost of a given unit of insurance; or
             952          (ii) for property or casualty insurance, that cost of insurance per exposure unit either
             953      expressed as:
             954          (A) a single number; or
             955          (B) a pure premium rate, adjusted before the application of individual risk variations


             956      based on loss or expense considerations to account for the treatment of:
             957          (I) expenses;
             958          (II) profit; and
             959          (III) individual insurer variation in loss experience.
             960          (b) "Rate" does not include a minimum premium.
             961          (139) (a) Except as provided in Subsection (139)(b), "rate service organization" means
             962      a person who assists an insurer in rate making or filing by:
             963          (i) collecting, compiling, and furnishing loss or expense statistics;
             964          (ii) recommending, making, or filing rates or supplementary rate information; or
             965          (iii) advising about rate questions, except as an attorney giving legal advice.
             966          (b) "Rate service organization" does not mean:
             967          (i) an employee of an insurer;
             968          (ii) a single insurer or group of insurers under common control;
             969          (iii) a joint underwriting group; or
             970          (iv) an individual serving as an actuarial or legal consultant.
             971          (140) "Rating manual" means any of the following used to determine initial and
             972      renewal policy premiums:
             973          (a) a manual of rates;
             974          (b) a classification;
             975          (c) a rate-related underwriting rule; and
             976          (d) a rating formula that describes steps, policies, and procedures for determining
             977      initial and renewal policy premiums.
             978          (141) "Received by the department" means:
             979          (a) the date delivered to and stamped received by the department, if delivered in
             980      person;
             981          (b) the post mark date, if delivered by mail;
             982          (c) the delivery service's post mark or pickup date, if delivered by a delivery service;
             983          (d) the received date recorded on an item delivered, if delivered by:
             984          (i) facsimile;
             985          (ii) email; or
             986          (iii) another electronic method; or


             987          (e) a date specified in:
             988          (i) a statute;
             989          (ii) a rule; or
             990          (iii) an order.
             991          (142) "Reciprocal" or "interinsurance exchange" means an unincorporated association
             992      of persons:
             993          (a) operating through an attorney-in-fact common to all of the persons; and
             994          (b) exchanging insurance contracts with one another that provide insurance coverage
             995      on each other.
             996          (143) "Reinsurance" means an insurance transaction where an insurer, for
             997      consideration, transfers any portion of the risk it has assumed to another insurer. In referring to
             998      reinsurance transactions, this title sometimes refers to:
             999          (a) the insurer transferring the risk as the "ceding insurer"; and
             1000          (b) the insurer assuming the risk as the:
             1001          (i) "assuming insurer"; or
             1002          (ii) "assuming reinsurer."
             1003          (144) "Reinsurer" means a person licensed in this state as an insurer with the authority
             1004      to assume reinsurance.
             1005          (145) "Residential dwelling liability insurance" means insurance against liability
             1006      resulting from or incident to the ownership, maintenance, or use of a residential dwelling that is
             1007      a detached single family residence or multifamily residence up to four units.
             1008          (146) (a) "Retrocession" means reinsurance with another insurer of a liability assumed
             1009      under a reinsurance contract.
             1010          (b) A reinsurer "retrocedes" when the reinsurer reinsures with another insurer part of a
             1011      liability assumed under a reinsurance contract.
             1012          (147) "Rider" means an endorsement to:
             1013          (a) an insurance policy; or
             1014          (b) an insurance certificate.
             1015          (148) (a) "Security" means a:
             1016          (i) note;
             1017          (ii) stock;


             1018          (iii) bond;
             1019          (iv) debenture;
             1020          (v) evidence of indebtedness;
             1021          (vi) certificate of interest or participation in a profit-sharing agreement;
             1022          (vii) collateral-trust certificate;
             1023          (viii) preorganization certificate or subscription;
             1024          (ix) transferable share;
             1025          (x) investment contract;
             1026          (xi) voting trust certificate;
             1027          (xii) certificate of deposit for a security;
             1028          (xiii) certificate of interest of participation in an oil, gas, or mining title or lease or in
             1029      payments out of production under such a title or lease;
             1030          (xiv) commodity contract or commodity option;
             1031          (xv) certificate of interest or participation in, temporary or interim certificate for,
             1032      receipt for, guarantee of, or warrant or right to subscribe to or purchase any of the items listed
             1033      in Subsections (148)(a)(i) through (xiv); or
             1034          (xvi) another interest or instrument commonly known as a security.
             1035          (b) "Security" does not include:
             1036          (i) any of the following under which an insurance company promises to pay money in a
             1037      specific lump sum or periodically for life or some other specified period:
             1038          (A) insurance;
             1039          (B) an endowment policy; or
             1040          (C) an annuity contract; or
             1041          (ii) a burial certificate or burial contract.
             1042          (149) "Secondary medical condition" means a complication related to an exclusion
             1043      from coverage in accident and health insurance.
             1044          (150) "Self-insurance" means an arrangement under which a person provides for
             1045      spreading its own risks by a systematic plan.
             1046          (a) Except as provided in this Subsection (150), "self-insurance" does not include an
             1047      arrangement under which a number of persons spread their risks among themselves.
             1048          (b) "Self-insurance" includes:


             1049          (i) an arrangement by which a governmental entity undertakes to indemnify an
             1050      employee for liability arising out of the employee's employment; and
             1051          (ii) an arrangement by which a person with a managed program of self-insurance and
             1052      risk management undertakes to indemnify its affiliates, subsidiaries, directors, officers, or
             1053      employees for liability or risk that is related to the relationship or employment.
             1054          (c) "Self-insurance" does not include an arrangement with an independent contractor.
             1055          (151) "Sell" means to exchange a contract of insurance:
             1056          (a) by any means;
             1057          (b) for money or its equivalent; and
             1058          (c) on behalf of an insurance company.
             1059          (152) "Short-term care insurance" means an insurance policy or rider advertised,
             1060      marketed, offered, or designed to provide coverage that is similar to long-term care insurance,
             1061      but that provides coverage for less than 12 consecutive months for each covered person.
             1062          (153) "Significant break in coverage" means a period of 63 consecutive days during
             1063      each of which an individual does not have creditable coverage.
             1064          (154) "Small employer," in connection with a health benefit plan, means an employer
             1065      who, with respect to a calendar year and to a plan year:
             1066          (a) employed an average of at least two employees but not more than 50 eligible
             1067      employees on each business day during the preceding calendar year; and
             1068          (b) employs at least two employees on the first day of the plan year.
             1069          (155) "Special enrollment period," in connection with a health benefit plan, has the
             1070      same meaning as provided in federal regulations adopted pursuant to the Health Insurance
             1071      Portability and Accountability Act of 1996, Pub. L. [No.] 104-191, 110 Stat. 1936.
             1072          (156) (a) "Subsidiary" of a person means an affiliate controlled by that person either
             1073      directly or indirectly through one or more affiliates or intermediaries.
             1074          (b) "Wholly owned subsidiary" of a person is a subsidiary of which all of the voting
             1075      shares are owned by that person either alone or with its affiliates, except for the minimum
             1076      number of shares the law of the subsidiary's domicile requires to be owned by directors or
             1077      others.
             1078          (157) Subject to Subsection (83)(b), "surety insurance" includes:
             1079          (a) a guarantee against loss or damage resulting from the failure of a principal to pay or


             1080      perform the principal's obligations to a creditor or other obligee;
             1081          (b) bail bond insurance; and
             1082          (c) fidelity insurance.
             1083          (158) (a) "Surplus" means the excess of assets over the sum of paid-in capital and
             1084      liabilities.
             1085          (b) (i) "Permanent surplus" means the surplus of a mutual insurer that is designated by
             1086      the insurer as permanent.
             1087          (ii) Sections 31A-5-211 , 31A-7-201 , 31A-8-209 , 31A-9-209 , and 31A-14-209 require
             1088      that mutuals doing business in this state maintain specified minimum levels of permanent
             1089      surplus.
             1090          (iii) Except for assessable mutuals, the minimum permanent surplus requirement is the
             1091      same as the minimum required capital requirement that applies to stock insurers.
             1092          (c) "Excess surplus" means:
             1093          (i) for a life insurer, accident and health insurer, health organization, or property and
             1094      casualty insurer as defined in Section 31A-17-601 , the lesser of:
             1095          (A) that amount of an insurer's or health organization's total adjusted capital that
             1096      exceeds the product of:
             1097          (I) 2.5; and
             1098          (II) the sum of the insurer's or health organization's minimum capital or permanent
             1099      surplus required under Section 31A-5-211 , 31A-9-209 , or 31A-14-205 ; or
             1100          (B) that amount of an insurer's or health organization's total adjusted capital that
             1101      exceeds the product of:
             1102          (I) 3.0; and
             1103          (II) the authorized control level RBC as defined in Subsection 31A-17-601 (8)(a); and
             1104          (ii) for a monoline mortgage guaranty insurer, financial guaranty insurer, or title insurer
             1105      that amount of an insurer's paid-in-capital and surplus that exceeds the product of:
             1106          (A) 1.5; and
             1107          (B) the insurer's total adjusted capital required by Subsection 31A-17-609 (1).
             1108          (159) "Third party administrator" or "administrator" means a person who collects
             1109      charges or premiums from, or who, for consideration, adjusts or settles claims of residents of
             1110      the state in connection with insurance coverage, annuities, or service insurance coverage,


             1111      except:
             1112          (a) a union on behalf of its members;
             1113          (b) a person administering a:
             1114          (i) pension plan subject to the federal Employee Retirement Income Security Act of
             1115      1974;
             1116          (ii) governmental plan as defined in Section 414(d), Internal Revenue Code; or
             1117          (iii) nonelecting church plan as described in Section 410(d), Internal Revenue Code;
             1118          (c) an employer on behalf of the employer's employees or the employees of one or
             1119      more of the subsidiary or affiliated corporations of the employer;
             1120          (d) an insurer licensed under Chapter 5, 7, 8, 9, or 14, but only for a line of insurance
             1121      for which the insurer holds a license in this state; or
             1122          (e) a person:
             1123          (i) licensed or exempt from licensing under:
             1124          (A) Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and
             1125      Reinsurance Intermediaries; or
             1126          (B) Chapter 26, Insurance Adjusters; and
             1127          (ii) whose activities are limited to those authorized under the license the person holds
             1128      or for which the person is exempt.
             1129          (160) "Title insurance" means the insuring, guaranteeing, or indemnifying of an owner
             1130      of real or personal property or the holder of liens or encumbrances on that property, or others
             1131      interested in the property against loss or damage suffered by reason of liens or encumbrances
             1132      upon, defects in, or the unmarketability of the title to the property, or invalidity or
             1133      unenforceability of any liens or encumbrances on the property.
             1134          (161) "Total adjusted capital" means the sum of an insurer's or health organization's
             1135      statutory capital and surplus as determined in accordance with:
             1136          (a) the statutory accounting applicable to the annual financial statements required to be
             1137      filed under Section 31A-4-113 ; and
             1138          (b) another item provided by the RBC instructions, as RBC instructions is defined in
             1139      Section 31A-17-601 .
             1140          (162) (a) "Trustee" means "director" when referring to the board of directors of a
             1141      corporation.


             1142          (b) "Trustee," when used in reference to an employee welfare fund, means an
             1143      individual, firm, association, organization, joint stock company, or corporation, whether acting
             1144      individually or jointly and whether designated by that name or any other, that is charged with
             1145      or has the overall management of an employee welfare fund.
             1146          (163) (a) "Unauthorized insurer," "unadmitted insurer," or "nonadmitted insurer"
             1147      means an insurer:
             1148          (i) not holding a valid certificate of authority to do an insurance business in this state;
             1149      or
             1150          (ii) transacting business not authorized by a valid certificate.
             1151          (b) "Admitted insurer" or "authorized insurer" means an insurer:
             1152          (i) holding a valid certificate of authority to do an insurance business in this state; and
             1153          (ii) transacting business as authorized by a valid certificate.
             1154          (164) "Underwrite" means the authority to accept or reject risk on behalf of the insurer.
             1155          (165) "Vehicle liability insurance" means insurance against liability resulting from or
             1156      incident to ownership, maintenance, or use of a land vehicle or aircraft, exclusive of a vehicle
             1157      comprehensive or vehicle physical damage coverage under Subsection (135).
             1158          (166) "Voting security" means a security with voting rights, and includes a security
             1159      convertible into a security with a voting right associated with the security.
             1160          (167) "Waiting period" for a health benefit plan means the period that must pass before
             1161      coverage for an individual, who is otherwise eligible to enroll under the terms of the health
             1162      benefit plan, can become effective.
             1163          (168) "Workers' compensation insurance" means:
             1164          (a) insurance for indemnification of an employer against liability for compensation
             1165      based on:
             1166          (i) a compensable accidental injury; and
             1167          (ii) occupational disease disability;
             1168          (b) employer's liability insurance incidental to workers' compensation insurance and
             1169      written in connection with workers' compensation insurance; and
             1170          (c) insurance assuring to a person entitled to workers' compensation benefits the
             1171      compensation provided by law.
             1172          Section 2. Section 31A-2-403 is amended to read:


             1173           31A-2-403. Title and Escrow Commission created.
             1174          (1) (a) Subject to Subsection (1)(b), there is created within the department the Title and
             1175      Escrow Commission that is comprised of five members appointed by the governor with the
             1176      consent of the Senate as follows:
             1177          (i) four members shall each:
             1178          (A) be or have been licensed under the title insurance line of authority; [and]
             1179          (B) as of the day on which the member is appointed, be or have been licensed with the
             1180      search or escrow subline of authority for at least five years; and
             1181          (C) as of the day on which the member is appointed, not be from the same county as
             1182      another member appointed under this Subsection (1)(a)(i); and
             1183          (ii) one member shall be a member of the general public from any county in the state.
             1184          (b) No more than one commission member may be appointed from a single company.
             1185          (2) (a) Subject to Subsection (2)(c), a [member of the] commission member shall file
             1186      with the [department] commissioner a disclosure of any position of employment or ownership
             1187      interest that the [member of the] commission member has with respect to a person that is
             1188      subject to the jurisdiction of the [department] commissioner.
             1189          (b) The disclosure statement required by this Subsection (2) shall be:
             1190          (i) filed by no later than the day on which the person begins that person's appointment;
             1191      and
             1192          (ii) amended when a significant change occurs in any matter required to be disclosed
             1193      under this Subsection (2).
             1194          (c) A [member of the] commission member is not required to disclose an ownership
             1195      interest that the [member of the] commission member has if the ownership interest is held as
             1196      part of a mutual fund, trust, or similar investment.
             1197          (3) (a) Except as required by Subsection (3)(b), as terms of current commission
             1198      members expire, the governor shall appoint each new commission member to a four-year term
             1199      ending on June 30.
             1200          (b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the
             1201      time of appointment, adjust the length of terms to ensure that the terms of the commission
             1202      members are staggered so that approximately half of the commission is appointed every two
             1203      years.


             1204          (c) A commission member may not serve more than one consecutive term.
             1205          (d) When a vacancy occurs in the membership for any reason, the governor, with the
             1206      consent of the Senate, shall appoint a replacement for the unexpired term.
             1207          (e) Notwithstanding the other provisions of this Subsection (3), a commission member
             1208      serves until a successor is appointed by the governor with the consent of the Senate.
             1209          (4) (a) A [member of the] commission member may not receive compensation or
             1210      benefits for the commission member's services, but may receive per diem and expenses
             1211      incurred in the performance of the commission member's official duties at the rates established
             1212      by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             1213          (b) A commission member may decline to receive per diem and expenses for the
             1214      commission member's service.
             1215          (5) Members of the commission shall annually select one commission member to serve
             1216      as chair.
             1217          (6) (a) The commission shall meet at least monthly.
             1218          (b) The commissioner may call additional meetings:
             1219          (i) at the commissioner's discretion;
             1220          (ii) upon the request of the chair of the commission; or
             1221          (iii) upon the written request of three or more commission members.
             1222          (c) (i) Three [members of the] commission members constitute a quorum for the
             1223      transaction of business.
             1224          (ii) The action of a majority of the commission members when a quorum is present is
             1225      the action of the commission.
             1226          (7) The [department] commissioner shall staff the commission.
             1227          Section 3. Section 31A-2-404 is amended to read:
             1228           31A-2-404. Duties of the commissioner and Title and Escrow Commission.
             1229          (1) Notwithstanding the other provisions of this chapter, to the extent provided in this
             1230      part, the commissioner shall administer and enforce the provisions in this title related to:
             1231          (a) title insurance; and
             1232          (b) escrow conducted by a title licensee or title insurer.
             1233          (2) The commission shall:
             1234          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and


             1235      subject to Subsection (3), make rules for the administration of the provisions in this title related
             1236      to title insurance including rules related to:
             1237          (i) rating standards and rating methods for a title [agencies and producers] licensee, as
             1238      provided in Section 31A-19a-209 ;
             1239          (ii) the licensing for a title licensee, including the licensing requirements of Sections
             1240      31A-23a-203 and 31A-23a-204 ;
             1241          (iii) continuing education requirements of Section 31A-23a-202 ;
             1242          (iv) examination procedures, after consultation with the [department] commissioner
             1243      and the [department's] commissioner's test administrator when required by Section
             1244      31A-23a-204 ; and
             1245          (v) standards of conduct for a title licensee;
             1246          (b) concur in the issuance and renewal of [licenses] a license in accordance with
             1247      Section 31A-23a-105 or 31A-26-203 ;
             1248          (c) in accordance with Section 31A-3-103 , establish, with the concurrence of the
             1249      [department] commissioner, [all] the fees imposed by this title on a title licensee;
             1250          (d) in accordance with Section 31A-23a-415 determine, after consulting with the
             1251      commissioner, the assessment on a title insurer as defined in Section 31A-23a-415 ;
             1252          (e) conduct [all] an administrative [hearings] hearing not delegated by the commission
             1253      to an administrative law judge related to the:
             1254          (i) licensing of [any] an applicant;
             1255          (ii) conduct of [any] a title licensee; or
             1256          (iii) approval of a continuing education [programs] program required by Section
             1257      31A-23a-202 ;
             1258          [(f) with the concurrence of the commissioner, approve assets that can be included in a
             1259      reserve fund required by Section 31A-23a-204 ;]
             1260          [(g)] (f) with the concurrence of the commissioner, approve a continuing education
             1261      [programs] program required by Section 31A-23a-202 ;
             1262          [(h)] (g) with the concurrence of the commissioner, impose [penalties] a penalty:
             1263          (i) under this title related to:
             1264          (A) title insurance; or
             1265          (B) escrow conducted by a title licensee;


             1266          (ii) after investigation by the [department] commissioner in accordance with Part 3,
             1267      Procedures and Enforcement; and
             1268          (iii) that [are] is enforced by the commissioner;
             1269          [(i)] (h) advise the commissioner on the administration and enforcement of any
             1270      [matters] matter affecting the title insurance industry;
             1271          [(j)] (i) advise the commissioner on matters affecting the [department's]
             1272      commissioner's budget related to title insurance; and
             1273          [(k)] (j) perform other duties as provided in this title.
             1274          (3) The commission may make a rule under this title only if at the time the commission
             1275      files its proposed rule and rule analysis with the Division of Administrative Rules in
             1276      accordance with Section 63G-3-301 , the commission provides the Real Estate Commission that
             1277      same information.
             1278          (4) (a) The commissioner shall annually report the information described in Subsection
             1279      (4)(b) in writing to:
             1280          (i) the commission; and
             1281          (ii) the Business and Labor Interim Committee.
             1282          (b) The information required to be reported under this Subsection (4):
             1283          (i) may not identify a person; and
             1284          (ii) shall include:
             1285          (A) the number of complaints the [department] commissioner receives with regard to
             1286      transactions involving title insurance or a title licensee during the calendar year immediately
             1287      proceeding the report;
             1288          (B) the type of complaints described in Subsection (4)(b)(ii)(A); and
             1289          (C) for each complaint described in Subsection (4)(b)(ii)(A):
             1290          (I) any action taken by the [department] commissioner with regard to the complaint;
             1291      and
             1292          (II) the time-period beginning the day on which a complaint is made and ending the
             1293      day on which the [department] commissioner determines it will take no further action with
             1294      regard to the complaint.
             1295          Section 4. Section 31A-3-103 is amended to read:
             1296           31A-3-103. Fees.


             1297          (1) For purposes of this section[: (a) "Services"], "services" means functions that are
             1298      reasonable and necessary to enable the commissioner to perform the duties imposed by this title
             1299      including:
             1300          [(i)] (a) issuing [and] or renewing [licenses and certificates] a license or certificate of
             1301      authority;
             1302          [(ii)] (b) filing a policy [forms] form;
             1303          [(iii)] (c) reporting [agent appointments and terminations] a producer appointment or
             1304      termination; and
             1305          [(iv)] (d) filing an annual [statements] statement.
             1306          (2) Except as otherwise provided by this title:
             1307          (a) the commissioner may set and collect a fee for services provided by the
             1308      commissioner;
             1309          (b) [Fees] a fee related to the renewal of [licenses] a license may be imposed no more
             1310      frequently than once each year[.]; and
             1311          [(2) A] (c) a fee charged by the [department] commissioner shall be set in accordance
             1312      with Section 63J-1-504 .
             1313          (3) [(a) A fee approved by the Legislature] Except as otherwise provided in this title, a
             1314      fee established pursuant to this section shall be deposited into the General Fund for
             1315      appropriation by the Legislature.
             1316          [(b) A fee approved pursuant to this section that relates to the use of electronic or other
             1317      similar technology to provide the services of the department shall be deposited into the
             1318      General Fund as a dedicated credit to be used by the department to provide services through
             1319      use of electronic commerce or other similar technology.]
             1320          (4) (a) The commissioner shall [separately] publish [the] a schedule of fees [approved
             1321      by the Legislature and make it available upon request for $1 per copy. This fee schedule shall
             1322      also be included in any compilation of rules promulgated by the commissioner] established
             1323      pursuant to this section.
             1324          [(5)] (b) The commissioner shall, by rule, establish the deadlines for payment of [any]
             1325      a fee established [by the department in accordance with] pursuant to this section.
             1326          Section 5. Section 31A-3-104 is amended to read:
             1327           31A-3-104. Technology fees -- Restricted account.


             1328          (1) The [department may charge] commissioner may impose a fee for requests for
             1329      information:
             1330          (a) that is obtained from an electronic database of the [department] commissioner; or
             1331          (b) derived from data that is generated by electronic means.
             1332          (2) In addition to any fee authorized in this title, the [department] commissioner shall
             1333      impose a supplemental fee on the issuance or renewal of any of the following issued by the
             1334      department:
             1335          (a) a license;
             1336          (b) a registration; or
             1337          (c) a certificate of authority.
             1338          (3) A fee imposed under this section shall be:
             1339          (a) established in accordance with [Subsection 31A-3-103 (3)] Section 31A-3-103 ; and
             1340          (b) deposited into the [General Fund as a dedicated credit in accordance with
             1341      Subsection 31A-3-103 (3)] Technology Development Restricted Account.
             1342          (4) (a) There is created in the General Fund a restricted account known as the
             1343      "Technology Development Restricted Account."
             1344          (b) The Technology Development Restricted Account shall consist of the fees imposed
             1345      by the commissioner in accordance with this section.
             1346          (c) The commissioner shall administer the Technology Development Restricted
             1347      Account. Subject to appropriations by the Legislature, the commissioner shall use the money
             1348      deposited into the Technology Development Restricted Account to provide services through
             1349      use of electronic commerce or other similar technology.
             1350          (d) The money in the Technology Development Restricted Account is nonlapsing.
             1351          Section 6. Section 31A-3-105 is enacted to read:
             1352          31A-3-105. Criminal Background Check Restricted Account.
             1353          (1) There is created in the General Fund a restricted account known as the "Criminal
             1354      Background Check Restricted Account."
             1355          (2) The Criminal Background Check Restricted Account shall consist of the fees
             1356      imposed by the commissioner in accordance with:
             1357          (a) Subsection 31A-16-103 (3);
             1358          (b) Subsection 31A-23a-105 (3);


             1359          (c) Subsection 31A-25-203 (3); and
             1360          (d) Subsection 31A-26-203 (3).
             1361          (3) The commissioner shall administer the Criminal Background Check Restricted
             1362      Account. Subject to appropriations by the Legislature, the commissioner shall use the money
             1363      deposited into the Criminal Background Check Restricted Account to pay the costs the
             1364      department is required to pay related to obtaining criminal background information in
             1365      accordance with the provisions listed in Subsection (2)(a).
             1366          (4) The money in the Criminal Background Check Restricted Account is nonlapsing.
             1367          Section 7. Section 31A-3-304 (Superseded 07/01/10) is amended to read:
             1368           31A-3-304 (Superseded 07/01/10). Annual fees -- Other taxes or fees prohibited --
             1369      Captive Insurance Restricted Account.
             1370          (1) (a) A captive insurance company shall pay an annual fee imposed under this section
             1371      to obtain or renew a certificate of authority.
             1372          (b) The commissioner shall:
             1373          (i) determine the annual fee pursuant to [Sections ] Section 31A-3-103 [and
             1374      63J-1-504 ]; and
             1375          (ii) consider whether the annual fee is competitive with fees imposed by other states on
             1376      captive insurance companies.
             1377          (2) A captive insurance company that fails to pay the fee required by this section is
             1378      subject to the relevant sanctions of this title.
             1379          (3) (a) Except as provided in Subsection (3)(b) and notwithstanding Title 59, Chapter
             1380      9, Taxation of Admitted Insurers, the fee provided for in this section constitutes the sole tax or
             1381      fee under the laws of this state that may be otherwise levied or assessed on a captive insurance
             1382      company, and no other occupation tax or other tax or fee may be levied or collected from a
             1383      captive insurance company by the state or a county, city, or municipality within this state.
             1384          (b) Notwithstanding Subsection (3)(a), a captive insurance company is subject to real
             1385      and personal property taxes.
             1386          (4) A captive insurance company shall pay the fee imposed by this section to the
             1387      [department] commissioner by March 31 of each year.
             1388          [(5) (a) The funds received pursuant to Subsection (2) shall be deposited into the
             1389      General Fund as a dedicated credit to be used by the department to:]


             1390          (5) (a) Money received pursuant to Subsection (2) shall be deposited into the Captive
             1391      Insurance Restricted Account.
             1392          (b) There is created in the General Fund a restricted account known as the "Captive
             1393      Insurance Restricted Account."
             1394          (c) The Captive Insurance Restricted Account shall consist of the fees imposed by the
             1395      commissioner in accordance with this section.
             1396          (d) The commissioner shall administer the Captive Insurance Restricted Account.
             1397      Subject to appropriations by the Legislature, the commissioner shall use the money deposited
             1398      into the Captive Insurance Restricted Account to:
             1399          (i) administer and enforce Chapter 37, Captive Insurance Companies Act; and
             1400          (ii) promote the captive insurance industry in Utah.
             1401          [(b) At] (e) The money in the Captive Insurance Restricted Account is nonlapsing,
             1402      except that at the end of each fiscal year, [funds] money received by the [department]
             1403      commissioner in excess of $250,000 shall be treated as free revenue in the General Fund.
             1404          Section 8. Section 31A-3-304 (Effective 07/01/10) is amended to read:
             1405           31A-3-304 (Effective 07/01/10). Annual fees -- Other taxes or fees prohibited --
             1406      Captive Insurance Restricted Account.
             1407          (1) (a) A captive insurance company shall pay an annual fee imposed under this section
             1408      to obtain or renew a certificate of authority.
             1409          (b) The commissioner shall:
             1410          (i) determine the annual fee pursuant to [Sections ] Section 31A-3-103 [and
             1411      63J-1-504 ]; and
             1412          (ii) consider whether the annual fee is competitive with fees imposed by other states on
             1413      captive insurance companies.
             1414          (2) A captive insurance company that fails to pay the fee required by this section is
             1415      subject to the relevant sanctions of this title.
             1416          (3) (a) Except as provided in Subsection (3)(b) and notwithstanding Title 59, Chapter
             1417      9, Taxation of Admitted Insurers, the fee provided for in this section constitutes the sole tax or
             1418      fee under the laws of this state that may be otherwise levied or assessed on a captive insurance
             1419      company, and no other occupation tax or other tax or fee may be levied or collected from a
             1420      captive insurance company by the state or a county, city, or municipality within this state.


             1421          (b) Notwithstanding Subsection (3)(a), a captive insurance company is subject to real
             1422      and personal property taxes.
             1423          (4) A captive insurance company shall pay the fee imposed by this section to the
             1424      [department] commissioner by March 31 of each year.
             1425          [(5) (a) The funds received pursuant to Subsection (2) shall be deposited into the
             1426      General Fund as a dedicated credit to be used by the department to:]
             1427          (5) (a) Money received pursuant to Subsection (2) shall be deposited into the Captive
             1428      Insurance Restricted Account.
             1429          (b) There is created in the General Fund a restricted account known as the "Captive
             1430      Insurance Restricted Account."
             1431          (c) The Captive Insurance Restricted Account shall consist of the fees imposed by the
             1432      commissioner in accordance with this section.
             1433          (d) The commissioner shall administer the Captive Insurance Restricted Account.
             1434      Subject to appropriations by the Legislature, the commissioner shall use the money deposited
             1435      into the Captive Insurance Restricted Account to:
             1436          (i) administer and enforce Chapter 37, Captive Insurance Companies Act; and
             1437          (ii) promote the captive insurance industry in Utah.
             1438          [(b) At] (e) The money in the Captive Insurance Restricted Account is nonlapsing,
             1439      except that at the end of each fiscal year, [funds] money received by the [department]
             1440      commissioner in excess of $750,000 shall be treated as free revenue in the General Fund.
             1441          Section 9. Section 31A-5-217.5 is amended to read:
             1442           31A-5-217.5. Variable contract law.
             1443          (1) This section applies to [all] a separate [accounts] account that [are] is used to
             1444      support [any] one or more of the following:
             1445          (a) a variable life insurance [policies] policy that [satisfy] satisfies the requirements of
             1446      Section 817, Internal Revenue Code;
             1447          (b) a variable annuity [contracts] policy, including a modified guaranteed [annuities]
             1448      annuity; or
             1449          (c) benefits under [plans] a plan governed by the Employee Retirement Income
             1450      Security Act of 1974.
             1451          (2) [In the event of] If there is a conflict between this section and [any other] another


             1452      section of this title as it relates to [these accounts] a separate account described in Subsection
             1453      (1), this section prevails.
             1454          (3) [A] (a) Subject to the other provisions of this Subsection (3), a domestic life
             1455      [insurance company] insurer may:
             1456          (i) establish one or more separate accounts[,]; and [may]
             1457          (ii) allocate to those separate accounts amounts, which include:
             1458          (A) proceeds applied under optional modes of settlement or under dividend options, to
             1459      provide for life insurance or annuities[,]; and
             1460          (B) benefits incidental to life insurance or annuities, payable in fixed [or], variable, or
             1461      both fixed and variable amounts [or both, subject to the following:].
             1462          [(a) The] (b) An insurer shall credit to or charge against a separate account the income,
             1463      gains, and losses, realized or unrealized, from assets allocated to [a] the separate account [shall
             1464      be credited to or charged against the account], without regard to other income, gains, or losses
             1465      of the [company] insurer.
             1466          [(b)] (c) Except as may be provided with respect to reserves for guaranteed benefits
             1467      and funds referred to in Subsection [(c)] (3)(d):
             1468          (i) an insurer may invest or reinvest amounts allocated to [any] a separate account and
             1469      accumulations on [such] those amounts [may be invested and reinvested] without regard to
             1470      [any] the requirements or limitations prescribed by the laws of this state governing the
             1471      investments of a life [insurance companies] insurer; and
             1472          (ii) an insurer may not take into account the investments in [any such] a separate
             1473      account [may not be taken into account] in applying the investment limitations that otherwise
             1474      apply to the investments of the [company] insurer.
             1475          [(c)] (d) Except with the approval of the commissioner and under any [conditions]
             1476      condition the commissioner prescribes as to investments and other matters [as he may
             1477      prescribe], which shall recognize the guaranteed nature of the benefits provided, an insurer may
             1478      not maintain in a separate account reserves for:
             1479          (i) benefits guaranteed as to dollar amount and duration[,]; and
             1480          (ii) funds guaranteed as to principal amount or stated rate of interest [may not be
             1481      maintained in a separate account].
             1482          [(d) Unless] (e) (i) Except as provided in Subsection (3)(e)(ii) and unless otherwise


             1483      approved by the commissioner, assets allocated to a separate account shall be valued:
             1484          (A) at their market value on the date of valuation[,]; or
             1485          (B) if there is no readily available market, then as provided under the terms of the
             1486      contract [or the], rules, or other written agreement that applies to the separate account.
             1487      [However, unless]
             1488          (ii) Unless otherwise approved by the commissioner, the portion of [any of] the assets
             1489      of [the] a separate account that are equal to the [company's] insurer's reserve liability with
             1490      regard to the guaranteed benefits and funds referred to in Subsection [(c)] (3)(d) shall be valued
             1491      in accordance with the rules that otherwise apply to the company's assets.
             1492          [(e) Amounts allocated] (f)(i) An insurer owns the amounts it allocates to a separate
             1493      account in the exercise of the power granted by this section [shall be owned by the company,
             1494      and the company], and the insurer may not be, nor hold itself out to be, a trustee with respect to
             1495      those amounts. [If, and to]
             1496          (ii) To the extent provided under the applicable [contracts, that] insurance policy, an
             1497      insurer may not charge the portion of the assets of [any] a separate account that is equal to the
             1498      reserves and other [contract] insurance liabilities with respect to the separate account [may not
             1499      be chargeable] with liabilities arising out of any other business the [company] insurer may
             1500      conduct.
             1501          [(f)] (g) (i) A sale, exchange, or other transfer of assets may not be made by [a
             1502      company] an insurer between any of its separate accounts or between any other investment
             1503      account and one or more of its separate accounts unless[,]:
             1504          (A) in case of a transfer into a separate account, the transfer is made solely to establish
             1505      the account or to support the operation of the [contracts] insurance policies with respect to the
             1506      separate account to which the transfer is made[,]; and [unless]
             1507          (B) the transfer, whether into or from a separate account, is made by:
             1508          (I) a transfer of cash[,]; or [by]
             1509          (II) if the transfer of securities is approved by the commissioner, a transfer of securities
             1510      having a readily determinable market value[, if the transfer of securities is approved by the
             1511      commissioner].
             1512          (ii) The commissioner may approve [other transfers] a transfer not described in
             1513      Subsection (2)(g)(i) among [such] the accounts described in Subsection (2)(g)(i) if, in [his] the


             1514      commissioner's opinion, the [transfers] transfer would not be inequitable.
             1515          [(g)] (h) To the extent [a company] an insurer considers it necessary to comply with
             1516      [any] an applicable federal or state [laws, the company,] law, the insurer with respect to [any] a
             1517      separate account, including [any] a separate account which is a management investment
             1518      company or a unit investment trust, may provide for [persons] a person having an interest in the
             1519      separate account to have appropriate voting and other rights and special procedures for the
             1520      conduct of the business of the separate account, including:
             1521          (i) special rights and procedures relating to investment policy[,];
             1522          (ii) investment advisory services[,];
             1523          (iii) selection of independent public accountants[,]; and
             1524          (iv) the selection of a committee, the members of which need not be otherwise
             1525      affiliated with the [company] insurer, to manage the business of the separate account.
             1526          [(4) Any contract providing benefits payable in variable amounts delivered or issued
             1527      for delivery in this state shall contain a statement of the essential features of the procedures to
             1528      be followed by the insurance company in determining the dollar amount of the variable
             1529      benefits. Any contract under which the benefits vary to reflect investment experience,
             1530      including a group contract and any certificate in evidence of variable benefits issued under a
             1531      group contract, shall state that the dollar amount will vary according to investment experience.
             1532      The contract shall contain on its first page a statement to the effect that the benefits under the
             1533      contract are on a variable basis.]
             1534          [(5) (a) A company may not deliver or issue for delivery within this state variable
             1535      contracts unless it is licensed or organized to do a life insurance or annuity business in this
             1536      state, and the commissioner is satisfied that its condition or method of operation in connection
             1537      with the issuance of such contracts will not render its operation hazardous to the public or its
             1538      policyholders in this state. In this connection, the commissioner shall consider among other
             1539      things:]
             1540          [(i) the history and financial condition of the company;]
             1541          [(ii) the character, responsibility, and fitness of the officers and directors of the
             1542      company; and]
             1543          [(iii) (A) the law and regulation under which the company is authorized in the state of
             1544      domicile to issue variable contracts.]


             1545          [(B) The state of entry of an alien company shall be considered its place of domicile for
             1546      the purposes of Subsection (iii)(A).]
             1547          [(b) If the company is a subsidiary of an admitted life insurance company, or affiliated
             1548      with such a company through common management or ownership, it may be considered by the
             1549      commissioner to have met the provisions of this section if either it or the parent or the affiliated
             1550      company meets the requirements of this section.]
             1551          [(6) Notwithstanding any other provision of law, the commissioner shall have sole
             1552      authority to regulate the issuance and sale of variable contracts, and to make rules necessary
             1553      and appropriate to carry out the purposes and provisions of this chapter.]
             1554          [(7) (a) Except for Sections 31A-22-402 , 31A-22-407 , and 31A-22-409 , in the case of
             1555      a variable annuity contract and Sections 31A-22-402 , 31A-22-407 , and 31A-22-408 in the case
             1556      of a variable life insurance policy, and except as otherwise provided in this chapter, all
             1557      pertinent provisions of this title apply to separate accounts and contracts relating to the separate
             1558      accounts. Any individual variable life insurance contract, delivered or issued for delivery in
             1559      this state shall contain grace, reinstatement, and nonforfeiture provisions appropriate to the
             1560      contract.]
             1561          [(b) The reserve liability for variable contracts shall be established in accordance with
             1562      actuarial procedures that recognize the variable nature of the benefits provided and any
             1563      mortality guarantees.]
             1564          Section 10. Section 31A-15-208 is amended to read:
             1565           31A-15-208. Purchasing groups -- Filing and registration requirements.
             1566          (1) A purchasing group [which] that intends to do business in this state shall, prior to
             1567      doing business, furnish notice to the insurance commissioner:
             1568          (a) identifying the state in which the purchasing group is domiciled;
             1569          (b) identifying [all other states] any state in which the purchasing group intends to do
             1570      business;
             1571          (c) specifying the lines and classifications of liability insurance [which] that the
             1572      purchasing group intends to purchase;
             1573          (d) identifying the [insurance companies] insurers from which the group intends to
             1574      purchase its insurance and the domicile of the [company] insurers;
             1575          (e) specifying the method by which, and any persons through whom, insurance will be


             1576      offered to group members whose risks are resident or located in this state;
             1577          (f) identifying the principal place of business of the purchasing group; and
             1578          (g) providing any other information required by the [insurance] commissioner to verify
             1579      that the purchasing group is [qualified within the definition in Subsection] a "purchasing
             1580      group," as defined in Section 31A-15-202 [(10)].
             1581          (2) A purchasing group shall notify the commissioner of [any changes in any of the
             1582      items] a change in an item listed in Subsection (1) within 10 days of the change.
             1583          (3) [The] (a) A purchasing group shall annually register with the commissioner and
             1584      pay a filing fee. [The]
             1585          (b) A purchasing group shall designate the commissioner as its agent solely for the
             1586      purpose of receiving service of legal documents or process.
             1587          (c) The registration and fee requirements of this Subsection (3) do not apply to a
             1588      purchasing group [which] that only purchases insurance that was authorized under the Product
             1589      Liability Risk Retention Act of 1981, and [which] that:
             1590          [(a)] (i) in any state of the United States:
             1591          [(i)] (A) was domiciled before April 1, 1986; and
             1592          [(ii)] (B) is domiciled after October 27, 1986;
             1593          [(b) (i)] (ii) (A) before October 27, 1986, purchased insurance from an [insurance
             1594      carrier] insurer licensed in any state; and
             1595          [(ii)] (B) since October 27, 1986, purchased its insurance from an [insurance carrier]
             1596      insurer licensed in any state; or
             1597          [(c)] (iii) was a purchasing group under the requirements of the Product Liability Risk
             1598      Retention Act of 1981 before October 27, 1986.
             1599          (4) [Each] A purchasing group that is required to give notice under Subsection (1) shall
             1600      also furnish information required by the commissioner to:
             1601          (a) verify that the entity qualifies as a purchasing group;
             1602          (b) determine where the purchasing group is located; and
             1603          (c) determine appropriate tax treatment of the purchasing group.
             1604          Section 11. Section 31A-20-106 is amended to read:
             1605           31A-20-106. Variable contracts.
             1606          [No] (1) (a) An insurer may not deliver or issue for delivery within this state [any


             1607      contract providing] an insurance policy that provides a life or annuity [benefits in variable
             1608      amounts] benefit in a variable amount until the insurer [has satisfied]:
             1609          (i) is licensed to do a life insurance or annuity business in this state; and
             1610          (ii) satisfies the commissioner that [its] the insurer's condition and methods of
             1611      operation in connection with those types of [contracts] insurance policies do not render [its] the
             1612      insurer's operation hazardous to the public or its policyholders in [Utah] this state.
             1613          (b) Notwithstanding any other provision of law, the commissioner has sole authority
             1614      to:
             1615          (i) regulate the issuance and sale of a variable contract; and
             1616          (ii) make rules necessary and appropriate to carry out this chapter in relation to a
             1617      variable contract.
             1618          (2) In determining the qualification of an insurer requesting authority to deliver [those
             1619      contracts in Utah] an insurance policy described in Subsection (1) in this state, the
             1620      commissioner shall consider:
             1621          [(1)] (a) the history and financial condition of the insurer;
             1622          [(2)] (b) the character, responsibility, and general fitness of the insurer's officers and
             1623      directors; and
             1624          [(3)] (c) in the case of a foreign insurer, whether the regulation provided by the state of
             1625      its domicile or the jurisdiction in which its head office is located provides protection to
             1626      policyholders and the public substantially equal to that provided by [the Insurance Code] this
             1627      title and the rules issued under [it] this title.
             1628          (3) If an insurer is a subsidiary of an admitted life insurer, or affiliated with an admitted
             1629      life insurer through common management or ownership, the commissioner may consider the
             1630      insurer to have met the requirements of this section if:
             1631          (a) the insurer meets the requirements of this section; or
             1632          (b) the parent or the affiliated insurer meets the requirements of this section.
             1633          (4) This title applies to a separate account or a contract relating to the separate account,
             1634      except:
             1635          (a) Sections 31A-22-402 , 31A-22-407 , and 31A-22-409 , in the case of a variable
             1636      annuity policy;
             1637          (b) Sections 31A-22-402 , 31A-22-407 , and 31A-22-408 , in the case of a variable life


             1638      insurance policy; and
             1639          (c) as otherwise provided in this title.
             1640          Section 12. Section 31A-21-201 is amended to read:
             1641           31A-21-201. Filing of forms.
             1642          (1) (a) Except as exempted under Subsections 31A-21-101 (2) through (6), a form may
             1643      not be used, sold, or offered for sale [unless] until the form [has been] is filed with the
             1644      commissioner.
             1645          (b) A form is considered filed with the commissioner when the commissioner receives:
             1646          (i) the form;
             1647          (ii) the applicable filing fee as prescribed under Section 31A-3-103 ; and
             1648          (iii) the applicable transmittal forms as required by the commissioner.
             1649          (2) In filing a form for use in this state the insurer is responsible for assuring that the
             1650      form is in compliance with this title and rules adopted by the commissioner.
             1651          (3) (a) The commissioner may prohibit the use of a form at any time upon a finding
             1652      that:
             1653          (i) the form [is]:
             1654          (A) is inequitable;
             1655          (B) is unfairly discriminatory;
             1656          (C) is misleading;
             1657          (D) is deceptive;
             1658          (E) is obscure;
             1659          (F) is unfair;
             1660          (G) encourages misrepresentation; or
             1661          (H) is not in the public interest;
             1662          (ii) the form provides benefits or contains [other provisions that endanger] another
             1663      provision that endangers the solidity of the insurer;
             1664          (iii) [in the case of the basic policy and the application for a basic policy, the basic]
             1665      except an application required by Section 31A-22-635 , the form is an insurance policy or
             1666      application for [the basic] an insurance policy that fails to conspicuously, as defined by rule,
             1667      provide:
             1668          (A) the exact name of the insurer;


             1669          (B) the state of domicile of the insurer filing the [basic] insurance policy or application
             1670      for the [basic] insurance policy; and
             1671          (C) for a life insurance and annuity [policies] insurance policy only, the address of the
             1672      administrative office of the insurer filing the [basic] insurance policy or application for the
             1673      [basic] insurance policy;
             1674          (iv) the form violates a statute or a rule adopted by the commissioner; or
             1675          (v) the form is otherwise contrary to law.
             1676          (b) Subsection (3)(a)(iii) does not apply to [riders and endorsements] an endorsement
             1677      to [a basic] an insurance policy.
             1678          (c) (i) [Whenever] When the commissioner prohibits the use of a form under
             1679      Subsection (3)(a), the commissioner may order that, on or before a date not less than 15 days
             1680      after the order, the use of the form be discontinued.
             1681          (ii) Once use of a form [has been] is prohibited, the form may not be used [unless] until
             1682      appropriate changes are filed with and reviewed by the commissioner.
             1683          (iii) [Whenever] When the commissioner prohibits the use of a form under Subsection
             1684      (3)(a), the commissioner may require the insurer to disclose contract deficiencies to the
             1685      existing policyholders.
             1686          (d) If the commissioner prohibits use of a form under this Subsection (3), the
             1687      prohibition shall:
             1688          (i) be in writing;
             1689          (ii) constitute an order; and
             1690          (iii) state the reasons for the prohibition.
             1691          (4) (a) If, after a hearing, the commissioner determines that it is in the public interest,
             1692      the commissioner may require by rule or order that [certain forms] a form be subject to the
             1693      commissioner's approval [prior to their] before its use.
             1694          (b) The rule or order described in Subsection (4)(a) shall prescribe the filing
             1695      procedures for [the forms] a form if the procedures are different [than] from the procedures
             1696      stated in this section.
             1697          (c) The [types of forms that may be addressed] type of form that under Subsection
             1698      (4)(a) [include] the commissioner may require approval of before use includes:
             1699          (i) a form for a particular class of insurance;


             1700          (ii) a form for a specific line of insurance;
             1701          (iii) a specific type of form; or
             1702          (iv) a form for a specific market segment.
             1703          (5) (a) An insurer shall maintain a complete and accurate record of the following for
             1704      the time period described in Subsection (5)(b):
             1705          (i) [any] a form:
             1706          (A) filed under this section for use; [and] or
             1707          (B) that is in use; and
             1708          (ii) [any] a document filed under this section with a form described in Subsection
             1709      (5)(a)(i).
             1710          (b) The insurer shall maintain a record required under Subsection (5)(a) for the balance
             1711      of the current year, plus five years from:
             1712          (i) the last day on which the form is used; or
             1713          (ii) the last day [any] an insurance policy that is issued using the form is in effect.
             1714          Section 13. Section 31A-21-301 is amended to read:
             1715           31A-21-301. Clauses required to be in a prominent position.
             1716          (1) The following portions of insurance policies shall appear conspicuously in the
             1717      policy:
             1718          (a) as required by Subsection 31A-21-201 (3)(a)(iii):
             1719          (i) the exact name of the insurer;
             1720          (ii) the state of domicile of the insurer; and
             1721          (iii) for life insurance and annuity policies only, the address of the administrative office
             1722      of the insurer;
             1723          (b) information that two or more insurers under Subsection (1)(a) undertake only
             1724      several liability, as required by Section 31A-21-306 ;
             1725          (c) if a policy is assessable, a statement of that;
             1726          (d) a statement that benefits are variable, as required by [Subsection ] Section
             1727      31A-22-411 [(1)]; however, the methods of calculation need not be in a prominent position;
             1728          (e) the right to return a life or accident and health insurance policy under Sections
             1729      31A-22-423 and 31A-22-606 ; and
             1730          (f) the beginning and ending dates of insurance protection.


             1731          (2) Each clause listed in Subsection (1) shall be displayed conspicuously and separately
             1732      from any other clause.
             1733          Section 14. Section 31A-22-305.3 is amended to read:
             1734           31A-22-305.3. Underinsured motorist coverage.
             1735          (1) As used in this section:
             1736          (a) "Covered person" has the same meaning as defined in Section 31A-22-305 .
             1737          (b) (i) "Underinsured motor vehicle" includes a motor vehicle, the operation,
             1738      maintenance, or use of which is covered under a liability policy at the time of an injury-causing
             1739      occurrence, but which has insufficient liability coverage to compensate fully the injured party
             1740      for all special and general damages.
             1741          (ii) The term "underinsured motor vehicle" does not include:
             1742          (A) a motor vehicle that is covered under the liability coverage of the same policy that
             1743      also contains the underinsured motorist coverage;
             1744          (B) an uninsured motor vehicle as defined in Subsection 31A-22-305 (2); or
             1745          (C) a motor vehicle owned or leased by:
             1746          (I) [the] a named insured;
             1747          (II) [the] a named insured's spouse; or
             1748          (III) [any] a dependent of [the] a named insured.
             1749          (2) (a) (i) Underinsured motorist coverage under Subsection 31A-22-302 (1)(c)
             1750      provides coverage for a covered [persons] person who [are] is legally entitled to recover
             1751      damages from [owners or operators] an owner or operator of an underinsured motor [vehicles]
             1752      vehicle because of bodily injury, sickness, disease, or death.
             1753          (ii) A covered person occupying or using a motor vehicle owned, leased, or furnished
             1754      to the covered person, the covered person's spouse, or covered person's resident relative may
             1755      recover underinsured benefits only if the motor vehicle is:
             1756          (A) described in the policy under which a claim is made; or
             1757          (B) a newly acquired or replacement motor vehicle covered under the terms of the
             1758      policy.
             1759          (b) For new policies written on or after January 1, 2001, the limits of underinsured
             1760      motorist coverage shall be equal to the lesser of the limits of the insured's motor vehicle
             1761      liability coverage or the maximum underinsured motorist coverage limits available by the


             1762      insurer under the insured's motor vehicle policy, unless the insured purchases coverage in a
             1763      lesser amount by signing an acknowledgment form that:
             1764          (i) is filed with the department;
             1765          (ii) is provided by the insurer;
             1766          (iii) waives the higher coverage;
             1767          (iv) reasonably explains the purpose of underinsured motorist coverage; and
             1768          (v) discloses the additional premiums required to purchase underinsured motorist
             1769      coverage with limits equal to the lesser of the limits of the insured's motor vehicle liability
             1770      coverage or the maximum underinsured motorist coverage limits available by the insurer under
             1771      the insured's motor vehicle policy.
             1772          (c) A self-insured, including a governmental entity, may elect to provide underinsured
             1773      motorist coverage in an amount that is less than its maximum self-insured retention under
             1774      Subsections (2)(b) and (2)(g) by issuing a declaratory memorandum or policy statement from
             1775      the chief financial officer or chief risk officer that declares the:
             1776          (i) self-insured entity's coverage level; and
             1777          (ii) process for filing an underinsured motorist claim.
             1778          (d) Underinsured motorist coverage may not be sold with limits that are less than:
             1779          (i) $10,000 for one person in any one accident; and
             1780          (ii) at least $20,000 for two or more persons in any one accident.
             1781          (e) [The] An acknowledgment under Subsection (2)(b) continues for that issuer of the
             1782      underinsured motorist coverage until the insured, in writing, requests different underinsured
             1783      motorist coverage from the insurer.
             1784          (f) (i) The named insured's underinsured motorist coverage, as described in Subsection
             1785      (2)(a), is secondary to the liability coverage of an owner or operator of an underinsured motor
             1786      vehicle, as described in Subsection (1).
             1787          (ii) Underinsured motorist coverage may not be set off against the liability coverage of
             1788      the owner or operator of an underinsured motor vehicle, but shall be added to, combined with,
             1789      or stacked upon the liability coverage of the owner or operator of the underinsured motor
             1790      vehicle to determine the limit of coverage available to the injured person.
             1791          (g) (i) A named insured may reject underinsured motorist coverage by an express
             1792      writing to the insurer that provides liability coverage under Subsection 31A-22-302 (1)(a).


             1793          (ii) [This] A written rejection under this Subsection (2)(g) shall be on a form provided
             1794      by the insurer that includes a reasonable explanation of the purpose of underinsured motorist
             1795      coverage and when it would be applicable.
             1796          (iii) [This] A written rejection under this Subsection (2)(g) continues for that issuer of
             1797      the liability coverage until the insured in writing requests underinsured motorist coverage from
             1798      that liability insurer.
             1799          [(h) (i) In conjunction with the first two renewal notices sent after January 1, 2001, for
             1800      policies existing on that date, the insurer shall disclose in the same medium as the premium
             1801      renewal notice, an explanation of:]
             1802          [(A) the purpose of underinsured motorist coverage; and]
             1803          [(B) the costs associated with increasing the coverage in amounts up to and including
             1804      the maximum amount available by the insurer under the insured's motor vehicle policy.]
             1805          [(ii) The disclosure required by this Subsection (2)(h) shall be sent to all insureds that
             1806      carry underinsured motorist coverage limits in an amount less than the insured's motor vehicle
             1807      liability policy limits or the maximum underinsured motorist coverage limits available by the
             1808      insurer under the insured's motor vehicle policy.]
             1809          (3) (a) (i) Except as provided in this Subsection (3), a covered person injured in a
             1810      motor vehicle described in a policy that includes underinsured motorist benefits may not elect
             1811      to collect underinsured motorist coverage benefits from [any other] another motor vehicle
             1812      insurance policy.
             1813          (ii) The limit of liability for underinsured motorist coverage for two or more motor
             1814      vehicles may not be added together, combined, or stacked to determine the limit of insurance
             1815      coverage available to an injured person for any one accident.
             1816          (iii) Subsection (3)(a)(ii) applies to all persons except a covered person described
             1817      under Subsections (3)(b)(i) and (ii).
             1818          (b) (i) Except as provided in Subsection (3)(b)(ii), a covered person injured while
             1819      occupying, using, or maintaining a motor vehicle that is not owned, leased, or furnished to the
             1820      covered person, the covered person's spouse, or the covered person's resident parent or resident
             1821      sibling, may also recover benefits under any one other policy under which [they are] the
             1822      covered person is also a covered person.
             1823          (ii) (A) A covered person may recover benefits from no more than two additional


             1824      policies, one additional policy from each parent's household if the covered person is:
             1825          (I) a dependent minor of parents who reside in separate households; and
             1826          (II) injured while occupying or using a motor vehicle that is not owned, leased, or
             1827      furnished to the covered person, the covered person's resident parent, or the covered person's
             1828      resident sibling.
             1829          (B) Each parent's policy under this Subsection (3)(b)(ii) is liable only for the
             1830      percentage of the damages that the limit of liability of each parent's policy of underinsured
             1831      motorist coverage bears to the total of both parents' underinsured coverage applicable to the
             1832      accident.
             1833          (iii) A covered person's recovery under any available policies may not exceed the full
             1834      amount of damages.
             1835          (iv) Underinsured coverage on a motor vehicle occupied at the time of an accident
             1836      [shall be] is primary coverage, and the coverage elected by a person described under
             1837      Subsections 31A-22-305 (1)(a) and (b) [shall be] is secondary coverage.
             1838          (v) The primary and the secondary coverage may not be set off against the other.
             1839          (vi) A covered person as described under Subsection (3)(b)(i) is entitled to the highest
             1840      limits of underinsured motorist coverage under only one additional policy per household
             1841      applicable to that covered person as a named insured, spouse, or relative.
             1842          (vii) A covered injured person is not barred against making subsequent elections if
             1843      recovery is unavailable under previous elections.
             1844          (viii) (A) As used in this section, "interpolicy stacking" means recovering benefits for a
             1845      single incident of loss under more than one insurance policy.
             1846          (B) Except to the extent permitted by this Subsection (3), interpolicy stacking is
             1847      prohibited for underinsured motorist coverage.
             1848          (c) Underinsured motorist coverage:
             1849          (i) is secondary to the benefits provided by Title 34A, Chapter 2, Workers'
             1850      Compensation Act;
             1851          (ii) may not be subrogated by [the] a workers' compensation insurance carrier;
             1852          (iii) may not be reduced by [any] benefits provided by workers' compensation
             1853      insurance;
             1854          (iv) may be reduced by health insurance subrogation only after the covered person [has


             1855      been] is made whole;
             1856          (v) may not be collected for bodily injury or death sustained by a person:
             1857          (A) while committing a violation of Section 41-1a-1314 ;
             1858          (B) who, as a passenger in a vehicle, has knowledge that the vehicle is being operated
             1859      in violation of Section 41-1a-1314 ; or
             1860          (C) while committing a felony; and
             1861          (vi) notwithstanding Subsection (3)(c)(v), may be recovered:
             1862          (A) for a person under 18 years of age who is injured within the scope of Subsection
             1863      (3)(c)(v), but is limited to medical and funeral expenses; or
             1864          (B) by a law enforcement officer as defined in Section 53-13-103 , who is injured
             1865      within the course and scope of the law enforcement officer's duties.
             1866          (4) The inception of the loss under Subsection 31A-21-313 (1) for underinsured
             1867      motorist claims occurs upon the date of the last liability policy payment.
             1868          (5) (a) Within five business days after notification that all liability insurers have
             1869      tendered their liability policy limits, the underinsured carrier shall either:
             1870          (i) waive any subrogation claim the underinsured carrier may have against the person
             1871      liable for the injuries caused in the accident; or
             1872          (ii) pay the insured an amount equal to the policy limits tendered by the liability carrier.
             1873          (b) If neither option is exercised under Subsection (5)(a), the subrogation claim is
             1874      considered to be waived by the underinsured carrier.
             1875          (6) Except as otherwise provided in this section, a covered person may seek, subject to
             1876      the terms and conditions of the policy, additional coverage under any policy:
             1877          (a) that provides coverage for damages resulting from motor vehicle accidents; and
             1878          (b) that is not required to conform to Section 31A-22-302 .
             1879          (7) (a) When a claim is brought by a named insured or a person described in
             1880      Subsection 31A-22-305 (1) and is asserted against the covered person's underinsured motorist
             1881      carrier, the claimant may elect to resolve the claim:
             1882          (i) by submitting the claim to binding arbitration; or
             1883          (ii) through litigation.
             1884          (b) Unless otherwise provided in the policy under which underinsured benefits are
             1885      claimed, the election provided in Subsection (7)(a) is available to the claimant only.


             1886          (c) Once [the] a claimant [has elected] elects to commence litigation under Subsection
             1887      (7)(a)(ii), the claimant may not elect to resolve the claim through binding arbitration under this
             1888      section without the written consent of the underinsured motorist coverage carrier.
             1889          (d) (i) Unless otherwise agreed to in writing by the parties, a claim that is submitted to
             1890      binding arbitration under Subsection (7)(a)(i) shall be resolved by a single arbitrator.
             1891          (ii) All parties shall agree on the single arbitrator selected under Subsection (7)(d)(i).
             1892          (iii) If the parties are unable to agree on a single arbitrator as required under Subsection
             1893      (7)(d)(ii), the parties shall select a panel of three arbitrators.
             1894          (e) If the parties select a panel of three arbitrators under Subsection (7)(d)(iii):
             1895          (i) each side shall select one arbitrator; and
             1896          (ii) the arbitrators appointed under Subsection (7)(e)(i) shall select one additional
             1897      arbitrator to be included in the panel.
             1898          (f) Unless otherwise agreed to in writing:
             1899          (i) each party shall pay an equal share of the fees and costs of the arbitrator selected
             1900      under Subsection (7)(d)(i); or
             1901          (ii) if an arbitration panel is selected under Subsection (7)(d)(iii):
             1902          (A) each party shall pay the fees and costs of the arbitrator selected by that party; and
             1903          (B) each party shall pay an equal share of the fees and costs of the arbitrator selected
             1904      under Subsection (7)(e)(ii).
             1905          (g) Except as otherwise provided in this section or unless otherwise agreed to in
             1906      writing by the parties, an arbitration proceeding conducted under this section [shall be] is
             1907      governed by Title 78B, Chapter 11, Utah Uniform Arbitration Act.
             1908          (h) [The] An arbitration shall be conducted in accordance with Rules 26 through 37,
             1909      54, and 68 of the Utah Rules of Civil Procedure.
             1910          (i) [All issues] An issue of discovery shall be resolved by the arbitrator or the
             1911      arbitration panel.
             1912          (j) A written decision by a single arbitrator or by a majority of the arbitration panel
             1913      [shall constitute] constitutes a final decision.
             1914          (k) (i) The amount of an arbitration award may not exceed the underinsured motorist
             1915      policy limits of all applicable underinsured motorist policies, including applicable underinsured
             1916      motorist umbrella policies.


             1917          (ii) If the initial arbitration award exceeds the underinsured motorist policy limits of all
             1918      applicable underinsured motorist policies, the arbitration award shall be reduced to an amount
             1919      equal to the combined underinsured motorist policy limits of all applicable underinsured
             1920      motorist policies.
             1921          (l) The arbitrator or arbitration panel may not decide [the issues] an issue of coverage
             1922      or extra-contractual damages, including:
             1923          (i) whether the claimant is a covered person;
             1924          (ii) whether the policy extends coverage to the loss; or
             1925          (iii) [any allegations or claims] an allegation or claim asserting consequential damages
             1926      or bad faith liability.
             1927          (m) The arbitrator or arbitration panel may not conduct arbitration on a class-wide or
             1928      class-representative basis.
             1929          (n) If the arbitrator or arbitration panel finds that the [action was] arbitration is not
             1930      brought, pursued, or defended in good faith, the arbitrator or arbitration panel may award
             1931      reasonable attorney fees and costs against the party that failed to bring, pursue, or defend the
             1932      [claim] arbitration in good faith.
             1933          (o) An arbitration award issued under this section shall be the final resolution of all
             1934      claims not excluded by Subsection (7)(l) between the parties unless:
             1935          (i) the award [was] is procured by corruption, fraud, or other undue means; or
             1936          (ii) either party, within 20 days after service of the arbitration award:
             1937          (A) files a complaint requesting a trial de novo in the district court; and
             1938          (B) serves the nonmoving party with a copy of the complaint requesting a trial de novo
             1939      under Subsection (7)(o)(ii)(A).
             1940          (p) (i) Upon filing a complaint for a trial de novo under Subsection (7)(o), [the] a claim
             1941      shall proceed through litigation pursuant to the Utah Rules of Civil Procedure and Utah Rules
             1942      of Evidence in the district court.
             1943          (ii) In accordance with Rule 38, Utah Rules of Civil Procedure, either party may
             1944      request a jury trial with a complaint requesting a trial de novo under Subsection (7)(o)(ii)(A).
             1945          (q) (i) If the claimant, as the moving party in a trial de novo requested under
             1946      Subsection (7)(o), does not obtain a verdict that is at least $5,000 and is at least 20% greater
             1947      than the arbitration award, the claimant is responsible for all of the nonmoving party's costs.


             1948          (ii) If the underinsured motorist carrier, as the moving party in a trial de novo requested
             1949      under Subsection (7)(o), does not obtain a verdict that is at least 20% less than the arbitration
             1950      award, the underinsured motorist carrier is responsible for all of the nonmoving party's costs.
             1951          (iii) Except as provided in Subsection (7)(q)(iv), the costs under this Subsection (7)(q)
             1952      shall include:
             1953          (A) any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
             1954          (B) the costs of expert witnesses and depositions.
             1955          (iv) An award of costs under this Subsection (7)(q) may not exceed $2,500.
             1956          (r) For purposes of determining whether a party's verdict is greater or less than the
             1957      arbitration award under Subsection (7)(q), a court may not consider any recovery or other relief
             1958      granted on a claim for damages if the claim for damages:
             1959          (i) was not fully disclosed in writing prior to the arbitration proceeding; or
             1960          (ii) was not disclosed in response to discovery contrary to the Utah Rules of Civil
             1961      Procedure.
             1962          (s) If a district court determines, upon a motion of the nonmoving party, that [the] a
             1963      moving party's use of the trial de novo process [was] is filed in bad faith in accordance with
             1964      Section 78B-5-825 , the district court may award reasonable attorney fees to the nonmoving
             1965      party.
             1966          (t) Nothing in this section is intended to limit [any] a claim under [any other] another
             1967      portion of an applicable insurance policy.
             1968          (u) If there are multiple underinsured motorist policies, as set forth in Subsection (3),
             1969      the claimant may elect to arbitrate in one hearing the claims against all the underinsured
             1970      motorist carriers.
             1971          Section 15. Section 31A-22-411 is amended to read:
             1972           31A-22-411. Contracts providing variable benefits.
             1973          (1) [(a) Any contract which] An insurance policy that provides for payment of [benefits
             1974      in variable amounts] a benefit in a variable amount shall contain a statement of the essential
             1975      features of the procedure to be followed by the insurer in determining the dollar amount of the
             1976      variable benefits. [The contract shall contain:]
             1977          (2) A variable insurance policy shall contain:
             1978          [(i)] (a) an appropriate nonforfeiture [benefits] benefit in lieu of those required by


             1979      either Section 31A-22-408 or 31A-22-409 ;
             1980          [(ii)] (b) an appropriate reinstatement [provisions] provision in lieu of those required
             1981      by Section 31A-22-407 ; and
             1982          [(iii)] (c) a grace period [provisions] provision appropriate to that type of [contract]
             1983      insurance policy in lieu of those required by Section 31A-22-402 .
             1984          [(b) This] (3) An individual [contract and any] insurance policy and a certificate issued
             1985      under a group [contract shall state that] insurance policy shall conspicuously state on its first
             1986      page that:
             1987          (a) the dollar amount may decrease or increase [and shall conspicuously display on its
             1988      first page a statement that the benefits under the contract are] according to investment
             1989      experience; and
             1990          (b) a benefit under the insurance policy is payable on a variable basis[, with a statement
             1991      specifying where the details of the variable provisions are found in the contract].
             1992          [(c) Life] (4) A life insurance [and] or annuity [policies] policy with a variable
             1993      [benefits] benefit issued under a separate account shall, on either the application or the
             1994      insurance policy, state that the insurer's liabilities with respect to a variable [benefits] benefit
             1995      under the insurance policy are subject to satisfaction only out of the insurer's variable account
             1996      assets.
             1997          [(2) Any contract subject to Subsection (1)]
             1998          (5)(a) A variable insurance policy shall state whether it may be amended as to:
             1999          (i) investment policy[,];
             2000          (ii) voting rights[,]; and
             2001          (iii) conduct of the business and affairs of [any segregated] a separate account.
             2002          (b) Subject to any preemptive provision of federal law, [this type of] an amendment of
             2003      the type described in this Subsection (5) is subject to:
             2004          (i) filing under Section 31A-21-201 ; and
             2005          (ii) approval by a majority of the policyholders in the [segregated] separate account.
             2005a      S. Section 16. Section 31A-22-610.5 is amended to read:
             2005b          31A-22-610.5.   Dependent coverage.
             2005c          (1) As used in this section, "child" has the same meaning as defined in Section
             2005d      78B-12-102.
             2005e          (2) (a) Any individual or group accident and health insurance policy or health
             2005f      maintenance organization contract that provides coverage for a policyholder's or certificate .S


             2005g      S. holder's dependent [ shall ] may not terminate coverage of an unmarried dependent by
             2005h      reason of the dependent's age before the dependent's 26th birthday and shall, upon
             2005i      application, provide coverage for all unmarried dependents up to age 26.
             2005j          (b) The cost of coverage for unmarried dependents 19 to 26 years of age shall be
             2005k      included in the premium on the same basis as other dependent coverage.
             2005l          (c) This section does not prohibit the employer from requiring the employee to pay all
             2005m      or part of the cost of coverage for unmarried dependents.
             2005n     
     (d) An individual health insurance policy, group health insurance policy, or health
             2005o      maintenance organization, shall continue in force coverage for a dependent through the last
             2005p      day of the month in which the dependent ceases to be a dependent:
             2005q      (i) if premiums are paid; and
             2005r      (ii) notwithstanding Section 31A-8-402.3, 31A-8-402.5, 31A-22-721, 31A-30-107.1, or
             2005s      31A-30-107.3.
             2005t          (3) An individual or group accident and health insurance policy or health maintenance
             2005u      organization contract shall reinstate dependent coverage, and for purposes of all exclusions
             2005v      and limitations, shall treat the dependent as if the coverage had been in force since it was
             2005w      terminated; if:
             2005x          (a) the dependent has not reached the age of 26 by July 1, 1995;
             2005y          (b) the dependent had coverage prior to July 1, 1994;
             2005z          (c) prior to July 1, 1994, the dependent's coverage was terminated solely due to the age
             2005aa      of the dependent; and
             2005ab          (d) the policy has not been terminated since the dependent's coverage was terminated.
             2005ac          (4) (a) When a parent is required by a court or administrative order to provide health
             2005ad      insurance coverage for a child, an accident and health insurer may not deny enrollment of a
             2005ae      child under the accident and health insurance plan of the child's parent on the grounds the
             2005af      child:
             2005ag          (i) was born out of wedlock and is entitled to coverage under Subsection (5);
             2005ah          (ii) was born out of wedlock and the custodial parent seeks enrollment for the child
             2005ai      under the custodial parent's policy;
             2005aj          (iii) is not claimed as a dependent on the parent's federal tax return; or
             2005ak          (iv) does not reside with the parent or in the insurer's service area.
             2005al          (b) A child enrolled as required under Subsection (4)(a)(iv) is subject to the terms of
             2005am      the accident and health insurance plan contract pertaining to services received outside of an
             2005an      insurer's service area. A health maintenance organization must comply with Section .S


             2005ao      S. 31A-8-502.
             2005ap          (5) When a child has accident and health coverage through an insurer of a
             2005aq      noncustodial parent, and when requested by the noncustodial or custodial parent, the insurer
             2005ar      shall:
             2005as          (a) provide information to the custodial parent as necessary for the child to obtain
             2005at      benefits through that coverage, but the insurer or employer, or the agents or employees of
             2005au      either of them, are not civilly or criminally liable for providing information in compliance with
             2005av      this Subsection (5)(a), whether the information is provided pursuant to a verbal or written
             2005aw      request;
             2005ax          (b) permit the custodial parent or the service provider, with the custodial parent's
             2005ay      approval, to submit claims for covered services without the approval of the noncustodial
             2005az      parent; and
             2005ba          (c) make payments on claims submitted in accordance with Subsection (5)(b) directly to
             2005bb      the custodial parent, the child who obtained benefits, the provider, or the state Medicaid
             2005bc      agency.
             2005bd          (6) When a parent is required by a court or administrative order to provide health
             2005be      coverage for a child, and the parent is eligible for family health coverage, the insurer shall:
             2005bf          (a) permit the parent to enroll, under the family coverage, a child who is otherwise
             2005bg      eligible for the coverage without regard to an enrollment season restrictions;
             2005bh          (b) if the parent is enrolled but fails to make application to obtain coverage for the
             2005bi      child, enroll the child under family coverage upon application of the child's other parent, the
             2005bj      state agency administering the Medicaid program, or the state agency administering 42 U.S.C.
             2005bk      651 through 669, the child support enforcement program; and
             2005bl          (c) (i) when the child is covered by an individual policy, not disenroll or eliminate
             2005bm      coverage of the child unless the insurer is provided satisfactory written evidence that:
             2005bn          (A) the court or administrative order is no longer in effect; or
             2005bo          (B) the child is or will be enrolled in comparable accident and health coverage through
             2005bp      another insurer which will take effect not later than the effective date of disenrollment; or
             2005bq          (ii) when the child is covered by a group policy, not disenroll or eliminate coverage of
             2005br      the child unless the employer is provided with satisfactory written evidence, which evidence is
             2005bs      also provided to the insurer, that Subsection (9)(c)(i), (ii) or (iii) has happened.
             2005bt          (7) An insurer may not impose requirements on a state agency that has been assigned


             2005bu      the rights of an individual eligible for medical assistance under Medicaid and covered for
             2005bv      accident and health benefits from the insurer that are different from requirements .S


             2005bw      S. applicable to an agent or assignee of any other individual so covered.
             2005bx          (8) Insurers may not reduce their coverage of pediatric vaccines below the benefit level
             2005by      in effect on May 1, 1993.
             2005bz          (9) When a parent is required by a court or administrative order to provide health
             2005ca      coverage, which is available through an employer doing business in this state, the employer
             2005cb      shall:
             2005cc          (a) permit the parent to enroll under family coverage any child who is otherwise
             2005cd      eligible for coverage without regard to any enrollment season restrictions;
             2005ce          (b) if the parent is enrolled but fails to make application to obtain coverage of the child,
             2005cf      enroll the child under family coverage upon application by the child's other parent, by the
             2005cg      state agency administering the Medicaid program, or the state agency administering 42 U.S.C.
             2005ch      651 through 669, the child support enforcement program;
             2005ci          (c) not disenroll or eliminate coverage of the child unless the employer is provided
             2005cj      satisfactory written evidence that:
             2005ck          (i) the court order is no longer in effect;
             2005cl          (ii) the child is or will be enrolled in comparable coverage which will take effect no
             2005cm      later than the effective date of disenrollment; or
             2005cn          (iii) the employer has eliminated family health coverage for all of its employees; and
             2005co          (d) withhold from the employee's compensation the employee's share, if any, of
             2005cp      premiums for health coverage and to pay this amount to the insurer.
             2005cq          (10) An order issued under Section 62A-11-326.1 may be considered a "qualified
             2005cr      medical support order" for the purpose of enrolling a dependent child in a group accident and
             2005cs      health insurance plan as defined in Section 609(a), Federal Employee Retirement Income
             2005ct      Security Act of 1974.
             2005cu          (11) This section does not affect any insurer's ability to require as a precondition of any
             2005cv      child being covered under any policy of insurance that:
             2005cw          (a) the parent continues to be eligible for coverage;
             2005cx          (b) the child shall be identified to the insurer with adequate information to comply with
             2005cy      this section; and


             2005cz          (c) the premium shall be paid when due.
             2005da          (12) The provisions of this section apply to employee welfare benefit plans as defined in
             2005db      Section 26-19-2.
             2005dc          (13) The commissioner shall adopt rules interpreting and implementing this section
             2005dd      with regard to out-of-area court ordered dependent coverage. .S


             2006          Section S. [ 16 ] 17 .S . Section 31A-22-625 is amended to read:
             2007           31A-22-625. Catastrophic coverage of mental health conditions.
             2008          (1) As used in this section:
             2009          (a) (i) "Catastrophic mental health coverage" means coverage in a health benefit plan


             2010      [or health maintenance organization contract] that does not impose a lifetime limit, annual
             2011      payment limit, episodic limit, inpatient or outpatient service limit, or maximum out-of-pocket
             2012      limit that places a greater financial burden on an insured for the evaluation and treatment of a
             2013      mental health condition than for the evaluation and treatment of a physical health condition.
             2014          (ii) "Catastrophic mental health coverage" may include a restriction on cost sharing
             2015      factors, such as deductibles, copayments, or coinsurance, [prior to] before reaching [any] a
             2016      maximum out-of-pocket limit.
             2017          (iii) "Catastrophic mental health coverage" may include one maximum out-of-pocket
             2018      limit for physical health conditions and another maximum out-of-pocket limit for mental health
             2019      conditions, [provided that,] except that if separate out-of-pocket limits are established, the
             2020      out-of-pocket limit for mental health conditions may not exceed the out-of-pocket limit for
             2021      physical health conditions.
             2022          (b) (i) "50/50 mental health coverage" means coverage in a health benefit plan [or
             2023      health maintenance organization contract] that pays for at least 50% of covered services for the
             2024      diagnosis and treatment of mental health conditions.
             2025          (ii) "50/50 mental health coverage" may include a restriction on:
             2026          (A) episodic limits[,];
             2027          (B) inpatient or outpatient service limits[,]; or
             2028          (C) maximum out-of-pocket limits.
             2029          (c) "Large employer," [is as defined in Section 31A-1-301 ] is as defined in 42 U.S.C.
             2030      Sec. 300gg-91.
             2031          (d) (i) "Mental health condition" means [any] a condition or disorder involving mental
             2032      illness that falls under [any of the] a diagnostic [categories] category listed in the Diagnostic
             2033      and Statistical Manual, as periodically revised.
             2034          (ii) "Mental health condition" does not include the following when diagnosed as the
             2035      primary or substantial reason or need for treatment:
             2036          (A) a marital or family problem;
             2037          (B) a social, occupational, religious, or other social maladjustment;
             2038          (C) a conduct disorder;
             2039          (D) a chronic adjustment disorder;
             2040          (E) a psychosexual disorder;


             2041          (F) a chronic organic brain syndrome;
             2042          (G) a personality disorder;
             2043          (H) a specific developmental disorder or learning disability; or
             2044          (I) mental retardation.
             2045          (e) "Small employer" is as defined in [Section 31A-1-301 ] 42 U.S.C. Sec. 300gg-91.
             2046          (2) (a) At the time of purchase and renewal, an insurer shall offer to [each] a small
             2047      employer that it insures or seeks to insure a choice between catastrophic mental health
             2048      coverage and 50/50 mental health coverage.
             2049          (b) In addition to complying with Subsection (2)(a), an insurer may offer to provide:
             2050          (i) catastrophic mental health coverage, 50/50 mental health coverage, or both at levels
             2051      that exceed the minimum requirements of this section; or
             2052          (ii) coverage that excludes benefits for mental health conditions.
             2053          (c) A small employer may, at its option, choose either catastrophic mental health
             2054      coverage, 50/50 mental health coverage, or coverage offered under Subsection (2)(b),
             2055      regardless of the employer's previous coverage for mental health conditions.
             2056          (d) An insurer is exempt from the 30% index rating restriction in Subsection
             2057      31A-30-106 (1)(b) and, for the first year only that catastrophic mental health coverage is
             2058      chosen, the 15% annual adjustment restriction in Subsection 31A-30-106 (1)(c)(ii), for any
             2059      small employer with 20 or less enrolled employees who chooses coverage that meets or
             2060      exceeds catastrophic mental health coverage.
             2061          [(3) (a) At the time of purchase and renewal of a health benefit plan, an insurer shall
             2062      offer catastrophic mental health coverage to each large employer that it insures or seeks to
             2063      insure.]
             2064          [(b) In addition to Subsection (3)(a), an insurer may offer to provide catastrophic
             2065      mental health coverage at levels that exceed the minimum requirements of this section.]
             2066          [(c) A large employer may, at its option, choose either catastrophic mental health
             2067      coverage, coverage that excludes benefits for mental health conditions, or coverage offered
             2068      under Subsection (3)(b).]
             2069          (3) An insurer shall offer a large employer mental health and substance use disorder
             2070      benefit in compliance with Section 2705 of the Public Health Service Act, 42 U.S.C. Sec.
             2071      300gg-5, and federal regulations adopted pursuant to that act.


             2072          (4) (a) An insurer may provide catastrophic mental health coverage to a small employer
             2073      through a managed care organization or system in a manner consistent with [the provisions in]
             2074      Chapter 8, Health Maintenance Organizations and Limited Health Plans, regardless of whether
             2075      the insurance policy [or contract] uses a managed care organization or system for the treatment
             2076      of physical health conditions.
             2077          (b) (i) Notwithstanding any other provision of this title, an insurer may:
             2078          (A) establish a closed panel of providers for catastrophic mental health coverage; and
             2079          (B) refuse to provide [any] a benefit to be paid for services rendered by a nonpanel
             2080      provider unless:
             2081          (I) the insured is referred to a nonpanel provider with the prior authorization of the
             2082      insurer; and
             2083          (II) the nonpanel provider agrees to follow the insurer's protocols and treatment
             2084      guidelines.
             2085          (ii) If an insured receives services from a nonpanel provider in the manner permitted by
             2086      Subsection (4)(b)(i)(B), the insurer shall reimburse the insured for not less than 75% of the
             2087      average amount paid by the insurer for comparable services of panel providers under a
             2088      noncapitated arrangement who are members of the same class of health care providers.
             2089          (iii) [Nothing in this] This Subsection (4)(b) may not be construed as requiring an
             2090      insurer to authorize a referral to a nonpanel provider.
             2091          (c) To be eligible for catastrophic mental health coverage, a diagnosis or treatment of a
             2092      mental health condition must be rendered:
             2093          (i) by a mental health therapist as defined in Section 58-60-102 ; or
             2094          (ii) in a health care facility:
             2095          (A) licensed or otherwise authorized to provide mental health services pursuant to:
             2096          (I) Title 26, Chapter 21, Health Care Facility Licensing and Inspection Act[,]; or
             2097          (II) Title 62A, Chapter 2, Licensure of Programs and Facilities[,]; and
             2098          (B) that provides a program for the treatment of a mental health condition pursuant to a
             2099      written plan.
             2100          (5) The commissioner may prohibit [a] an insurance policy [or contract] that provides
             2101      mental health coverage in a manner that is inconsistent with this section.
             2102          (6) The commissioner shall:


             2103          (a) adopt rules, in accordance with Title 63G, Chapter 3, Utah Administrative
             2104      Rulemaking Act, as necessary to ensure compliance with this section; and
             2105          (b) provide general figures on the percentage of [contracts and] insurance policies that
             2106      include:
             2107          (i) no mental health coverage[,];
             2108          (ii) 50/50 mental health coverage[,];
             2109          (iii) catastrophic mental health coverage[,]; and
             2110          (iv) coverage that exceeds the minimum requirements of this section.
             2111          [(7) The Health and Human Services Interim Committee shall review:]
             2112          [(a) the impact of this section on insurers, employers, providers, and consumers of
             2113      mental health services before January 1, 2004; and]
             2114          [(b) make a recommendation as to whether the provisions of this section should be
             2115      modified and whether the cost-sharing requirements for mental health conditions should be the
             2116      same as for physical health conditions.]
             2117          [(8) (a) An insurer shall offer catastrophic mental health coverage as part of a health
             2118      maintenance organization contract that is governed by Chapter 8, Health Maintenance
             2119      Organizations and Limited Health Plans, that is in effect on or after January 1, 2001.]
             2120          [(b) An insurer shall offer catastrophic mental health coverage as a part of a health
             2121      benefit plan that is not governed by Chapter 8, Health Maintenance Organizations and Limited
             2122      Health Plans, that is in effect on or after July 1, 2001.]
             2123          [(c) This section does not apply to the purchase or renewal of an individual insurance
             2124      policy or contract.]
             2125          [(d) Notwithstanding Subsection (8)(c), nothing in this]
             2126          (7) This section may not be construed as discouraging or otherwise preventing
             2127      [insurers] an insurer from [continuing to provide] providing mental health coverage in
             2128      connection with an individual insurance policy [or contract].
             2129          [(9)] (8) This section shall be repealed in accordance with Section 63I-1-231 .
             2130          Section 17. Section 31A-22-701 is amended to read:
             2131           31A-22-701. Groups eligible for group or blanket insurance.
             2132          (1) As used in this section, "association group" means a lawfully formed association of
             2133      individuals or business entities that:


             2134          (a) purchases insurance on a group basis on behalf of members; and
             2135          (b) is formed and maintained in good faith for purposes other than obtaining insurance.
             2136          [(1)] (2) A group or blanket accident and health insurance policy may be issued to:
             2137          (a) [any] a group:
             2138          (i) to which a group life insurance policy may be issued under Sections 31A-22-502
             2139      [through], 31A-22-503 , 31A-22-504 , 31A-22-506 , 31A-22-507 , and 31A-22-509 ; and
             2140          (ii) that is formed for a reason other than the purchase of insurance; [or]
             2141          (b) an association group that:
             2142          (i) has been actively in existence for at least five years;
             2143          (ii) has a constitution and bylaws;
             2144          (iii) is formed and maintained in good faith for purposes other than obtaining
             2145      insurance;
             2146          (iv) does not condition membership in the association group on any health
             2147      status-related factor relating to an individual, including an employee of an employer or a
             2148      dependent of an employee;
             2149          (v) makes accident and health insurance coverage offered through the association
             2150      group available to all members regardless of any health status-related factor relating to the
             2151      members or individuals eligible for coverage through a member; and
             2152          (vi) does not make accident and health insurance coverage offered through the
             2153      association group available other than in connection with a member of the association group; or
             2154          [(b) any] (c) a group specifically authorized by the commissioner under Section
             2155      31A-22-509 , upon a finding that:
             2156          (i) authorization is not contrary to the public interest;
             2157          (ii) the proposed group is actuarially sound;
             2158          (iii) formation of the proposed group may result in economies of scale in acquisition,
             2159      administrative, marketing, and brokerage costs;
             2160          (iv) the [health] insurance policy, insurance certificate, or other indicia of coverage that
             2161      will be offered to the proposed group is substantially equivalent to insurance policies that are
             2162      otherwise available to similar groups; [and]
             2163          [(v) the proposed group is formed for a reason other than the purchase of insurance.]
             2164          (v) the group would not present hazards of adverse selection; and


             2165          (vi) the premiums for the insurance policy and any contributions by or on behalf of the
             2166      insured persons are reasonable in relation to the benefits provided.
             2167          [(2)] (3) A blanket insurance policy may also be issued to:
             2168          (a) [any] a common carrier or [any] an operator, owner, or lessee of a means of
             2169      transportation, as policyholder, covering persons who may become passengers as defined by
             2170      reference to their travel status;
             2171          (b) an employer, as policyholder, covering any group of employees, dependents, or
             2172      guests, as defined by reference to specified hazards incident to any activities of the
             2173      policyholder;
             2174          (c) an institution of learning, including a school district, school jurisdictional units, or
             2175      the head, principal, or governing board of any of those units, as policyholder, covering
             2176      students, teachers, or employees;
             2177          (d) [any] a religious, charitable, recreational, educational, or civic organization, or
             2178      branch of those organizations, as policyholder, covering any group of members or participants
             2179      as defined by reference to specified hazards incident to the activities sponsored or supervised
             2180      by the policyholder;
             2181          (e) a sports team, camp, or sponsor of the team or camp, as policyholder, covering
             2182      members, campers, employees, officials, or supervisors;
             2183          (f) [any] a volunteer fire department, first aid, civil defense, or other similar volunteer
             2184      organization, as policyholder, covering any group of members or participants as defined by
             2185      reference to specified hazards incident to activities sponsored, supervised, or participated in by
             2186      the policyholder;
             2187          (g) a newspaper or other publisher, as policyholder, covering its carriers;
             2188          (h) an association, including a labor union, which has a constitution and bylaws and
             2189      which has been organized in good faith for purposes other than that of obtaining insurance, as
             2190      policyholder, covering any group of members or participants as defined by reference to
             2191      specified hazards incident to the activities or operations sponsored or supervised by the
             2192      policyholder;
             2193          (i) a health insurance purchasing association, as defined in Section 31A-34-103 ,
             2194      organized and controlled solely by participating employers; and
             2195          (j) any other class of risks [which] that, in the judgment of the commissioner, may be


             2196      properly eligible for blanket accident and health insurance.
             2197          [(3)] (4) The judgment of the commissioner may be exercised on the basis of:
             2198          (a) individual risks;
             2199          (b) a class of risks; or
             2200          (c) both Subsections [(3)] (4)(a) and (b).
             2201          Section 18. Section 31A-22-722 is amended to read:
             2202           31A-22-722. Utah mini-COBRA benefits for employer group coverage.
             2203          (1) An insured [has the right to] may extend the employee's coverage under the current
             2204      employer's group policy for a period of 12 months, except as provided in [Subsection]
             2205      Subsections (2) and 31A-22-722.5 (4). The right to extend coverage includes:
             2206          (a) voluntary termination;
             2207          (b) involuntary termination;
             2208          (c) retirement;
             2209          (d) death;
             2210          (e) divorce or legal separation;
             2211          (f) loss of dependent status;
             2212          (g) sabbatical;
             2213          (h) [any] a disability;
             2214          (i) leave of absence; or
             2215          (j) reduction of hours.
             2216          (2) (a) Notwithstanding [the provisions of] Subsection (1), an employee [does not have
             2217      the right to] may not extend coverage under the current employer's group insurance policy if
             2218      the employee:
             2219          (i) [failed] fails to pay [any required individual contribution] premiums or
             2220      contributions in accordance with the terms of the insurance policy;
             2221          (ii) acquires other group coverage covering all preexisting conditions including
             2222      maternity, if the coverage exists;
             2223          (iii) [performed] performs an act or practice that constitutes fraud in connection with
             2224      the coverage;
             2225          (iv) [made] makes an intentional misrepresentation of material fact under the terms of
             2226      the coverage;


             2227          (v) [was] is terminated from employment for gross misconduct;
             2228          (vi) [has not been] is not continuously covered under the current employer's group
             2229      policy for a period of three months immediately [prior to] before the termination of the
             2230      insurance policy due to [the events] an event set forth in Subsection (1);
             2231          (vii) is eligible for [any] an extension of coverage required by federal law; [or]
             2232          (viii) establishes residence outside of this state;
             2233          (ix) moves out of the insurer's service area;
             2234          (x) is eligible for similar coverage under another group insurance policy;
             2235          (xi) has the employee's coverage terminated because the employer's coverage is
             2236      terminated, except as provided in Subsection (8); or
             2237          [(viii) elected] (xii) elects alternative coverage under Section 31A-22-724 .
             2238          (b) The right to extend coverage under Subsection (1) applies to [any] spouse or
             2239      dependent [coverages] coverage, including a surviving spouse or dependents whose coverage
             2240      under the insurance policy terminates by reason of the death of the employee or member.
             2241          (3) (a) The employer shall [provide written notification] notify the following in writing
             2242      of the right to extend group coverage and the payment amounts required for extension of
             2243      coverage, including the manner, place, and time in which the payments shall be made [to]:
             2244          (i) [the] a terminated insured;
             2245          (ii) [the] an ex-spouse of an insured; or
             2246          (iii) if Subsection (2)(b) applies:
             2247          (A) [to] a surviving spouse; and
             2248          (B) the guardian of surviving dependents, if different from a surviving spouse.
             2249          (b) The notification required in Subsection (3)(a) shall be sent first class mail within 30
             2250      days after the termination date of the group coverage to:
             2251          (i) the terminated insured's home address as shown on the records of the employer;
             2252          (ii) the address of the surviving spouse, if different from the insured's address and if
             2253      shown on the records of the employer;
             2254          (iii) the guardian of any dependents address, if different from the insured's address, and
             2255      if shown on the records of the employer; and
             2256          (iv) the address of the ex-spouse, if shown on the records of the employer.
             2257          (4) The insurer shall provide the employee, spouse, or any eligible dependent the


             2258      opportunity to extend the group coverage at the payment amount stated in Subsection (5) if:
             2259          (a) the employer policyholder does not provide the terminated insured the written
             2260      notification required by Subsection (3)(a); and
             2261          (b) the employee or other individual eligible for extension contacts the insurer within
             2262      60 days of coverage termination.
             2263          (5) [The] A premium amount for extended group coverage may not exceed 102% of
             2264      the group rate in effect for a group member, including an employer's contribution, if any, for a
             2265      group insurance policy.
             2266          (6) Except as provided in this Subsection (6), [the] coverage extends without
             2267      interruption for 12 months and may not terminate if the terminated insured or, with respect to a
             2268      minor, the parent or guardian of the terminated insured:
             2269          (a) elects to extend group coverage within 60 days of losing group coverage; and
             2270          (b) tenders the amount required to the employer or insurer.
             2271          (7) The insured's coverage may be terminated [prior to] before 12 months if the
             2272      terminated insured:
             2273          (a) establishes residence outside of this state;
             2274          (b) moves out of the insurer's service area;
             2275          (c) fails to pay premiums or contributions in accordance with the terms of the insurance
             2276      policy, including any timeliness requirements;
             2277          (d) performs an act or practice that constitutes fraud in connection with the coverage;
             2278          (e) makes an intentional misrepresentation of material fact under the terms of the
             2279      coverage;
             2280          (f) becomes eligible for similar coverage under another group insurance policy; or
             2281          (g) has the coverage terminated because the employer's coverage is terminated, except
             2282      as provided in Subsection (8).
             2283          (8) If the current employer coverage is terminated and the employer replaces coverage
             2284      with similar coverage under another group insurance policy, without interruption, the
             2285      terminated insured, spouse, or the surviving spouse and guardian of dependents if Subsection
             2286      (2)(b) applies, [have the right to] may obtain extension of coverage under the replacement
             2287      group insurance policy:
             2288          (a) for the balance of the period the terminated insured would have extended coverage


             2289      under the replaced group insurance policy; and
             2290          (b) if the terminated insured is otherwise eligible for extension of coverage.
             2291          (9) (a) Within 30 days of the insured's exhaustion of extension of coverage, the
             2292      employer shall provide the terminated insured and the ex-spouse, or, in the case of the death of
             2293      the insured, the surviving spouse, or guardian of any dependents, written notification of the
             2294      right to an individual conversion policy under Section 31A-22-723 .
             2295          (b) The notification required by Subsection (9)(a):
             2296          (i) shall be sent first class mail to:
             2297          (A) the insured's last-known address as shown on the records of the employer;
             2298          (B) the address of the surviving spouse, if different from the insured's address, and if
             2299      shown on the records of the employer;
             2300          (C) the guardian of any dependents last known address as shown on the records of the
             2301      employer, if different from the address of the surviving spouse; and
             2302          (D) the address of the ex-spouse as shown on the records of the employer, if
             2303      applicable; and
             2304          (ii) shall contain the name, address, and telephone number of the insurer that will
             2305      provide the conversion coverage.
             2306          Section 19. Section 31A-22-722.5 is amended to read:
             2307           31A-22-722.5. Mini-COBRA election -- American Recovery and Reinvestment
             2308      Act.
             2309          (1) S. [ An ] (a) If the conditions of Subsection (1)(b) are met, an .S individual has a
             2309a      right S. [ , until [April 18, 2009] March 1, 2010, ] .S to contact the
             2310      individual's employer or the insurer for the employer to participate in a second election period
             2311      for mini-COBRA benefits under Section 31A-22-722 in accordance with Section 3001 of the
             2312      American Recovery and Reinvestment Act of 2009 (Pub. S. 111-5), as amended, S. until the later
             2312a      of:
             2312b      (i) February 17, 2010; or
             2312c      (ii) 30 days after the day on which the individual's insurer provides the notice described in
             2312d      Section 3001(a)(16)(D), of the American Recovery and Reinvestment Act of 2009, as amended
             2312e      by Pub. L. 111-118, Div. B, Sec. 1010(c).(b) Subsection (1)(a) applies .S if the
             2313      individual:
             2314           S. [ (a) ] (i) .S was involuntarily terminated from employment between [September 1, 2008 and
             2315      February 17, 2009] March 1, 2009 and April 30, 2009, as defined in Section 3001 of the


             2316      American Recovery and Reinvestment Act of 2009 (Pub. S. 111-5), as amended;


             2317           S. [ (b) ] (ii) .S is eligible for COBRA premium assistance under Section 3001 of the American
             2318      Recovery and Reinvestment Act of 2009 (Pub. S. 111-5), as amended; [and]
             2319           S. [ (c) ] (iii) .S was eligible for Utah mini-COBRA as provided in Section 31A-22-722 at the time


             2320      of termination[.];
             2321           S. [ (d) ] (iv) .S elected Utah mini-COBRA; and
             2322           S. [ (e) ] (v) has the individual's .S coverage S. [ was ] .S terminated between
             2322a      December 1, 2009
             2322b      through February 1,2010, for
             2323      reasons other than those identified in Subsection 31A-22-722 (7).
             2324          (2) (a) An individual or the employer of the individual shall contact the insurer and
             2325      inform the insurer that the individual wants to take advantage of the second election period for
             2326      mini-COBRA coverage under the provisions of Section 3001 of the American Recovery and
             2327      Reinvestment Act of 2009 (Pub. S. 111-5), as amended.
             2328          (b) An individual or an employer on behalf of an eligible individual must submit the
             2329      enrollment forms for coverage under Subsection (1) to the insurer [prior to May 1, 2009]
             2330      S. [ before March 1, 2010. ] by no later than the later of:
             2330a      (i) March 19, 2010; or
             2330b      (ii) 30 days after the day on which the notice of the second election period is provided as
             2330c      described in Subsection (1)(a). .S
             2331          (3) The provision regarding the application of pre-existing condition waivers to the
             2332      extended second election period for federal COBRA under Section 3001 of the American
             2333      Recovery and Reinvestment Act of 2009 (Pub. S. 111-5), as amended, shall apply to the
             2334      extended second election for state mini-COBRA under this section.
             2335          (4) An insured has the right to extend the employee's coverage under the current
             2336      employer's group policy beyond 12 months to the period of time the insured is eligible to
             2337      receive assistance in accordance with Section 3001 of the American Recovery and
             2338      Reinvestment Act of 2009 (Pub. S. 111-5), as amended.
             2339          [(4)] (5) An insurer that violates this section is subject to penalties in accordance with
             2340      Section 31A-2-308 .
             2341          Section 20. Section 31A-22-725 is enacted to read:
             2342          31A-22-725. Special enrollment periods relating to Medicaid and Children's
             2343      Health Insurance Program.
             2344          (1) A person is eligible to enroll for coverage under the terms of an employer's group
             2345      health benefit plan if:
             2346          (a) the person is:
             2347          (i) an employee who is eligible, but not enrolled, for coverage under the terms of the
             2348      employer's group health benefit plan; or


             2349          (ii) a dependent of an employee, if the dependent is eligible, but not enrolled, for
             2350      coverage under the terms of the employer's group health benefit plan; and


             2351          (b) the conditions of either Subsection (2) or (3) are met.
             2352          (2) Subsection (1) applies if:
             2353          (a) the employee or dependent is covered under:
             2354          (i) a Medicaid health benefit plan under Title XIX of the Social Security Act; or
             2355          (ii) a state child health benefit plan under Title XXI of the Social Security Act;
             2356          (b) coverage of the employee or dependent described in Subsection (2)(a) is terminated
             2357      as a result of loss of eligibility for the coverage; and
             2358          (c) the employee requests coverage under the employer's group health plan no later
             2359      than 60 days after the date of termination of the coverage described in Subsection (2)(a).
             2360          (3) Subsection (1) applies if:
             2361          (a) the employee or dependent becomes eligible for assistance, with respect to coverage
             2362      under the employer's group health plan under a plan described in Subsection (2)(a), including
             2363      under a waiver or demonstration project conducted under or in relation to a plan described in
             2364      Subsection (2)(a); and
             2365          (b) the employee requests coverage under the employer's group health plan no later
             2366      than 60 days after the date the employee or dependent is determined to be eligible for the
             2367      assistance described in Subsection (3)(a).
             2368          Section 21. Section 31A-23a-415 is amended to read:
             2369           31A-23a-415. Assessment on title insurance agencies or title insurers -- Account
             2370      created.
             2371          (1) For purposes of this section:
             2372          (a) "Premium" is as defined in Subsection 59-9-101 (3).
             2373          (b) "Title insurer" means a person:
             2374          (i) making any contract or policy of title insurance as:
             2375          (A) insurer;
             2376          (B) guarantor; or
             2377          (C) surety;
             2378          (ii) proposing to make any contract or policy of title insurance as:
             2379          (A) insurer;
             2380          (B) guarantor; or
             2381          (C) surety; or


             2382          (iii) transacting or proposing to transact any phase of title insurance, including:
             2383          (A) soliciting;
             2384          (B) negotiating preliminary to execution;
             2385          (C) executing of a contract of title insurance;
             2386          (D) insuring; and
             2387          (E) transacting matters subsequent to the execution of the contract and arising out of
             2388      the contract.
             2389          (c) "Utah risks" means insuring, guaranteeing, or indemnifying with regard to real or
             2390      personal property located in Utah, an owner of real or personal property, the holders of liens or
             2391      encumbrances on that property, or others interested in the property against loss or damage
             2392      suffered by reason of:
             2393          (i) liens or encumbrances upon, defects in, or the unmarketability of the title to the
             2394      property; or
             2395          (ii) invalidity or unenforceability of any liens or encumbrances on the property.
             2396          (2) (a) [Beginning on July 1, 1998, the] The commissioner may assess each title insurer
             2397      and each title insurance agency an annual assessment:
             2398          (i) determined by the Title and Escrow Commission:
             2399          (A) after consultation with the commissioner; and
             2400          (B) in accordance with this Subsection (2); and
             2401          (ii) to be used for the purposes described in Subsection (3).
             2402          (b) A title insurance agency shall be assessed up to:
             2403          (i) $200 for the first office in each county in which the title insurance agency maintains
             2404      an office; and
             2405          (ii) $100 for each additional office the title insurance agency maintains in the county
             2406      described in Subsection (2)(b)(i).
             2407          (c) A title insurer shall be assessed up to:
             2408          (i) $200 for the first office in each county in which the title insurer maintains an office;
             2409          (ii) $100 for each additional office the title insurer maintains in the county described in
             2410      Subsection (2)(c)(i); and
             2411          (iii) an amount calculated by:
             2412          (A) aggregating the assessments imposed on:


             2413          (I) title insurance agencies under Subsection (2)(b); and
             2414          (II) title insurers under Subsections (2)(c)(i) and (2)(c)(ii);
             2415          (B) subtracting the amount determined under Subsection (2)(c)(iii)(A) from the total
             2416      costs and expenses determined under Subsection (2)(d); and
             2417          (C) multiplying:
             2418          (I) the amount calculated under Subsection (2)(c)(iii)(B); and
             2419          (II) the percentage of total premiums for title insurance on Utah risk that are premiums
             2420      of the title insurer.
             2421          (d) Notwithstanding Section 31A-3-103 and subject to Section 31A-2-404 , the Title
             2422      and Escrow Commission by rule shall establish the amount of costs and expenses described
             2423      under Subsection (3) that will be covered by the assessment, except the costs or expenses to be
             2424      covered by the assessment may not exceed $75,000 annually.
             2425          (3) (a) [All money] Money received by the state under this section[: (a) shall be
             2426      deposited in the General Fund as a dedicated credit of the department; and (b) may be
             2427      expended by the department] shall be deposited into the Title Licensee Enforcement Restricted
             2428      Account.
             2429          (b) There is created in the General Fund a restricted account known as the "Title
             2430      Licensee Enforcement Restricted Account."
             2431          (c) The Title Licensee Enforcement Restricted Account shall consist of the money
             2432      received by the state under this section.
             2433          (d) The commissioner shall administer the Title Licensee Enforcement Restricted
             2434      Account. Subject to appropriations by the Legislature, the commissioner shall use the money
             2435      deposited into the Title Licensee Enforcement Restricted Account only to pay for [any] a cost
             2436      or expense incurred by the department in the administration, investigation, and enforcement of
             2437      this part and Part 5, Compensation of Producers and Consultants, related to:
             2438          (i) the marketing of title insurance; and
             2439          (ii) audits of agencies.
             2440          (e) The money in the Title Licensee Enforcement Restricted Account is nonlapsing.
             2441          (4) The assessment imposed by this section shall be in addition to any premium
             2442      assessment imposed under Subsection 59-9-101 (3).
             2443          Section 22. Section 31A-23a-501 is amended to read:


             2444           31A-23a-501. Licensee compensation.
             2445          (1) As used in this section:
             2446          (a) "Commission compensation" includes funds paid to or credited for the benefit of a
             2447      licensee from:
             2448          (i) commission amounts deducted from insurance premiums on insurance sold by or
             2449      placed through the licensee; or
             2450          (ii) commission amounts received from an insurer or another licensee as a result of the
             2451      sale or placement of insurance.
             2452          (b) (i) "Compensation from an insurer or third party administrator" means
             2453      commissions, fees, awards, overrides, bonuses, contingent commissions, loans, stock options,
             2454      gifts, prizes, or any other form of valuable consideration:
             2455          (A) whether or not payable pursuant to a written agreement; and
             2456          (B) received from:
             2457          (I) an insurer; or
             2458          (II) a third party to the transaction for the sale or placement of insurance.
             2459          (ii) "Compensation from an insurer or third party administrator" does not mean
             2460      compensation from a customer that is:
             2461          (A) a fee or pass-through costs as provided in Subsection (1)(e); or
             2462          (B) a fee or amount collected by or paid to the producer that does not exceed an
             2463      amount established by the commissioner by administrative rule.
             2464          (c) (i) "Customer" means:
             2465          (A) the person signing the application or submission for insurance; or
             2466          (B) the authorized representative of the insured actually negotiating the placement of
             2467      insurance with the producer.
             2468          (ii) "Customer" does not mean a person who is a participant or beneficiary of:
             2469          (A) an employee benefit plan; or
             2470          (B) a group or blanket insurance policy or group annuity contract sold, solicited, or
             2471      negotiated by the producer or affiliate.
             2472          (d) (i) "Noncommission compensation" includes all funds paid to or credited for the
             2473      benefit of a licensee other than commission compensation.
             2474          (ii) "Noncommission compensation" does not include charges for pass-through costs


             2475      incurred by the licensee in connection with obtaining, placing, or servicing an insurance policy.
             2476          (e) "Pass-through costs" include:
             2477          (i) costs for copying documents to be submitted to the insurer; and
             2478          (ii) bank costs for processing cash or credit card payments.
             2479          (2) A licensee may receive from an insured or from a person purchasing an insurance
             2480      policy, noncommission compensation if the noncommission compensation is stated on a
             2481      separate, written disclosure.
             2482          (a) The disclosure required by this Subsection (2) shall:
             2483          (i) include the signature of the insured or prospective insured acknowledging the
             2484      noncommission compensation;
             2485          (ii) clearly specify the amount or extent of the noncommission compensation; and
             2486          (iii) be provided to the insured or prospective insured before the performance of the
             2487      service.
             2488          (b) Noncommission compensation shall be:
             2489          (i) limited to actual or reasonable expenses incurred for services; and
             2490          (ii) uniformly applied to all insureds or prospective insureds in a class or classes of
             2491      business or for a specific service or services.
             2492          (c) A copy of the signed disclosure required by this Subsection (2) must be maintained
             2493      by any licensee who collects or receives the noncommission compensation or any portion of
             2494      the noncommission compensation.
             2495          (d) All accounting records relating to noncommission compensation shall be
             2496      maintained by the person described in Subsection (2)(c) in a manner that facilitates an audit.
             2497          (3) (a) A licensee may receive noncommission compensation when acting as a
             2498      producer for the insured in connection with the actual sale or placement of insurance if:
             2499          (i) the producer and the insured have agreed on the producer's noncommission
             2500      compensation; and
             2501          (ii) the producer has disclosed to the insured the existence and source of any other
             2502      compensation that accrues to the producer as a result of the transaction.
             2503          (b) The disclosure required by this Subsection (3) shall:
             2504          (i) include the signature of the insured or prospective insured acknowledging the
             2505      noncommission compensation;


             2506          (ii) clearly specify the amount or extent of the noncommission compensation and the
             2507      existence and source of any other compensation; and
             2508          (iii) be provided to the insured or prospective insured before the performance of the
             2509      service.
             2510          (c) The following additional noncommission compensation is authorized:
             2511          (i) compensation received by a producer of a compensated corporate surety who under
             2512      procedures approved by a rule or order of the commissioner is paid by surety bond principal
             2513      debtors for extra services;
             2514          (ii) compensation received by an insurance producer who is also licensed as a public
             2515      adjuster under Section 31A-26-203 , for services performed for an insured in connection with a
             2516      claim adjustment, so long as the producer does not receive or is not promised compensation for
             2517      aiding in the claim adjustment prior to the occurrence of the claim;
             2518          (iii) compensation received by a consultant as a consulting fee, provided the consultant
             2519      complies with the requirements of Section 31A-23a-401 ; or
             2520          (iv) other compensation arrangements approved by the commissioner after a finding
             2521      that they do not violate Section 31A-23a-401 and are not harmful to the public.
             2522          (4) (a) For purposes of this Subsection (4), "producer" includes:
             2523          (i) a producer;
             2524          (ii) an affiliate of a producer; or
             2525          (iii) a consultant.
             2526          (b) Beginning January 1, 2010, in addition to any other disclosures required by this
             2527      section, a producer may not accept or receive any compensation from an insurer or third party
             2528      administrator for the placement of a health benefit plan, other than a hospital confinement
             2529      indemnity policy, unless prior to the customer's purchase of the health benefit plan the
             2530      producer:
             2531          (i) except as provided in Subsection (4)(c), discloses in writing to the customer that the
             2532      producer will receive compensation from the insurer or third party administrator for the
             2533      placement of insurance, including the amount or type of compensation known to the producer
             2534      at the time of the disclosure; and
             2535          (ii) except as provided in Subsection (4)(c):
             2536          (A) obtains the customer's signed acknowledgment that the disclosure under


             2537      Subsection (4)(b)(i) was made to the customer; or
             2538          (B) [certifies to the insurer] (I) signs a statement that the disclosure required by
             2539      Subsection (4)(b)(i) was made to the customer[.]; and
             2540          (II) keeps the signed statement on file in the producer's office while the health benefit
             2541      plan placed with the customer is in force.
             2542          (c) If the compensation to the producer from an insurer or third party administrator is
             2543      for the renewal of a health benefit plan, once the producer has made an initial disclosure that
             2544      complies with Subsection (4)(b), the producer does not have to disclose compensation received
             2545      for the subsequent yearly renewals in accordance with Subsection (4)(b) until the renewal
             2546      period immediately following 36 months after the initial disclosure.
             2547          (d) (i) [A copy of the signed acknowledgment required by Subsection (4)(b) must be
             2548      maintained by the] A licensee who collects or receives any part of the compensation from an
             2549      insurer or third party administrator in a manner that facilitates an audit[.] shall, while the health
             2550      benefit plan placed with the customer is in force, maintain a copy of:
             2551          (A) the signed acknowledgment described in Subsection (4)(b)(i); or
             2552          (B) the signed statement described in Subsection (4)(b)(ii).
             2553          (ii) The standard application developed in accordance with Section 31A-22-635 shall
             2554      include a place for a producer to provide the disclosure required by this Subsection (4), and if
             2555      completed, shall satisfy the requirement of Subsection (4)(d)(i).
             2556          (e) Subsection (4)(b)(ii) does not apply to:
             2557          (i) a person licensed as a producer who acts only as an intermediary between an insurer
             2558      and the customer's producer, including a managing general agent; or
             2559          (ii) the placement of insurance in a secondary or residual market.
             2560          (5) This section does not alter the right of any licensee to recover from an insured the
             2561      amount of any premium due for insurance effected by or through that licensee or to charge a
             2562      reasonable rate of interest upon past-due accounts.
             2563          (6) This section does not apply to bail bond producers or bail enforcement agents as
             2564      defined in Section 31A-35-102 .
             2565          Section 23. Section 31A-26-201 is amended to read:
             2566           31A-26-201. Requirement of license.
             2567          (1) Except as provided in Subsection (2)[, no]:


             2568          (a) a person may not perform, offer to perform, or solicit the opportunity to perform
             2569      [any] an act of insurance adjusting without a valid license under Section 31A-26-203 ; and [no]
             2570          (b) a person may not use the insurance adjusting services of another if the person
             2571      knows or should know that the one providing these services does not have a license as required
             2572      by law.
             2573          (2) The following are exempt from the license requirement of Subsection (1), when
             2574      acting in the indicated [capacities] capacity:
             2575          (a) [a person] an individual engaged in insurance adjusting as a regular salaried
             2576      employee of, and not an independent contractor for, an insurer;
             2577          (b) an arbitrator or an umpire selected by the claimant and insurer to decide, alone or
             2578      with others, whether a claim should be paid and how much should be paid;
             2579          (c) an attorney at law acting in an attorney-client relationship;
             2580          (d) an insurance producer, but only as to [the classes]:
             2581          (i) a class of insurance for which [he] the insurance producer is licensed under Section
             2582      31A-23a-106 ; and [only as to claims]
             2583          (ii) a claim adjusted on the request of an insurer for which [he] the insurance producer
             2584      is a producer;
             2585          (e) a regular salaried employee of, and not an independent contractor for, a
             2586      policyholder or claimant under an insurance policy;
             2587          (f) an employee of a licensed insurance adjuster who provides only administrative or
             2588      clerical assistance;
             2589          (g) [person] an individual who does not do insurance adjusting under Section
             2590      31A-26-102 , but who is specially employed to obtain facts about a loss for or furnish technical
             2591      assistance to a licensed adjuster or a company adjuster, including:
             2592          (i) a photographer[,];
             2593          (ii) an estimator [or];
             2594          (iii) an appraiser[,];
             2595          (iv) a marine surveyor[,];
             2596          (v) a private detective[,];
             2597          (vi) an engineer[,]; and
             2598          (vii) a handwriting expert;


             2599          (h) a holder of a group insurance policy, with respect to administrative activities in
             2600      connection with that insurance policy, who receives no compensation for [his] the
             2601      policyholder's services beyond the actual expenses estimated on a reasonable basis;
             2602          (i) [a person] an individual engaged in insurance adjusting as a regular salaried
             2603      employee of, and not an independent contractor for, an administrator licensed under Chapter
             2604      25[; and], Third Party Administrators; or
             2605          (j) a person who gives advice or assistance without compensation or expectation of
             2606      compensation, direct or indirect.
             2607          (3) [No] A claim settlement between an insurer and an insured or a claimant under an
             2608      insurance [contract is] policy may not be considered invalid as a result of a violation of this
             2609      section.
             2610          Section 24. Section 31A-35-401 is amended to read:
             2611           31A-35-401. Requirement for license or certificate of authority -- Process -- Fees
             2612      -- Limitations.
             2613          (1) (a) A person may not engage in the bail bond surety insurance business unless that
             2614      person:
             2615          (i) is a bail bond surety company licensed under this chapter;
             2616          (ii) is a surety insurer that is granted a certificate under this section in the same manner
             2617      as other insurers doing business in this state are granted certificates of authority under this title;
             2618      or
             2619          (iii) is a bail bond producer licensed in accordance with this section.
             2620          (b) A bail bond surety company shall be licensed under this chapter as an agency.
             2621          (c) A bail bond producer shall be licensed under Chapter 23a, Insurance Marketing -
             2622      Licensing Producers, Consultants, and Reinsurance Intermediaries, as a limited lines producer.
             2623          (2) A person applying for a bail bond surety company license under this chapter shall
             2624      submit to the commissioner:
             2625          (a) a completed application form as prescribed by the commissioner;
             2626          (b) a fee as determined by the commissioner in accordance with Section [ 63J-1-504 ]
             2627      31A-3-103 ; and
             2628          (c) any additional information required by rule.
             2629          (3) [Fees] A fee required under this section [are] is not refundable.


             2630          (4) [Fees] A fee collected from a bail bond surety company shall be deposited in a
             2631      restricted account created in Section 31A-35-407 .
             2632          (5) (a) A bail bond surety company shall be domiciled in Utah.
             2633          (b) A bail bond producer shall be a resident of Utah.
             2634          (c) A foreign surety insurer that is granted a certificate to issue bail bonds may only
             2635      issue bail bonds through a bail bond surety company licensed under this chapter.
             2636          Section 25. Section 31A-35-406 is amended to read:
             2637           31A-35-406. Renewal and reinstatement.
             2638          (1) (a) To renew its license under this chapter, on or before the last day of the month in
             2639      which the license expires a bail bond surety company shall:
             2640          (i) complete and submit a renewal application to the department; and
             2641          (ii) pay the department the applicable renewal fee established in accordance with
             2642      Section [ 63J-1-504 ] 31A-3-103 .
             2643          (b) A bail bond surety company shall renew its license under this chapter annually as
             2644      established by department rule, regardless of when the license is issued.
             2645          (2) A bail bond surety company may apply for reinstatement of an expired bail bond
             2646      surety company license within one year following the expiration of the license under
             2647      Subsection (1) by:
             2648          (a) submitting the renewal application required by Subsection (1); and
             2649          (b) paying a license reinstatement fee established in accordance with Section
             2650      [ 63J-1-504 ] 31A-3-103 .
             2651          (3) If a bail bond surety company license has been expired for more than one year, the
             2652      person applying for reinstatement of the bail bond surety license shall:
             2653          (a) submit a new application form to the commissioner; and
             2654          (b) pay the application fee established in accordance with Section [ 63J-1-504 ]
             2655      31A-3-103 .
             2656          (4) If a bail bond surety company license is suspended, the applicant may not submit an
             2657      application for a bail bond surety company license until after the end of the period of
             2658      suspension.
             2659          (5) [Fees] A fee collected under this section shall be deposited in the restricted account
             2660      created in Section 31A-35-407 .


             2661          Section 26. Section 31A-36-102 is amended to read:
             2662           31A-36-102. Definitions.
             2663          As used in this chapter:
             2664          (1) (a) "Advertising" means a communication placed before the public to:
             2665          (i) create an interest in a life settlement; or
             2666          (ii) induce a person pursuant to a life settlement to sell, assign, devise, bequest, or
             2667      transfer the death benefit or ownership of:
             2668          (A) a policy; or
             2669          (B) an interest in a policy.
             2670          (b) "Advertising" includes the following, if the requirements of Subsection (1)(a) are
             2671      met:
             2672          (i) a written, electronic, or printed communication;
             2673          (ii) a communication by means of a recorded telephone message;
             2674          (iii) a communication transmitted on radio, television, the Internet, or similar
             2675      communications media; and
             2676          (iv) a film strip, motion picture, or video.
             2677          (2) "Business of life settlements" includes the following:
             2678          (a) offering a life settlement;
             2679          (b) soliciting a life settlement;
             2680          (c) negotiating a life settlement;
             2681          (d) procuring a life settlement;
             2682          (e) effectuating a life settlement;
             2683          (f) purchasing a life settlement;
             2684          (g) investing in a life settlement;
             2685          (h) financing a life settlement;
             2686          (i) monitoring a life settlement;
             2687          (j) tracking a life settlement;
             2688          (k) underwriting a life settlement;
             2689          (l) selling a life settlement;
             2690          (m) transferring a life settlement;
             2691          (n) assigning a life settlement;


             2692          (o) pledging a life settlement;
             2693          (p) hypothecating a life settlement; or
             2694          (q) in any other manner acquiring an interest in [a] an insurance policy by means of a
             2695      life settlement.
             2696          (3) "Chronically ill" means:
             2697          (a) being unable to perform at least two activities of daily living, such as eating,
             2698      toileting, moving from one place to another, bathing, dressing, or continence;
             2699          (b) requiring substantial supervision for protection from threats to health and safety
             2700      because of severe cognitive impairment; or
             2701          (c) having a level of disability similar to that described in Subsection (3)(a).
             2702          (4) "Depository institution" is as defined in Section 7-1-103 .
             2703          (5) (a) "Financing entity" means a person:
             2704          (i) who has direct ownership in a policy that is the subject of a life settlement;
             2705          (ii) whose principal activity related to a life settlement is providing money to effect the
             2706      life settlement or the purchase of one or more settled policies; and
             2707          (iii) who has an agreement in writing with one or more licensed life settlement
             2708      providers to finance the acquisition of one or more life settlements.
             2709          (b) "Financing entity" includes, if the requirements of Subsection (5)(a) are met, the
             2710      following:
             2711          (i) an underwriter;
             2712          (ii) a placement agent;
             2713          (iii) an enhancer of credit;
             2714          (iv) a lender;
             2715          (v) a purchaser of securities; and
             2716          (vi) a purchaser of a policy from a life settlement provider.
             2717          (c) "Financing entity" does not include:
             2718          (i) a nonaccredited investor; or
             2719          (ii) a life settlement purchaser.
             2720          (6) "Form" means, in addition to a form as defined in Section 31A-1-301 :
             2721          (a) a life settlement;
             2722          (b) a disclosure to an owner;


             2723          (c) a notice of intent to settle; or
             2724          (d) a verification of coverage.
             2725          (7) "Life expectancy" means the mean number of months an individual insured under a
             2726      policy to be settled can be expected to live considering medical records and appropriate
             2727      experiential data.
             2728          (8) (a) "Life settlement" means a written agreement:
             2729          (i) between an owner and a life settlement provider; and
             2730          (ii) [for] that establishes the terms for the payment of anything of value[, that is less
             2731      than the expected death benefit of the policy,] in exchange for the owner assigning, selling,
             2732      transferring, devising, releasing, or bequeathing, at the time of or after the exchange, the death
             2733      benefit or ownership of:
             2734          (A) any portion of a policy; or
             2735          (B) a beneficial interest in the policy.
             2736          (b) "Life settlement" includes:
             2737          (i) the transfer for compensation or value of ownership or beneficial interest in a trust
             2738      or other entity that owns a policy if the trust or other entity is formed or operated for the
             2739      principal purpose of acquiring one or more policies; or
             2740          (ii) a premium finance loan made for a policy by a lender to an owner on, before, or
             2741      after the date of issuance of the policy if the owner:
             2742          (A) receives on the date of the premium finance loan a guarantee of a future life
             2743      settlement value of the policy; or
             2744          (B) agrees on the date of the premium finance loan to sell the policy or any portion of
             2745      the policy's death benefit on a date following the issuance of the policy.
             2746          (c) An agreement described in Subsection (8)(a) is a "life settlement" even if it is
             2747      referred to by a different name, including:
             2748          (i) a ["life] "viatical settlement"; or
             2749          (ii) a "senior settlement."
             2750          (d) "Life settlement" does not include:
             2751          (i) a loan or accelerated death benefit by an insurer pursuant to the terms of a policy;
             2752          (ii) loan proceeds that are used solely to pay:
             2753          (A) premiums for a policy; and


             2754          (B) the loan costs or other expenses incurred by the lender, including:
             2755          (I) interest;
             2756          (II) an arrangement fee;
             2757          (III) a use fee;
             2758          (IV) closing costs;
             2759          (V) attorney fees and expenses;
             2760          (VI) trustee fees and expenses; and
             2761          (VII) third party collateral provider fees and expenses, including fees payable to a letter
             2762      of credit issuer;
             2763          (iii) (A) a loan made by a licensed lender in which the licensed lender takes an interest
             2764      in a policy solely to secure repayment of a loan; or
             2765          (B) the transfer of a policy by a lender, if:
             2766          (I) the loan is:
             2767          (Aa) a loan described in Subsection (8)(d)(iii)(A); or
             2768          (Bb) a premium finance loan that is not a life settlement;
             2769          (II) the loan is defaulted on;
             2770          (III) the policy is transferred; and
             2771          (IV) neither the default itself nor the transfer of the policy in connection with the
             2772      default is pursuant to an agreement with any other person for the purpose of evading regulation
             2773      under this chapter;
             2774          (iv) an agreement where all the participants in the agreement:
             2775          (A) (I) are closely related to the insured by blood or law; or
             2776          (II) have a lawful substantial economic interest in the continued life, health, and bodily
             2777      safety of the person insured; and
             2778          (B) are trusts established primarily for the benefit of the participants in the agreement;
             2779          (v) a designation, consent, or agreement by an insured who is an employee of an
             2780      employer in connection with the purchase by the employer, or trust established by the
             2781      employer, of life insurance on the life of the employee; or
             2782          (vi) a business succession planning arrangement not made for the purpose of evading
             2783      regulation under this chapter:
             2784          (A) (I) between one or more shareholders in a corporation; or


             2785          (II) between a corporation and:
             2786          (Aa) one or more of its shareholders; or
             2787          (Bb) one or more trusts established by its shareholders;
             2788          (B) (I) between one or more partners in a partnership; or
             2789          (II) between a partnership and:
             2790          (Aa) one or more of its partners; or
             2791          (Bb) one or more trusts established by its partners; or
             2792          (C) (I) between one or more members in a limited liability company; or
             2793          (II) between a limited liability company and:
             2794          (Aa) one or more of its members; or
             2795          (Bb) one or more trusts established by its members.
             2796          (9) (a) "Life settlement producer" means a person licensed in the state as a life
             2797      insurance producer that on behalf of an owner and for consideration offers or attempts to
             2798      negotiate a life settlement between the owner and one or more life settlement providers.
             2799          (b) "Life settlement producer" does not include an attorney licensed to practice law in
             2800      any state, a certified public accountant, or a financial planner accredited by a nationally
             2801      recognized accrediting agency:
             2802          (i) that is retained to represent an owner; and
             2803          (ii) whose compensation is not paid directly or indirectly by:
             2804          (A) a life settlement provider; or
             2805          (B) a life settlement purchaser.
             2806          (10) (a) "Life settlement provider" means a person other than an owner that enters into
             2807      or effectuates a life settlement.
             2808          (b) "Life settlement provider" does not include:
             2809          (i) a licensed lender that takes an assignment of a policy as security for a loan,
             2810      including a:
             2811          (A) depository institution; or
             2812          (B) lender that makes a premium finance loan that is not described in Subsection
             2813      (8)(b)(ii);
             2814          (ii) the issuer of a policy;
             2815          (iii) an authorized or eligible insurer that provides stop-loss coverage to:


             2816          (A) a life settlement provider;
             2817          (B) a life settlement purchaser;
             2818          (C) a financing entity;
             2819          (D) a special purpose entity; or
             2820          (E) a related provider trust;
             2821          (iv) a financing entity;
             2822          (v) a special purpose entity;
             2823          (vi) a related provider trust;
             2824          (vii) a life settlement purchaser; or
             2825          (viii) a qualified institutional buyer as defined in Rule 144A, 17 C.F.R. Sec. 230.144A
             2826      that purchases a settled policy from a life settlement provider.
             2827          (11) (a) "Life settlement purchaser" means a person that, to derive an economic benefit:
             2828          (i) provides a sum of money as consideration for a policy or an interest in the death
             2829      benefits of a policy; or
             2830          (ii) owns, acquires, or is entitled to a beneficial interest in a trust that:
             2831          (A) owns a life settlement; or
             2832          (B) is the beneficiary of a policy that has been or will be the subject of a life settlement.
             2833          (b) "Life settlement purchaser" does not include:
             2834          (i) a life settlement provider;
             2835          (ii) a life settlement producer;
             2836          (iii) an accredited investor as defined in Regulation D, Rule 501, 17 C.F.R. Sec.
             2837      230.501;
             2838          (iv) a qualified institutional buyer as defined in Rule 144A, 17 C.F.R. Sec. 230.144A;
             2839          (v) a financing entity;
             2840          (vi) a special purpose entity; or
             2841          (vii) a related provider trust.
             2842          (12) (a) "Owner" means any of the following who resides in this state and seeks to
             2843      enter into a life settlement:
             2844          (i) the owner of a policy; or
             2845          (ii) the holder of a certificate of [insurance under] a group policy [of group insurance].
             2846          (b) "Owner" is not limited to [a person] an individual who is terminally ill or


             2847      chronically ill except when the limitation is expressly provided in this chapter.
             2848          (c) "Owner" does not include:
             2849          (i) a life settlement provider;
             2850          (ii) a life settlement producer;
             2851          (iii) a qualified institutional buyer as defined in Rule 144A, 17 C.F.R. Sec. 230.144A;
             2852          (iv) a financing entity;
             2853          (v) a special purpose entity; or
             2854          (vi) a related provider trust.
             2855          (13) "Policy" means:
             2856          (a) an individual or group life insurance policy;
             2857          (b) an individual or group annuity policy;
             2858          [(b)] (c) a group life insurance certificate [for life insurance; or];
             2859          (d) a group annuity certificate; or
             2860          [(c)] (e) a [contract or arrangement of] life insurance policy or an annuity policy,
             2861      whether or not delivered or issued for delivery in Utah:
             2862          (i) affecting the rights of a resident of Utah; or
             2863          (ii) bearing a reasonable relation to Utah.
             2864          (14) "Premium finance loan" is a loan made primarily for the purpose of making
             2865      premium payments on a policy if the loan is secured by an interest in the policy.
             2866          (15) "Related provider trust" means a trust established by a licensed life settlement
             2867      provider or a financing entity solely to hold the ownership of or beneficial interests in
             2868      purchased policies in connection with financing.
             2869          (16) "Settled policy" means a policy that is acquired by a life settlement provider
             2870      pursuant to a life settlement.
             2871          (17) "Special purpose entity" means an entity formed by a licensed life settlement
             2872      provider solely to enable the life settlement provider to gain access to institutional markets for
             2873      capital.
             2874          (18) (a) "Stranger-originated life insurance" means an act, practice, or arrangement to
             2875      initiate a policy for the benefit of a third party investor or other person who has no insurable
             2876      interest in the insured resulting in the requirements of Section 31A-21-104 not being met.
             2877          (b) "Stranger-originated life insurance" includes when:


             2878          (i) a policy is purchased with resources or guarantees from or through a person who, at
             2879      the time of policy origination, could not lawfully initiate the policy itself; and
             2880          (ii) at the time of policy origination, there is an agreement, whether oral or written, to
             2881      directly or indirectly transfer to a third party the ownership of a policy, policy benefits, or both.
             2882          (c) "Stranger-originated life insurance" does not include:
             2883          (i) a life settlement that complies with:
             2884          (A) this chapter; and
             2885          (B) Section 31A-21-104 ; or
             2886          (ii) an act, practice, or arrangement described in Subsection (8)(d).
             2887          (19) "Terminally ill" means having a condition that reasonably may be expected to
             2888      result in death within 24 months.
             2889          Section 27. Section 31A-40-103 is amended to read:
             2890           31A-40-103. Duties of the commissioner.
             2891          (1) (a) The commissioner shall maintain a list of professional employer organizations
             2892      that are licensed under this chapter.
             2893          (b) The commissioner shall make the list required by this Subsection (1) available to
             2894      the public by electronic or other means.
             2895          (2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2896      commissioner:
             2897          (a) shall make rules to prescribe the requirements for forms required under this chapter;
             2898      [and]
             2899          (b) may make rules to prescribe the requirements and process for correcting under
             2900      Section 31A-40-205 :
             2901          (i) a deficiency in working capital; or
             2902          (ii) negative working capital;
             2903          [(b)] (c) may make rules to prescribe the requirements for the review and submission of
             2904      a financial statement under Section 31A-40-305 :
             2905          (i) that are consistent with generally accepted accounting principles; and
             2906          (ii) including the timeliness of a financial statement[.]; and
             2907          (d) may make rules to prescribe the requirements and process for when a professional
             2908      employer organization license is terminated by:


             2909          (i) voluntary surrender of the professional organization license; or
             2910          (ii) involuntary surrender of the professional organization license.
             2911          (3) A rule in effect on May 5, 2008 under the repealed Title 58, Chapter 59,
             2912      Professional Employer Organization Registration Act, [shall be: (a) renumbered as a rule made
             2913      under this chapter; and (b) remain] remains in effect until such time as the commissioner
             2914      modifies or repeals the rule.
             2915          [(4) The commissioner shall report to the Business and Labor Committee by no later
             2916      than the November 2009 interim meeting as to whether the commissioner recommends that the
             2917      working capital requirements of Section 31A-40-205 be modified.]
             2918          Section 28. Section 31A-40-302 is amended to read:
             2919           31A-40-302. Licensing process.
             2920          (1) To apply for an initial or renewal license under this chapter, a person shall:
             2921          (a) (i) [file] submit an application with the commissioner on a form and in a manner
             2922      the commissioner shall determine by rule made in accordance with Title 63G, Chapter 3, Utah
             2923      Administrative Rulemaking Act; and
             2924          (ii) pay a license fee determined in accordance with Section 31A-3-103 that is not
             2925      refunded if the application:
             2926          (A) is denied; [or]
             2927          (B) does not comply with Section 31A-40-303 ; or
             2928          [(B)] (C) if incomplete, is never completed by the person filing the application; or
             2929          (b) comply with Section 31A-40-303 .
             2930          (2) In the application described in Subsection (1)(a), the person shall provide:
             2931          (a) any name under which the professional employer organization will engage in a
             2932      professional employer service;
             2933          (b) the address of the principal place of business of the professional employer
             2934      organization;
             2935          (c) the address of each location the professional employer organization maintains in
             2936      this state;
             2937          (d) the professional employer organization's federal taxpayer or employer identification
             2938      number;
             2939          (e) the following information by jurisdiction of each name under which the


             2940      professional employer organization operated in the five years preceding the day on which the
             2941      person [files] submits the application:
             2942          (i) the name;
             2943          (ii) an alternative name, if any;
             2944          (iii) a name of a predecessor; and
             2945          (iv) if known, a successor business entity;
             2946          (f) a statement of ownership that includes the name and evidence of the business
             2947      experience of a person that, individually or acting in concert with one or more other persons,
             2948      owns or controls, directly or indirectly, 10% or more of the equity interests of the professional
             2949      employer organization;
             2950          (g) a statement of management that includes the name and evidence of the business
             2951      experience of [a person] an individual who:
             2952          (i) serves as president of the professional employer organization;
             2953          (ii) serves as chief executive officer of the professional employer organization; or
             2954          (iii) may act as a senior executive officer of the professional employer organization;
             2955      and
             2956          (h) a financial statement that:
             2957          (i) sets forth the financial condition of:
             2958          (A) the professional employer organization; or
             2959          (B) a professional employer organization group in which the professional employer
             2960      organization is a member;
             2961          (ii) states whether or not the professional employer organization complies with Section
             2962      31A-40-205 ; and
             2963          (iii) complies with Section 31A-40-305 .
             2964          [(3) A professional employer organization that is registered by the Division of
             2965      Occupations and Professional Licensing as of May 4, 2008 shall comply with this section by no
             2966      later than November 5, 2008. An initial license obtained under this Subsection (3) is valid
             2967      until the end of the professional employer organization's first full fiscal year that immediately
             2968      follows the day on which the initial license application is filed.]
             2969          [(4) Within 180 days after the day on which a professional employer organization's
             2970      fiscal year ends, a]


             2971          (3) A professional employer organization shall renew its license [by complying with
             2972      Subsection (1)] by no later than October 1 of each year.
             2973          Section 29. Section 31A-40-307 is enacted to read:
             2974          31A-40-307. Voluntary surrender of professional employer organization license.
             2975          (1) When a professional employer organization wants to voluntarily surrender its
             2976      professional employer organization license, the professional employer organization shall:
             2977          (a) notify in writing each coemployer regarding the impending loss of the following
             2978      provided under the professional employer agreement:
             2979          (i) workers' compensation insurance coverage;
             2980          (ii) health care benefits, if a coemployers' employee welfare plan includes fully insured
             2981      or partially insured health insurance benefits; and
             2982          (iii) any other insurance benefit provided to coemployers by the professional employer
             2983      organization; and
             2984          (b) submit a letter of intent to voluntarily surrender the license to the commissioner:
             2985          (i) after providing the notice to coemployers under Subsection (1)(a); and
             2986          (ii) not less than 45 days before the day on which the professional employer
             2987      organization surrenders its professional employer organization license.
             2988          (2) The letter of intent to voluntarily surrender a professional employer organization
             2989      license shall include the following:
             2990          (a) the reason the professional employer organization license is being surrendered;
             2991          (b) a discussion of each process or plan to handle the obligations to coemployers and
             2992      employees;
             2993          (c) a list of coemployers as of the date of the letter;
             2994          (d) a copy of the notice sent to the coemployers under Subsection (1)(a);
             2995          (e) certification that the professional employer organization has notified the
             2996      coemployers located in Utah of the professional employer organization's intent to cease doing
             2997      business in Utah; and
             2998          (f) the signature of the professional employer organization's chief executive officer or
             2999      controlling individual.
             3000          Section 30. Section 31A-42-201 is amended to read:
             3001           31A-42-201. Creation of defined contribution market risk adjuster mechanism --


             3002      Board of directors -- Appointment -- Terms -- Quorum -- Plan preparation.
             3003          (1) There is created the "Utah Defined Contribution Risk Adjuster," a nonprofit entity
             3004      within the [Insurance Department] department.
             3005          (2) (a) The risk adjuster [shall be] is under the direction of a board of directors
             3006      composed of up to nine members described in Subsection (2)(b).
             3007          (b) The board of directors shall consist of:
             3008          [(b) The ] (i) the following directors [shall be] appointed by the governor with the
             3009      consent of the Senate:
             3010          [(i)] (A) at least three, but up to five, directors with actuarial experience who represent
             3011      [insurance carriers] insurers:
             3012          [(A)] (I) that are participating or have committed to participate in the defined
             3013      contribution arrangement market in the state; and
             3014          [(B)] (II) including at least one and up to two directors who represent [a carrier] an
             3015      insurer that has a small percentage of lives in the defined contribution market;
             3016          [(ii)] (B) one director who represents either an individual employee or employer
             3017      participant in the defined contribution market;
             3018          [(iii)] (C) one director [appointed by the governor to represent] who represents the
             3019      Office of Consumer Health Services within the Governor's Office of Economic Development;
             3020          [(iv)] (ii) one director representing the Public Employee's Health [Benefit] Program
             3021      with actuarial experience, [chosen] appointed by the director of the Public Employee's Health
             3022      [Benefit] Program [who shall serve as an ex officio member]; and
             3023          [(v)] (iii) the commissioner, or a representative [from the department with actuarial
             3024      experience] of the commissioner who:
             3025          (A) is appointed by the commissioner; and
             3026          (B) has actuarial experience.
             3027          (c) The commissioner or a representative appointed by the commissioner[, who will
             3028      only have voting privileges] may vote only in the event of a tie vote.
             3029          (3) (a) Except as required by Subsection (3)(b), as terms of current board members
             3030      appointed by the governor expire, the governor shall appoint each new member or reappointed
             3031      member to a four-year term.
             3032          (b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the


             3033      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             3034      board members are staggered so that approximately half of the board is appointed every two
             3035      years.
             3036          (c) Notwithstanding the requirements of Subsection (3)(a), a board member shall
             3037      continue to serve until the board member is reappointed or replaced by another individual in
             3038      accordance with this section.
             3039          (4) When a vacancy occurs in the membership for any reason, the replacement shall be
             3040      appointed for the unexpired term in the same manner as the original appointment was made.
             3041          (5) (a) [Members who are not government employees shall receive no] A board
             3042      member who is not a government employee may not receive compensation or benefits for the
             3043      [members'] board member's services.
             3044          (b) A state government member who is a board member because of the board member's
             3045      state government position may not receive per diem or expenses for the member's service.
             3046          (6) The board shall elect annually a chair and vice chair from its membership.
             3047          (7) [Six] A majority of the board members [are] is a quorum for the transaction of
             3048      business.
             3049          (8) The action of a majority of the members of the quorum is the action of the board.
             3050          Section 31. Section 63J-1-602 is amended to read:
             3051           63J-1-602. Nonlapsing accounts and funds.
             3052          (1) The following revenue collections, appropriations from a fund or account, and
             3053      appropriations to a program are nonlapsing:
             3054          (a) appropriations made to the Legislature and its committees;
             3055          (b) funds collected by the grain grading program, as provided in Section 4-2-2 ;
             3056          (c) the Salinity Offset Fund created in Section 4-2-8.5 ;
             3057          (d) the Invasive Species Mitigation Fund created in Section 4-2-8.7 ;
             3058          (e) funds collected by pesticide dealer license registration fees, as provided in Section
             3059      4-14-3 ;
             3060          (f) funds collected by pesticide applicator business registration fees, as provided in
             3061      Section 4-14-13 ;
             3062          (g) the Rangeland Improvement Fund created in Section 4-20-2 ;
             3063          (h) funds deposited as dedicated credits under the Insect Infestation Emergency Control


             3064      Act, as provided in Section 4-35-6 ;
             3065          (i) the Percent-for-Art Program created in Section 9-6-404 ;
             3066          (j) the Centennial History Fund created in Section 9-8-604 ;
             3067          (k) the Uintah Basin Revitalization Fund, as provided in Section 9-10-108 ;
             3068          (l) the Navajo Revitalization Fund created in Section 9-11-104 ;
             3069          (m) the LeRay McAllister Critical Land Conservation Program created in Section
             3070      11-38-301 ;
             3071          (n) the Clean Fuels and Vehicle Technology Fund created in Section 19-1-403 ;
             3072          (o) fees deposited as dedicated credits for hazardous waste plan reviews, as provided in
             3073      Section 19-6-120 ;
             3074          (p) an appropriation made to the Division of Wildlife Resources for the appraisal and
             3075      purchase of lands under the Pelican Management Act, as provided in Section 23-21a-6 ;
             3076          (q) award monies under the Crime Reduction Assistance Program, as provided under
             3077      Section 24-1-19 ;
             3078          (r) funds collected from the emergency medical services grant program, as provided in
             3079      Section 26-8a-207 ;
             3080          (s) fees and other funding available to purchase training equipment and to administer
             3081      tests and conduct quality assurance reviews, as provided in Section 26-8a-208 ;
             3082          (t) funds collected as a result of a sanction under Section 1919 of Title XIX of the
             3083      federal Social Security Act, as provided in Section 26-18-3 ;
             3084          (u) the Utah Health Care Workforce Financial Assistance Program created in Section
             3085      26-46-102 ;
             3086          (v) monies collected from subscription fees for publications prepared or distributed by
             3087      the insurance commissioner, as provided in Section 31A-2-208 ;
             3088          (w) the Technology Development Restricted Account created in Section 31A-3-104 ;
             3089          (x) the Criminal Background Check Restricted Account created in Section 31A-3-105 ;
             3090          (y) the Captive Insurance Restricted Account created in Section 31A-3-304 , except to
             3091      the extent that Section 31A-3-304 makes the money received under that section free revenue;
             3092          (z) the Title Licensee Enforcement Restricted Account created in Section
             3093      31A-23a-415 ;
             3094          [(w)] (aa) monies received by the Insurance Department for administering,


             3095      investigating under, and enforcing the Insurance Fraud Act, as provided in Section
             3096      31A-31-108 ;
             3097          [(x)] (bb) certain monies received for penalties paid under the Insurance Fraud Act, as
             3098      provided in Section 31A-31-109 ;
             3099          [(y)] (cc) the fund for operating the state's Federal Health Care Tax Credit Program, as
             3100      provided in Section 31A-38-104 ;
             3101          [(z)] (dd) certain funds in the Department of Workforce Services' program for the
             3102      education, training, and transitional counseling of displaced homemakers, as provided in
             3103      Section 35A-3-114 ;
             3104          [(aa)] (ee) the Employment Security Administration Fund created in Section
             3105      35A-4-505 ;
             3106          [(bb)] (ff) the Special Administrative Expense Fund created in Section 35A-4-506 ;
             3107          [(cc)] (gg) funding for a new program or agency that is designated as nonlapsing under
             3108      Section 36-24-101 ;
             3109          [(dd)] (hh) the Oil and Gas Conservation Account created in Section 40-6-14.5 ;
             3110          [(ee)] (ii) funds available to the State Tax Commission for purchase and distribution of
             3111      license plates and decals, as provided in Section 41-1a-1201 ;
             3112          [(ff)] (jj) certain fees for the cost of electronic payments under the Motor Vehicle Act,
             3113      as provided in Section 41-1a-1221 ;
             3114          [(gg)] (kk) certain fees collected for administering and enforcing the Motor Vehicle
             3115      Business Regulation Act, as provided in Section 41-3-601 ;
             3116          [(hh)] (ll) certain fees for the cost of electronic payments under the Motor Vehicle
             3117      Business Regulation Act, as provided in Section 41-3-604 ;
             3118          [(ii)] (mm) the Off-Highway Access and Education Restricted Account created in
             3119      Section 41-22-19.5 ;
             3120          [(jj)] (nn) certain fees for the cost of electronic payments under the Motor Vehicle Act,
             3121      as provided in Section 41-22-36 ;
             3122          [(kk)] (oo) monies collected under the Notaries Public Reform Act, as provided under
             3123      46-1-23 ;
             3124          [(ll)] (pp) certain funds associated with the Law Enforcement Operations Account, as
             3125      provided in Section 51-9-411 ;


             3126          [(mm)] (qq) the Public Safety Honoring Heroes Restricted Account created in Section
             3127      53-1-118 ;
             3128          [(nn)] (rr) funding for the Search and Rescue Financial Assistance Program, as
             3129      provided in Section 53-2-107 ;
             3130          [(oo)] (ss) appropriations made to the Department of Public Safety from the
             3131      Department of Public Safety Restricted Account, as provided in Section 53-3-106 ;
             3132          [(pp)] (tt) appropriations to the Motorcycle Rider Education Program, as provided in
             3133      Section 53-3-905 ;
             3134          [(qq)] (uu) fees collected by the State Fire Marshal Division under the Utah Fire
             3135      Prevention and Safety Act, as provided in Section 53-7-314 ;
             3136          [(rr)] (vv) the DNA Specimen Restricted Account created in Section 53-10-407 ;
             3137          [(ss)] (ww) the minimum school program, as provided in Section 53A-17a-105 ;
             3138          [(tt)] (xx) certain funds appropriated from the Uniform School Fund to the State Board
             3139      of Education for new teacher bonus and performance-based compensation plans, as provided in
             3140      Section 53A-17a-148 ;
             3141          [(uu)] (yy) certain funds appropriated from the Uniform School Fund to the State
             3142      Board of Education for implementation of proposals to improve mathematics achievement test
             3143      scores, as provided in Section 53A-17a-152 ;
             3144          [(vv)] (zz) the School Building Revolving Account created in Section 53A-21-401 ;
             3145          [(ww)] (aaa) monies received by the State Office of Rehabilitation for the sale of
             3146      certain products or services, as provided in Section 53A-24-105 ;
             3147          [(xx)] (bbb) the State Board of Regents, as provided in Section 53B-6-104 ;
             3148          [(yy)] (ccc) certain funds appropriated from the General Fund to the State Board of
             3149      Regents for teacher preparation programs, as provided in Section 53B-6-104 ;
             3150          [(zz)] (ddd) a certain portion of monies collected for administrative costs under the
             3151      School Institutional Trust Lands Management Act, as provided under Section 53C-3-202 ;
             3152          [(aaa)] (eee) certain surcharges on residence and business telecommunications access
             3153      lines imposed by the Public Service Commission, as provided in Section 54-8b-10 ;
             3154          [(bbb)] (fff) certain fines collected by the Division of Occupational and Professional
             3155      Licensing for violation of unlawful or unprofessional conduct that are used for education and
             3156      enforcement purposes, as provided in Section 58-17b-505 ;


             3157          [(ccc)] (ggg) the Nurse Education and Enforcement Fund created in Section
             3158      58-31b-103 ;
             3159          [(ddd)] (hhh) funding of the controlled substance database, as provided in Section
             3160      58-37-7.7 ;
             3161          [(eee)] (iii) the Certified Nurse Midwife Education and Enforcement Fund created in
             3162      Section 58-44a-103 ;
             3163          [(fff)] (jjj) funding for the building inspector's education program, as provided in
             3164      Section 58-56-9 ;
             3165          [(ggg)] (kkk) certain fines collected by the Division of Occupational and Professional
             3166      Licensing for use in education and enforcement of the Security Personnel Licensing Act, as
             3167      provided in Section 58-63-103 ;
             3168          [(hhh)] (lll) the Professional Geologist Education and Enforcement Fund created in
             3169      Section 58-76-103 ;
             3170          [(iii)] (mmm) certain monies in the Water Resources Conservation and Development
             3171      Fund, as provided in Section 59-12-103 ;
             3172          [(jjj)] (nnn) funds paid to the Division of Real Estate for the cost of a criminal
             3173      background check for broker and sales agent licenses, as provided in Section 61-2-9 ;
             3174          [(kkk)] (ooo) the Utah Housing Opportunity Restricted Account created in Section
             3175      61-2-28 ;
             3176          [(lll)] (ppp) funds paid to the Division of Real Estate for the cost of a criminal
             3177      background check for a mortgage loan license, as provided in Section 61-2c-202 ;
             3178          [(mmm)] (qqq) funds paid to the Division of Real Estate in relation to examination of
             3179      records in an investigation, as provided in Section 61-2c-401 ;
             3180          [(nnn)] (rrr) certain funds donated to the Department of Human Services, as provided
             3181      in Section 62A-1-111 ;
             3182          [(ooo)] (sss) certain funds donated to the Division of Child and Family Services, as
             3183      provided in Section 62A-4a-110 ;
             3184          [(ppp)] (ttt) the Mental Health Therapist Grant and Scholarship Program, as provided
             3185      in Section 62A-13-109 ;
             3186          [(qqq)] (uuu) assessments for DUI violations that are forwarded to an account created
             3187      by a county treasurer, as provided in Section 62A-15-503 ;


             3188          [(rrr)] (vvv) appropriations to the Division of Services for People with Disabilities, as
             3189      provided in Section 62A-5-102 ;
             3190          [(sss)] (www) certain donations to the Division of Substance Abuse and Mental
             3191      Health, as provided in Section 62A-15-103 ;
             3192          [(ttt)] (xxx) certain funds received by the Division of Parks and Recreation from the
             3193      sale or disposal of buffalo, as provided under Section 63-11-19.2 ;
             3194          [(uuu)] (yyy) revenue for golf user fees at the Wasatch Mountain State Park, Palisades
             3195      State Park, or Jordan River State Park, as provided under Section 63-11-19.5 ;
             3196          [(vvv)] (zzz) revenue for golf user fees at the Green River State Park, as provided
             3197      under Section 63-11-19.6 ;
             3198          [(www)] (aaaa) the Centennial Nonmotorized Paths and Trail Crossings Program
             3199      created under Section 63-11a-503 ;
             3200          [(xxx)] (bbbb) the Bonneville Shoreline Trail Program created under Section
             3201      63-11a-504 ;
             3202          [(yyy)] (cccc) the account for the Utah Geological Survey, as provided in Section
             3203      63-73-10 ;
             3204          [(zzz)] (dddd) the Risk Management Fund created under Section 63A-4-201 ;
             3205          [(aaaa)] (eeee) the Child Welfare Parental Defense Fund created in Section
             3206      63A-11-203 ;
             3207          [(bbbb)] (ffff) the Constitutional Defense Restricted Account created in Section
             3208      63C-4-103 ;
             3209          [(cccc)] (gggg) a portion of the funds appropriated to the Utah Seismic Safety
             3210      Commission, as provided in Section 63C-6-104 ;
             3211          [(dddd)] (hhhh) funding for the Medical Education Program administered by the
             3212      Medical Education Council, as provided in Section 63C-8-102 ;
             3213          [(eeee)] (iiii) certain monies payable for commission expenses of the Pete Suazo Utah
             3214      Athletic Commission, as provided under Section 63C-11-301 ;
             3215          [(ffff)] (jjjj) funds collected for publishing the Division of Administrative Rules'
             3216      publications, as provided in Section 63G-3-402 ;
             3217          [(gggg)] (kkkk) the appropriation to fund the Governor's Office of Economic
             3218      Development's Enterprise Zone Act, as provided in Section 63M-1-416 ;


             3219          [(hhhh)] (llll) the Tourism Marketing Performance Account, as provided in Section
             3220      63M-1-1406 ;
             3221          [(iiii)] (mmmm) certain funding for rural development provided to the Office of Rural
             3222      Development in the Governor's Office of Economic Development, as provided in Section
             3223      63M-1-1604 ;
             3224          [(jjjj)] (nnnn) certain monies in the Development for Disadvantaged Rural
             3225      Communities Restricted Account, as provided in Section 63M-1-2003 ;
             3226          [(kkkk)] (oooo) appropriations to the Utah Science Technology and Research
             3227      Governing Authority, created under Section 63M-2-301 , as provided under Section
             3228      63M-3-302 ;
             3229          [(llll)] (pppp) certain monies in the Rural Broadband Service Fund, as provided in
             3230      Section 63M-1-2303 ;
             3231          [(mmmm)] (qqqq) funds collected from monthly offender supervision fees, as provided
             3232      in Section 64-13-21.2 ;
             3233          [(nnnn)] (rrrr) funds collected by the housing of state probationary inmates or state
             3234      parole inmates, as provided in Subsection 64-13e-104 (2);
             3235          [(oooo)] (ssss) the Sovereign Lands Management account created in Section 65A-5-1 ;
             3236          [(pppp)] (tttt) certain forestry and fire control funds utilized by the Division of
             3237      Forestry, Fire, and State Lands, as provided in Section 65A-8-103 ;
             3238          [(qqqq)] (uuuu) the Department of Human Resource Management user training
             3239      program, as provided in Section 67-19-6 ;
             3240          [(rrrr)] (vvvv) funds for the University of Utah Poison Control Center program, as
             3241      provided in Section 69-2-5.5 ;
             3242          [(ssss)] (wwww) appropriations to the Transportation Corridor Preservation Revolving
             3243      Loan Fund, as provided in Section 72-2-117 ;
             3244          [(tttt)] (xxxx) appropriations to the Local Transportation Corridor Preservation Fund,
             3245      as provided in Section 72-2-117.5 ;
             3246          [(uuuu)] (yyyy) appropriations to the Tollway Restricted Special Revenue Fund, as
             3247      provided in Section 77-2-120 ;
             3248          [(vvvv)] (zzzz) appropriations to the Aeronautics Construction Revolving Loan Fund,
             3249      as provided in Section 77-2-122 ;


             3250          [(wwww)] (aaaaa) appropriations to the State Park Access Highways Improvement
             3251      Program, as provided in Section 72-3-207 ;
             3252          [(xxxx)] (bbbbb) the Traffic Noise Abatement Program created in Section 72-6-112 ;
             3253          [(yyyy)] (ccccc) certain funds received by the Office of the State Engineer for well
             3254      drilling fines or bonds, as provided in Section 73-3-25 ;
             3255          [(zzzz)] (ddddd) certain monies appropriated to increase the carrying capacity of the
             3256      Jordan River that are transferred to the Division of Parks and Recreation, as provided in
             3257      Section 73-10e-1 ;
             3258          [(aaaaa)] (eeeee) certain fees for the cost of electronic payments under the State
             3259      Boating Act, as provided in Section 73-18-25 ;
             3260          [(bbbbb)] (fffff) certain monies appropriated from the Water Resources Conservation
             3261      and Development Fund, as provided in Section 73-23-2 ;
             3262          [(ccccc)] (ggggg) the Lake Powell Pipeline Project Operation and Maintenance Fund
             3263      created in Section 73-28-404 ;
             3264          [(ddddd)] (hhhhh) certain funds in the Water Development and Flood Mitigation
             3265      Reserve Account, as provided in Section 73-103-1 ;
             3266          [(eeeee)] (iiiii) certain funds appropriated for compensation for special prosecutors, as
             3267      provided in Section 77-10a-19 ;
             3268          [(fffff)] (jjjjj) the Indigent Aggravated Murder Defense Trust Fund created in Section
             3269      77-32-601 ;
             3270          [(ggggg)] (kkkkk) the Indigent Felony Defense Trust Fund created in Section
             3271      77-32-701 ;
             3272          [(hhhhh)] (lllll) funds donated or paid to a juvenile court by private sources, as
             3273      provided in Subsection 78A-6-203 (c);
             3274          [(iiiii)] (mmmmm) a state rehabilitative employment program, as provided in Section
             3275      78A-6-210 ; and
             3276          [(jjjjj)] (nnnnn) fees from the issuance and renewal of licenses for certified court
             3277      interpreters, as provided in Section 78B-1-146 .
             3278          (2) No revenue collection, appropriation from a fund or account, or appropriation to a
             3279      program may be treated as nonlapsing unless:
             3280          (a) it is expressly referenced by this section;


             3281          (b) it is designated in a condition of appropriation in the appropriations bill; or
             3282          (c) nonlapsing authority is granted under Section 63J-1-603 .
             3283          (3) Each legislative appropriations subcommittee shall review the accounts and funds
             3284      that have been granted nonlapsing authority under this section or Section 63J-1-603 .
             3285          Section 32. Intent language regarding lapsing of money.
             3286          It is the intent of the Legislature that money received by the Insurance Department
             3287      during fiscal year 2009-10 under the following shall be considered dedicated credits and in
             3288      closing out fiscal year 2009-10 the unspent dedicated credits shall lapse to the appropriate
             3289      restricted account created by the amendments made by this bill:
             3290          (1) Section 31A-3-104 ;
             3291          (2) Section 31A-3-304 (Superseded 07/01/10);
             3292          (3) Subsection 31A-16-103 (3);
             3293          (4) Subsection 31A-23a-105 (3);
             3294          (5) Section 31A-23a-415 ;
             3295          (6) Subsection 31A-25-203 (3); and
             3296          (7) Subsection 31A-26-203 (3).
             3297          Section 33. Effective date.
             3298          (1) S. (a) .S Except as provided in Subsections (2) and (3), this bill takes effect on May 11,
             3299      2010, except that, if approved by two-thirds of all the members elected to each house, Sections
             3300      31A-22-722 and 31A-22-722.5 take effect upon approval by the governor, or the day following
             3301      the constitutional time limit of Utah Constitution Article VII, Section 8, without the governor's
             3302      signature, or in the case of a veto, the date of veto override.
             3302a      S. (b) The amendments in this bill to Section 31A-22-722.5 have retrospective operation to
             3302b      February 17, 2010. .S
             3303          (2) The amendments to Section 31A-3-304 (Effective 07/01/10) take effect on July 1,
             3304      2010.
             3305          (3) The amendments to Section 31A-22-701 take effect on January 1, 2011.


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