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H.B. 39 Enrolled
7 LONG TITLE
8 General Description:
9 This bill modifies the Insurance Code and related provisions to make various
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 removes outdated language related to reporting;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
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;
23 . addresses dependent coverage;
24 . modifies provisions related to catastrophic coverage of mental health conditions;
25 . addresses issuance of group or blanket accident and health insurance;
26 . modifies Utah's mini-COBRA provisions;
27 . addresses special enrollment periods relating to Medicaid and Children's Health
28 Insurance Program;
29 . addresses provisions related to licensure and insurance adjusting;
30 . addresses licensee compensation;
31 . modifies definitions related to life settlements;
32 . provides for rulemaking and other processes related to surrender of a professional
33 employer organization license;
34 . addresses the board of directors for the Utah Defined Contribution Risk Adjuster;
36 . makes technical and conforming amendments.
37 Monies Appropriated in this Bill:
39 Other Special Clauses:
40 This bill provides an effective date and limited retrospective operation.
41 Utah Code Sections Affected:
43 31A-1-301, as last amended by Laws of Utah 2009, Chapter 349
44 31A-2-403, as last amended by Laws of Utah 2008, Chapter 345
45 31A-2-404, as last amended by Laws of Utah 2008, Chapter 382
46 31A-3-103, as last amended by Laws of Utah 2009, Chapters 183 and 368
47 31A-3-104, as last amended by Laws of Utah 2006, Chapter 117
48 31A-3-304 (Superseded 07/01/10), as last amended by Laws of Utah 2009, Chapter
50 31A-3-304 (Effective 07/01/10), as last amended by Laws of Utah 2009, Chapter 183
51 31A-5-217.5, as enacted by Laws of Utah 1992, Chapter 230
52 31A-15-208, as enacted by Laws of Utah 1992, Chapter 258
53 31A-20-106, as enacted by Laws of Utah 1985, Chapter 242
54 31A-21-201, as last amended by Laws of Utah 2005, Chapter 123
55 31A-21-301, as last amended by Laws of Utah 2001, Chapter 116
56 31A-22-305.3, as last amended by Laws of Utah 2009, Chapter 231
57 31A-22-411, as last amended by Laws of Utah 1991, Chapter 74
58 31A-22-610.5, as last amended by Laws of Utah 2008, Chapter 3
59 31A-22-625, as last amended by Laws of Utah 2008, Chapters 345 and 382
60 31A-22-701, as last amended by Laws of Utah 2007, Chapter 307
61 31A-22-722, as last amended by Laws of Utah 2009, Chapter 12
62 31A-22-722.5, as enacted by Laws of Utah 2009, Chapter 274
63 31A-23a-415, as last amended by Laws of Utah 2007, Chapter 325
64 31A-23a-501, as last amended by Laws of Utah 2009, Chapters 12 and 274
65 31A-26-201, as last amended by Laws of Utah 2003, Chapter 298
66 31A-35-401, as last amended by Laws of Utah 2009, Chapter 183
67 31A-35-406, as last amended by Laws of Utah 2009, Chapters 183 and 349
68 31A-36-102, as last amended by Laws of Utah 2009, Chapter 355
69 31A-40-103, as enacted by Laws of Utah 2008, Chapter 318
70 31A-40-302, as enacted by Laws of Utah 2008, Chapter 318
71 31A-42-201, as enacted by Laws of Utah 2009, Chapter 12
72 63J-1-602, as enacted by Laws of Utah 2009, Chapter 368
74 31A-3-105, Utah Code Annotated 1953
75 31A-22-725, Utah Code Annotated 1953
76 31A-40-307, Utah Code Annotated 1953
77 Uncodified Material Affected:
78 ENACTS UNCODIFIED MATERIAL
80 Be it enacted by the Legislature of the state of Utah:
81 Section 1. Section 31A-1-301 is amended to read:
82 31A-1-301. Definitions.
83 As used in this title, unless otherwise specified:
84 (1) (a) "Accident and health insurance" means insurance to provide protection against
85 economic losses resulting from:
86 (i) a medical condition including:
87 (A) a medical care expense; or
88 (B) the risk of disability;
89 (ii) accident; or
90 (iii) sickness.
91 (b) "Accident and health insurance":
92 (i) includes a contract with disability contingencies including:
93 (A) an income replacement contract;
94 (B) a health care contract;
95 (C) an expense reimbursement contract;
96 (D) a credit accident and health contract;
97 (E) a continuing care contract; and
98 (F) a long-term care contract; and
99 (ii) may provide:
100 (A) hospital coverage;
101 (B) surgical coverage;
102 (C) medical coverage;
103 (D) loss of income coverage;
104 (E) prescription drug coverage;
105 (F) dental coverage; or
106 (G) vision coverage.
107 (c) "Accident and health insurance" does not include workers' compensation
109 (2) "Actuary" is as defined by the commissioner by rule, made in accordance with
110 Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
111 (3) "Administrator" is defined in Subsection (159).
112 (4) "Adult" means an individual who has attained the age of at least 18 years.
113 (5) "Affiliate" means a person who controls, is controlled by, or is under common
114 control with, another person. A corporation is an affiliate of another corporation, regardless of
115 ownership, if substantially the same group of individuals manage the corporations.
116 (6) "Agency" means:
117 (a) a person other than an individual, including a sole proprietorship by which an
118 individual does business under an assumed name; and
119 (b) an insurance organization licensed or required to be licensed under Section
120 31A-23a-301 .
121 (7) "Alien insurer" means an insurer domiciled outside the United States.
122 (8) "Amendment" means an endorsement to an insurance policy or certificate.
123 (9) "Annuity" means an agreement to make periodical payments for a period certain or
124 over the lifetime of one or more individuals if the making or continuance of all or some of the
125 series of the payments, or the amount of the payment, is dependent upon the continuance of
126 human life.
127 (10) "Application" means a document:
128 (a) (i) completed by an applicant to provide information about the risk to be insured;
130 (ii) that contains information that is used by the insurer to evaluate risk and decide
131 whether to:
132 (A) insure the risk under:
133 (I) the coverage as originally offered; or
134 (II) a modification of the coverage as originally offered; or
135 (B) decline to insure the risk; or
136 (b) used by the insurer to gather information from the applicant before issuance of an
137 annuity contract.
138 (11) "Articles" or "articles of incorporation" means:
139 (a) the original articles;
140 (b) a special law;
141 (c) a charter;
142 (d) an amendment;
143 (e) restated articles;
144 (f) articles of merger or consolidation;
145 (g) a trust instrument;
146 (h) another constitutive document for a trust or other entity that is not a corporation;
148 (i) an amendment to an item listed in Subsections (11)(a) through (h).
149 (12) "Bail bond insurance" means a guarantee that a person will attend court when
150 required, up to and including surrender of the person in execution of a sentence imposed under
151 Subsection 77-20-7 (1), as a condition to the release of that person from confinement.
152 (13) "Binder" is defined in Section 31A-21-102 .
153 (14) "Blanket insurance policy" means a group policy covering a defined class of
155 (a) without individual underwriting or application; and
156 (b) that is determined by definition with or without designating each person covered.
157 (15) "Board," "board of trustees," or "board of directors" means the group of persons
158 with responsibility over, or management of, a corporation, however designated.
159 (16) "Business entity" means:
160 (a) a corporation;
161 (b) an association;
162 (c) a partnership;
163 (d) a limited liability company;
164 (e) a limited liability partnership; or
165 (f) another legal entity.
166 (17) "Business of insurance" is defined in Subsection (85).
167 (18) "Business plan" means the information required to be supplied to the
168 commissioner under Subsections 31A-5-204 (2)(i) and (j), including the information required
169 when these subsections apply by reference under:
170 (a) Section 31A-7-201 ;
171 (b) Section 31A-8-205 ; or
172 (c) Subsection 31A-9-205 (2).
173 (19) (a) "Bylaws" means the rules adopted for the regulation or management of a
174 corporation's affairs, however designated.
175 (b) "Bylaws" includes comparable rules for a trust or other entity that is not a
177 (20) "Captive insurance company" means:
178 (a) an insurer:
179 (i) owned by another organization; and
180 (ii) whose exclusive purpose is to insure risks of the parent organization and an
181 affiliated company; or
182 (b) in the case of a group or association, an insurer:
183 (i) owned by the insureds; and
184 (ii) whose exclusive purpose is to insure risks of:
185 (A) a member organization;
186 (B) a group member; or
187 (C) an affiliate of:
188 (I) a member organization; or
189 (II) a group member.
190 (21) "Casualty insurance" means liability insurance.
191 (22) "Certificate" means evidence of insurance given to:
192 (a) an insured under a group insurance policy; or
193 (b) a third party.
194 (23) "Certificate of authority" is included within the term "license."
195 (24) "Claim," unless the context otherwise requires, means a request or demand on an
196 insurer for payment of a benefit according to the terms of an insurance policy.
197 (25) "Claims-made coverage" means an insurance contract or provision limiting
198 coverage under a policy insuring against legal liability to claims that are first made against the
199 insured while the policy is in force.
200 (26) (a) "Commissioner" or "commissioner of insurance" means Utah's insurance
202 (b) When appropriate, the terms listed in Subsection (26)(a) apply to the equivalent
203 supervisory official of another jurisdiction.
204 (27) (a) "Continuing care insurance" means insurance that:
205 (i) provides board and lodging;
206 (ii) provides one or more of the following:
207 (A) a personal service;
208 (B) a nursing service;
209 (C) a medical service; or
210 (D) any other health-related service; and
211 (iii) provides the coverage described in this Subsection (27)(a) under an agreement
213 (A) for the life of the insured; or
214 (B) for a period in excess of one year.
215 (b) Insurance is continuing care insurance regardless of whether or not the board and
216 lodging are provided at the same location as a service described in Subsection (27)(a)(ii).
217 (28) (a) "Control," "controlling," "controlled," or "under common control" means the
218 direct or indirect possession of the power to direct or cause the direction of the management
219 and policies of a person. This control may be:
220 (i) by contract;
221 (ii) by common management;
222 (iii) through the ownership of voting securities; or
223 (iv) by a means other than those described in Subsections (28)(a)(i) through (iii).
224 (b) There is no presumption that an individual holding an official position with
225 another person controls that person solely by reason of the position.
226 (c) A person having a contract or arrangement giving control is considered to have
227 control despite the illegality or invalidity of the contract or arrangement.
228 (d) There is a rebuttable presumption of control in a person who directly or indirectly
229 owns, controls, holds with the power to vote, or holds proxies to vote 10% or more of the
230 voting securities of another person.
231 (29) "Controlled insurer" means a licensed insurer that is either directly or indirectly
232 controlled by a producer.
233 (30) "Controlling person" means a person that directly or indirectly has the power to
234 direct or cause to be directed, the management, control, or activities of a reinsurance
236 (31) "Controlling producer" means a producer who directly or indirectly controls an
238 (32) (a) "Corporation" means an insurance corporation, except when referring to:
239 (i) a corporation doing business:
240 (A) as:
241 (I) an insurance producer;
242 (II) a limited line producer;
243 (III) a consultant;
244 (IV) a managing general agent;
245 (V) a reinsurance intermediary;
246 (VI) a third party administrator; or
247 (VII) an adjuster; and
248 (B) under:
249 (I) Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and
250 Reinsurance Intermediaries;
251 (II) Chapter 25, Third Party Administrators; or
252 (III) Chapter 26, Insurance Adjusters; or
253 (ii) a noninsurer that is part of a holding company system under Chapter 16, Insurance
254 Holding Companies.
255 (b) "Stock corporation" means a stock insurance corporation.
256 (c) "Mutual" or "mutual corporation" means a mutual insurance corporation.
257 (33) (a) "Creditable coverage" has the same meaning as provided in federal regulations
258 adopted pursuant to the Health Insurance Portability and Accountability Act of 1996, Pub. L.
259 104-191, 110 Stat. 1936.
260 (b) "Creditable coverage" includes coverage that is offered through a public health
261 plan such as:
262 (i) the Primary Care Network Program under a Medicaid primary care network
263 demonstration waiver obtained subject to Section 26-18-3 ;
264 (ii) the Children's Health Insurance Program under Section 26-40-106 ; or
265 (iii) the Ryan White Program Comprehensive AIDS Resources Emergency Act, Pub.
266 L. 101-381, and Ryan White HIV/AIDS Treatment Modernization Act of 2006, Pub. L.
268 (34) "Credit accident and health insurance" means insurance on a debtor to provide
269 indemnity for payments coming due on a specific loan or other credit transaction while the
270 debtor is disabled.
271 (35) (a) "Credit insurance" means insurance offered in connection with an extension
272 of credit that is limited to partially or wholly extinguishing that credit obligation.
273 (b) "Credit insurance" includes:
274 (i) credit accident and health insurance;
275 (ii) credit life insurance;
276 (iii) credit property insurance;
277 (iv) credit unemployment insurance;
278 (v) guaranteed automobile protection insurance;
279 (vi) involuntary unemployment insurance;
280 (vii) mortgage accident and health insurance;
281 (viii) mortgage guaranty insurance; and
282 (ix) mortgage life insurance.
283 (36) "Credit life insurance" means insurance on the life of a debtor in connection with
284 an extension of credit that pays a person if the debtor dies.
285 (37) "Credit property insurance" means insurance:
286 (a) offered in connection with an extension of credit; and
287 (b) that protects the property until the debt is paid.
288 (38) "Credit unemployment insurance" means insurance:
289 (a) offered in connection with an extension of credit; and
290 (b) that provides indemnity if the debtor is unemployed for payments coming due on
292 (i) specific loan; or
293 (ii) credit transaction.
294 (39) "Creditor" means a person, including an insured, having a claim, whether:
295 (a) matured;
296 (b) unmatured;
297 (c) liquidated;
298 (d) unliquidated;
299 (e) secured;
300 (f) unsecured;
301 (g) absolute;
302 (h) fixed; or
303 (i) contingent.
304 (40) (a) "Customer service representative" means a person that provides an insurance
305 service and insurance product information:
306 (i) for the customer service representative's:
307 (A) producer; or
308 (B) consultant employer; and
309 (ii) to the customer service representative's employer's:
310 (A) customer;
311 (B) client; or
312 (C) organization.
313 (b) A customer service representative may only operate within the scope of authority
314 of the customer service representative's producer or consultant employer.
315 (41) "Deadline" means a final date or time:
316 (a) imposed by:
317 (i) statute;
318 (ii) rule; or
319 (iii) order; and
320 (b) by which a required filing or payment must be received by the department.
321 (42) "Deemer clause" means a provision under this title under which upon the
322 occurrence of a condition precedent, the commissioner is considered to have taken a specific
323 action. If the statute so provides, a condition precedent may be the commissioner's failure to
324 take a specific action.
325 (43) "Degree of relationship" means the number of steps between two persons
326 determined by counting the generations separating one person from a common ancestor and
327 then counting the generations to the other person.
328 (44) "Department" means the Insurance Department.
329 (45) "Director" means a member of the board of directors of a corporation.
330 (46) "Disability" means a physiological or psychological condition that partially or
331 totally limits an individual's ability to:
332 (a) perform the duties of:
333 (i) that individual's occupation; or
334 (ii) any occupation for which the individual is reasonably suited by education,
335 training, or experience; or
336 (b) perform two or more of the following basic activities of daily living:
337 (i) eating;
338 (ii) toileting;
339 (iii) transferring;
340 (iv) bathing; or
341 (v) dressing.
342 (47) "Disability income insurance" is defined in Subsection (76).
343 (48) "Domestic insurer" means an insurer organized under the laws of this state.
344 (49) "Domiciliary state" means the state in which an insurer:
345 (a) is incorporated;
346 (b) is organized; or
347 (c) in the case of an alien insurer, enters into the United States.
348 (50) (a) "Eligible employee" means:
349 (i) an employee who:
350 (A) works on a full-time basis; and
351 (B) has a normal work week of 30 or more hours; or
352 (ii) a person described in Subsection (50)(b).
353 (b) "Eligible employee" includes, if the individual is included under a health benefit
354 plan of a small employer:
355 (i) a sole proprietor;
356 (ii) a partner in a partnership; or
357 (iii) an independent contractor.
358 (c) "Eligible employee" does not include, unless eligible under Subsection (50)(b):
359 (i) an individual who works on a temporary or substitute basis for a small employer;
360 (ii) an employer's spouse; or
361 (iii) a dependent of an employer.
362 (51) "Employee" means an individual employed by an employer.
363 (52) "Employee benefits" means one or more benefits or services provided to:
364 (a) an employee; or
365 (b) a dependent of an employee.
366 (53) (a) "Employee welfare fund" means a fund:
367 (i) established or maintained, whether directly or through a trustee, by:
368 (A) one or more employers;
369 (B) one or more labor organizations; or
370 (C) a combination of employers and labor organizations; and
371 (ii) that provides employee benefits paid or contracted to be paid, other than income
372 from investments of the fund:
373 (A) by or on behalf of an employer doing business in this state; or
374 (B) for the benefit of a person employed in this state.
375 (b) "Employee welfare fund" includes a plan funded or subsidized by a user fee or tax
377 (54) "Endorsement" means a written agreement attached to a policy or certificate to
378 modify the policy or certificate coverage.
379 (55) "Enrollment date," with respect to a health benefit plan, means:
380 (a) the first day of coverage; or
381 (b) if there is a waiting period, the first day of the waiting period.
382 (56) (a) "Escrow" means:
383 (i) a real estate settlement or real estate closing conducted by a third party pursuant to
384 the requirements of a written agreement between the parties in a real estate transaction; or
385 (ii) a settlement or closing involving:
386 (A) a mobile home;
387 (B) a grazing right;
388 (C) a water right; or
389 (D) other personal property authorized by the commissioner.
390 (b) "Escrow" includes the act of conducting a:
391 (i) real estate settlement; or
392 (ii) real estate closing.
393 (57) "Escrow agent" means:
394 (a) an insurance producer with:
395 (i) a title insurance line of authority; and
396 (ii) an escrow subline of authority; or
397 (b) a person defined as an escrow agent in Section 7-22-101 .
398 (58) (a) "Excludes" is not exhaustive and does not mean that another thing is not also
400 (b) The items listed in a list using the term "excludes" are representative examples for
401 use in interpretation of this title.
402 (59) "Exclusion" means for the purposes of accident and health insurance that an
403 insurer does not provide insurance coverage, for whatever reason, for one of the following:
404 (a) a specific physical condition;
405 (b) a specific medical procedure;
406 (c) a specific disease or disorder; or
407 (d) a specific prescription drug or class of prescription drugs.
408 (60) "Expense reimbursement insurance" means insurance:
409 (a) written to provide a payment for an expense relating to hospital confinement
410 resulting from illness or injury; and
411 (b) written:
412 (i) as a daily limit for a specific number of days in a hospital; and
413 (ii) to have a one or two day waiting period following a hospitalization.
414 (61) "Fidelity insurance" means insurance guaranteeing the fidelity of a person
415 holding a position of public or private trust.
416 (62) (a) "Filed" means that a filing is:
417 (i) submitted to the department as required by and in accordance with applicable
418 statute, rule, or filing order;
419 (ii) received by the department within the time period provided in applicable statute,
420 rule, or filing order; and
421 (iii) accompanied by the appropriate fee in accordance with:
422 (A) Section 31A-3-103 ; or
423 (B) rule.
424 (b) "Filed" does not include a filing that is rejected by the department because it is not
425 submitted in accordance with Subsection (62)(a).
426 (63) "Filing," when used as a noun, means an item required to be filed with the
427 department including:
428 (a) a policy;
429 (b) a rate;
430 (c) a form;
431 (d) a document;
432 (e) a plan;
433 (f) a manual;
434 (g) an application;
435 (h) a report;
436 (i) a certificate;
437 (j) an endorsement;
438 (k) an actuarial certification;
439 (l) a licensee annual statement;
440 (m) a licensee renewal application;
441 (n) an advertisement; or
442 (o) an outline of coverage.
443 (64) "First party insurance" means an insurance policy or contract in which the insurer
444 agrees to pay a claim submitted to it by the insured for the insured's losses.
445 (65) "Foreign insurer" means an insurer domiciled outside of this state, including an
446 alien insurer.
447 (66) (a) "Form" means one of the following prepared for general use:
448 (i) a policy;
449 (ii) a certificate;
450 (iii) an application;
451 (iv) an outline of coverage; or
452 (v) an endorsement.
453 (b) "Form" does not include a document specially prepared for use in an individual
455 (67) "Franchise insurance" means an individual insurance policy provided through a
456 mass marketing arrangement involving a defined class of persons related in some way other
457 than through the purchase of insurance.
458 (68) "General lines of authority" include:
459 (a) the general lines of insurance in Subsection (69);
460 (b) title insurance under one of the following sublines of authority:
461 (i) search, including authority to act as a title marketing representative;
462 (ii) escrow, including authority to act as a title marketing representative; and
463 (iii) title marketing representative only;
464 (c) surplus lines;
465 (d) workers' compensation; and
466 (e) any other line of insurance that the commissioner considers necessary to recognize
467 in the public interest.
468 (69) "General lines of insurance" include:
469 (a) accident and health;
470 (b) casualty;
471 (c) life;
472 (d) personal lines;
473 (e) property; and
474 (f) variable contracts, including variable life and annuity.
475 (70) "Group health plan" means an employee welfare benefit plan to the extent that the
476 plan provides medical care:
477 (a) (i) to an employee; or
478 (ii) to a dependent of an employee; and
479 (b) (i) directly;
480 (ii) through insurance reimbursement; or
481 (iii) through another method.
482 (71) (a) "Group insurance policy" means a policy covering a group of persons that is
484 (i) to a policyholder on behalf of the group; and
485 (ii) for the benefit of a member of the group who is selected under a procedure defined
487 (A) the policy; or
488 (B) an agreement that is collateral to the policy.
489 (b) A group insurance policy may include a member of the policyholder's family or a
491 (72) "Guaranteed automobile protection insurance" means insurance offered in
492 connection with an extension of credit that pays the difference in amount between the
493 insurance settlement and the balance of the loan if the insured automobile is a total loss.
494 (73) (a) Except as provided in Subsection (73)(b), "health benefit plan" means a policy
495 or certificate that:
496 (i) provides health care insurance;
497 (ii) provides major medical expense insurance; or
498 (iii) is offered as a substitute for hospital or medical expense insurance, such as:
499 (A) a hospital confinement indemnity; or
500 (B) a limited benefit plan.
501 (b) "Health benefit plan" does not include a policy or certificate that:
502 (i) provides benefits solely for:
503 (A) accident;
504 (B) dental;
505 (C) income replacement;
506 (D) long-term care;
507 (E) a Medicare supplement;
508 (F) a specified disease;
509 (G) vision; or
510 (H) a short-term limited duration; or
511 (ii) is offered and marketed as supplemental health insurance.
512 (74) "Health care" means any of the following intended for use in the diagnosis,
513 treatment, mitigation, or prevention of a human ailment or impairment:
514 (a) a professional service;
515 (b) a personal service;
516 (c) a facility;
517 (d) equipment;
518 (e) a device;
519 (f) supplies; or
520 (g) medicine.
521 (75) (a) "Health care insurance" or "health insurance" means insurance providing:
522 (i) a health care benefit; or
523 (ii) payment of an incurred health care expense.
524 (b) "Health care insurance" or "health insurance" does not include accident and health
525 insurance providing a benefit for:
526 (i) replacement of income;
527 (ii) short-term accident;
528 (iii) fixed indemnity;
529 (iv) credit accident and health;
530 (v) supplements to liability;
531 (vi) workers' compensation;
532 (vii) automobile medical payment;
533 (viii) no-fault automobile;
534 (ix) equivalent self-insurance; or
535 (x) a type of accident and health insurance coverage that is a part of or attached to
536 another type of policy.
537 (76) "Income replacement insurance" or "disability income insurance" means
538 insurance written to provide payments to replace income lost from accident or sickness.
539 (77) "Indemnity" means the payment of an amount to offset all or part of an insured
541 (78) "Independent adjuster" means an insurance adjuster required to be licensed under
542 Section 31A-26-201 who engages in insurance adjusting as a representative of an insurer.
543 (79) "Independently procured insurance" means insurance procured under Section
544 31A-15-104 .
545 (80) "Individual" means a natural person.
546 (81) "Inland marine insurance" includes insurance covering:
547 (a) property in transit on or over land;
548 (b) property in transit over water by means other than boat or ship;
549 (c) bailee liability;
550 (d) fixed transportation property such as bridges, electric transmission systems, radio
551 and television transmission towers and tunnels; and
552 (e) personal and commercial property floaters.
553 (82) "Insolvency" means that:
554 (a) an insurer is unable to pay its debts or meet its obligations as the debts and
555 obligations mature;
556 (b) an insurer's total adjusted capital is less than the insurer's mandatory control level
557 RBC under Subsection 31A-17-601 (8)(c); or
558 (c) an insurer is determined to be hazardous under this title.
559 (83) (a) "Insurance" means:
560 (i) an arrangement, contract, or plan for the transfer of a risk or risks from one or more
561 persons to one or more other persons; or
562 (ii) an arrangement, contract, or plan for the distribution of a risk or risks among a
563 group of persons that includes the person seeking to distribute that person's risk.
564 (b) "Insurance" includes:
565 (i) a risk distributing arrangement providing for compensation or replacement for
566 damages or loss through the provision of a service or a benefit in kind;
567 (ii) a contract of guaranty or suretyship entered into by the guarantor or surety as a
568 business and not as merely incidental to a business transaction; and
569 (iii) a plan in which the risk does not rest upon the person who makes an arrangement,
570 but with a class of persons who have agreed to share the risk.
571 (84) "Insurance adjuster" means a person who directs the investigation, negotiation, or
572 settlement of a claim under an insurance policy other than life insurance or an annuity, on
573 behalf of an insurer, policyholder, or a claimant under an insurance policy.
574 (85) "Insurance business" or "business of insurance" includes:
575 (a) providing health care insurance by an organization that is or is required to be
576 licensed under this title;
577 (b) providing a benefit to an employee in the event of a contingency not within the
578 control of the employee, in which the employee is entitled to the benefit as a right, which
579 benefit may be provided either:
580 (i) by a single employer or by multiple employer groups; or
581 (ii) through one or more trusts, associations, or other entities;
582 (c) providing an annuity:
583 (i) including an annuity issued in return for a gift; and
584 (ii) except an annuity provided by a person specified in Subsections 31A-22-1305 (2)
585 and (3);
586 (d) providing the characteristic services of a motor club as outlined in Subsection
588 (e) providing another person with insurance;
589 (f) making as insurer, guarantor, or surety, or proposing to make as insurer, guarantor,
590 or surety, a contract or policy of title insurance;
591 (g) transacting or proposing to transact any phase of title insurance, including:
592 (i) solicitation;
593 (ii) negotiation preliminary to execution;
594 (iii) execution of a contract of title insurance;
595 (iv) insuring; [
596 (v) transacting matters subsequent to the execution of the contract and arising out of
597 the contract, including reinsurance; and
598 (vi) transacting or proposing a life settlement; and
599 (h) doing, or proposing to do, any business in substance equivalent to Subsections
600 (85)(a) through (g) in a manner designed to evade this title.
601 (86) "Insurance consultant" or "consultant" means a person who:
602 (a) advises another person about insurance needs and coverages;
603 (b) is compensated by the person advised on a basis not directly related to the
604 insurance placed; and
605 (c) except as provided in Section 31A-23a-501 , is not compensated directly or
606 indirectly by an insurer or producer for advice given.
607 (87) "Insurance holding company system" means a group of two or more affiliated
608 persons, at least one of whom is an insurer.
609 (88) (a) "Insurance producer" or "producer" means a person licensed or required to be
610 licensed under the laws of this state to sell, solicit, or negotiate insurance.
611 (b) With regards to the selling, soliciting, or negotiating of an insurance product to an
612 insurance customer or an insured:
613 (i) "producer for the insurer" means a producer who is compensated directly or
614 indirectly by an insurer for selling, soliciting, or negotiating a product of that insurer; and
615 (ii) "producer for the insured" means a producer who:
616 (A) is compensated directly and only by an insurance customer or an insured; and
617 (B) receives no compensation directly or indirectly from an insurer for selling,
618 soliciting, or negotiating a product of that insurer to an insurance customer or insured.
619 (89) (a) "Insured" means a person to whom or for whose benefit an insurer makes a
620 promise in an insurance policy and includes:
621 (i) a policyholder;
622 (ii) a subscriber;
623 (iii) a member; and
624 (iv) a beneficiary.
625 (b) The definition in Subsection (89)(a):
626 (i) applies only to this title; and
627 (ii) does not define the meaning of this word as used in an insurance policy or
629 (90) (a) "Insurer" means a person doing an insurance business as a principal including:
630 (i) a fraternal benefit society;
631 (ii) an issuer of a gift annuity other than an annuity specified in Subsections
632 31A-22-1305 (2) and (3);
633 (iii) a motor club;
634 (iv) an employee welfare plan; and
635 (v) a person purporting or intending to do an insurance business as a principal on that
636 person's own account.
637 (b) "Insurer" does not include a governmental entity to the extent the governmental
638 entity is engaged in an activity described in Section 31A-12-107 .
639 (91) "Interinsurance exchange" is defined in Subsection (142).
640 (92) "Involuntary unemployment insurance" means insurance:
641 (a) offered in connection with an extension of credit; and
642 (b) that provides indemnity if the debtor is involuntarily unemployed for payments
643 coming due on a:
644 (i) specific loan; or
645 (ii) credit transaction.
646 (93) "Large employer," in connection with a health benefit plan, means an employer
647 who, with respect to a calendar year and to a plan year:
648 (a) employed an average of at least 51 eligible employees on each business day during
649 the preceding calendar year; and
650 (b) employs at least two employees on the first day of the plan year.
651 (94) "Late enrollee," with respect to an employer health benefit plan, means an
652 individual whose enrollment is a late enrollment.
653 (95) "Late enrollment," with respect to an employer health benefit plan, means
654 enrollment of an individual other than:
655 (a) on the earliest date on which coverage can become effective for the individual
656 under the terms of the plan; or
657 (b) through special enrollment.
658 (96) (a) Except for a retainer contract or legal assistance described in Section
659 31A-1-103 , "legal expense insurance" means insurance written to indemnify or pay for a
660 specified legal expense.
661 (b) "Legal expense insurance" includes an arrangement that creates a reasonable
662 expectation of an enforceable right.
663 (c) "Legal expense insurance" does not include the provision of, or reimbursement for,
664 legal services incidental to other insurance coverage.
665 (97) (a) "Liability insurance" means insurance against liability:
666 (i) for death, injury, or disability of a human being, or for damage to property,
667 exclusive of the coverages under:
668 (A) Subsection (107) for medical malpractice insurance;
669 (B) Subsection (134) for professional liability insurance; and
670 (C) Subsection (168) for workers' compensation insurance;
671 (ii) for a medical, hospital, surgical, and funeral benefit to a person other than the
672 insured who is injured, irrespective of legal liability of the insured, when issued with or
673 supplemental to insurance against legal liability for the death, injury, or disability of a human
674 being, exclusive of the coverages under:
675 (A) Subsection (107) for medical malpractice insurance;
676 (B) Subsection (134) for professional liability insurance; and
677 (C) Subsection (168) for workers' compensation insurance;
678 (iii) for loss or damage to property resulting from an accident to or explosion of a
679 boiler, pipe, pressure container, machinery, or apparatus;
680 (iv) for loss or damage to property caused by:
681 (A) the breakage or leakage of a sprinkler, water pipe, or water container; or
682 (B) water entering through a leak or opening in a building; or
683 (v) for other loss or damage properly the subject of insurance not within another kind
684 of insurance as defined in this chapter, if the insurance is not contrary to law or public policy.
685 (b) "Liability insurance" includes:
686 (i) vehicle liability insurance;
687 (ii) residential dwelling liability insurance; and
688 (iii) making inspection of, and issuing a certificate of inspection upon, an elevator,
689 boiler, machinery, or apparatus of any kind when done in connection with insurance on the
690 elevator, boiler, machinery, or apparatus.
691 (98) (a) "License" means authorization issued by the commissioner to engage in an
692 activity that is part of or related to the insurance business.
693 (b) "License" includes a certificate of authority issued to an insurer.
694 (99) (a) "Life insurance" means:
695 (i) insurance on a human life; and
696 (ii) insurance pertaining to or connected with human life.
697 (b) The business of life insurance includes:
698 (i) granting a death benefit;
699 (ii) granting an annuity benefit;
700 (iii) granting an endowment benefit;
701 (iv) granting an additional benefit in the event of death by accident;
702 (v) granting an additional benefit to safeguard the policy against lapse; and
703 (vi) providing an optional method of settlement of proceeds.
704 (100) "Limited license" means a license that:
705 (a) is issued for a specific product of insurance; and
706 (b) limits an individual or agency to transact only for that product or insurance.
707 (101) "Limited line credit insurance" includes the following forms of insurance:
708 (a) credit life;
709 (b) credit accident and health;
710 (c) credit property;
711 (d) credit unemployment;
712 (e) involuntary unemployment;
713 (f) mortgage life;
714 (g) mortgage guaranty;
715 (h) mortgage accident and health;
716 (i) guaranteed automobile protection; and
717 (j) another form of insurance offered in connection with an extension of credit that:
718 (i) is limited to partially or wholly extinguishing the credit obligation; and
719 (ii) the commissioner determines by rule should be designated as a form of limited line
720 credit insurance.
721 (102) "Limited line credit insurance producer" means a person who sells, solicits, or
722 negotiates one or more forms of limited line credit insurance coverage to an individual through
723 a master, corporate, group, or individual policy.
724 (103) "Limited line insurance" includes:
725 (a) bail bond;
726 (b) limited line credit insurance;
727 (c) legal expense insurance;
728 (d) motor club insurance;
729 (e) rental car-related insurance;
730 (f) travel insurance;
731 (g) crop insurance;
732 (h) self-service storage insurance; and
733 (i) another form of limited insurance that the commissioner determines by rule should
734 be designated a form of limited line insurance.
735 (104) "Limited lines authority" includes:
736 (a) the lines of insurance listed in Subsection (103); and
737 (b) a customer service representative.
738 (105) "Limited lines producer" means a person who sells, solicits, or negotiates limited
739 lines insurance.
740 (106) (a) "Long-term care insurance" means an insurance policy or rider advertised,
741 marketed, offered, or designated to provide coverage:
742 (i) in a setting other than an acute care unit of a hospital;
743 (ii) for not less than 12 consecutive months for a covered person on the basis of:
744 (A) expenses incurred;
745 (B) indemnity;
746 (C) prepayment; or
747 (D) another method;
748 (iii) for one or more necessary or medically necessary services that are:
749 (A) diagnostic;
750 (B) preventative;
751 (C) therapeutic;
752 (D) rehabilitative;
753 (E) maintenance; or
754 (F) personal care; and
755 (iv) that may be issued by:
756 (A) an insurer;
757 (B) a fraternal benefit society;
758 (C) (I) a nonprofit health hospital; and
759 (II) a medical service corporation;
760 (D) a prepaid health plan;
761 (E) a health maintenance organization; or
762 (F) an entity similar to the entities described in Subsections (106)(a)(iv)(A) through
763 (E) to the extent that the entity is otherwise authorized to issue life or health care insurance.
764 (b) "Long-term care insurance" includes:
765 (i) any of the following that provide directly or supplement long-term care insurance:
766 (A) a group or individual annuity or rider; or
767 (B) a life insurance policy or rider;
768 (ii) a policy or rider that provides for payment of benefits on the basis of:
769 (A) cognitive impairment; or
770 (B) functional capacity; or
771 (iii) a qualified long-term care insurance contract.
772 (c) "Long-term care insurance" does not include:
773 (i) a policy that is offered primarily to provide basic Medicare supplement coverage;
774 (ii) basic hospital expense coverage;
775 (iii) basic medical/surgical expense coverage;
776 (iv) hospital confinement indemnity coverage;
777 (v) major medical expense coverage;
778 (vi) income replacement or related asset-protection coverage;
779 (vii) accident only coverage;
780 (viii) coverage for a specified:
781 (A) disease; or
782 (B) accident;
783 (ix) limited benefit health coverage; or
784 (x) a life insurance policy that accelerates the death benefit to provide the option of a
785 lump sum payment:
786 (A) if the following are not conditioned on the receipt of long-term care:
787 (I) benefits; or
788 (II) eligibility; and
789 (B) the coverage is for one or more the following qualifying events:
790 (I) terminal illness;
791 (II) medical conditions requiring extraordinary medical intervention; or
792 (III) permanent institutional confinement.
793 (107) "Medical malpractice insurance" means insurance against legal liability incident
794 to the practice and provision of a medical service other than the practice and provision of a
795 dental service.
796 (108) "Member" means a person having membership rights in an insurance
798 (109) "Minimum capital" or "minimum required capital" means the capital that must
799 be constantly maintained by a stock insurance corporation as required by statute.
800 (110) "Mortgage accident and health insurance" means insurance offered in
801 connection with an extension of credit that provides indemnity for payments coming due on a
802 mortgage while the debtor is disabled.
803 (111) "Mortgage guaranty insurance" means surety insurance under which a
804 mortgagee or other creditor is indemnified against losses caused by the default of a debtor.
805 (112) "Mortgage life insurance" means insurance on the life of a debtor in connection
806 with an extension of credit that pays if the debtor dies.
807 (113) "Motor club" means a person:
808 (a) licensed under:
809 (i) Chapter 5, Domestic Stock and Mutual Insurance Corporations;
810 (ii) Chapter 11, Motor Clubs; or
811 (iii) Chapter 14, Foreign Insurers; and
812 (b) that promises for an advance consideration to provide for a stated period of time
813 one or more:
814 (i) legal services under Subsection 31A-11-102 (1)(b);
815 (ii) bail services under Subsection 31A-11-102 (1)(c); or
816 (iii) (A) trip reimbursement;
817 (B) towing services;
818 (C) emergency road services;
819 (D) stolen automobile services;
820 (E) a combination of the services listed in Subsections (113)(b)(iii)(A) through (D); or
821 (F) other services given in Subsections 31A-11-102 (1)(b) through (f).
822 (114) "Mutual" means a mutual insurance corporation.
823 (115) "Network plan" means health care insurance:
824 (a) that is issued by an insurer; and
825 (b) under which the financing and delivery of medical care is provided, in whole or in
826 part, through a defined set of providers under contract with the insurer, including the financing
827 and delivery of an item paid for as medical care.
828 (116) "Nonparticipating" means a plan of insurance under which the insured is not
829 entitled to receive a dividend representing a share of the surplus of the insurer.
830 (117) "Ocean marine insurance" means insurance against loss of or damage to:
831 (a) ships or hulls of ships;
832 (b) goods, freight, cargoes, merchandise, effects, disbursements, profits, moneys,
833 securities, choses in action, evidences of debt, valuable papers, bottomry, respondentia
834 interests, or other cargoes in or awaiting transit over the oceans or inland waterways;
835 (c) earnings such as freight, passage money, commissions, or profits derived from
836 transporting goods or people upon or across the oceans or inland waterways; or
837 (d) a vessel owner or operator as a result of liability to employees, passengers, bailors,
838 owners of other vessels, owners of fixed objects, customs or other authorities, or other persons
839 in connection with maritime activity.
840 (118) "Order" means an order of the commissioner.
841 (119) "Outline of coverage" means a summary that explains an accident and health
842 insurance policy.
843 (120) "Participating" means a plan of insurance under which the insured is entitled to
844 receive a dividend representing a share of the surplus of the insurer.
845 (121) "Participation," as used in a health benefit plan, means a requirement relating to
846 the minimum percentage of eligible employees that must be enrolled in relation to the total
847 number of eligible employees of an employer reduced by each eligible employee who
848 voluntarily declines coverage under the plan because the employee:
849 (a) has other group health care insurance coverage; or
850 (b) receives:
851 (i) Medicare, under the Health Insurance for the Aged Act, Title XVIII of the Social
852 Security Amendments of 1965; or
853 (ii) another government health benefit.
854 (122) "Person" includes:
855 (a) an individual;
856 (b) a partnership;
857 (c) a corporation;
858 (d) an incorporated or unincorporated association;
859 (e) a joint stock company;
860 (f) a trust;
861 (g) a limited liability company;
862 (h) a reciprocal;
863 (i) a syndicate; or
864 (j) another similar entity or combination of entities acting in concert.
865 (123) "Personal lines insurance" means property and casualty insurance coverage sold
866 for primarily noncommercial purposes to:
867 (a) an individual; or
868 (b) a family.
869 (124) "Plan sponsor" is as defined in 29 U.S.C. Sec. 1002(16)(B).
870 (125) "Plan year" means:
871 (a) the year that is designated as the plan year in:
872 (i) the plan document of a group health plan; or
873 (ii) a summary plan description of a group health plan;
874 (b) if the plan document or summary plan description does not designate a plan year or
875 there is no plan document or summary plan description:
876 (i) the year used to determine deductibles or limits;
877 (ii) the policy year, if the plan does not impose deductibles or limits on a yearly basis;
879 (iii) the employer's taxable year if:
880 (A) the plan does not impose deductibles or limits on a yearly basis; and
881 (B) (I) the plan is not insured; or
882 (II) the insurance policy is not renewed on an annual basis; or
883 (c) in a case not described in Subsection (125)(a) or (b), the calendar year.
884 (126) (a) "Policy" means a document, including [
885 application that:
886 (i) purports to be an enforceable contract; and
887 (ii) memorializes in writing some or all of the terms of an insurance contract.
888 (b) "Policy" includes a service contract issued by:
889 (i) a motor club under Chapter 11, Motor Clubs;
890 (ii) a service contract provided under Chapter 6a, Service Contracts; and
891 (iii) a corporation licensed under:
892 (A) Chapter 7, Nonprofit Health Service Insurance Corporations; or
893 (B) Chapter 8, Health Maintenance Organizations and Limited Health Plans.
894 (c) "Policy" does not include:
895 (i) a certificate under a group insurance contract; or
896 (ii) a document that does not purport to have legal effect.
897 (127) "Policyholder" means a person who controls a policy, binder, or oral contract by
898 ownership, premium payment, or otherwise.
899 (128) "Policy illustration" means a presentation or depiction that includes
900 nonguaranteed elements of a policy of life insurance over a period of years.
901 (129) "Policy summary" means a synopsis describing the elements of a life insurance
903 (130) "Preexisting condition," with respect to a health benefit plan:
904 (a) means a condition that was present before the effective date of coverage, whether
905 or not medical advice, diagnosis, care, or treatment was recommended or received before that
906 day; and
907 (b) does not include a condition indicated by genetic information unless an actual
908 diagnosis of the condition by a physician has been made.
909 (131) (a) "Premium" means the monetary consideration for an insurance policy.
910 (b) "Premium" includes, however designated:
911 (i) an assessment;
912 (ii) a membership fee;
913 (iii) a required contribution; or
914 (iv) monetary consideration.
915 (c) (i) "Premium" does not include consideration paid to a third party administrator for
916 the third party administrator's services.
917 (ii) "Premium" includes an amount paid by a third party administrator to an insurer for
918 insurance on the risks administered by the third party administrator.
919 (132) "Principal officers" for a corporation means the officers designated under
920 Subsection 31A-5-203 (3).
921 (133) "Proceeding" includes an action or special statutory proceeding.
922 (134) "Professional liability insurance" means insurance against legal liability incident
923 to the practice of a profession and provision of a professional service.
924 (135) (a) Except as provided in Subsection (135)(b), "property insurance" means
925 insurance against loss or damage to real or personal property of every kind and any interest in
926 that property:
927 (i) from all hazards or causes; and
928 (ii) against loss consequential upon the loss or damage including vehicle
929 comprehensive and vehicle physical damage coverages.
930 (b) "Property insurance" does not include:
931 (i) inland marine insurance; and
932 (ii) ocean marine insurance.
933 (136) "Qualified long-term care insurance contract" or "federally tax qualified
934 long-term care insurance contract" means:
935 (a) an individual or group insurance contract that meets the requirements of Section
936 7702B(b), Internal Revenue Code; or
937 (b) the portion of a life insurance contract that provides long-term care insurance:
938 (i) (A) by rider; or
939 (B) as a part of the contract; and
940 (ii) that satisfies the requirements of Sections 7702B(b) and (e), Internal Revenue
942 (137) "Qualified United States financial institution" means an institution that:
943 (a) is:
944 (i) organized under the laws of the United States or any state; or
945 (ii) in the case of a United States office of a foreign banking organization, licensed
946 under the laws of the United States or any state;
947 (b) is regulated, supervised, and examined by a United States federal or state authority
948 having regulatory authority over a bank or trust company; and
949 (c) meets the standards of financial condition and standing that are considered
950 necessary and appropriate to regulate the quality of a financial institution whose letters of
951 credit will be acceptable to the commissioner as determined by:
952 (i) the commissioner by rule; or
953 (ii) the Securities Valuation Office of the National Association of Insurance
955 (138) (a) "Rate" means:
956 (i) the cost of a given unit of insurance; or
957 (ii) for property or casualty insurance, that cost of insurance per exposure unit either
958 expressed as:
959 (A) a single number; or
960 (B) a pure premium rate, adjusted before the application of individual risk variations
961 based on loss or expense considerations to account for the treatment of:
962 (I) expenses;
963 (II) profit; and
964 (III) individual insurer variation in loss experience.
965 (b) "Rate" does not include a minimum premium.
966 (139) (a) Except as provided in Subsection (139)(b), "rate service organization" means
967 a person who assists an insurer in rate making or filing by:
968 (i) collecting, compiling, and furnishing loss or expense statistics;
969 (ii) recommending, making, or filing rates or supplementary rate information; or
970 (iii) advising about rate questions, except as an attorney giving legal advice.
971 (b) "Rate service organization" does not mean:
972 (i) an employee of an insurer;
973 (ii) a single insurer or group of insurers under common control;
974 (iii) a joint underwriting group; or
975 (iv) an individual serving as an actuarial or legal consultant.
976 (140) "Rating manual" means any of the following used to determine initial and
977 renewal policy premiums:
978 (a) a manual of rates;
979 (b) a classification;
980 (c) a rate-related underwriting rule; and
981 (d) a rating formula that describes steps, policies, and procedures for determining
982 initial and renewal policy premiums.
983 (141) "Received by the department" means:
984 (a) the date delivered to and stamped received by the department, if delivered in
986 (b) the post mark date, if delivered by mail;
987 (c) the delivery service's post mark or pickup date, if delivered by a delivery service;
988 (d) the received date recorded on an item delivered, if delivered by:
989 (i) facsimile;
990 (ii) email; or
991 (iii) another electronic method; or
992 (e) a date specified in:
993 (i) a statute;
994 (ii) a rule; or
995 (iii) an order.
996 (142) "Reciprocal" or "interinsurance exchange" means an unincorporated association
997 of persons:
998 (a) operating through an attorney-in-fact common to all of the persons; and
999 (b) exchanging insurance contracts with one another that provide insurance coverage
1000 on each other.
1001 (143) "Reinsurance" means an insurance transaction where an insurer, for
1002 consideration, transfers any portion of the risk it has assumed to another insurer. In referring
1003 to reinsurance transactions, this title sometimes refers to:
1004 (a) the insurer transferring the risk as the "ceding insurer"; and
1005 (b) the insurer assuming the risk as the:
1006 (i) "assuming insurer"; or
1007 (ii) "assuming reinsurer."
1008 (144) "Reinsurer" means a person licensed in this state as an insurer with the authority
1009 to assume reinsurance.
1010 (145) "Residential dwelling liability insurance" means insurance against liability
1011 resulting from or incident to the ownership, maintenance, or use of a residential dwelling that
1012 is a detached single family residence or multifamily residence up to four units.
1013 (146) (a) "Retrocession" means reinsurance with another insurer of a liability assumed
1014 under a reinsurance contract.
1015 (b) A reinsurer "retrocedes" when the reinsurer reinsures with another insurer part of a
1016 liability assumed under a reinsurance contract.
1017 (147) "Rider" means an endorsement to:
1018 (a) an insurance policy; or
1019 (b) an insurance certificate.
1020 (148) (a) "Security" means a:
1021 (i) note;
1022 (ii) stock;
1023 (iii) bond;
1024 (iv) debenture;
1025 (v) evidence of indebtedness;
1026 (vi) certificate of interest or participation in a profit-sharing agreement;
1027 (vii) collateral-trust certificate;
1028 (viii) preorganization certificate or subscription;
1029 (ix) transferable share;
1030 (x) investment contract;
1031 (xi) voting trust certificate;
1032 (xii) certificate of deposit for a security;
1033 (xiii) certificate of interest of participation in an oil, gas, or mining title or lease or in
1034 payments out of production under such a title or lease;
1035 (xiv) commodity contract or commodity option;
1036 (xv) certificate of interest or participation in, temporary or interim certificate for,
1037 receipt for, guarantee of, or warrant or right to subscribe to or purchase any of the items listed
1038 in Subsections (148)(a)(i) through (xiv); or
1039 (xvi) another interest or instrument commonly known as a security.
1040 (b) "Security" does not include:
1041 (i) any of the following under which an insurance company promises to pay money in
1042 a specific lump sum or periodically for life or some other specified period:
1043 (A) insurance;
1044 (B) an endowment policy; or
1045 (C) an annuity contract; or
1046 (ii) a burial certificate or burial contract.
1047 (149) "Secondary medical condition" means a complication related to an exclusion
1048 from coverage in accident and health insurance.
1049 (150) "Self-insurance" means an arrangement under which a person provides for
1050 spreading its own risks by a systematic plan.
1051 (a) Except as provided in this Subsection (150), "self-insurance" does not include an
1052 arrangement under which a number of persons spread their risks among themselves.
1053 (b) "Self-insurance" includes:
1054 (i) an arrangement by which a governmental entity undertakes to indemnify an
1055 employee for liability arising out of the employee's employment; and
1056 (ii) an arrangement by which a person with a managed program of self-insurance and
1057 risk management undertakes to indemnify its affiliates, subsidiaries, directors, officers, or
1058 employees for liability or risk that is related to the relationship or employment.
1059 (c) "Self-insurance" does not include an arrangement with an independent contractor.
1060 (151) "Sell" means to exchange a contract of insurance:
1061 (a) by any means;
1062 (b) for money or its equivalent; and
1063 (c) on behalf of an insurance company.
1064 (152) "Short-term care insurance" means an insurance policy or rider advertised,
1065 marketed, offered, or designed to provide coverage that is similar to long-term care insurance,
1066 but that provides coverage for less than 12 consecutive months for each covered person.
1067 (153) "Significant break in coverage" means a period of 63 consecutive days during
1068 each of which an individual does not have creditable coverage.
1069 (154) "Small employer," in connection with a health benefit plan, means an employer
1070 who, with respect to a calendar year and to a plan year:
1071 (a) employed an average of at least two employees but not more than 50 eligible
1072 employees on each business day during the preceding calendar year; and
1073 (b) employs at least two employees on the first day of the plan year.
1074 (155) "Special enrollment period," in connection with a health benefit plan, has the
1075 same meaning as provided in federal regulations adopted pursuant to the Health Insurance
1076 Portability and Accountability Act of 1996, Pub. L. [
1077 (156) (a) "Subsidiary" of a person means an affiliate controlled by that person either
1078 directly or indirectly through one or more affiliates or intermediaries.
1079 (b) "Wholly owned subsidiary" of a person is a subsidiary of which all of the voting
1080 shares are owned by that person either alone or with its affiliates, except for the minimum
1081 number of shares the law of the subsidiary's domicile requires to be owned by directors or
1083 (157) Subject to Subsection (83)(b), "surety insurance" includes:
1084 (a) a guarantee against loss or damage resulting from the failure of a principal to pay
1085 or perform the principal's obligations to a creditor or other obligee;
1086 (b) bail bond insurance; and
1087 (c) fidelity insurance.
1088 (158) (a) "Surplus" means the excess of assets over the sum of paid-in capital and
1090 (b) (i) "Permanent surplus" means the surplus of a mutual insurer that is designated by
1091 the insurer as permanent.
1092 (ii) Sections 31A-5-211 , 31A-7-201 , 31A-8-209 , 31A-9-209 , and 31A-14-209 require
1093 that mutuals doing business in this state maintain specified minimum levels of permanent
1095 (iii) Except for assessable mutuals, the minimum permanent surplus requirement is the
1096 same as the minimum required capital requirement that applies to stock insurers.
1097 (c) "Excess surplus" means:
1098 (i) for a life insurer, accident and health insurer, health organization, or property and
1099 casualty insurer as defined in Section 31A-17-601 , the lesser of:
1100 (A) that amount of an insurer's or health organization's total adjusted capital that
1101 exceeds the product of:
1102 (I) 2.5; and
1103 (II) the sum of the insurer's or health organization's minimum capital or permanent
1104 surplus required under Section 31A-5-211 , 31A-9-209 , or 31A-14-205 ; or
1105 (B) that amount of an insurer's or health organization's total adjusted capital that
1106 exceeds the product of:
1107 (I) 3.0; and
1108 (II) the authorized control level RBC as defined in Subsection 31A-17-601 (8)(a); and
1109 (ii) for a monoline mortgage guaranty insurer, financial guaranty insurer, or title
1110 insurer that amount of an insurer's paid-in-capital and surplus that exceeds the product of:
1111 (A) 1.5; and
1112 (B) the insurer's total adjusted capital required by Subsection 31A-17-609 (1).
1113 (159) "Third party administrator" or "administrator" means a person who collects
1114 charges or premiums from, or who, for consideration, adjusts or settles claims of residents of
1115 the state in connection with insurance coverage, annuities, or service insurance coverage,
1117 (a) a union on behalf of its members;
1118 (b) a person administering a:
1119 (i) pension plan subject to the federal Employee Retirement Income Security Act of
1121 (ii) governmental plan as defined in Section 414(d), Internal Revenue Code; or
1122 (iii) nonelecting church plan as described in Section 410(d), Internal Revenue Code;
1123 (c) an employer on behalf of the employer's employees or the employees of one or
1124 more of the subsidiary or affiliated corporations of the employer;
1125 (d) an insurer licensed under Chapter 5, 7, 8, 9, or 14, but only for a line of insurance
1126 for which the insurer holds a license in this state; or
1127 (e) a person:
1128 (i) licensed or exempt from licensing under:
1129 (A) Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and
1130 Reinsurance Intermediaries; or
1131 (B) Chapter 26, Insurance Adjusters; and
1132 (ii) whose activities are limited to those authorized under the license the person holds
1133 or for which the person is exempt.
1134 (160) "Title insurance" means the insuring, guaranteeing, or indemnifying of an owner
1135 of real or personal property or the holder of liens or encumbrances on that property, or others
1136 interested in the property against loss or damage suffered by reason of liens or encumbrances
1137 upon, defects in, or the unmarketability of the title to the property, or invalidity or
1138 unenforceability of any liens or encumbrances on the property.
1139 (161) "Total adjusted capital" means the sum of an insurer's or health organization's
1140 statutory capital and surplus as determined in accordance with:
1141 (a) the statutory accounting applicable to the annual financial statements required to
1142 be filed under Section 31A-4-113 ; and
1143 (b) another item provided by the RBC instructions, as RBC instructions is defined in
1144 Section 31A-17-601 .
1145 (162) (a) "Trustee" means "director" when referring to the board of directors of a
1147 (b) "Trustee," when used in reference to an employee welfare fund, means an
1148 individual, firm, association, organization, joint stock company, or corporation, whether
1149 acting individually or jointly and whether designated by that name or any other, that is
1150 charged with or has the overall management of an employee welfare fund.
1151 (163) (a) "Unauthorized insurer," "unadmitted insurer," or "nonadmitted insurer"
1152 means an insurer:
1153 (i) not holding a valid certificate of authority to do an insurance business in this state;
1155 (ii) transacting business not authorized by a valid certificate.
1156 (b) "Admitted insurer" or "authorized insurer" means an insurer:
1157 (i) holding a valid certificate of authority to do an insurance business in this state; and
1158 (ii) transacting business as authorized by a valid certificate.
1159 (164) "Underwrite" means the authority to accept or reject risk on behalf of the
1161 (165) "Vehicle liability insurance" means insurance against liability resulting from or
1162 incident to ownership, maintenance, or use of a land vehicle or aircraft, exclusive of a vehicle
1163 comprehensive or vehicle physical damage coverage under Subsection (135).
1164 (166) "Voting security" means a security with voting rights, and includes a security
1165 convertible into a security with a voting right associated with the security.
1166 (167) "Waiting period" for a health benefit plan means the period that must pass
1167 before coverage for an individual, who is otherwise eligible to enroll under the terms of the
1168 health benefit plan, can become effective.
1169 (168) "Workers' compensation insurance" means:
1170 (a) insurance for indemnification of an employer against liability for compensation
1171 based on:
1172 (i) a compensable accidental injury; and
1173 (ii) occupational disease disability;
1174 (b) employer's liability insurance incidental to workers' compensation insurance and
1175 written in connection with workers' compensation insurance; and
1176 (c) insurance assuring to a person entitled to workers' compensation benefits the
1177 compensation provided by law.
1178 Section 2. Section 31A-2-403 is amended to read:
1179 31A-2-403. Title and Escrow Commission created.
1180 (1) (a) Subject to Subsection (1)(b), there is created within the department the Title
1181 and Escrow Commission that is comprised of five members appointed by the governor with
1182 the consent of the Senate as follows:
1183 (i) four members shall each:
1184 (A) be or have been licensed under the title insurance line of authority; [
1185 (B) as of the day on which the member is appointed, be or have been licensed with the
1186 search or escrow subline of authority for at least five years; and
1187 (C) as of the day on which the member is appointed, not be from the same county as
1188 another member appointed under this Subsection (1)(a)(i); and
1189 (ii) one member shall be a member of the general public from any county in the state.
1190 (b) No more than one commission member may be appointed from a single company.
1191 (2) (a) Subject to Subsection (2)(c), a [
1192 with the [
1193 interest that the [
1194 subject to the jurisdiction of the [
1195 (b) The disclosure statement required by this Subsection (2) shall be:
1196 (i) filed by no later than the day on which the person begins that person's appointment;
1198 (ii) amended when a significant change occurs in any matter required to be disclosed
1199 under this Subsection (2).
1200 (c) A [
1201 interest that the [
1202 part of a mutual fund, trust, or similar investment.
1203 (3) (a) Except as required by Subsection (3)(b), as terms of current commission
1204 members expire, the governor shall appoint each new commission member to a four-year term
1205 ending on June 30.
1206 (b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the
1207 time of appointment, adjust the length of terms to ensure that the terms of the commission
1208 members are staggered so that approximately half of the commission is appointed every two
1210 (c) A commission member may not serve more than one consecutive term.
1211 (d) When a vacancy occurs in the membership for any reason, the governor, with the
1212 consent of the Senate, shall appoint a replacement for the unexpired term.
1213 (e) Notwithstanding the other provisions of this Subsection (3), a commission member
1214 serves until a successor is appointed by the governor with the consent of the Senate.
1215 (4) (a) A [
1216 benefits for the commission member's services, but may receive per diem and expenses
1217 incurred in the performance of the commission member's official duties at the rates established
1218 by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
1219 (b) A commission member may decline to receive per diem and expenses for the
1220 commission member's service.
1221 (5) Members of the commission shall annually select one commission member to serve
1222 as chair.
1223 (6) (a) The commission shall meet at least monthly.
1224 (b) The commissioner may call additional meetings:
1225 (i) at the commissioner's discretion;
1226 (ii) upon the request of the chair of the commission; or
1227 (iii) upon the written request of three or more commission members.
1228 (c) (i) Three [
1229 transaction of business.
1230 (ii) The action of a majority of the commission members when a quorum is present is
1231 the action of the commission.
1232 (7) The [
1233 Section 3. Section 31A-2-404 is amended to read:
1234 31A-2-404. Duties of the commissioner and Title and Escrow Commission.
1235 (1) Notwithstanding the other provisions of this chapter, to the extent provided in this
1236 part, the commissioner shall administer and enforce the provisions in this title related to:
1237 (a) title insurance; and
1238 (b) escrow conducted by a title licensee or title insurer.
1239 (2) The commission shall:
1240 (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1241 and subject to Subsection (3), make rules for the administration of the provisions in this title
1242 related to title insurance including rules related to:
1243 (i) rating standards and rating methods for a title [
1244 provided in Section 31A-19a-209 ;
1245 (ii) the licensing for a title licensee, including the licensing requirements of Sections
1246 31A-23a-203 and 31A-23a-204 ;
1247 (iii) continuing education requirements of Section 31A-23a-202 ;
1248 (iv) examination procedures, after consultation with the [
1249 and the [
1250 31A-23a-204 ; and
1251 (v) standards of conduct for a title licensee;
1252 (b) concur in the issuance and renewal of [
1253 Section 31A-23a-105 or 31A-26-203 ;
1254 (c) in accordance with Section 31A-3-103 , establish, with the concurrence of the
1256 (d) in accordance with Section 31A-23a-415 determine, after consulting with the
1257 commissioner, the assessment on a title insurer as defined in Section 31A-23a-415 ;
1258 (e) conduct [
1259 to an administrative law judge related to the:
1260 (i) licensing of [
1261 (ii) conduct of [
1262 (iii) approval of a continuing education [
1263 31A-23a-202 ;
1269 (i) under this title related to:
1270 (A) title insurance; or
1271 (B) escrow conducted by a title licensee;
1272 (ii) after investigation by the [
1273 Procedures and Enforcement; and
1274 (iii) that [
1278 commissioner's budget related to title insurance; and
1280 (3) The commission may make a rule under this title only if at the time the
1281 commission files its proposed rule and rule analysis with the Division of Administrative Rules
1282 in accordance with Section 63G-3-301 , the commission provides the Real Estate Commission
1283 that same information.
1284 (4) (a) The commissioner shall annually report the information described in
1285 Subsection (4)(b) in writing to:
1286 (i) the commission; and
1287 (ii) the Business and Labor Interim Committee.
1288 (b) The information required to be reported under this Subsection (4):
1289 (i) may not identify a person; and
1290 (ii) shall include:
1291 (A) the number of complaints the [
1292 transactions involving title insurance or a title licensee during the calendar year immediately
1293 proceeding the report;
1294 (B) the type of complaints described in Subsection (4)(b)(ii)(A); and
1295 (C) for each complaint described in Subsection (4)(b)(ii)(A):
1296 (I) any action taken by the [
1298 (II) the time-period beginning the day on which a complaint is made and ending the
1299 day on which the [
1300 regard to the complaint.
1301 Section 4. Section 31A-3-103 is amended to read:
1302 31A-3-103. Fees.
1303 (1) For purposes of this section[
1304 reasonable and necessary to enable the commissioner to perform the duties imposed by this
1305 title including:
1310 termination; and
1312 (2) Except as otherwise provided by this title:
1313 (a) the commissioner may set and collect a fee for services provided by the
1315 (b) [
1316 frequently than once each year[
1318 with Section 63J-1-504 .
1319 (3) [
1320 fee established pursuant to this section shall be deposited into the General Fund for
1321 appropriation by the Legislature.
1326 (4) (a) The commissioner shall [
1329 pursuant to this section.
1331 a fee established [
1332 Section 5. Section 31A-3-104 is amended to read:
1333 31A-3-104. Technology fees -- Restricted account.
1334 (1) The [
1336 (a) that is obtained from an electronic database of the [
1337 (b) derived from data that is generated by electronic means.
1338 (2) In addition to any fee authorized in this title, the [
1339 impose a supplemental fee on the issuance or renewal of any of the following issued by the
1341 (a) a license;
1342 (b) a registration; or
1343 (c) a certificate of authority.
1344 (3) A fee imposed under this section shall be:
1345 (a) established in accordance with [
1346 (b) deposited into the [
1348 (4) (a) There is created in the General Fund a restricted account known as the
1349 "Technology Development Restricted Account."
1350 (b) The Technology Development Restricted Account shall consist of the fees imposed
1351 by the commissioner in accordance with this section.
1352 (c) The commissioner shall administer the Technology Development Restricted
1353 Account. Subject to appropriations by the Legislature, the commissioner shall use the money
1354 deposited into the Technology Development Restricted Account to provide services through
1355 use of electronic commerce or other similar technology.
1356 (d) The money in the Technology Development Restricted Account is nonlapsing.
1357 Section 6. Section 31A-3-105 is enacted to read:
1358 31A-3-105. Criminal Background Check Restricted Account.
1359 (1) There is created in the General Fund a restricted account known as the "Criminal
1360 Background Check Restricted Account."
1361 (2) The Criminal Background Check Restricted Account shall consist of the fees
1362 imposed by the commissioner in accordance with:
1363 (a) Subsection 31A-16-103 (3);
1364 (b) Subsection 31A-23a-105 (3);
1365 (c) Subsection 31A-25-203 (3); and
1366 (d) Subsection 31A-26-203 (3).
1367 (3) The commissioner shall administer the Criminal Background Check Restricted
1368 Account. Subject to appropriations by the Legislature, the commissioner shall use the money
1369 deposited into the Criminal Background Check Restricted Account to pay the costs the
1370 department is required to pay related to obtaining criminal background information in
1371 accordance with the provisions listed in Subsection (2)(a).
1372 (4) The money in the Criminal Background Check Restricted Account is nonlapsing.
1373 Section 7. Section 31A-3-304 (Superseded 07/01/10) is amended to read:
1374 31A-3-304 (Superseded 07/01/10). Annual fees -- Other taxes or fees prohibited
1375 -- Captive Insurance Restricted Account.
1376 (1) (a) A captive insurance company shall pay an annual fee imposed under this
1377 section to obtain or renew a certificate of authority.
1378 (b) The commissioner shall:
1379 (i) determine the annual fee pursuant to [
1381 (ii) consider whether the annual fee is competitive with fees imposed by other states
1382 on captive insurance companies.
1383 (2) A captive insurance company that fails to pay the fee required by this section is
1384 subject to the relevant sanctions of this title.
1385 (3) (a) Except as provided in Subsection (3)(b) and notwithstanding Title 59, Chapter
1386 9, Taxation of Admitted Insurers, the fee provided for in this section constitutes the sole tax or
1387 fee under the laws of this state that may be otherwise levied or assessed on a captive insurance
1388 company, and no other occupation tax or other tax or fee may be levied or collected from a
1389 captive insurance company by the state or a county, city, or municipality within this state.
1390 (b) Notwithstanding Subsection (3)(a), a captive insurance company is subject to real
1391 and personal property taxes.
1392 (4) A captive insurance company shall pay the fee imposed by this section to the
1396 (5) (a) Money received pursuant to Subsection (2) shall be deposited into the Captive
1397 Insurance Restricted Account.
1398 (b) There is created in the General Fund a restricted account known as the "Captive
1399 Insurance Restricted Account."
1400 (c) The Captive Insurance Restricted Account shall consist of the fees imposed by the
1401 commissioner in accordance with this section.
1402 (d) The commissioner shall administer the Captive Insurance Restricted Account.
1403 Subject to appropriations by the Legislature, the commissioner shall use the money deposited
1404 into the Captive Insurance Restricted Account to:
1405 (i) administer and enforce Chapter 37, Captive Insurance Companies Act; and
1406 (ii) promote the captive insurance industry in Utah.
1408 except that at the end of each fiscal year, [
1409 commissioner in excess of $250,000 shall be treated as free revenue in the General Fund.
1410 Section 8. Section 31A-3-304 (Effective 07/01/10) is amended to read:
1411 31A-3-304 (Effective 07/01/10). Annual fees -- Other taxes or fees prohibited --
1412 Captive Insurance Restricted Account.
1413 (1) (a) A captive insurance company shall pay an annual fee imposed under this
1414 section to obtain or renew a certificate of authority.
1415 (b) The commissioner shall:
1416 (i) determine the annual fee pursuant to [
1418 (ii) consider whether the annual fee is competitive with fees imposed by other states
1419 on captive insurance companies.
1420 (2) A captive insurance company that fails to pay the fee required by this section is
1421 subject to the relevant sanctions of this title.
1422 (3) (a) Except as provided in Subsection (3)(b) and notwithstanding Title 59, Chapter
1423 9, Taxation of Admitted Insurers, the fee provided for in this section constitutes the sole tax or
1424 fee under the laws of this state that may be otherwise levied or assessed on a captive insurance
1425 company, and no other occupation tax or other tax or fee may be levied or collected from a
1426 captive insurance company by the state or a county, city, or municipality within this state.
1427 (b) Notwithstanding Subsection (3)(a), a captive insurance company is subject to real
1428 and personal property taxes.
1429 (4) A captive insurance company shall pay the fee imposed by this section to the
1433 (5) (a) Money received pursuant to Subsection (2) shall be deposited into the Captive
1434 Insurance Restricted Account.
1435 (b) There is created in the General Fund a restricted account known as the "Captive
1436 Insurance Restricted Account."
1437 (c) The Captive Insurance Restricted Account shall consist of the fees imposed by the
1438 commissioner in accordance with this section.
1439 (d) The commissioner shall administer the Captive Insurance Restricted Account.
1440 Subject to appropriations by the Legislature, the commissioner shall use the money deposited
1441 into the Captive Insurance Restricted Account to:
1442 (i) administer and enforce Chapter 37, Captive Insurance Companies Act; and
1443 (ii) promote the captive insurance industry in Utah.
1445 except that at the end of each fiscal year, [
1446 commissioner in excess of $750,000 shall be treated as free revenue in the General Fund.
1447 Section 9. Section 31A-5-217.5 is amended to read:
1448 31A-5-217.5. Variable contract law.
1449 (1) This section applies to [
1450 support [
1451 (a) a variable life insurance [
1452 Section 817, Internal Revenue Code;
1453 (b) a variable annuity [
1454 annuity; or
1455 (c) benefits under [
1456 Security Act of 1974.
1457 (2) [
1458 section of this title as it relates to [
1459 (1), this section prevails.
1460 (3) [
1462 (i) establish one or more separate accounts[
1463 (ii) allocate to those separate accounts amounts, which include:
1464 (A) proceeds applied under optional modes of settlement or under dividend options, to
1465 provide for life insurance or annuities[
1466 (B) benefits incidental to life insurance or annuities, payable in fixed [
1467 both fixed and variable amounts [
1469 income, gains, and losses, realized or unrealized, from assets allocated to [
1470 account [
1471 gains, or losses of the [
1473 and funds referred to in Subsection [
1474 (i) an insurer may invest or reinvest amounts allocated to [
1475 accumulations on [
1477 investments of a life [
1478 (ii) an insurer may not take into account the investments in [
1479 account [
1480 apply to the investments of the [
1482 condition the commissioner prescribes as to investments and other matters [
1484 may not maintain in a separate account reserves for:
1485 (i) benefits guaranteed as to dollar amount and duration[
1486 (ii) funds guaranteed as to principal amount or stated rate of interest [
1489 approved by the commissioner, assets allocated to a separate account shall be valued:
1490 (A) at their market value on the date of valuation[
1491 (B) if there is no readily available market, then as provided under the terms of the
1492 contract [
1494 (ii) Unless otherwise approved by the commissioner, the portion of [
1495 of [
1496 regard to the guaranteed benefits and funds referred to in Subsection [
1497 valued in accordance with the rules that otherwise apply to the company's assets.
1499 account in the exercise of the power granted by this section [
1501 to those amounts. [
1502 (ii) To the extent provided under the applicable [
1503 insurer may not charge the portion of the assets of [
1504 reserves and other [
1509 account and one or more of its separate accounts unless[
1510 (A) in case of a transfer into a separate account, the transfer is made solely to establish
1511 the account or to support the operation of the [
1512 separate account to which the transfer is made[
1513 (B) the transfer, whether into or from a separate account, is made by:
1514 (I) a transfer of cash[
1515 (II) if the transfer of securities is approved by the commissioner, a transfer of
1516 securities having a readily determinable market value[
1518 (ii) The commissioner may approve [
1519 Subsection (2)(g)(i) among [
1520 commissioner's opinion, the [
1523 a separate account, including [
1524 company or a unit investment trust, may provide for [
1525 the separate account to have appropriate voting and other rights and special procedures for the
1526 conduct of the business of the separate account, including:
1527 (i) special rights and procedures relating to investment policy[
1528 (ii) investment advisory services[
1529 (iii) selection of independent public accountants[
1530 (iv) the selection of a committee, the members of which need not be otherwise
1531 affiliated with the [
1570 Section 10. Section 31A-15-208 is amended to read:
1571 31A-15-208. Purchasing groups -- Filing and registration requirements.
1572 (1) A purchasing group [
1573 doing business, furnish notice to the insurance commissioner:
1574 (a) identifying the state in which the purchasing group is domiciled;
1575 (b) identifying [
1577 (c) specifying the lines and classifications of liability insurance [
1578 purchasing group intends to purchase;
1579 (d) identifying the [
1580 purchase its insurance and the domicile of the [
1581 (e) specifying the method by which, and any persons through whom, insurance will be
1582 offered to group members whose risks are resident or located in this state;
1583 (f) identifying the principal place of business of the purchasing group; and
1584 (g) providing any other information required by the [
1585 verify that the purchasing group is [
1586 "purchasing group," as defined in Section 31A-15-202 [
1587 (2) A purchasing group shall notify the commissioner of [
1589 (3) [
1590 pay a filing fee. [
1591 (b) A purchasing group shall designate the commissioner as its agent solely for the
1592 purpose of receiving service of legal documents or process.
1593 (c) The registration and fee requirements of this Subsection (3) do not apply to a
1594 purchasing group [
1595 Liability Risk Retention Act of 1981, and [
1602 insurer licensed in any state; or
1604 Retention Act of 1981 before October 27, 1986.
1605 (4) [
1606 shall also furnish information required by the commissioner to:
1607 (a) verify that the entity qualifies as a purchasing group;
1608 (b) determine where the purchasing group is located; and
1609 (c) determine appropriate tax treatment of the purchasing group.
1610 Section 11. Section 31A-20-106 is amended to read:
1611 31A-20-106. Variable contracts.
1615 (i) is licensed to do a life insurance or annuity business in this state; and
1616 (ii) satisfies the commissioner that [
1617 operation in connection with those types of [
1618 the insurer's operation hazardous to the public or its policyholders in [
1619 (b) Notwithstanding any other provision of law, the commissioner has sole authority
1621 (i) regulate the issuance and sale of a variable contract; and
1622 (ii) make rules necessary and appropriate to carry out this chapter in relation to a
1623 variable contract.
1624 (2) In determining the qualification of an insurer requesting authority to deliver [
1626 commissioner shall consider:
1629 directors; and
1631 its domicile or the jurisdiction in which its head office is located provides protection to
1632 policyholders and the public substantially equal to that provided by [
1633 title and the rules issued under [
1634 (3) If an insurer is a subsidiary of an admitted life insurer, or affiliated with an
1635 admitted life insurer through common management or ownership, the commissioner may
1636 consider the insurer to have met the requirements of this section if:
1637 (a) the insurer meets the requirements of this section; or
1638 (b) the parent or the affiliated insurer meets the requirements of this section.
1639 (4) This title applies to a separate account or a contract relating to the separate
1640 account, except:
1641 (a) Sections 31A-22-402 , 31A-22-407 , and 31A-22-409 , in the case of a variable
1642 annuity policy;
1643 (b) Sections 31A-22-402 , 31A-22-407 , and 31A-22-408 , in the case of a variable life
1644 insurance policy; and
1645 (c) as otherwise provided in this title.
1646 Section 12. Section 31A-21-201 is amended to read:
1647 31A-21-201. Filing of forms.
1648 (1) (a) Except as exempted under Subsections 31A-21-101 (2) through (6), a form may
1649 not be used, sold, or offered for sale [
1651 (b) A form is considered filed with the commissioner when the commissioner receives:
1652 (i) the form;
1653 (ii) the applicable filing fee as prescribed under Section 31A-3-103 ; and
1654 (iii) the applicable transmittal forms as required by the commissioner.
1655 (2) In filing a form for use in this state the insurer is responsible for assuring that the
1656 form is in compliance with this title and rules adopted by the commissioner.
1657 (3) (a) The commissioner may prohibit the use of a form at any time upon a finding
1659 (i) the form [
1660 (A) is inequitable;
1661 (B) is unfairly discriminatory;
1662 (C) is misleading;
1663 (D) is deceptive;
1664 (E) is obscure;
1665 (F) is unfair;
1666 (G) encourages misrepresentation; or
1667 (H) is not in the public interest;
1668 (ii) the form provides benefits or contains [
1669 provision that endangers the solidity of the insurer;
1670 (iii) [
1671 except an application required by Section 31A-22-635 , the form is an insurance policy or
1672 application for [
1674 (A) the exact name of the insurer;
1675 (B) the state of domicile of the insurer filing the [
1676 application for the [
1677 (C) for a life insurance and annuity [
1678 administrative office of the insurer filing the [
1680 (iv) the form violates a statute or a rule adopted by the commissioner; or
1681 (v) the form is otherwise contrary to law.
1682 (b) Subsection (3)(a)(iii) does not apply to [
1683 to [
1684 (c) (i) [
1685 Subsection (3)(a), the commissioner may order that, on or before a date not less than 15 days
1686 after the order, the use of the form be discontinued.
1687 (ii) Once use of a form [
1688 until appropriate changes are filed with and reviewed by the commissioner.
1689 (iii) [
1690 (3)(a), the commissioner may require the insurer to disclose contract deficiencies to the
1691 existing policyholders.
1692 (d) If the commissioner prohibits use of a form under this Subsection (3), the
1693 prohibition shall:
1694 (i) be in writing;
1695 (ii) constitute an order; and
1696 (iii) state the reasons for the prohibition.
1697 (4) (a) If, after a hearing, the commissioner determines that it is in the public interest,
1698 the commissioner may require by rule or order that [
1699 commissioner's approval [
1700 (b) The rule or order described in Subsection (4)(a) shall prescribe the filing
1701 procedures for [
1702 stated in this section.
1703 (c) The [
1704 (4)(a) [
1705 (i) a form for a particular class of insurance;
1706 (ii) a form for a specific line of insurance;
1707 (iii) a specific type of form; or
1708 (iv) a form for a specific market segment.
1709 (5) (a) An insurer shall maintain a complete and accurate record of the following for
1710 the time period described in Subsection (5)(b):
1711 (i) [
1712 (A) filed under this section for use; [
1713 (B) that is in use; and
1714 (ii) [
1716 (b) The insurer shall maintain a record required under Subsection (5)(a) for the
1717 balance of the current year, plus five years from:
1718 (i) the last day on which the form is used; or
1719 (ii) the last day [
1720 Section 13. Section 31A-21-301 is amended to read:
1721 31A-21-301. Clauses required to be in a prominent position.
1722 (1) The following portions of insurance policies shall appear conspicuously in the
1724 (a) as required by Subsection 31A-21-201 (3)(a)(iii):
1725 (i) the exact name of the insurer;
1726 (ii) the state of domicile of the insurer; and
1727 (iii) for life insurance and annuity policies only, the address of the administrative
1728 office of the insurer;
1729 (b) information that two or more insurers under Subsection (1)(a) undertake only
1730 several liability, as required by Section 31A-21-306 ;
1731 (c) if a policy is assessable, a statement of that;
1732 (d) a statement that benefits are variable, as required by [
1733 31A-22-411 [
1734 (e) the right to return a life or accident and health insurance policy under Sections
1735 31A-22-423 and 31A-22-606 ; and
1736 (f) the beginning and ending dates of insurance protection.
1737 (2) Each clause listed in Subsection (1) shall be displayed conspicuously and
1738 separately from any other clause.
1739 Section 14. Section 31A-22-305.3 is amended to read:
1740 31A-22-305.3. Underinsured motorist coverage.
1741 (1) As used in this section:
1742 (a) "Covered person" has the same meaning as defined in Section 31A-22-305 .
1743 (b) (i) "Underinsured motor vehicle" includes a motor vehicle, the operation,
1744 maintenance, or use of which is covered under a liability policy at the time of an
1745 injury-causing occurrence, but which has insufficient liability coverage to compensate fully
1746 the injured party for all special and general damages.
1747 (ii) The term "underinsured motor vehicle" does not include:
1748 (A) a motor vehicle that is covered under the liability coverage of the same policy that
1749 also contains the underinsured motorist coverage;
1750 (B) an uninsured motor vehicle as defined in Subsection 31A-22-305 (2); or
1751 (C) a motor vehicle owned or leased by:
1752 (I) [
1753 (II) [
1754 (III) [
1755 (2) (a) (i) Underinsured motorist coverage under Subsection 31A-22-302 (1)(c)
1756 provides coverage for a covered [
1757 damages from [
1758 vehicle because of bodily injury, sickness, disease, or death.
1759 (ii) A covered person occupying or using a motor vehicle owned, leased, or furnished
1760 to the covered person, the covered person's spouse, or covered person's resident relative may
1761 recover underinsured benefits only if the motor vehicle is:
1762 (A) described in the policy under which a claim is made; or
1763 (B) a newly acquired or replacement motor vehicle covered under the terms of the
1765 (b) For new policies written on or after January 1, 2001, the limits of underinsured
1766 motorist coverage shall be equal to the lesser of the limits of the insured's motor vehicle
1767 liability coverage or the maximum underinsured motorist coverage limits available by the
1768 insurer under the insured's motor vehicle policy, unless the insured purchases coverage in a
1769 lesser amount by signing an acknowledgment form that:
1770 (i) is filed with the department;
1771 (ii) is provided by the insurer;
1772 (iii) waives the higher coverage;
1773 (iv) reasonably explains the purpose of underinsured motorist coverage; and
1774 (v) discloses the additional premiums required to purchase underinsured motorist
1775 coverage with limits equal to the lesser of the limits of the insured's motor vehicle liability
1776 coverage or the maximum underinsured motorist coverage limits available by the insurer under
1777 the insured's motor vehicle policy.
1778 (c) A self-insured, including a governmental entity, may elect to provide underinsured
1779 motorist coverage in an amount that is less than its maximum self-insured retention under
1780 Subsections (2)(b) and (2)(g) by issuing a declaratory memorandum or policy statement from
1781 the chief financial officer or chief risk officer that declares the:
1782 (i) self-insured entity's coverage level; and
1783 (ii) process for filing an underinsured motorist claim.
1784 (d) Underinsured motorist coverage may not be sold with limits that are less than:
1785 (i) $10,000 for one person in any one accident; and
1786 (ii) at least $20,000 for two or more persons in any one accident.
1787 (e) [
1788 underinsured motorist coverage until the insured, in writing, requests different underinsured
1789 motorist coverage from the insurer.
1790 (f) (i) The named insured's underinsured motorist coverage, as described in Subsection
1791 (2)(a), is secondary to the liability coverage of an owner or operator of an underinsured motor
1792 vehicle, as described in Subsection (1).
1793 (ii) Underinsured motorist coverage may not be set off against the liability coverage of
1794 the owner or operator of an underinsured motor vehicle, but shall be added to, combined with,
1795 or stacked upon the liability coverage of the owner or operator of the underinsured motor
1796 vehicle to determine the limit of coverage available to the injured person.
1797 (g) (i) A named insured may reject underinsured motorist coverage by an express
1798 writing to the insurer that provides liability coverage under Subsection 31A-22-302 (1)(a).
1799 (ii) [
1800 by the insurer that includes a reasonable explanation of the purpose of underinsured motorist
1801 coverage and when it would be applicable.
1802 (iii) [
1803 the liability coverage until the insured in writing requests underinsured motorist coverage from
1804 that liability insurer.
1815 (3) (a) (i) Except as provided in this Subsection (3), a covered person injured in a
1816 motor vehicle described in a policy that includes underinsured motorist benefits may not elect
1817 to collect underinsured motorist coverage benefits from [
1818 insurance policy.
1819 (ii) The limit of liability for underinsured motorist coverage for two or more motor
1820 vehicles may not be added together, combined, or stacked to determine the limit of insurance
1821 coverage available to an injured person for any one accident.
1822 (iii) Subsection (3)(a)(ii) applies to all persons except a covered person described
1823 under Subsections (3)(b)(i) and (ii).
1824 (b) (i) Except as provided in Subsection (3)(b)(ii), a covered person injured while
1825 occupying, using, or maintaining a motor vehicle that is not owned, leased, or furnished to the
1826 covered person, the covered person's spouse, or the covered person's resident parent or resident
1827 sibling, may also recover benefits under any one other policy under which [
1828 covered person is also a covered person.
1829 (ii) (A) A covered person may recover benefits from no more than two additional
1830 policies, one additional policy from each parent's household if the covered person is:
1831 (I) a dependent minor of parents who reside in separate households; and
1832 (II) injured while occupying or using a motor vehicle that is not owned, leased, or
1833 furnished to the covered person, the covered person's resident parent, or the covered person's
1834 resident sibling.
1835 (B) Each parent's policy under this Subsection (3)(b)(ii) is liable only for the
1836 percentage of the damages that the limit of liability of each parent's policy of underinsured
1837 motorist coverage bears to the total of both parents' underinsured coverage applicable to the
1839 (iii) A covered person's recovery under any available policies may not exceed the full
1840 amount of damages.
1841 (iv) Underinsured coverage on a motor vehicle occupied at the time of an accident
1843 Subsections 31A-22-305 (1)(a) and (b) [
1844 (v) The primary and the secondary coverage may not be set off against the other.
1845 (vi) A covered person as described under Subsection (3)(b)(i) is entitled to the highest
1846 limits of underinsured motorist coverage under only one additional policy per household
1847 applicable to that covered person as a named insured, spouse, or relative.
1848 (vii) A covered injured person is not barred against making subsequent elections if
1849 recovery is unavailable under previous elections.
1850 (viii) (A) As used in this section, "interpolicy stacking" means recovering benefits for
1851 a single incident of loss under more than one insurance policy.
1852 (B) Except to the extent permitted by this Subsection (3), interpolicy stacking is
1853 prohibited for underinsured motorist coverage.
1854 (c) Underinsured motorist coverage:
1855 (i) is secondary to the benefits provided by Title 34A, Chapter 2, Workers'
1856 Compensation Act;
1857 (ii) may not be subrogated by [
1858 (iii) may not be reduced by [
1860 (iv) may be reduced by health insurance subrogation only after the covered person
1862 (v) may not be collected for bodily injury or death sustained by a person:
1863 (A) while committing a violation of Section 41-1a-1314 ;
1864 (B) who, as a passenger in a vehicle, has knowledge that the vehicle is being operated
1865 in violation of Section 41-1a-1314 ; or
1866 (C) while committing a felony; and
1867 (vi) notwithstanding Subsection (3)(c)(v), may be recovered:
1868 (A) for a person under 18 years of age who is injured within the scope of Subsection
1869 (3)(c)(v), but is limited to medical and funeral expenses; or
1870 (B) by a law enforcement officer as defined in Section 53-13-103 , who is injured
1871 within the course and scope of the law enforcement officer's duties.
1872 (4) The inception of the loss under Subsection 31A-21-313 (1) for underinsured
1873 motorist claims occurs upon the date of the last liability policy payment.
1874 (5) (a) Within five business days after notification that all liability insurers have
1875 tendered their liability policy limits, the underinsured carrier shall either:
1876 (i) waive any subrogation claim the underinsured carrier may have against the person
1877 liable for the injuries caused in the accident; or
1878 (ii) pay the insured an amount equal to the policy limits tendered by the liability
1880 (b) If neither option is exercised under Subsection (5)(a), the subrogation claim is
1881 considered to be waived by the underinsured carrier.
1882 (6) Except as otherwise provided in this section, a covered person may seek, subject to
1883 the terms and conditions of the policy, additional coverage under any policy:
1884 (a) that provides coverage for damages resulting from motor vehicle accidents; and
1885 (b) that is not required to conform to Section 31A-22-302 .
1886 (7) (a) When a claim is brought by a named insured or a person described in
1887 Subsection 31A-22-305 (1) and is asserted against the covered person's underinsured motorist
1888 carrier, the claimant may elect to resolve the claim:
1889 (i) by submitting the claim to binding arbitration; or
1890 (ii) through litigation.
1891 (b) Unless otherwise provided in the policy under which underinsured benefits are
1892 claimed, the election provided in Subsection (7)(a) is available to the claimant only.
1893 (c) Once [
1894 (7)(a)(ii), the claimant may not elect to resolve the claim through binding arbitration under
1895 this section without the written consent of the underinsured motorist coverage carrier.
1896 (d) (i) Unless otherwise agreed to in writing by the parties, a claim that is submitted to
1897 binding arbitration under Subsection (7)(a)(i) shall be resolved by a single arbitrator.
1898 (ii) All parties shall agree on the single arbitrator selected under Subsection (7)(d)(i).
1899 (iii) If the parties are unable to agree on a single arbitrator as required under
1900 Subsection (7)(d)(ii), the parties shall select a panel of three arbitrators.
1901 (e) If the parties select a panel of three arbitrators under Subsection (7)(d)(iii):
1902 (i) each side shall select one arbitrator; and
1903 (ii) the arbitrators appointed under Subsection (7)(e)(i) shall select one additional
1904 arbitrator to be included in the panel.
1905 (f) Unless otherwise agreed to in writing:
1906 (i) each party shall pay an equal share of the fees and costs of the arbitrator selected
1907 under Subsection (7)(d)(i); or
1908 (ii) if an arbitration panel is selected under Subsection (7)(d)(iii):
1909 (A) each party shall pay the fees and costs of the arbitrator selected by that party; and
1910 (B) each party shall pay an equal share of the fees and costs of the arbitrator selected
1911 under Subsection (7)(e)(ii).
1912 (g) Except as otherwise provided in this section or unless otherwise agreed to in
1913 writing by the parties, an arbitration proceeding conducted under this section [
1914 governed by Title 78B, Chapter 11, Utah Uniform Arbitration Act.
1915 (h) [
1916 54, and 68 of the Utah Rules of Civil Procedure.
1917 (i) [
1918 arbitration panel.
1919 (j) A written decision by a single arbitrator or by a majority of the arbitration panel
1921 (k) (i) The amount of an arbitration award may not exceed the underinsured motorist
1922 policy limits of all applicable underinsured motorist policies, including applicable
1923 underinsured motorist umbrella policies.
1924 (ii) If the initial arbitration award exceeds the underinsured motorist policy limits of
1925 all applicable underinsured motorist policies, the arbitration award shall be reduced to an
1926 amount equal to the combined underinsured motorist policy limits of all applicable
1927 underinsured motorist policies.
1928 (l) The arbitrator or arbitration panel may not decide [
1929 or extra-contractual damages, including:
1930 (i) whether the claimant is a covered person;
1931 (ii) whether the policy extends coverage to the loss; or
1932 (iii) [
1933 or bad faith liability.
1934 (m) The arbitrator or arbitration panel may not conduct arbitration on a class-wide or
1935 class-representative basis.
1936 (n) If the arbitrator or arbitration panel finds that the [
1937 brought, pursued, or defended in good faith, the arbitrator or arbitration panel may award
1938 reasonable attorney fees and costs against the party that failed to bring, pursue, or defend the
1940 (o) An arbitration award issued under this section shall be the final resolution of all
1941 claims not excluded by Subsection (7)(l) between the parties unless:
1942 (i) the award [
1943 (ii) either party, within 20 days after service of the arbitration award:
1944 (A) files a complaint requesting a trial de novo in the district court; and
1945 (B) serves the nonmoving party with a copy of the complaint requesting a trial de novo
1946 under Subsection (7)(o)(ii)(A).
1947 (p) (i) Upon filing a complaint for a trial de novo under Subsection (7)(o), [
1948 claim shall proceed through litigation pursuant to the Utah Rules of Civil Procedure and Utah
1949 Rules of Evidence in the district court.
1950 (ii) In accordance with Rule 38, Utah Rules of Civil Procedure, either party may
1951 request a jury trial with a complaint requesting a trial de novo under Subsection (7)(o)(ii)(A).
1952 (q) (i) If the claimant, as the moving party in a trial de novo requested under
1953 Subsection (7)(o), does not obtain a verdict that is at least $5,000 and is at least 20% greater
1954 than the arbitration award, the claimant is responsible for all of the nonmoving party's costs.
1955 (ii) If the underinsured motorist carrier, as the moving party in a trial de novo
1956 requested under Subsection (7)(o), does not obtain a verdict that is at least 20% less than the
1957 arbitration award, the underinsured motorist carrier is responsible for all of the nonmoving
1958 party's costs.
1959 (iii) Except as provided in Subsection (7)(q)(iv), the costs under this Subsection (7)(q)
1960 shall include:
1961 (A) any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
1962 (B) the costs of expert witnesses and depositions.
1963 (iv) An award of costs under this Subsection (7)(q) may not exceed $2,500.
1964 (r) For purposes of determining whether a party's verdict is greater or less than the
1965 arbitration award under Subsection (7)(q), a court may not consider any recovery or other
1966 relief granted on a claim for damages if the claim for damages:
1967 (i) was not fully disclosed in writing prior to the arbitration proceeding; or
1968 (ii) was not disclosed in response to discovery contrary to the Utah Rules of Civil
1970 (s) If a district court determines, upon a motion of the nonmoving party, that [
1971 moving party's use of the trial de novo process [
1972 Section 78B-5-825 , the district court may award reasonable attorney fees to the nonmoving
1974 (t) Nothing in this section is intended to limit [
1975 portion of an applicable insurance policy.
1976 (u) If there are multiple underinsured motorist policies, as set forth in Subsection (3),
1977 the claimant may elect to arbitrate in one hearing the claims against all the underinsured
1978 motorist carriers.
1979 Section 15. Section 31A-22-411 is amended to read:
1980 31A-22-411. Contracts providing variable benefits.
1981 (1) [
1983 essential features of the procedure to be followed by the insurer in determining the dollar
1984 amount of the variable benefits. [
1985 (2) A variable insurance policy shall contain:
1987 either Section 31A-22-408 or 31A-22-409 ;
1989 by Section 31A-22-407 ; and
1991 insurance policy in lieu of those required by Section 31A-22-402 .
1993 issued under a group [
1994 first page that:
1995 (a) the dollar amount may decrease or increase [
1997 experience; and
1998 (b) a benefit under the insurance policy is payable on a variable basis[
2002 insurance policy, state that the insurer's liabilities with respect to a variable [
2003 under the insurance policy are subject to satisfaction only out of the insurer's variable account
2006 (5)(a) A variable insurance policy shall state whether it may be amended as to:
2007 (i) investment policy[
2008 (ii) voting rights[
2009 (iii) conduct of the business and affairs of [
2010 (b) Subject to any preemptive provision of federal law, [
2011 the type described in this Subsection (5) is subject to:
2012 (i) filing under Section 31A-21-201 ; and
2013 (ii) approval by a majority of the policyholders in the [
2014 Section 16. Section 31A-22-610.5 is amended to read:
2015 31A-22-610.5. Dependent coverage.
2016 (1) As used in this section, "child" has the same meaning as defined in Section
2017 78B-12-102 .
2018 (2) (a) Any individual or group accident and health insurance policy or health
2019 maintenance organization contract that provides coverage for a policyholder's or certificate
2020 holder's dependent [
2021 the dependent's age before the dependent's 26th birthday and shall, upon application, provide
2022 coverage for all unmarried dependents up to age 26.
2023 (b) The cost of coverage for unmarried dependents 19 to 26 years of age shall be
2024 included in the premium on the same basis as other dependent coverage.
2025 (c) This section does not prohibit the employer from requiring the employee to pay all
2026 or part of the cost of coverage for unmarried dependents.
2027 (d) An individual health insurance policy, group health insurance policy, or health
2028 maintenance organization, shall continue in force coverage for a dependent through the last
2029 day of the month in which the dependent ceases to be a dependent:
2030 (i) if premiums are paid; and
2031 (ii) notwithstanding Section 31A-8-402.3 , 31A-8-402.5 , 31A-22-721 , 31A-30-107.1 ,
2032 or 31A-30-107.3 .
2033 (3) An individual or group accident and health insurance policy or health maintenance
2034 organization contract shall reinstate dependent coverage, and for purposes of all exclusions
2035 and limitations, shall treat the dependent as if the coverage had been in force since it was
2036 terminated; if:
2037 (a) the dependent has not reached the age of 26 by July 1, 1995;
2038 (b) the dependent had coverage prior to July 1, 1994;
2039 (c) prior to July 1, 1994, the dependent's coverage was terminated solely due to the age
2040 of the dependent; and
2041 (d) the policy has not been terminated since the dependent's coverage was terminated.
2042 (4) (a) When a parent is required by a court or administrative order to provide health
2043 insurance coverage for a child, an accident and health insurer may not deny enrollment of a
2044 child under the accident and health insurance plan of the child's parent on the grounds the
2046 (i) was born out of wedlock and is entitled to coverage under Subsection (5);
2047 (ii) was born out of wedlock and the custodial parent seeks enrollment for the child
2048 under the custodial parent's policy;
2049 (iii) is not claimed as a dependent on the parent's federal tax return; or
2050 (iv) does not reside with the parent or in the insurer's service area.
2051 (b) A child enrolled as required under Subsection (4)(a)(iv) is subject to the terms of
2052 the accident and health insurance plan contract pertaining to services received outside of an
2053 insurer's service area. A health maintenance organization must comply with Section
2054 31A-8-502 .
2055 (5) When a child has accident and health coverage through an insurer of a
2056 noncustodial parent, and when requested by the noncustodial or custodial parent, the insurer
2058 (a) provide information to the custodial parent as necessary for the child to obtain
2059 benefits through that coverage, but the insurer or employer, or the agents or employees of
2060 either of them, are not civilly or criminally liable for providing information in compliance with
2061 this Subsection (5)(a), whether the information is provided pursuant to a verbal or written
2063 (b) permit the custodial parent or the service provider, with the custodial parent's
2064 approval, to submit claims for covered services without the approval of the noncustodial
2065 parent; and
2066 (c) make payments on claims submitted in accordance with Subsection (5)(b) directly
2067 to the custodial parent, the child who obtained benefits, the provider, or the state Medicaid
2069 (6) When a parent is required by a court or administrative order to provide health
2070 coverage for a child, and the parent is eligible for family health coverage, the insurer shall:
2071 (a) permit the parent to enroll, under the family coverage, a child who is otherwise
2072 eligible for the coverage without regard to an enrollment season restrictions;
2073 (b) if the parent is enrolled but fails to make application to obtain coverage for the
2074 child, enroll the child under family coverage upon application of the child's other parent, the
2075 state agency administering the Medicaid program, or the state agency administering 42 U.S.C.
2076 Sec. 651 through 669, the child support enforcement program; and
2077 (c) (i) when the child is covered by an individual policy, not disenroll or eliminate
2078 coverage of the child unless the insurer is provided satisfactory written evidence that:
2079 (A) the court or administrative order is no longer in effect; or
2080 (B) the child is or will be enrolled in comparable accident and health coverage through
2081 another insurer which will take effect not later than the effective date of disenrollment; or
2082 (ii) when the child is covered by a group policy, not disenroll or eliminate coverage of
2083 the child unless the employer is provided with satisfactory written evidence, which evidence is
2084 also provided to the insurer, that Subsection (9)(c)(i), (ii) or (iii) has happened.
2085 (7) An insurer may not impose requirements on a state agency that has been assigned
2086 the rights of an individual eligible for medical assistance under Medicaid and covered for
2087 accident and health benefits from the insurer that are different from requirements applicable to
2088 an agent or assignee of any other individual so covered.
2089 (8) Insurers may not reduce their coverage of pediatric vaccines below the benefit level
2090 in effect on May 1, 1993.
2091 (9) When a parent is required by a court or administrative order to provide health
2092 coverage, which is available through an employer doing business in this state, the employer
2094 (a) permit the parent to enroll under family coverage any child who is otherwise
2095 eligible for coverage without regard to any enrollment season restrictions;
2096 (b) if the parent is enrolled but fails to make application to obtain coverage of the
2097 child, enroll the child under family coverage upon application by the child's other parent, by
2098 the state agency administering the Medicaid program, or the state agency administering 42
2099 U.S.C. Sec. 651 through 669, the child support enforcement program;
2100 (c) not disenroll or eliminate coverage of the child unless the employer is provided
2101 satisfactory written evidence that:
2102 (i) the court order is no longer in effect;
2103 (ii) the child is or will be enrolled in comparable coverage which will take effect no
2104 later than the effective date of disenrollment; or
2105 (iii) the employer has eliminated family health coverage for all of its employees; and
2106 (d) withhold from the employee's compensation the employee's share, if any, of
2107 premiums for health coverage and to pay this amount to the insurer.
2108 (10) An order issued under Section 62A-11-326.1 may be considered a "qualified
2109 medical support order" for the purpose of enrolling a dependent child in a group accident and
2110 health insurance plan as defined in Section 609(a), Federal Employee Retirement Income
2111 Security Act of 1974.
2112 (11) This section does not affect any insurer's ability to require as a precondition of
2113 any child being covered under any policy of insurance that:
2114 (a) the parent continues to be eligible for coverage;
2115 (b) the child shall be identified to the insurer with adequate information to comply
2116 with this section; and
2117 (c) the premium shall be paid when due.
2118 (12) The provisions of this section apply to employee welfare benefit plans as defined
2119 in Section 26-19-2 .
2120 (13) The commissioner shall adopt rules interpreting and implementing this section
2121 with regard to out-of-area court ordered dependent coverage.
2122 Section 17. Section 31A-22-625 is amended to read:
2123 31A-22-625. Catastrophic coverage of mental health conditions.
2124 (1) As used in this section:
2125 (a) (i) "Catastrophic mental health coverage" means coverage in a health benefit plan
2127 payment limit, episodic limit, inpatient or outpatient service limit, or maximum out-of-pocket
2128 limit that places a greater financial burden on an insured for the evaluation and treatment of a
2129 mental health condition than for the evaluation and treatment of a physical health condition.
2130 (ii) "Catastrophic mental health coverage" may include a restriction on cost sharing
2131 factors, such as deductibles, copayments, or coinsurance, [
2132 maximum out-of-pocket limit.
2133 (iii) "Catastrophic mental health coverage" may include one maximum out-of-pocket
2134 limit for physical health conditions and another maximum out-of-pocket limit for mental
2135 health conditions, [
2136 the out-of-pocket limit for mental health conditions may not exceed the out-of-pocket limit for
2137 physical health conditions.
2138 (b) (i) "50/50 mental health coverage" means coverage in a health benefit plan [
2140 the diagnosis and treatment of mental health conditions.
2141 (ii) "50/50 mental health coverage" may include a restriction on:
2142 (A) episodic limits[
2143 (B) inpatient or outpatient service limits[
2144 (C) maximum out-of-pocket limits.
2145 (c) "Large employer," [
2146 Sec. 300gg-91.
2147 (d) (i) "Mental health condition" means [
2148 illness that falls under [
2149 and Statistical Manual, as periodically revised.
2150 (ii) "Mental health condition" does not include the following when diagnosed as the
2151 primary or substantial reason or need for treatment:
2152 (A) a marital or family problem;
2153 (B) a social, occupational, religious, or other social maladjustment;
2154 (C) a conduct disorder;
2155 (D) a chronic adjustment disorder;
2156 (E) a psychosexual disorder;
2157 (F) a chronic organic brain syndrome;
2158 (G) a personality disorder;
2159 (H) a specific developmental disorder or learning disability; or
2160 (I) mental retardation.
2161 (e) "Small employer" is as defined in [
2162 (2) (a) At the time of purchase and renewal, an insurer shall offer to [
2163 employer that it insures or seeks to insure a choice between catastrophic mental health
2164 coverage and 50/50 mental health coverage.
2165 (b) In addition to complying with Subsection (2)(a), an insurer may offer to provide:
2166 (i) catastrophic mental health coverage, 50/50 mental health coverage, or both at levels
2167 that exceed the minimum requirements of this section; or
2168 (ii) coverage that excludes benefits for mental health conditions.
2169 (c) A small employer may, at its option, choose either catastrophic mental health
2170 coverage, 50/50 mental health coverage, or coverage offered under Subsection (2)(b),
2171 regardless of the employer's previous coverage for mental health conditions.
2172 (d) An insurer is exempt from the 30% index rating restriction in Subsection
2173 31A-30-106 (1)(b) and, for the first year only that catastrophic mental health coverage is
2174 chosen, the 15% annual adjustment restriction in Subsection 31A-30-106 (1)(c)(ii), for any
2175 small employer with 20 or less enrolled employees who chooses coverage that meets or
2176 exceeds catastrophic mental health coverage.
2185 (3) An insurer shall offer a large employer mental health and substance use disorder
2186 benefit in compliance with Section 2705 of the Public Health Service Act, 42 U.S.C. Sec.
2187 300gg-5, and federal regulations adopted pursuant to that act.
2188 (4) (a) An insurer may provide catastrophic mental health coverage to a small
2189 employer through a managed care organization or system in a manner consistent with [
2191 regardless of whether the insurance policy [
2192 system for the treatment of physical health conditions.
2193 (b) (i) Notwithstanding any other provision of this title, an insurer may:
2194 (A) establish a closed panel of providers for catastrophic mental health coverage; and
2195 (B) refuse to provide [
2196 provider unless:
2197 (I) the insured is referred to a nonpanel provider with the prior authorization of the
2198 insurer; and
2199 (II) the nonpanel provider agrees to follow the insurer's protocols and treatment
2201 (ii) If an insured receives services from a nonpanel provider in the manner permitted
2202 by Subsection (4)(b)(i)(B), the insurer shall reimburse the insured for not less than 75% of the
2203 average amount paid by the insurer for comparable services of panel providers under a
2204 noncapitated arrangement who are members of the same class of health care providers.
2205 (iii) [
2206 insurer to authorize a referral to a nonpanel provider.
2207 (c) To be eligible for catastrophic mental health coverage, a diagnosis or treatment of a
2208 mental health condition must be rendered:
2209 (i) by a mental health therapist as defined in Section 58-60-102 ; or
2210 (ii) in a health care facility:
2211 (A) licensed or otherwise authorized to provide mental health services pursuant to:
2212 (I) Title 26, Chapter 21, Health Care Facility Licensing and Inspection Act[
2213 (II) Title 62A, Chapter 2, Licensure of Programs and Facilities[
2214 (B) that provides a program for the treatment of a mental health condition pursuant to
2215 a written plan.
2216 (5) The commissioner may prohibit [
2217 mental health coverage in a manner that is inconsistent with this section.
2218 (6) The commissioner shall:
2219 (a) adopt rules, in accordance with Title 63G, Chapter 3, Utah Administrative
2220 Rulemaking Act, as necessary to ensure compliance with this section; and
2221 (b) provide general figures on the percentage of [
2223 (i) no mental health coverage[
2224 (ii) 50/50 mental health coverage[
2225 (iii) catastrophic mental health coverage[
2226 (iv) coverage that exceeds the minimum requirements of this section.
2242 (7) This section may not be construed as discouraging or otherwise preventing
2244 connection with an individual insurance policy [
2246 Section 18. Section 31A-22-701 is amended to read:
2247 31A-22-701. Groups eligible for group or blanket insurance.
2248 (1) As used in this section, "association group" means a lawfully formed association of
2249 individuals or business entities that:
2250 (a) purchases insurance on a group basis on behalf of members; and
2251 (b) is formed and maintained in good faith for purposes other than obtaining
2254 (a) [
2255 (i) to which a group life insurance policy may be issued under Sections 31A-22-502
2257 (ii) that is formed for a reason other than the purchase of insurance; [
2258 (b) an association group that:
2259 (i) has been actively in existence for at least five years;
2260 (ii) has a constitution and bylaws;
2261 (iii) is formed and maintained in good faith for purposes other than obtaining
2263 (iv) does not condition membership in the association group on any health
2264 status-related factor relating to an individual, including an employee of an employer or a
2265 dependent of an employee;
2266 (v) makes accident and health insurance coverage offered through the association
2267 group available to all members regardless of any health status-related factor relating to the
2268 members or individuals eligible for coverage through a member; and
2269 (vi) does not make accident and health insurance coverage offered through the
2270 association group available other than in connection with a member of the association group;
2273 31A-22-509 , upon a finding that:
2274 (i) authorization is not contrary to the public interest;
2275 (ii) the proposed group is actuarially sound;
2276 (iii) formation of the proposed group may result in economies of scale in acquisition,
2277 administrative, marketing, and brokerage costs;
2278 (iv) the [
2279 that will be offered to the proposed group is substantially equivalent to insurance policies that
2280 are otherwise available to similar groups; [
2282 (v) the group would not present hazards of adverse selection; and
2283 (vi) the premiums for the insurance policy and any contributions by or on behalf of the
2284 insured persons are reasonable in relation to the benefits provided.
2286 (a) [
2287 transportation, as policyholder, covering persons who may become passengers as defined by
2288 reference to their travel status;
2289 (b) an employer, as policyholder, covering any group of employees, dependents, or
2290 guests, as defined by reference to specified hazards incident to any activities of the
2292 (c) an institution of learning, including a school district, school jurisdictional units, or
2293 the head, principal, or governing board of any of those units, as policyholder, covering
2294 students, teachers, or employees;
2295 (d) [
2296 branch of those organizations, as policyholder, covering any group of members or participants
2297 as defined by reference to specified hazards incident to the activities sponsored or supervised
2298 by the policyholder;
2299 (e) a sports team, camp, or sponsor of the team or camp, as policyholder, covering
2300 members, campers, employees, officials, or supervisors;
2301 (f) [
2302 organization, as policyholder, covering any group of members or participants as defined by
2303 reference to specified hazards incident to activities sponsored, supervised, or participated in by
2304 the policyholder;
2305 (g) a newspaper or other publisher, as policyholder, covering its carriers;
2306 (h) an association, including a labor union, which has a constitution and bylaws and
2307 which has been organized in good faith for purposes other than that of obtaining insurance, as
2308 policyholder, covering any group of members or participants as defined by reference to
2309 specified hazards incident to the activities or operations sponsored or supervised by the
2311 (i) a health insurance purchasing association, as defined in Section 31A-34-103 ,
2312 organized and controlled solely by participating employers; and
2313 (j) any other class of risks [
2314 properly eligible for blanket accident and health insurance.
2316 (a) individual risks;
2317 (b) a class of risks; or
2318 (c) both Subsections [
2319 Section 19. Section 31A-22-722 is amended to read:
2320 31A-22-722. Utah mini-COBRA benefits for employer group coverage.
2321 (1) An insured [
2322 employer's group policy for a period of 12 months, except as provided in [
2323 Subsections (2) and 31A-22-722.5 (4). The right to extend coverage includes:
2324 (a) voluntary termination;
2325 (b) involuntary termination;
2326 (c) retirement;
2327 (d) death;
2328 (e) divorce or legal separation;
2329 (f) loss of dependent status;
2330 (g) sabbatical;
2331 (h) [
2332 (i) leave of absence; or
2333 (j) reduction of hours.
2334 (2) (a) Notwithstanding [
2336 policy if the employee:
2337 (i) [
2338 contributions in accordance with the terms of the insurance policy;
2339 (ii) acquires other group coverage covering all preexisting conditions including
2340 maternity, if the coverage exists;
2341 (iii) [
2342 the coverage;
2343 (iv) [
2344 the coverage;
2345 (v) [
2346 (vi) [
2347 policy for a period of three months immediately [
2348 insurance policy due to [
2349 (vii) is eligible for [
2350 (viii) establishes residence outside of this state;
2351 (ix) moves out of the insurer's service area;
2352 (x) is eligible for similar coverage under another group insurance policy;
2353 (xi) has the employee's coverage terminated because the employer's coverage is
2354 terminated, except as provided in Subsection (8); or
2356 (b) The right to extend coverage under Subsection (1) applies to [
2357 dependent [
2358 under the insurance policy terminates by reason of the death of the employee or member.
2359 (3) (a) The employer shall [
2360 of the right to extend group coverage and the payment amounts required for extension of
2361 coverage, including the manner, place, and time in which the payments shall be made [
2362 (i) [
2363 (ii) [
2364 (iii) if Subsection (2)(b) applies:
2365 (A) [
2366 (B) the guardian of surviving dependents, if different from a surviving spouse.
2367 (b) The notification required in Subsection (3)(a) shall be sent first class mail within
2368 30 days after the termination date of the group coverage to:
2369 (i) the terminated insured's home address as shown on the records of the employer;
2370 (ii) the address of the surviving spouse, if different from the insured's address and if
2371 shown on the records of the employer;
2372 (iii) the guardian of any dependents address, if different from the insured's address,
2373 and if shown on the records of the employer; and
2374 (iv) the address of the ex-spouse, if shown on the records of the employer.
2375 (4) The insurer shall provide the employee, spouse, or any eligible dependent the
2376 opportunity to extend the group coverage at the payment amount stated in Subsection (5) if:
2377 (a) the employer policyholder does not provide the terminated insured the written
2378 notification required by Subsection (3)(a); and
2379 (b) the employee or other individual eligible for extension contacts the insurer within
2380 60 days of coverage termination.
2381 (5) [
2382 the group rate in effect for a group member, including an employer's contribution, if any, for a
2383 group insurance policy.
2384 (6) Except as provided in this Subsection (6), [
2385 interruption for 12 months and may not terminate if the terminated insured or, with respect to
2386 a minor, the parent or guardian of the terminated insured:
2387 (a) elects to extend group coverage within 60 days of losing group coverage; and
2388 (b) tenders the amount required to the employer or insurer.
2389 (7) The insured's coverage may be terminated [
2390 terminated insured:
2391 (a) establishes residence outside of this state;
2392 (b) moves out of the insurer's service area;
2393 (c) fails to pay premiums or contributions in accordance with the terms of the
2394 insurance policy, including any timeliness requirements;
2395 (d) performs an act or practice that constitutes fraud in connection with the coverage;
2396 (e) makes an intentional misrepresentation of material fact under the terms of the
2398 (f) becomes eligible for similar coverage under another group insurance policy; or
2399 (g) has the coverage terminated because the employer's coverage is terminated, except
2400 as provided in Subsection (8).
2401 (8) If the current employer coverage is terminated and the employer replaces coverage
2402 with similar coverage under another group insurance policy, without interruption, the
2403 terminated insured, spouse, or the surviving spouse and guardian of dependents if Subsection
2404 (2)(b) applies, [
2405 group insurance policy:
2406 (a) for the balance of the period the terminated insured would have extended coverage
2407 under the replaced group insurance policy; and
2408 (b) if the terminated insured is otherwise eligible for extension of coverage.
2409 (9) (a) Within 30 days of the insured's exhaustion of extension of coverage, the
2410 employer shall provide the terminated insured and the ex-spouse, or, in the case of the death of
2411 the insured, the surviving spouse, or guardian of any dependents, written notification of the
2412 right to an individual conversion policy under Section 31A-22-723 .
2413 (b) The notification required by Subsection (9)(a):
2414 (i) shall be sent first class mail to:
2415 (A) the insured's last-known address as shown on the records of the employer;
2416 (B) the address of the surviving spouse, if different from the insured's address, and if
2417 shown on the records of the employer;
2418 (C) the guardian of any dependents last known address as shown on the records of the
2419 employer, if different from the address of the surviving spouse; and
2420 (D) the address of the ex-spouse as shown on the records of the employer, if
2421 applicable; and
2422 (ii) shall contain the name, address, and telephone number of the insurer that will
2423 provide the conversion coverage.
2424 Section 20. Section 31A-22-722.5 is amended to read:
2425 31A-22-722.5. Mini-COBRA election -- American Recovery and Reinvestment
2427 (1) [
2429 participate in a second election period for mini-COBRA benefits under Section 31A-22-722 in
2430 accordance with Section 3001 of the American Recovery and Reinvestment Act of 2009 (Pub.
2431 S. 111-5), as amended, until the later of:
2432 (i) February 17, 2010; or
2433 (ii) 30 days after the day on which the individual's insurer provides the notice
2434 described in Section 3001(a)(16)(D), of the American Recovery and Reinvestment Act of
2435 2009, as amended by Pub. L. 111-118, Div. B, Sec. 1010(c).
2436 (b) Subsection (1)(a) applies if the individual:
2439 American Recovery and Reinvestment Act of 2009 (Pub. S. 111-5), as amended;
2441 American Recovery and Reinvestment Act of 2009 (Pub. S. 111-5), as amended; [
2443 the time of termination[
2444 (iv) elected Utah mini-COBRA; and
2445 (v) has the individual's coverage terminated between December 1, 2009 through
2446 February 1, 2010, for reasons other than those identified in Subsection 31A-22-722 (7).
2447 (2) (a) An individual or the employer of the individual shall contact the insurer and
2448 inform the insurer that the individual wants to take advantage of the second election period for
2449 mini-COBRA coverage under the provisions of Section 3001 of the American Recovery and
2450 Reinvestment Act of 2009 (Pub. S. 111-5), as amended.
2451 (b) An individual or an employer on behalf of an eligible individual must submit the
2452 enrollment forms for coverage under Subsection (1) to the insurer [
2453 no later than the later of:
2454 (i) March 19, 2010; or
2455 (ii) 30 days after the day on which the notice of the second election period is provided
2456 as described in Subsection (1)(a).
2457 (3) The provision regarding the application of pre-existing condition waivers to the
2458 extended second election period for federal COBRA under Section 3001 of the American
2459 Recovery and Reinvestment Act of 2009 (Pub. S. 111-5), as amended, shall apply to the
2460 extended second election for state mini-COBRA under this section.
2461 (4) An insured has the right to extend the employee's coverage under the current
2462 employer's group policy beyond 12 months to the period of time the insured is eligible to
2463 receive assistance in accordance with Section 3001 of the American Recovery and
2464 Reinvestment Act of 2009 (Pub. S. 111-5), as amended.
2466 Section 31A-2-308 .
2467 Section 21. Section 31A-22-725 is enacted to read:
2468 31A-22-725. Special enrollment periods relating to Medicaid and Children's
2469 Health Insurance Program.
2470 (1) A person is eligible to enroll for coverage under the terms of an employer's group
2471 health benefit plan if:
2472 (a) the person is:
2473 (i) an employee who is eligible, but not enrolled, for coverage under the terms of the
2474 employer's group health benefit plan; or
2475 (ii) a dependent of an employee, if the dependent is eligible, but not enrolled, for
2476 coverage under the terms of the employer's group health benefit plan; and
2477 (b) the conditions of either Subsection (2) or (3) are met.
2478 (2) Subsection (1) applies if:
2479 (a) the employee or dependent is covered under:
2480 (i) a Medicaid health benefit plan under Title XIX of the Social Security Act; or
2481 (ii) a state child health benefit plan under Title XXI of the Social Security Act;
2482 (b) coverage of the employee or dependent described in Subsection (2)(a) is
2483 terminated as a result of loss of eligibility for the coverage; and
2484 (c) the employee requests coverage under the employer's group health plan no later
2485 than 60 days after the date of termination of the coverage described in Subsection (2)(a).
2486 (3) Subsection (1) applies if:
2487 (a) the employee or dependent becomes eligible for assistance, with respect to
2488 coverage under the employer's group health plan under a plan described in Subsection (2)(a),
2489 including under a waiver or demonstration project conducted under or in relation to a plan
2490 described in Subsection (2)(a); and
2491 (b) the employee requests coverage under the employer's group health plan no later
2492 than 60 days after the date the employee or dependent is determined to be eligible for the
2493 assistance described in Subsection (3)(a).
2494 Section 22. Section 31A-23a-415 is amended to read:
2495 31A-23a-415. Assessment on title insurance agencies or title insurers -- Account
2497 (1) For purposes of this section:
2498 (a) "Premium" is as defined in Subsection 59-9-101 (3).
2499 (b) "Title insurer" means a person:
2500 (i) making any contract or policy of title insurance as:
2501 (A) insurer;
2502 (B) guarantor; or
2503 (C) surety;
2504 (ii) proposing to make any contract or policy of title insurance as:
2505 (A) insurer;
2506 (B) guarantor; or
2507 (C) surety; or
2508 (iii) transacting or proposing to transact any phase of title insurance, including:
2509 (A) soliciting;
2510 (B) negotiating preliminary to execution;
2511 (C) executing of a contract of title insurance;
2512 (D) insuring; and
2513 (E) transacting matters subsequent to the execution of the contract and arising out of
2514 the contract.
2515 (c) "Utah risks" means insuring, guaranteeing, or indemnifying with regard to real or
2516 personal property located in Utah, an owner of real or personal property, the holders of liens or
2517 encumbrances on that property, or others interested in the property against loss or damage
2518 suffered by reason of:
2519 (i) liens or encumbrances upon, defects in, or the unmarketability of the title to the
2520 property; or
2521 (ii) invalidity or unenforceability of any liens or encumbrances on the property.
2522 (2) (a) [
2523 insurer and each title insurance agency an annual assessment:
2524 (i) determined by the Title and Escrow Commission:
2525 (A) after consultation with the commissioner; and
2526 (B) in accordance with this Subsection (2); and
2527 (ii) to be used for the purposes described in Subsection (3).
2528 (b) A title insurance agency shall be assessed up to:
2529 (i) $200 for the first office in each county in which the title insurance agency
2530 maintains an office; and
2531 (ii) $100 for each additional office the title insurance agency maintains in the county
2532 described in Subsection (2)(b)(i).
2533 (c) A title insurer shall be assessed up to:
2534 (i) $200 for the first office in each county in which the title insurer maintains an
2536 (ii) $100 for each additional office the title insurer maintains in the county described
2537 in Subsection (2)(c)(i); and
2538 (iii) an amount calculated by:
2539 (A) aggregating the assessments imposed on:
2540 (I) title insurance agencies under Subsection (2)(b); and
2541 (II) title insurers under Subsections (2)(c)(i) and (2)(c)(ii);
2542 (B) subtracting the amount determined under Subsection (2)(c)(iii)(A) from the total
2543 costs and expenses determined under Subsection (2)(d); and
2544 (C) multiplying:
2545 (I) the amount calculated under Subsection (2)(c)(iii)(B); and
2546 (II) the percentage of total premiums for title insurance on Utah risk that are premiums
2547 of the title insurer.
2548 (d) Notwithstanding Section 31A-3-103 and subject to Section 31A-2-404 , the Title
2549 and Escrow Commission by rule shall establish the amount of costs and expenses described
2550 under Subsection (3) that will be covered by the assessment, except the costs or expenses to be
2551 covered by the assessment may not exceed $75,000 annually.
2552 (3) (a) [
2556 (b) There is created in the General Fund a restricted account known as the "Title
2557 Licensee Enforcement Restricted Account."
2558 (c) The Title Licensee Enforcement Restricted Account shall consist of the money
2559 received by the state under this section.
2560 (d) The commissioner shall administer the Title Licensee Enforcement Restricted
2561 Account. Subject to appropriations by the Legislature, the commissioner shall use the money
2562 deposited into the Title Licensee Enforcement Restricted Account only to pay for [
2563 or expense incurred by the department in the administration, investigation, and enforcement of
2564 this part and Part 5, Compensation of Producers and Consultants, related to:
2565 (i) the marketing of title insurance; and
2566 (ii) audits of agencies.
2567 (e) The money in the Title Licensee Enforcement Restricted Account is nonlapsing.
2568 (4) The assessment imposed by this section shall be in addition to any premium
2569 assessment imposed under Subsection 59-9-101 (3).
2570 Section 23. Section 31A-23a-501 is amended to read:
2571 31A-23a-501. Licensee compensation.
2572 (1) As used in this section:
2573 (a) "Commission compensation" includes funds paid to or credited for the benefit of a
2574 licensee from:
2575 (i) commission amounts deducted from insurance premiums on insurance sold by or
2576 placed through the licensee; or
2577 (ii) commission amounts received from an insurer or another licensee as a result of the
2578 sale or placement of insurance.
2579 (b) (i) "Compensation from an insurer or third party administrator" means
2580 commissions, fees, awards, overrides, bonuses, contingent commissions, loans, stock options,
2581 gifts, prizes, or any other form of valuable consideration:
2582 (A) whether or not payable pursuant to a written agreement; and
2583 (B) received from:
2584 (I) an insurer; or
2585 (II) a third party to the transaction for the sale or placement of insurance.
2586 (ii) "Compensation from an insurer or third party administrator" does not mean
2587 compensation from a customer that is:
2588 (A) a fee or pass-through costs as provided in Subsection (1)(e); or
2589 (B) a fee or amount collected by or paid to the producer that does not exceed an
2590 amount established by the commissioner by administrative rule.
2591 (c) (i) "Customer" means:
2592 (A) the person signing the application or submission for insurance; or
2593 (B) the authorized representative of the insured actually negotiating the placement of
2594 insurance with the producer.
2595 (ii) "Customer" does not mean a person who is a participant or beneficiary of:
2596 (A) an employee benefit plan; or
2597 (B) a group or blanket insurance policy or group annuity contract sold, solicited, or
2598 negotiated by the producer or affiliate.
2599 (d) (i) "Noncommission compensation" includes all funds paid to or credited for the
2600 benefit of a licensee other than commission compensation.
2601 (ii) "Noncommission compensation" does not include charges for pass-through costs
2602 incurred by the licensee in connection with obtaining, placing, or servicing an insurance
2604 (e) "Pass-through costs" include:
2605 (i) costs for copying documents to be submitted to the insurer; and
2606 (ii) bank costs for processing cash or credit card payments.
2607 (2) A licensee may receive from an insured or from a person purchasing an insurance
2608 policy, noncommission compensation if the noncommission compensation is stated on a
2609 separate, written disclosure.
2610 (a) The disclosure required by this Subsection (2) shall:
2611 (i) include the signature of the insured or prospective insured acknowledging the
2612 noncommission compensation;
2613 (ii) clearly specify the amount or extent of the noncommission compensation; and
2614 (iii) be provided to the insured or prospective insured before the performance of the
2616 (b) Noncommission compensation shall be:
2617 (i) limited to actual or reasonable expenses incurred for services; and
2618 (ii) uniformly applied to all insureds or prospective insureds in a class or classes of
2619 business or for a specific service or services.
2620 (c) A copy of the signed disclosure required by this Subsection (2) must be maintained
2621 by any licensee who collects or receives the noncommission compensation or any portion of
2622 the noncommission compensation.
2623 (d) All accounting records relating to noncommission compensation shall be
2624 maintained by the person described in Subsection (2)(c) in a manner that facilitates an audit.
2625 (3) (a) A licensee may receive noncommission compensation when acting as a
2626 producer for the insured in connection with the actual sale or placement of insurance if:
2627 (i) the producer and the insured have agreed on the producer's noncommission
2628 compensation; and
2629 (ii) the producer has disclosed to the insured the existence and source of any other
2630 compensation that accrues to the producer as a result of the transaction.
2631 (b) The disclosure required by this Subsection (3) shall:
2632 (i) include the signature of the insured or prospective insured acknowledging the
2633 noncommission compensation;
2634 (ii) clearly specify the amount or extent of the noncommission compensation and the
2635 existence and source of any other compensation; and
2636 (iii) be provided to the insured or prospective insured before the performance of the
2638 (c) The following additional noncommission compensation is authorized:
2639 (i) compensation received by a producer of a compensated corporate surety who under
2640 procedures approved by a rule or order of the commissioner is paid by surety bond principal
2641 debtors for extra services;
2642 (ii) compensation received by an insurance producer who is also licensed as a public
2643 adjuster under Section 31A-26-203 , for services performed for an insured in connection with a
2644 claim adjustment, so long as the producer does not receive or is not promised compensation
2645 for aiding in the claim adjustment prior to the occurrence of the claim;
2646 (iii) compensation received by a consultant as a consulting fee, provided the
2647 consultant complies with the requirements of Section 31A-23a-401 ; or
2648 (iv) other compensation arrangements approved by the commissioner after a finding
2649 that they do not violate Section 31A-23a-401 and are not harmful to the public.
2650 (4) (a) For purposes of this Subsection (4), "producer" includes:
2651 (i) a producer;
2652 (ii) an affiliate of a producer; or
2653 (iii) a consultant.
2654 (b) Beginning January 1, 2010, in addition to any other disclosures required by this
2655 section, a producer may not accept or receive any compensation from an insurer or third party
2656 administrator for the placement of a health benefit plan, other than a hospital confinement
2657 indemnity policy, unless prior to the customer's purchase of the health benefit plan the
2659 (i) except as provided in Subsection (4)(c), discloses in writing to the customer that
2660 the producer will receive compensation from the insurer or third party administrator for the
2661 placement of insurance, including the amount or type of compensation known to the producer
2662 at the time of the disclosure; and
2663 (ii) except as provided in Subsection (4)(c):
2664 (A) obtains the customer's signed acknowledgment that the disclosure under
2665 Subsection (4)(b)(i) was made to the customer; or
2666 (B) [
2667 Subsection (4)(b)(i) was made to the customer[
2668 (II) keeps the signed statement on file in the producer's office while the health benefit
2669 plan placed with the customer is in force.
2670 (c) If the compensation to the producer from an insurer or third party administrator is
2671 for the renewal of a health benefit plan, once the producer has made an initial disclosure that
2672 complies with Subsection (4)(b), the producer does not have to disclose compensation
2673 received for the subsequent yearly renewals in accordance with Subsection (4)(b) until the
2674 renewal period immediately following 36 months after the initial disclosure.
2675 (d) (i) [
2677 insurer or third party administrator in a manner that facilitates an audit[
2678 health benefit plan placed with the customer is in force, maintain a copy of:
2679 (A) the signed acknowledgment described in Subsection (4)(b)(i); or
2680 (B) the signed statement described in Subsection (4)(b)(ii).
2681 (ii) The standard application developed in accordance with Section 31A-22-635 shall
2682 include a place for a producer to provide the disclosure required by this Subsection (4), and if
2683 completed, shall satisfy the requirement of Subsection (4)(d)(i).
2684 (e) Subsection (4)(b)(ii) does not apply to:
2685 (i) a person licensed as a producer who acts only as an intermediary between an
2686 insurer and the customer's producer, including a managing general agent; or
2687 (ii) the placement of insurance in a secondary or residual market.
2688 (5) This section does not alter the right of any licensee to recover from an insured the
2689 amount of any premium due for insurance effected by or through that licensee or to charge a
2690 reasonable rate of interest upon past-due accounts.
2691 (6) This section does not apply to bail bond producers or bail enforcement agents as
2692 defined in Section 31A-35-102 .
2693 Section 24. Section 31A-26-201 is amended to read:
2694 31A-26-201. Requirement of license.
2695 (1) Except as provided in Subsection (2)[
2696 (a) a person may not perform, offer to perform, or solicit the opportunity to perform
2699 (b) a person may not use the insurance adjusting services of another if the person
2700 knows or should know that the one providing these services does not have a license as required
2701 by law.
2702 (2) The following are exempt from the license requirement of Subsection (1), when
2703 acting in the indicated [
2704 (a) [
2705 employee of, and not an independent contractor for, an insurer;
2706 (b) an arbitrator or an umpire selected by the claimant and insurer to decide, alone or
2707 with others, whether a claim should be paid and how much should be paid;
2708 (c) an attorney at law acting in an attorney-client relationship;
2709 (d) an insurance producer, but only as to [
2710 (i) a class of insurance for which [
2711 31A-23a-106 ; and [
2712 (ii) a claim adjusted on the request of an insurer for which [
2713 is a producer;
2714 (e) a regular salaried employee of, and not an independent contractor for, a
2715 policyholder or claimant under an insurance policy;
2716 (f) an employee of a licensed insurance adjuster who provides only administrative or
2717 clerical assistance;
2718 (g) [
2719 31A-26-102 , but who is specially employed to obtain facts about a loss for or furnish technical
2720 assistance to a licensed adjuster or a company adjuster, including:
2721 (i) a photographer[
2722 (ii) an estimator [
2723 (iii) an appraiser[
2724 (iv) a marine surveyor[
2725 (v) a private detective[
2726 (vi) an engineer[
2727 (vii) a handwriting expert;
2728 (h) a holder of a group insurance policy, with respect to administrative activities in
2729 connection with that insurance policy, who receives no compensation for [
2730 policyholder's services beyond the actual expenses estimated on a reasonable basis;
2731 (i) [
2732 employee of, and not an independent contractor for, an administrator licensed under Chapter
2734 (j) a person who gives advice or assistance without compensation or expectation of
2735 compensation, direct or indirect.
2736 (3) [
2737 insurance [
2739 Section 25. Section 31A-35-401 is amended to read:
2740 31A-35-401. Requirement for license or certificate of authority -- Process -- Fees
2741 -- Limitations.
2742 (1) (a) A person may not engage in the bail bond surety insurance business unless that
2744 (i) is a bail bond surety company licensed under this chapter;
2745 (ii) is a surety insurer that is granted a certificate under this section in the same
2746 manner as other insurers doing business in this state are granted certificates of authority under
2747 this title; or
2748 (iii) is a bail bond producer licensed in accordance with this section.
2749 (b) A bail bond surety company shall be licensed under this chapter as an agency.
2750 (c) A bail bond producer shall be licensed under Chapter 23a, Insurance Marketing -
2751 Licensing Producers, Consultants, and Reinsurance Intermediaries, as a limited lines producer.
2752 (2) A person applying for a bail bond surety company license under this chapter shall
2753 submit to the commissioner:
2754 (a) a completed application form as prescribed by the commissioner;
2755 (b) a fee as determined by the commissioner in accordance with Section [
2756 31A-3-103 ; and
2757 (c) any additional information required by rule.
2758 (3) [
2759 (4) [
2760 restricted account created in Section 31A-35-407 .
2761 (5) (a) A bail bond surety company shall be domiciled in Utah.
2762 (b) A bail bond producer shall be a resident of Utah.
2763 (c) A foreign surety insurer that is granted a certificate to issue bail bonds may only
2764 issue bail bonds through a bail bond surety company licensed under this chapter.
2765 Section 26. Section 31A-35-406 is amended to read:
2766 31A-35-406. Renewal and reinstatement.
2767 (1) (a) To renew its license under this chapter, on or before the last day of the month in
2768 which the license expires a bail bond surety company shall:
2769 (i) complete and submit a renewal application to the department; and
2770 (ii) pay the department the applicable renewal fee established in accordance with
2771 Section [
2772 (b) A bail bond surety company shall renew its license under this chapter annually as
2773 established by department rule, regardless of when the license is issued.
2774 (2) A bail bond surety company may apply for reinstatement of an expired bail bond
2775 surety company license within one year following the expiration of the license under
2776 Subsection (1) by:
2777 (a) submitting the renewal application required by Subsection (1); and
2778 (b) paying a license reinstatement fee established in accordance with Section
2780 (3) If a bail bond surety company license has been expired for more than one year, the
2781 person applying for reinstatement of the bail bond surety license shall:
2782 (a) submit a new application form to the commissioner; and
2783 (b) pay the application fee established in accordance with Section [
2784 31A-3-103 .
2785 (4) If a bail bond surety company license is suspended, the applicant may not submit
2786 an application for a bail bond surety company license until after the end of the period of
2788 (5) [
2789 created in Section 31A-35-407 .
2790 Section 27. Section 31A-36-102 is amended to read:
2791 31A-36-102. Definitions.
2792 As used in this chapter:
2793 (1) (a) "Advertising" means a communication placed before the public to:
2794 (i) create an interest in a life settlement; or
2795 (ii) induce a person pursuant to a life settlement to sell, assign, devise, bequest, or
2796 transfer the death benefit or ownership of:
2797 (A) a policy; or
2798 (B) an interest in a policy.
2799 (b) "Advertising" includes the following, if the requirements of Subsection (1)(a) are
2801 (i) a written, electronic, or printed communication;
2802 (ii) a communication by means of a recorded telephone message;
2803 (iii) a communication transmitted on radio, television, the Internet, or similar
2804 communications media; and
2805 (iv) a film strip, motion picture, or video.
2806 (2) "Business of life settlements" includes the following:
2807 (a) offering a life settlement;
2808 (b) soliciting a life settlement;
2809 (c) negotiating a life settlement;
2810 (d) procuring a life settlement;
2811 (e) effectuating a life settlement;
2812 (f) purchasing a life settlement;
2813 (g) investing in a life settlement;
2814 (h) financing a life settlement;
2815 (i) monitoring a life settlement;
2816 (j) tracking a life settlement;
2817 (k) underwriting a life settlement;
2818 (l) selling a life settlement;
2819 (m) transferring a life settlement;
2820 (n) assigning a life settlement;
2821 (o) pledging a life settlement;
2822 (p) hypothecating a life settlement; or
2823 (q) in any other manner acquiring an interest in [
2824 life settlement.
2825 (3) "Chronically ill" means:
2826 (a) being unable to perform at least two activities of daily living, such as eating,
2827 toileting, moving from one place to another, bathing, dressing, or continence;
2828 (b) requiring substantial supervision for protection from threats to health and safety
2829 because of severe cognitive impairment; or
2830 (c) having a level of disability similar to that described in Subsection (3)(a).
2831 (4) "Depository institution" is as defined in Section 7-1-103 .
2832 (5) (a) "Financing entity" means a person:
2833 (i) who has direct ownership in a policy that is the subject of a life settlement;
2834 (ii) whose principal activity related to a life settlement is providing money to effect the
2835 life settlement or the purchase of one or more settled policies; and
2836 (iii) who has an agreement in writing with one or more licensed life settlement
2837 providers to finance the acquisition of one or more life settlements.
2838 (b) "Financing entity" includes, if the requirements of Subsection (5)(a) are met, the
2840 (i) an underwriter;
2841 (ii) a placement agent;
2842 (iii) an enhancer of credit;
2843 (iv) a lender;
2844 (v) a purchaser of securities; and
2845 (vi) a purchaser of a policy from a life settlement provider.
2846 (c) "Financing entity" does not include:
2847 (i) a nonaccredited investor; or
2848 (ii) a life settlement purchaser.
2849 (6) "Form" means, in addition to a form as defined in Section 31A-1-301 :
2850 (a) a life settlement;
2851 (b) a disclosure to an owner;
2852 (c) a notice of intent to settle; or
2853 (d) a verification of coverage.
2854 (7) "Life expectancy" means the mean number of months an individual insured under
2855 a policy to be settled can be expected to live considering medical records and appropriate
2856 experiential data.
2857 (8) (a) "Life settlement" means a written agreement:
2858 (i) between an owner and a life settlement provider; and
2859 (ii) [
2861 transferring, devising, releasing, or bequeathing, at the time of or after the exchange, the death
2862 benefit or ownership of:
2863 (A) any portion of a policy; or
2864 (B) a beneficial interest in the policy.
2865 (b) "Life settlement" includes:
2866 (i) the transfer for compensation or value of ownership or beneficial interest in a trust
2867 or other entity that owns a policy if the trust or other entity is formed or operated for the
2868 principal purpose of acquiring one or more policies; or
2869 (ii) a premium finance loan made for a policy by a lender to an owner on, before, or
2870 after the date of issuance of the policy if the owner:
2871 (A) receives on the date of the premium finance loan a guarantee of a future life
2872 settlement value of the policy; or
2873 (B) agrees on the date of the premium finance loan to sell the policy or any portion of
2874 the policy's death benefit on a date following the issuance of the policy.
2875 (c) An agreement described in Subsection (8)(a) is a "life settlement" even if it is
2876 referred to by a different name, including:
2877 (i) a [
2878 (ii) a "senior settlement."
2879 (d) "Life settlement" does not include:
2880 (i) a loan or accelerated death benefit by an insurer pursuant to the terms of a policy;
2881 (ii) loan proceeds that are used solely to pay:
2882 (A) premiums for a policy; and
2883 (B) the loan costs or other expenses incurred by the lender, including:
2884 (I) interest;
2885 (II) an arrangement fee;
2886 (III) a use fee;
2887 (IV) closing costs;
2888 (V) attorney fees and expenses;
2889 (VI) trustee fees and expenses; and
2890 (VII) third party collateral provider fees and expenses, including fees payable to a
2891 letter of credit issuer;
2892 (iii) (A) a loan made by a licensed lender in which the licensed lender takes an interest
2893 in a policy solely to secure repayment of a loan; or
2894 (B) the transfer of a policy by a lender, if:
2895 (I) the loan is:
2896 (Aa) a loan described in Subsection (8)(d)(iii)(A); or
2897 (Bb) a premium finance loan that is not a life settlement;
2898 (II) the loan is defaulted on;
2899 (III) the policy is transferred; and
2900 (IV) neither the default itself nor the transfer of the policy in connection with the
2901 default is pursuant to an agreement with any other person for the purpose of evading
2902 regulation under this chapter;
2903 (iv) an agreement where all the participants in the agreement:
2904 (A) (I) are closely related to the insured by blood or law; or
2905 (II) have a lawful substantial economic interest in the continued life, health, and bodily
2906 safety of the person insured; and
2907 (B) are trusts established primarily for the benefit of the participants in the agreement;
2908 (v) a designation, consent, or agreement by an insured who is an employee of an
2909 employer in connection with the purchase by the employer, or trust established by the
2910 employer, of life insurance on the life of the employee; or
2911 (vi) a business succession planning arrangement not made for the purpose of evading
2912 regulation under this chapter:
2913 (A) (I) between one or more shareholders in a corporation; or
2914 (II) between a corporation and:
2915 (Aa) one or more of its shareholders; or
2916 (Bb) one or more trusts established by its shareholders;
2917 (B) (I) between one or more partners in a partnership; or
2918 (II) between a partnership and:
2919 (Aa) one or more of its partners; or
2920 (Bb) one or more trusts established by its partners; or
2921 (C) (I) between one or more members in a limited liability company; or
2922 (II) between a limited liability company and:
2923 (Aa) one or more of its members; or
2924 (Bb) one or more trusts established by its members.
2925 (9) (a) "Life settlement producer" means a person licensed in the state as a life
2926 insurance producer that on behalf of an owner and for consideration offers or attempts to
2927 negotiate a life settlement between the owner and one or more life settlement providers.
2928 (b) "Life settlement producer" does not include an attorney licensed to practice law in
2929 any state, a certified public accountant, or a financial planner accredited by a nationally
2930 recognized accrediting agency:
2931 (i) that is retained to represent an owner; and
2932 (ii) whose compensation is not paid directly or indirectly by:
2933 (A) a life settlement provider; or
2934 (B) a life settlement purchaser.
2935 (10) (a) "Life settlement provider" means a person other than an owner that enters into
2936 or effectuates a life settlement.
2937 (b) "Life settlement provider" does not include:
2938 (i) a licensed lender that takes an assignment of a policy as security for a loan,
2939 including a:
2940 (A) depository institution; or
2941 (B) lender that makes a premium finance loan that is not described in Subsection
2943 (ii) the issuer of a policy;
2944 (iii) an authorized or eligible insurer that provides stop-loss coverage to:
2945 (A) a life settlement provider;
2946 (B) a life settlement purchaser;
2947 (C) a financing entity;
2948 (D) a special purpose entity; or
2949 (E) a related provider trust;
2950 (iv) a financing entity;
2951 (v) a special purpose entity;
2952 (vi) a related provider trust;
2953 (vii) a life settlement purchaser; or
2954 (viii) a qualified institutional buyer as defined in Rule 144A, 17 C.F.R. Sec. 230.144A
2955 that purchases a settled policy from a life settlement provider.
2956 (11) (a) "Life settlement purchaser" means a person that, to derive an economic
2958 (i) provides a sum of money as consideration for a policy or an interest in the death
2959 benefits of a policy; or
2960 (ii) owns, acquires, or is entitled to a beneficial interest in a trust that:
2961 (A) owns a life settlement; or
2962 (B) is the beneficiary of a policy that has been or will be the subject of a life
2964 (b) "Life settlement purchaser" does not include:
2965 (i) a life settlement provider;
2966 (ii) a life settlement producer;
2967 (iii) an accredited investor as defined in Regulation D, Rule 501, 17 C.F.R. Sec.
2969 (iv) a qualified institutional buyer as defined in Rule 144A, 17 C.F.R. Sec. 230.144A;
2970 (v) a financing entity;
2971 (vi) a special purpose entity; or
2972 (vii) a related provider trust.
2973 (12) (a) "Owner" means any of the following who resides in this state and seeks to
2974 enter into a life settlement:
2975 (i) the owner of a policy; or
2976 (ii) the holder of a certificate of [
2977 (b) "Owner" is not limited to [
2978 chronically ill except when the limitation is expressly provided in this chapter.
2979 (c) "Owner" does not include:
2980 (i) a life settlement provider;
2981 (ii) a life settlement producer;
2982 (iii) a qualified institutional buyer as defined in Rule 144A, 17 C.F.R. Sec. 230.144A;
2983 (iv) a financing entity;
2984 (v) a special purpose entity; or
2985 (vi) a related provider trust.
2986 (13) "Policy" means:
2987 (a) an individual or group life insurance policy;
2988 (b) an individual or group annuity policy;
2990 (d) a group annuity certificate; or
2992 whether or not delivered or issued for delivery in Utah:
2993 (i) affecting the rights of a resident of Utah; or
2994 (ii) bearing a reasonable relation to Utah.
2995 (14) "Premium finance loan" is a loan made primarily for the purpose of making
2996 premium payments on a policy if the loan is secured by an interest in the policy.
2997 (15) "Related provider trust" means a trust established by a licensed life settlement
2998 provider or a financing entity solely to hold the ownership of or beneficial interests in
2999 purchased policies in connection with financing.
3000 (16) "Settled policy" means a policy that is acquired by a life settlement provider
3001 pursuant to a life settlement.
3002 (17) "Special purpose entity" means an entity formed by a licensed life settlement
3003 provider solely to enable the life settlement provider to gain access to institutional markets for
3005 (18) (a) "Stranger-originated life insurance" means an act, practice, or arrangement to
3006 initiate a policy for the benefit of a third party investor or other person who has no insurable
3007 interest in the insured resulting in the requirements of Section 31A-21-104 not being met.
3008 (b) "Stranger-originated life insurance" includes when:
3009 (i) a policy is purchased with resources or guarantees from or through a person who, at
3010 the time of policy origination, could not lawfully initiate the policy itself; and
3011 (ii) at the time of policy origination, there is an agreement, whether oral or written, to
3012 directly or indirectly transfer to a third party the ownership of a policy, policy benefits, or
3014 (c) "Stranger-originated life insurance" does not include:
3015 (i) a life settlement that complies with:
3016 (A) this chapter; and
3017 (B) Section 31A-21-104 ; or
3018 (ii) an act, practice, or arrangement described in Subsection (8)(d).
3019 (19) "Terminally ill" means having a condition that reasonably may be expected to
3020 result in death within 24 months.
3021 Section 28. Section 31A-40-103 is amended to read:
3022 31A-40-103. Duties of the commissioner.
3023 (1) (a) The commissioner shall maintain a list of professional employer organizations
3024 that are licensed under this chapter.
3025 (b) The commissioner shall make the list required by this Subsection (1) available to
3026 the public by electronic or other means.
3027 (2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
3028 the commissioner:
3029 (a) shall make rules to prescribe the requirements for forms required under this
3030 chapter; [
3031 (b) may make rules to prescribe the requirements and process for correcting under
3032 Section 31A-40-205 :
3033 (i) a deficiency in working capital; or
3034 (ii) negative working capital;
3036 of a financial statement under Section 31A-40-305 :
3037 (i) that are consistent with generally accepted accounting principles; and
3038 (ii) including the timeliness of a financial statement[
3039 (d) may make rules to prescribe the requirements and process for when a professional
3040 employer organization license is terminated by:
3041 (i) voluntary surrender of the professional organization license; or
3042 (ii) involuntary surrender of the professional organization license.
3043 (3) A rule in effect on May 5, 2008 under the repealed Title 58, Chapter 59,
3044 Professional Employer Organization Registration Act, [
3046 commissioner modifies or repeals the rule.
3050 Section 29. Section 31A-40-302 is amended to read:
3051 31A-40-302. Licensing process.