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First Substitute H.B. 19

Representative James A. Dunnigan proposes the following substitute bill:


             1     
INSURANCE LAW RELATED AMENDMENTS

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: James A. Dunnigan

             5     
Senate Sponsor: J. Stuart Adams

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Insurance Code and other provisions related to the regulation of
             10      insurance and insurance products.
             11      Highlighted Provisions:
             12          This bill:
             13          .    amends definitions;
             14          .    addresses fees for captive insurance companies and the cap on the Captive
             15      Insurance Restricted Account;
             16          .    modifies restrictions on foreign title insurers;
             17          .    removes outdated language;
             18          .    addresses grace periods for accident and health insurance policies;
             19          .    modifies provisions related to individuals, group, or blanket accident and health
             20      insurance coverage;
             21          .    addresses health benefit plan offerings;
             22          .    addresses producer lines of authority;
             23          .    addresses a written agreement related to a voluntary surrender of a license;
             24          .    amends provisions related to continuing education;
             25          .    provides for training related to long-term care insurance;


             26          .    modifies title insurance agency and producer licensing requirements;
             27          .    addresses when a title insurance producer may do an escrow involving a real
             28      property transaction;
             29          .    modifies provisions related to disbursements from escrow accounts;
             30          .    modifies title insurance related assessments;
             31          .    addresses when a person may represent that the person acts in behalf of an insurer;
             32          .    modifies provisions related to providing the commissioner address, telephone, and
             33      email address information;
             34          .    addresses verification under a nonresident jurisdictional agreement;
             35          .    addresses per diem and travel expenses of public representatives on the board of
             36      directors of the Utah Life and Health Insurance Guaranty Association;
             37          .    addresses the establishment of classes of business;
             38          .    modifies rating restrictions;
             39          .    addresses the renewal of a bail bond surety company license;
             40          .    permits the commissioner to assign a department employee to engage in certain
             41      activities related to the regulation of captive insurance companies;
             42          .    requires a professional employer organization to notify the commissioner of
             43      material changes;
             44          .    removes the title insurance assessment from the sunset act;
             45          .    converts certain dedicated credits into several restricted accounts and provides that
             46      related appropriations are nonlapsing; and
             47          .    makes technical and conforming amendments.
             48      Money Appropriated in this Bill:
             49          None
             50      Other Special Clauses:
             51          This bill has an effective date.
             52          This bill provides for retrospective operation of certain provisions.
             53      Utah Code Sections Affected:
             54      AMENDS:
             55          31A-1-301, as last amended by Laws of Utah 2010, Chapter 10
             56          31A-2-208, as last amended by Laws of Utah 2010, Chapter 391


             57          31A-2-212, as last amended by Laws of Utah 2007, Chapter 309
             58          31A-3-304, as last amended by Laws of Utah 2010, Chapters 10, 68 and last amended
             59      by Coordination Clause, Laws of Utah 2010, Chapter 265
             60          31A-14-211, as last amended by Laws of Utah 2003, Chapter 298
             61          31A-22-305, as last amended by Laws of Utah 2010, Chapter 354
             62          31A-22-607, as last amended by Laws of Utah 2004, Chapter 329
             63          31A-22-610.6, as enacted by Laws of Utah 2008, Chapters 345, 383, and 390
             64          31A-22-614.5, as last amended by Laws of Utah 2010, Chapter 357
             65          31A-22-618.5, as last amended by Laws of Utah 2010, Chapter 68
             66          31A-22-625, as last amended by Laws of Utah 2010, Chapters 10 and 68
             67          31A-22-701, as last amended by Laws of Utah 2010, Chapter 10
             68          31A-22-716, as last amended by Laws of Utah 2005, Chapter 71
             69          31A-22-721, as last amended by Laws of Utah 2004, Chapter 329
             70          31A-22-723, as last amended by Laws of Utah 2010, Chapter 68
             71          31A-23a-102, as last amended by Laws of Utah 2009, Chapter 349
             72          31A-23a-106, as last amended by Laws of Utah 2009, Chapter 349
             73          31A-23a-111, as last amended by Laws of Utah 2009, Chapters 349 and 355
             74          31A-23a-202, as last amended by Laws of Utah 2009, Chapter 127
             75          31A-23a-203, as last amended by Laws of Utah 2009, Chapter 349
             76          31A-23a-204, as last amended by Laws of Utah 2009, Chapter 349
             77          31A-23a-406, as last amended by Laws of Utah 2007, Chapter 325
             78          31A-23a-408, as renumbered and amended by Laws of Utah 2003, Chapter 298
             79          31A-23a-412, as renumbered and amended by Laws of Utah 2003, Chapter 298
             80          31A-23a-415, as last amended by Laws of Utah 2010, Chapter 10 and last amended by
             81      Coordination Clause, Laws of Utah 2010, Chapter 265
             82          31A-25-208, as last amended by Laws of Utah 2009, Chapter 349
             83          31A-26-206, as last amended by Laws of Utah 2008, Chapter 382
             84          31A-26-208, as last amended by Laws of Utah 2008, Chapter 3
             85          31A-26-213, as last amended by Laws of Utah 2009, Chapter 349
             86          31A-26-306, as last amended by Laws of Utah 2004, Chapter 173
             87          31A-28-107, as last amended by Laws of Utah 2010, Chapter 292


             88          31A-29-103, as last amended by Laws of Utah 2008, Chapters 3 and 385
             89          31A-29-106, as last amended by Laws of Utah 2008, Chapter 382
             90          31A-30-103, as last amended by Laws of Utah 2010, Chapter 68
             91          31A-30-105, as last amended by Laws of Utah 2010, Chapter 68
             92          31A-30-106, as last amended by Laws of Utah 2010, Chapter 68
             93          31A-30-106.1, as enacted by Laws of Utah 2010, Chapter 68
             94          31A-30-106.5, as last amended by Laws of Utah 2010, Chapter 68
             95          31A-30-108, as last amended by Laws of Utah 2008, Chapter 383
             96          31A-30-110, as last amended by Laws of Utah 2002, Chapter 308
             97          31A-30-112, as last amended by Laws of Utah 2009, Chapter 12
             98          31A-31-108, as last amended by Laws of Utah 2010, Chapter 391
             99          31A-31-109, as last amended by Laws of Utah 2010, Chapter 391
             100          31A-35-202, as last amended by Laws of Utah 2000, Chapter 259
             101          31A-35-406, as last amended by Laws of Utah 2010, Chapter 10
             102          31A-35-602, as last amended by Laws of Utah 2000, Chapter 259
             103          31A-37-103, as last amended by Laws of Utah 2008, Chapter 302
             104          31A-37-202, as last amended by Laws of Utah 2009, Chapter 183
             105          31A-37-504, as last amended by Laws of Utah 2007, Chapter 309
             106          59-9-105, as last amended by Laws of Utah 2002, Chapter 308
             107          63I-2-231, as last amended by Laws of Utah 2010, Chapters 68 and 285
             108          63J-1-602.2, as enacted by Laws of Utah 2010, Chapter 265 and last amended by
             109      Coordination Clause, Laws of Utah 2010, Chapter 265
             110          63J-1-602.3, as enacted by Laws of Utah 2010, Chapter 265
             111      ENACTS:
             112          31A-40-308, Utah Code Annotated 1953
             113      Uncodified Material Affected:
             114      ENACTS UNCODIFIED MATERIAL
             115     
             116      Be it enacted by the Legislature of the state of Utah:
             117          Section 1. Section 31A-1-301 is amended to read:
             118           31A-1-301. Definitions.


             119          As used in this title, unless otherwise specified:
             120          (1) (a) "Accident and health insurance" means insurance to provide protection against
             121      economic losses resulting from:
             122          (i) a medical condition including:
             123          (A) a medical care expense; or
             124          (B) the risk of disability;
             125          (ii) accident; or
             126          (iii) sickness.
             127          (b) "Accident and health insurance":
             128          (i) includes a contract with disability contingencies including:
             129          (A) an income replacement contract;
             130          (B) a health care contract;
             131          (C) an expense reimbursement contract;
             132          (D) a credit accident and health contract;
             133          (E) a continuing care contract; and
             134          (F) a long-term care contract; and
             135          (ii) may provide:
             136          (A) hospital coverage;
             137          (B) surgical coverage;
             138          (C) medical coverage;
             139          (D) loss of income coverage;
             140          (E) prescription drug coverage;
             141          (F) dental coverage; or
             142          (G) vision coverage.
             143          (c) "Accident and health insurance" does not include workers' compensation insurance.
             144          (2) "Actuary" is as defined by the commissioner by rule, made in accordance with Title
             145      63G, Chapter 3, Utah Administrative Rulemaking Act.
             146          (3) "Administrator" is defined in Subsection [(159)] (161).
             147          (4) "Adult" means an individual who has attained the age of at least 18 years.
             148          (5) "Affiliate" means a person who controls, is controlled by, or is under common
             149      control with, another person. A corporation is an affiliate of another corporation, regardless of


             150      ownership, if substantially the same group of individuals manage the corporations.
             151          (6) "Agency" means:
             152          (a) a person other than an individual, including a sole proprietorship by which an
             153      individual does business under an assumed name; and
             154          (b) an insurance organization licensed or required to be licensed under Section
             155      31A-23a-301 , 31A-25-207 , or 31A-26-209 .
             156          (7) "Alien insurer" means an insurer domiciled outside the United States.
             157          (8) "Amendment" means an endorsement to an insurance policy or certificate.
             158          (9) "Annuity" means an agreement to make periodical payments for a period certain or
             159      over the lifetime of one or more individuals if the making or continuance of all or some of the
             160      series of the payments, or the amount of the payment, is dependent upon the continuance of
             161      human life.
             162          (10) "Application" means a document:
             163          (a) (i) completed by an applicant to provide information about the risk to be insured;
             164      and
             165          (ii) that contains information that is used by the insurer to evaluate risk and decide
             166      whether to:
             167          (A) insure the risk under:
             168          (I) the coverage as originally offered; or
             169          (II) a modification of the coverage as originally offered; or
             170          (B) decline to insure the risk; or
             171          (b) used by the insurer to gather information from the applicant before issuance of an
             172      annuity contract.
             173          (11) "Articles" or "articles of incorporation" means:
             174          (a) the original articles;
             175          (b) a special law;
             176          (c) a charter;
             177          (d) an amendment;
             178          (e) restated articles;
             179          (f) articles of merger or consolidation;
             180          (g) a trust instrument;


             181          (h) another constitutive document for a trust or other entity that is not a corporation;
             182      and
             183          (i) an amendment to an item listed in Subsections (11)(a) through (h).
             184          (12) "Bail bond insurance" means a guarantee that a person will attend court when
             185      required, up to and including surrender of the person in execution of a sentence imposed under
             186      Subsection 77-20-7 (1), as a condition to the release of that person from confinement.
             187          (13) "Binder" is defined in Section 31A-21-102 .
             188          (14) "Blanket insurance policy" means a group policy covering a defined class of
             189      persons:
             190          (a) without individual underwriting or application; and
             191          (b) that is determined by definition [with or] without designating each person covered.
             192          (15) "Board," "board of trustees," or "board of directors" means the group of persons
             193      with responsibility over, or management of, a corporation, however designated.
             194          (16) "Bona fide office" means a physical office in this state:
             195          (a) that is open to the public;
             196          (b) that is staffed during regular business hours on regular business days; and
             197          (c) at which the public may appear in person to obtain services.
             198          [(16)] (17) "Business entity" means:
             199          (a) a corporation;
             200          (b) an association;
             201          (c) a partnership;
             202          (d) a limited liability company;
             203          (e) a limited liability partnership; or
             204          (f) another legal entity.
             205          [(17)] (18) "Business of insurance" is defined in Subsection [(85)] (87).
             206          [(18)] (19) "Business plan" means the information required to be supplied to the
             207      commissioner under Subsections 31A-5-204 (2)(i) and (j), including the information required
             208      when these subsections apply by reference under:
             209          (a) Section 31A-7-201 ;
             210          (b) Section 31A-8-205 ; or
             211          (c) Subsection 31A-9-205 (2).


             212          [(19)] (20) (a) "Bylaws" means the rules adopted for the regulation or management of a
             213      corporation's affairs, however designated.
             214          (b) "Bylaws" includes comparable rules for a trust or other entity that is not a
             215      corporation.
             216          [(20)] (21) "Captive insurance company" means:
             217          (a) an insurer:
             218          (i) owned by another organization; and
             219          (ii) whose exclusive purpose is to insure risks of the parent organization and an
             220      affiliated company; or
             221          (b) in the case of a group or association, an insurer:
             222          (i) owned by the insureds; and
             223          (ii) whose exclusive purpose is to insure risks of:
             224          (A) a member organization;
             225          (B) a group member; or
             226          (C) an affiliate of:
             227          (I) a member organization; or
             228          (II) a group member.
             229          [(21)] (22) "Casualty insurance" means liability insurance.
             230          [(22)] (23) "Certificate" means evidence of insurance given to:
             231          (a) an insured under a group insurance policy; or
             232          (b) a third party.
             233          [(23)] (24) "Certificate of authority" is included within the term "license."
             234          [(24)] (25) "Claim," unless the context otherwise requires, means a request or demand
             235      on an insurer for payment of a benefit according to the terms of an insurance policy.
             236          [(25)] (26) "Claims-made coverage" means an insurance contract or provision limiting
             237      coverage under a policy insuring against legal liability to claims that are first made against the
             238      insured while the policy is in force.
             239          [(26)] (27) (a) "Commissioner" or "commissioner of insurance" means Utah's
             240      insurance commissioner.
             241          (b) When appropriate, the terms listed in Subsection [(26)] (27)(a) apply to the
             242      equivalent supervisory official of another jurisdiction.


             243          [(27)] (28) (a) "Continuing care insurance" means insurance that:
             244          (i) provides board and lodging;
             245          (ii) provides one or more of the following:
             246          (A) a personal service;
             247          (B) a nursing service;
             248          (C) a medical service; or
             249          (D) any other health-related service; and
             250          (iii) provides the coverage described in this Subsection [(27)] (28)(a) under an
             251      agreement effective:
             252          (A) for the life of the insured; or
             253          (B) for a period in excess of one year.
             254          (b) Insurance is continuing care insurance regardless of whether or not the board and
             255      lodging are provided at the same location as a service described in Subsection [(27)] (28)(a)(ii).
             256          [(28)] (29) (a) "Control," "controlling," "controlled," or "under common control"
             257      means the direct or indirect possession of the power to direct or cause the direction of the
             258      management and policies of a person. This control may be:
             259          (i) by contract;
             260          (ii) by common management;
             261          (iii) through the ownership of voting securities; or
             262          (iv) by a means other than those described in Subsections [(28)] (29)(a)(i) through (iii).
             263          (b) There is no presumption that an individual holding an official position with another
             264      person controls that person solely by reason of the position.
             265          (c) A person having a contract or arrangement giving control is considered to have
             266      control despite the illegality or invalidity of the contract or arrangement.
             267          (d) There is a rebuttable presumption of control in a person who directly or indirectly
             268      owns, controls, holds with the power to vote, or holds proxies to vote 10% or more of the
             269      voting securities of another person.
             270          [(29)] (30) "Controlled insurer" means a licensed insurer that is either directly or
             271      indirectly controlled by a producer.
             272          [(30)] (31) "Controlling person" means a person that directly or indirectly has the
             273      power to direct or cause to be directed, the management, control, or activities of a reinsurance


             274      intermediary.
             275          [(31)] (32) "Controlling producer" means a producer who directly or indirectly controls
             276      an insurer.
             277          [(32)] (33) (a) "Corporation" means an insurance corporation, except when referring to:
             278          (i) a corporation doing business:
             279          (A) as:
             280          (I) an insurance producer;
             281          (II) a limited line producer;
             282          (III) a consultant;
             283          (IV) a managing general agent;
             284          (V) a reinsurance intermediary;
             285          (VI) a third party administrator; or
             286          (VII) an adjuster; and
             287          (B) under:
             288          (I) Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and
             289      Reinsurance Intermediaries;
             290          (II) Chapter 25, Third Party Administrators; or
             291          (III) Chapter 26, Insurance Adjusters; or
             292          (ii) a noninsurer that is part of a holding company system under Chapter 16, Insurance
             293      Holding Companies.
             294          (b) "Stock corporation" means a stock insurance corporation.
             295          (c) "Mutual" or "mutual corporation" means a mutual insurance corporation.
             296          [(33)] (34) (a) "Creditable coverage" has the same meaning as provided in federal
             297      regulations adopted pursuant to the Health Insurance Portability and Accountability Act [of
             298      1996, Pub. L. 104-191, 110 Stat. 1936].
             299          (b) "Creditable coverage" includes coverage that is offered through a public health plan
             300      such as:
             301          (i) the Primary Care Network Program under a Medicaid primary care network
             302      demonstration waiver obtained subject to Section 26-18-3 ;
             303          (ii) the Children's Health Insurance Program under Section 26-40-106 ; or
             304          (iii) the Ryan White Program Comprehensive AIDS Resources Emergency Act, Pub. L.


             305      101-381, and Ryan White HIV/AIDS Treatment Modernization Act of 2006, Pub. L. 109-415.
             306          [(34)] (35) "Credit accident and health insurance" means insurance on a debtor to
             307      provide indemnity for payments coming due on a specific loan or other credit transaction while
             308      the debtor is disabled.
             309          [(35)] (36) (a) "Credit insurance" means insurance offered in connection with an
             310      extension of credit that is limited to partially or wholly extinguishing that credit obligation.
             311          (b) "Credit insurance" includes:
             312          (i) credit accident and health insurance;
             313          (ii) credit life insurance;
             314          (iii) credit property insurance;
             315          (iv) credit unemployment insurance;
             316          (v) guaranteed automobile protection insurance;
             317          (vi) involuntary unemployment insurance;
             318          (vii) mortgage accident and health insurance;
             319          (viii) mortgage guaranty insurance; and
             320          (ix) mortgage life insurance.
             321          [(36)] (37) "Credit life insurance" means insurance on the life of a debtor in connection
             322      with an extension of credit that pays a person if the debtor dies.
             323          [(37)] (38) "Credit property insurance" means insurance:
             324          (a) offered in connection with an extension of credit; and
             325          (b) that protects the property until the debt is paid.
             326          [(38)] (39) "Credit unemployment insurance" means insurance:
             327          (a) offered in connection with an extension of credit; and
             328          (b) that provides indemnity if the debtor is unemployed for payments coming due on a:
             329          (i) specific loan; or
             330          (ii) credit transaction.
             331          [(39)] (40) "Creditor" means a person, including an insured, having a claim, whether:
             332          (a) matured;
             333          (b) unmatured;
             334          (c) liquidated;
             335          (d) unliquidated;


             336          (e) secured;
             337          (f) unsecured;
             338          (g) absolute;
             339          (h) fixed; or
             340          (i) contingent.
             341          [(40)] (41) (a) "Customer service representative" means a person that provides an
             342      insurance service and insurance product information:
             343          (i) for the customer service representative's:
             344          (A) producer; or
             345          (B) consultant employer; and
             346          (ii) to the customer service representative's employer's:
             347          (A) customer;
             348          (B) client; or
             349          (C) organization.
             350          (b) A customer service representative may only operate within the scope of authority of
             351      the customer service representative's producer or consultant employer.
             352          [(41)] (42) "Deadline" means a final date or time:
             353          (a) imposed by:
             354          (i) statute;
             355          (ii) rule; or
             356          (iii) order; and
             357          (b) by which a required filing or payment must be received by the department.
             358          [(42)] (43) "Deemer clause" means a provision under this title under which upon the
             359      occurrence of a condition precedent, the commissioner is considered to have taken a specific
             360      action. If the statute so provides, a condition precedent may be the commissioner's failure to
             361      take a specific action.
             362          [(43)] (44) "Degree of relationship" means the number of steps between two persons
             363      determined by counting the generations separating one person from a common ancestor and
             364      then counting the generations to the other person.
             365          [(44)] (45) "Department" means the Insurance Department.
             366          [(45)] (46) "Director" means a member of the board of directors of a corporation.


             367          [(46)] (47) "Disability" means a physiological or psychological condition that partially
             368      or totally limits an individual's ability to:
             369          (a) perform the duties of:
             370          (i) that individual's occupation; or
             371          (ii) any occupation for which the individual is reasonably suited by education, training,
             372      or experience; or
             373          (b) perform two or more of the following basic activities of daily living:
             374          (i) eating;
             375          (ii) toileting;
             376          (iii) transferring;
             377          (iv) bathing; or
             378          (v) dressing.
             379          [(47)] (48) "Disability income insurance" is defined in Subsection [(76)] (78).
             380          [(48)] (49) "Domestic insurer" means an insurer organized under the laws of this state.
             381          [(49)] (50) "Domiciliary state" means the state in which an insurer:
             382          (a) is incorporated;
             383          (b) is organized; or
             384          (c) in the case of an alien insurer, enters into the United States.
             385          [(50)] (51) (a) "Eligible employee" means:
             386          (i) an employee who:
             387          (A) works on a full-time basis; and
             388          (B) has a normal work week of 30 or more hours; or
             389          (ii) a person described in Subsection [(50)] (51)(b).
             390          (b) "Eligible employee" includes, if the individual is included under a health benefit
             391      plan of a small employer:
             392          (i) a sole proprietor;
             393          (ii) a partner in a partnership; or
             394          (iii) an independent contractor.
             395          (c) "Eligible employee" does not include, unless eligible under Subsection [(50)]
             396      (51)(b):
             397          (i) an individual who works on a temporary or substitute basis for a small employer;


             398          (ii) an employer's spouse; or
             399          (iii) a dependent of an employer.
             400          [(51)] (52) "Employee" means an individual employed by an employer.
             401          [(52)] (53) "Employee benefits" means one or more benefits or services provided to:
             402          (a) an employee; or
             403          (b) a dependent of an employee.
             404          [(53)] (54) (a) "Employee welfare fund" means a fund:
             405          (i) established or maintained, whether directly or through a trustee, by:
             406          (A) one or more employers;
             407          (B) one or more labor organizations; or
             408          (C) a combination of employers and labor organizations; and
             409          (ii) that provides employee benefits paid or contracted to be paid, other than income
             410      from investments of the fund:
             411          (A) by or on behalf of an employer doing business in this state; or
             412          (B) for the benefit of a person employed in this state.
             413          (b) "Employee welfare fund" includes a plan funded or subsidized by a user fee or tax
             414      revenues.
             415          [(54)] (55) "Endorsement" means a written agreement attached to a policy or certificate
             416      to modify the policy or certificate coverage.
             417          [(55)] (56) "Enrollment date," with respect to a health benefit plan, means:
             418          (a) the first day of coverage; or
             419          (b) if there is a waiting period, the first day of the waiting period.
             420          [(56)] (57) (a) "Escrow" means:
             421          (i) a real estate settlement or real estate closing conducted by a third party pursuant to
             422      the requirements of a written agreement between the parties in a real estate transaction; or
             423          (ii) a settlement or closing involving:
             424          (A) a mobile home;
             425          (B) a grazing right;
             426          (C) a water right; or
             427          (D) other personal property authorized by the commissioner.
             428          (b) "Escrow" includes the act of conducting a:


             429          (i) real estate settlement; or
             430          (ii) real estate closing.
             431          [(57)] (58) "Escrow agent" means:
             432          (a) an insurance producer with:
             433          (i) a title insurance line of authority; and
             434          (ii) an escrow subline of authority; or
             435          (b) a person defined as an escrow agent in Section 7-22-101 .
             436          [(58)] (59) (a) "Excludes" is not exhaustive and does not mean that another thing is not
             437      also excluded.
             438          (b) The items listed in a list using the term "excludes" are representative examples for
             439      use in interpretation of this title.
             440          [(59)] (60) "Exclusion" means for the purposes of accident and health insurance that an
             441      insurer does not provide insurance coverage, for whatever reason, for one of the following:
             442          (a) a specific physical condition;
             443          (b) a specific medical procedure;
             444          (c) a specific disease or disorder; or
             445          (d) a specific prescription drug or class of prescription drugs.
             446          [(60)] (61) "Expense reimbursement insurance" means insurance:
             447          (a) written to provide a payment for an expense relating to hospital confinement
             448      resulting from illness or injury; and
             449          (b) written:
             450          (i) as a daily limit for a specific number of days in a hospital; and
             451          (ii) to have a one or two day waiting period following a hospitalization.
             452          [(61)] (62) "Fidelity insurance" means insurance guaranteeing the fidelity of a person
             453      holding a position of public or private trust.
             454          [(62)] (63) (a) "Filed" means that a filing is:
             455          (i) submitted to the department as required by and in accordance with applicable
             456      statute, rule, or filing order;
             457          (ii) received by the department within the time period provided in applicable statute,
             458      rule, or filing order; and
             459          (iii) accompanied by the appropriate fee in accordance with:


             460          (A) Section 31A-3-103 ; or
             461          (B) rule.
             462          (b) "Filed" does not include a filing that is rejected by the department because it is not
             463      submitted in accordance with Subsection [(62)] (63)(a).
             464          [(63)] (64) "Filing," when used as a noun, means an item required to be filed with the
             465      department including:
             466          (a) a policy;
             467          (b) a rate;
             468          (c) a form;
             469          (d) a document;
             470          (e) a plan;
             471          (f) a manual;
             472          (g) an application;
             473          (h) a report;
             474          (i) a certificate;
             475          (j) an endorsement;
             476          (k) an actuarial certification;
             477          (l) a licensee annual statement;
             478          (m) a licensee renewal application;
             479          (n) an advertisement; or
             480          (o) an outline of coverage.
             481          [(64)] (65) "First party insurance" means an insurance policy or contract in which the
             482      insurer agrees to pay a claim submitted to it by the insured for the insured's losses.
             483          [(65)] (66) "Foreign insurer" means an insurer domiciled outside of this state, including
             484      an alien insurer.
             485          [(66)] (67) (a) "Form" means one of the following prepared for general use:
             486          (i) a policy;
             487          (ii) a certificate;
             488          (iii) an application;
             489          (iv) an outline of coverage; or
             490          (v) an endorsement.


             491          (b) "Form" does not include a document specially prepared for use in an individual
             492      case.
             493          [(67)] (68) "Franchise insurance" means an individual insurance policy provided
             494      through a mass marketing arrangement involving a defined class of persons related in some
             495      way other than through the purchase of insurance.
             496          [(68)] (69) "General lines of authority" include:
             497          (a) the general lines of insurance in Subsection [(69)] (70);
             498          (b) title insurance under one of the following sublines of authority:
             499          (i) search, including authority to act as a title marketing representative;
             500          (ii) escrow, including authority to act as a title marketing representative; and
             501          (iii) title marketing representative only;
             502          (c) surplus lines;
             503          (d) workers' compensation; and
             504          (e) any other line of insurance that the commissioner considers necessary to recognize
             505      in the public interest.
             506          [(69)] (70) "General lines of insurance" include:
             507          (a) accident and health;
             508          (b) casualty;
             509          (c) life;
             510          (d) personal lines;
             511          (e) property; and
             512          (f) variable contracts, including variable life and annuity.
             513          [(70)] (71) "Group health plan" means an employee welfare benefit plan to the extent
             514      that the plan provides medical care:
             515          (a) (i) to an employee; or
             516          (ii) to a dependent of an employee; and
             517          (b) (i) directly;
             518          (ii) through insurance reimbursement; or
             519          (iii) through another method.
             520          [(71)] (72) (a) "Group insurance policy" means a policy covering a group of persons
             521      that is issued:


             522          (i) to a policyholder on behalf of the group; and
             523          (ii) for the benefit of a member of the group who is selected under a procedure defined
             524      in:
             525          (A) the policy; or
             526          (B) an agreement that is collateral to the policy.
             527          (b) A group insurance policy may include a member of the policyholder's family or a
             528      dependent.
             529          [(72)] (73) "Guaranteed automobile protection insurance" means insurance offered in
             530      connection with an extension of credit that pays the difference in amount between the
             531      insurance settlement and the balance of the loan if the insured automobile is a total loss.
             532          [(73)] (74) (a) Except as provided in Subsection [(73)] (74)(b), "health benefit plan"
             533      means a policy or certificate that:
             534          (i) provides health care insurance;
             535          (ii) provides major medical expense insurance; or
             536          (iii) is offered as a substitute for hospital or medical expense insurance, such as:
             537          (A) a hospital confinement indemnity; or
             538          (B) a limited benefit plan.
             539          (b) "Health benefit plan" does not include a policy or certificate that:
             540          (i) provides benefits solely for:
             541          (A) accident;
             542          (B) dental;
             543          (C) income replacement;
             544          (D) long-term care;
             545          (E) a Medicare supplement;
             546          (F) a specified disease;
             547          (G) vision; or
             548          (H) a short-term limited duration; or
             549          (ii) is offered and marketed as supplemental health insurance.
             550          [(74)] (75) "Health care" means any of the following intended for use in the diagnosis,
             551      treatment, mitigation, or prevention of a human ailment or impairment:
             552          (a) a professional service;


             553          (b) a personal service;
             554          (c) a facility;
             555          (d) equipment;
             556          (e) a device;
             557          (f) supplies; or
             558          (g) medicine.
             559          [(75)] (76) (a) "Health care insurance" or "health insurance" means insurance
             560      providing:
             561          (i) a health care benefit; or
             562          (ii) payment of an incurred health care expense.
             563          (b) "Health care insurance" or "health insurance" does not include accident and health
             564      insurance providing a benefit for:
             565          (i) replacement of income;
             566          (ii) short-term accident;
             567          (iii) fixed indemnity;
             568          (iv) credit accident and health;
             569          (v) supplements to liability;
             570          (vi) workers' compensation;
             571          (vii) automobile medical payment;
             572          (viii) no-fault automobile;
             573          (ix) equivalent self-insurance; or
             574          (x) a type of accident and health insurance coverage that is a part of or attached to
             575      another type of policy.
             576          (77) "Health Insurance Portability and Accountability Act" means the Health Insurance
             577      Portability and Accountability Act of 1996, Pub. L. 104-191, 110 Stat. 1936, as amended.
             578          [(76)] (78) "Income replacement insurance" or "disability income insurance" means
             579      insurance written to provide payments to replace income lost from accident or sickness.
             580          [(77)] (79) "Indemnity" means the payment of an amount to offset all or part of an
             581      insured loss.
             582          [(78)] (80) "Independent adjuster" means an insurance adjuster required to be licensed
             583      under Section 31A-26-201 who engages in insurance adjusting as a representative of an insurer.


             584          [(79)] (81) "Independently procured insurance" means insurance procured under
             585      Section 31A-15-104 .
             586          [(80)] (82) "Individual" means a natural person.
             587          [(81)] (83) "Inland marine insurance" includes insurance covering:
             588          (a) property in transit on or over land;
             589          (b) property in transit over water by means other than boat or ship;
             590          (c) bailee liability;
             591          (d) fixed transportation property such as bridges, electric transmission systems, radio
             592      and television transmission towers and tunnels; and
             593          (e) personal and commercial property floaters.
             594          [(82)] (84) "Insolvency" means that:
             595          (a) an insurer is unable to pay its debts or meet its obligations as the debts and
             596      obligations mature;
             597          (b) an insurer's total adjusted capital is less than the insurer's mandatory control level
             598      RBC under Subsection 31A-17-601 (8)(c); or
             599          (c) an insurer is determined to be hazardous under this title.
             600          [(83)] (85) (a) "Insurance" means:
             601          (i) an arrangement, contract, or plan for the transfer of a risk or risks from one or more
             602      persons to one or more other persons; or
             603          (ii) an arrangement, contract, or plan for the distribution of a risk or risks among a
             604      group of persons that includes the person seeking to distribute that person's risk.
             605          (b) "Insurance" includes:
             606          (i) a risk distributing arrangement providing for compensation or replacement for
             607      damages or loss through the provision of a service or a benefit in kind;
             608          (ii) a contract of guaranty or suretyship entered into by the guarantor or surety as a
             609      business and not as merely incidental to a business transaction; and
             610          (iii) a plan in which the risk does not rest upon the person who makes an arrangement,
             611      but with a class of persons who have agreed to share the risk.
             612          [(84)] (86) "Insurance adjuster" means a person who directs the investigation,
             613      negotiation, or settlement of a claim under an insurance policy other than life insurance or an
             614      annuity, on behalf of an insurer, policyholder, or a claimant under an insurance policy.


             615          [(85)] (87) "Insurance business" or "business of insurance" includes:
             616          (a) providing health care insurance by an organization that is or is required to be
             617      licensed under this title;
             618          (b) providing a benefit to an employee in the event of a contingency not within the
             619      control of the employee, in which the employee is entitled to the benefit as a right, which
             620      benefit may be provided either:
             621          (i) by a single employer or by multiple employer groups; or
             622          (ii) through one or more trusts, associations, or other entities;
             623          (c) providing an annuity:
             624          (i) including an annuity issued in return for a gift; and
             625          (ii) except an annuity provided by a person specified in Subsections 31A-22-1305 (2)
             626      and (3);
             627          (d) providing the characteristic services of a motor club as outlined in Subsection
             628      [(113)] (115);
             629          (e) providing another person with insurance;
             630          (f) making as insurer, guarantor, or surety, or proposing to make as insurer, guarantor,
             631      or surety, a contract or policy of title insurance;
             632          (g) transacting or proposing to transact any phase of title insurance, including:
             633          (i) solicitation;
             634          (ii) negotiation preliminary to execution;
             635          (iii) execution of a contract of title insurance;
             636          (iv) insuring; and
             637          (v) transacting matters subsequent to the execution of the contract and arising out of
             638      the contract, including reinsurance; [and]
             639          [(vi)] (h) transacting or proposing a life settlement; and
             640          [(h)] (i) doing, or proposing to do, any business in substance equivalent to Subsections
             641      [(85)] (87)(a) through [(g)] (h) in a manner designed to evade this title.
             642          [(86)] (88) "Insurance consultant" or "consultant" means a person who:
             643          (a) advises another person about insurance needs and coverages;
             644          (b) is compensated by the person advised on a basis not directly related to the insurance
             645      placed; and


             646          (c) except as provided in Section 31A-23a-501 , is not compensated directly or
             647      indirectly by an insurer or producer for advice given.
             648          [(87)] (89) "Insurance holding company system" means a group of two or more
             649      affiliated persons, at least one of whom is an insurer.
             650          [(88)] (90) (a) "Insurance producer" or "producer" means a person licensed or required
             651      to be licensed under the laws of this state to sell, solicit, or negotiate insurance.
             652          [(b) With regards to the selling, soliciting, or negotiating of an insurance product to an
             653      insurance customer or an insured:]
             654          [(i) "producer] (b) (i) "Producer for the insurer" means a producer who is compensated
             655      directly or indirectly by an insurer for selling, soliciting, or negotiating [a] an insurance product
             656      of that insurer[; and].
             657          (ii) "Producer for the insurer" may be referred to as an "agent."
             658          [(ii) "producer] (c) (i) "Producer for the insured" means a producer who:
             659          (A) is compensated directly and only by an insurance customer or an insured; and
             660          (B) receives no compensation directly or indirectly from an insurer for selling,
             661      soliciting, or negotiating [a] an insurance product of that insurer to an insurance customer or
             662      insured.
             663          (ii) "Producer for the insured" may be referred to as a "broker."
             664          [(89)] (91) (a) "Insured" means a person to whom or for whose benefit an insurer
             665      makes a promise in an insurance policy and includes:
             666          (i) a policyholder;
             667          (ii) a subscriber;
             668          (iii) a member; and
             669          (iv) a beneficiary.
             670          (b) The definition in Subsection [(89)] (91)(a):
             671          (i) applies only to this title; and
             672          (ii) does not define the meaning of this word as used in an insurance policy or
             673      certificate.
             674          [(90)] (92) (a) "Insurer" means a person doing an insurance business as a principal
             675      including:
             676          (i) a fraternal benefit society;


             677          (ii) an issuer of a gift annuity other than an annuity specified in Subsections
             678      31A-22-1305 (2) and (3);
             679          (iii) a motor club;
             680          (iv) an employee welfare plan; and
             681          (v) a person purporting or intending to do an insurance business as a principal on that
             682      person's own account.
             683          (b) "Insurer" does not include a governmental entity to the extent the governmental
             684      entity is engaged in an activity described in Section 31A-12-107 .
             685          [(91)] (93) "Interinsurance exchange" is defined in Subsection [(142)] (144).
             686          [(92)] (94) "Involuntary unemployment insurance" means insurance:
             687          (a) offered in connection with an extension of credit; and
             688          (b) that provides indemnity if the debtor is involuntarily unemployed for payments
             689      coming due on a:
             690          (i) specific loan; or
             691          (ii) credit transaction.
             692          [(93)] (95) "Large employer," in connection with a health benefit plan, means an
             693      employer who, with respect to a calendar year and to a plan year:
             694          (a) employed an average of at least 51 eligible employees on each business day during
             695      the preceding calendar year; and
             696          (b) employs at least two employees on the first day of the plan year.
             697          [(94)] (96) "Late enrollee," with respect to an employer health benefit plan, means an
             698      individual whose enrollment is a late enrollment.
             699          [(95)] (97) "Late enrollment," with respect to an employer health benefit plan, means
             700      enrollment of an individual other than:
             701          (a) on the earliest date on which coverage can become effective for the individual
             702      under the terms of the plan; or
             703          (b) through special enrollment.
             704          [(96)] (98) (a) Except for a retainer contract or legal assistance described in Section
             705      31A-1-103 , "legal expense insurance" means insurance written to indemnify or pay for a
             706      specified legal expense.
             707          (b) "Legal expense insurance" includes an arrangement that creates a reasonable


             708      expectation of an enforceable right.
             709          (c) "Legal expense insurance" does not include the provision of, or reimbursement for,
             710      legal services incidental to other insurance coverage.
             711          [(97)] (99) (a) "Liability insurance" means insurance against liability:
             712          (i) for death, injury, or disability of a human being, or for damage to property,
             713      exclusive of the coverages under:
             714          (A) Subsection [(107)] (109) for medical malpractice insurance;
             715          (B) Subsection [(134)] (136) for professional liability insurance; and
             716          (C) Subsection [(168)] (170) for workers' compensation insurance;
             717          (ii) for a medical, hospital, surgical, and funeral benefit to a person other than the
             718      insured who is injured, irrespective of legal liability of the insured, when issued with or
             719      supplemental to insurance against legal liability for the death, injury, or disability of a human
             720      being, exclusive of the coverages under:
             721          (A) Subsection [(107)] (109) for medical malpractice insurance;
             722          (B) Subsection [(134)] (136) for professional liability insurance; and
             723          (C) Subsection [(168)] (170) for workers' compensation insurance;
             724          (iii) for loss or damage to property resulting from an accident to or explosion of a
             725      boiler, pipe, pressure container, machinery, or apparatus;
             726          (iv) for loss or damage to property caused by:
             727          (A) the breakage or leakage of a sprinkler, water pipe, or water container; or
             728          (B) water entering through a leak or opening in a building; or
             729          (v) for other loss or damage properly the subject of insurance not within another kind
             730      of insurance as defined in this chapter, if the insurance is not contrary to law or public policy.
             731          (b) "Liability insurance" includes:
             732          (i) vehicle liability insurance;
             733          (ii) residential dwelling liability insurance; and
             734          (iii) making inspection of, and issuing a certificate of inspection upon, an elevator,
             735      boiler, machinery, or apparatus of any kind when done in connection with insurance on the
             736      elevator, boiler, machinery, or apparatus.
             737          [(98)] (100) (a) "License" means authorization issued by the commissioner to engage in
             738      an activity that is part of or related to the insurance business.


             739          (b) "License" includes a certificate of authority issued to an insurer.
             740          [(99)] (101) (a) "Life insurance" means:
             741          (i) insurance on a human life; and
             742          (ii) insurance pertaining to or connected with human life.
             743          (b) The business of life insurance includes:
             744          (i) granting a death benefit;
             745          (ii) granting an annuity benefit;
             746          (iii) granting an endowment benefit;
             747          (iv) granting an additional benefit in the event of death by accident;
             748          (v) granting an additional benefit to safeguard the policy against lapse; and
             749          (vi) providing an optional method of settlement of proceeds.
             750          [(100)] (102) "Limited license" means a license that:
             751          (a) is issued for a specific product of insurance; and
             752          (b) limits an individual or agency to transact only for that product or insurance.
             753          [(101)] (103) "Limited line credit insurance" includes the following forms of
             754      insurance:
             755          (a) credit life;
             756          (b) credit accident and health;
             757          (c) credit property;
             758          (d) credit unemployment;
             759          (e) involuntary unemployment;
             760          (f) mortgage life;
             761          (g) mortgage guaranty;
             762          (h) mortgage accident and health;
             763          (i) guaranteed automobile protection; and
             764          (j) another form of insurance offered in connection with an extension of credit that:
             765          (i) is limited to partially or wholly extinguishing the credit obligation; and
             766          (ii) the commissioner determines by rule should be designated as a form of limited line
             767      credit insurance.
             768          [(102)] (104) "Limited line credit insurance producer" means a person who sells,
             769      solicits, or negotiates one or more forms of limited line credit insurance coverage to an


             770      individual through a master, corporate, group, or individual policy.
             771          [(103)] (105) "Limited line insurance" includes:
             772          (a) bail bond;
             773          (b) limited line credit insurance;
             774          (c) legal expense insurance;
             775          (d) motor club insurance;
             776          (e) [rental car-related] car rental related insurance;
             777          (f) travel insurance;
             778          (g) crop insurance;
             779          (h) self-service storage insurance; [and]
             780          (i) guaranteed asset protection waiver; and
             781          [(i)] (j) another form of limited insurance that the commissioner determines by rule
             782      should be designated a form of limited line insurance.
             783          [(104)] (106) "Limited lines authority" includes:
             784          (a) the lines of insurance listed in Subsection [(103)] (105); and
             785          (b) a customer service representative.
             786          [(105)] (107) "Limited lines producer" means a person who sells, solicits, or negotiates
             787      limited lines insurance.
             788          [(106)] (108) (a) "Long-term care insurance" means an insurance policy or rider
             789      advertised, marketed, offered, or designated to provide coverage:
             790          (i) in a setting other than an acute care unit of a hospital;
             791          (ii) for not less than 12 consecutive months for a covered person on the basis of:
             792          (A) expenses incurred;
             793          (B) indemnity;
             794          (C) prepayment; or
             795          (D) another method;
             796          (iii) for one or more necessary or medically necessary services that are:
             797          (A) diagnostic;
             798          (B) preventative;
             799          (C) therapeutic;
             800          (D) rehabilitative;


             801          (E) maintenance; or
             802          (F) personal care; and
             803          (iv) that may be issued by:
             804          (A) an insurer;
             805          (B) a fraternal benefit society;
             806          (C) (I) a nonprofit health hospital; and
             807          (II) a medical service corporation;
             808          (D) a prepaid health plan;
             809          (E) a health maintenance organization; or
             810          (F) an entity similar to the entities described in Subsections [(106)] (108)(a)(iv)(A)
             811      through (E) to the extent that the entity is otherwise authorized to issue life or health care
             812      insurance.
             813          (b) "Long-term care insurance" includes:
             814          (i) any of the following that provide directly or supplement long-term care insurance:
             815          (A) a group or individual annuity or rider; or
             816          (B) a life insurance policy or rider;
             817          (ii) a policy or rider that provides for payment of benefits on the basis of:
             818          (A) cognitive impairment; or
             819          (B) functional capacity; or
             820          (iii) a qualified long-term care insurance contract.
             821          (c) "Long-term care insurance" does not include:
             822          (i) a policy that is offered primarily to provide basic Medicare supplement coverage;
             823          (ii) basic hospital expense coverage;
             824          (iii) basic medical/surgical expense coverage;
             825          (iv) hospital confinement indemnity coverage;
             826          (v) major medical expense coverage;
             827          (vi) income replacement or related asset-protection coverage;
             828          (vii) accident only coverage;
             829          (viii) coverage for a specified:
             830          (A) disease; or
             831          (B) accident;


             832          (ix) limited benefit health coverage; or
             833          (x) a life insurance policy that accelerates the death benefit to provide the option of a
             834      lump sum payment:
             835          (A) if the following are not conditioned on the receipt of long-term care:
             836          (I) benefits; or
             837          (II) eligibility; and
             838          (B) the coverage is for one or more the following qualifying events:
             839          (I) terminal illness;
             840          (II) medical conditions requiring extraordinary medical intervention; or
             841          (III) permanent institutional confinement.
             842          [(107)] (109) "Medical malpractice insurance" means insurance against legal liability
             843      incident to the practice and provision of a medical service other than the practice and provision
             844      of a dental service.
             845          [(108)] (110) "Member" means a person having membership rights in an insurance
             846      corporation.
             847          [(109)] (111) "Minimum capital" or "minimum required capital" means the capital that
             848      must be constantly maintained by a stock insurance corporation as required by statute.
             849          [(110)] (112) "Mortgage accident and health insurance" means insurance offered in
             850      connection with an extension of credit that provides indemnity for payments coming due on a
             851      mortgage while the debtor is disabled.
             852          [(111)] (113) "Mortgage guaranty insurance" means surety insurance under which a
             853      mortgagee or other creditor is indemnified against losses caused by the default of a debtor.
             854          [(112)] (114) "Mortgage life insurance" means insurance on the life of a debtor in
             855      connection with an extension of credit that pays if the debtor dies.
             856          [(113)] (115) "Motor club" means a person:
             857          (a) licensed under:
             858          (i) Chapter 5, Domestic Stock and Mutual Insurance Corporations;
             859          (ii) Chapter 11, Motor Clubs; or
             860          (iii) Chapter 14, Foreign Insurers; and
             861          (b) that promises for an advance consideration to provide for a stated period of time
             862      one or more:


             863          (i) legal services under Subsection 31A-11-102 (1)(b);
             864          (ii) bail services under Subsection 31A-11-102 (1)(c); or
             865          (iii) (A) trip reimbursement;
             866          (B) towing services;
             867          (C) emergency road services;
             868          (D) stolen automobile services;
             869          (E) a combination of the services listed in Subsections [(113)] (115)(b)(iii)(A) through
             870      (D); or
             871          (F) other services given in Subsections 31A-11-102 (1)(b) through (f).
             872          [(114)] (116) "Mutual" means a mutual insurance corporation.
             873          [(115)] (117) "Network plan" means health care insurance:
             874          (a) that is issued by an insurer; and
             875          (b) under which the financing and delivery of medical care is provided, in whole or in
             876      part, through a defined set of providers under contract with the insurer, including the financing
             877      and delivery of an item paid for as medical care.
             878          [(116)] (118) "Nonparticipating" means a plan of insurance under which the insured is
             879      not entitled to receive a dividend representing a share of the surplus of the insurer.
             880          [(117)] (119) "Ocean marine insurance" means insurance against loss of or damage to:
             881          (a) ships or hulls of ships;
             882          (b) goods, freight, cargoes, merchandise, effects, disbursements, profits, money,
             883      securities, choses in action, evidences of debt, valuable papers, bottomry, respondentia
             884      interests, or other cargoes in or awaiting transit over the oceans or inland waterways;
             885          (c) earnings such as freight, passage money, commissions, or profits derived from
             886      transporting goods or people upon or across the oceans or inland waterways; or
             887          (d) a vessel owner or operator as a result of liability to employees, passengers, bailors,
             888      owners of other vessels, owners of fixed objects, customs or other authorities, or other persons
             889      in connection with maritime activity.
             890          [(118)] (120) "Order" means an order of the commissioner.
             891          [(119)] (121) "Outline of coverage" means a summary that explains an accident and
             892      health insurance policy.
             893          [(120)] (122) "Participating" means a plan of insurance under which the insured is


             894      entitled to receive a dividend representing a share of the surplus of the insurer.
             895          [(121)] (123) "Participation," as used in a health benefit plan, means a requirement
             896      relating to the minimum percentage of eligible employees that must be enrolled in relation to
             897      the total number of eligible employees of an employer reduced by each eligible employee who
             898      voluntarily declines coverage under the plan because the employee:
             899          (a) has other group health care insurance coverage; or
             900          (b) receives:
             901          (i) Medicare, under the Health Insurance for the Aged Act, Title XVIII of the Social
             902      Security Amendments of 1965; or
             903          (ii) another government health benefit.
             904          [(122)] (124) "Person" includes:
             905          (a) an individual;
             906          (b) a partnership;
             907          (c) a corporation;
             908          (d) an incorporated or unincorporated association;
             909          (e) a joint stock company;
             910          (f) a trust;
             911          (g) a limited liability company;
             912          (h) a reciprocal;
             913          (i) a syndicate; or
             914          (j) another similar entity or combination of entities acting in concert.
             915          [(123)] (125) "Personal lines insurance" means property and casualty insurance
             916      coverage sold for primarily noncommercial purposes to:
             917          (a) an individual; or
             918          (b) a family.
             919          [(124)] (126) "Plan sponsor" is as defined in 29 U.S.C. Sec. 1002(16)(B).
             920          [(125)] (127) "Plan year" means:
             921          (a) the year that is designated as the plan year in:
             922          (i) the plan document of a group health plan; or
             923          (ii) a summary plan description of a group health plan;
             924          (b) if the plan document or summary plan description does not designate a plan year or


             925      there is no plan document or summary plan description:
             926          (i) the year used to determine deductibles or limits;
             927          (ii) the policy year, if the plan does not impose deductibles or limits on a yearly basis;
             928      or
             929          (iii) the employer's taxable year if:
             930          (A) the plan does not impose deductibles or limits on a yearly basis; and
             931          (B) (I) the plan is not insured; or
             932          (II) the insurance policy is not renewed on an annual basis; or
             933          (c) in a case not described in Subsection [(125)] (127)(a) or (b), the calendar year.
             934          [(126)] (128) (a) "Policy" means a document, including an attached endorsement or
             935      application that:
             936          (i) purports to be an enforceable contract; and
             937          (ii) memorializes in writing some or all of the terms of an insurance contract.
             938          (b) "Policy" includes a service contract issued by:
             939          (i) a motor club under Chapter 11, Motor Clubs;
             940          (ii) a service contract provided under Chapter 6a, Service Contracts; and
             941          (iii) a corporation licensed under:
             942          (A) Chapter 7, Nonprofit Health Service Insurance Corporations; or
             943          (B) Chapter 8, Health Maintenance Organizations and Limited Health Plans.
             944          (c) "Policy" does not include:
             945          (i) a certificate under a group insurance contract; or
             946          (ii) a document that does not purport to have legal effect.
             947          [(127)] (129) "Policyholder" means a person who controls a policy, binder, or oral
             948      contract by ownership, premium payment, or otherwise.
             949          [(128)] (130) "Policy illustration" means a presentation or depiction that includes
             950      nonguaranteed elements of a policy of life insurance over a period of years.
             951          [(129)] (131) "Policy summary" means a synopsis describing the elements of a life
             952      insurance policy.
             953          [(130)] (132) "Preexisting condition," with respect to a health benefit plan:
             954          (a) means a condition that was present before the effective date of coverage, whether or
             955      not medical advice, diagnosis, care, or treatment was recommended or received before that day;


             956      and
             957          (b) does not include a condition indicated by genetic information unless an actual
             958      diagnosis of the condition by a physician has been made.
             959          [(131)] (133) (a) "Premium" means the monetary consideration for an insurance policy.
             960          (b) "Premium" includes, however designated:
             961          (i) an assessment;
             962          (ii) a membership fee;
             963          (iii) a required contribution; or
             964          (iv) monetary consideration.
             965          (c) (i) "Premium" does not include consideration paid to a third party administrator for
             966      the third party administrator's services.
             967          (ii) "Premium" includes an amount paid by a third party administrator to an insurer for
             968      insurance on the risks administered by the third party administrator.
             969          [(132)] (134) "Principal officers" for a corporation means the officers designated under
             970      Subsection 31A-5-203 (3).
             971          [(133)] (135) "Proceeding" includes an action or special statutory proceeding.
             972          [(134)] (136) "Professional liability insurance" means insurance against legal liability
             973      incident to the practice of a profession and provision of a professional service.
             974          [(135)] (137) (a) Except as provided in Subsection [(135)] (137)(b), "property
             975      insurance" means insurance against loss or damage to real or personal property of every kind
             976      and any interest in that property:
             977          (i) from all hazards or causes; and
             978          (ii) against loss consequential upon the loss or damage including vehicle
             979      comprehensive and vehicle physical damage coverages.
             980          (b) "Property insurance" does not include:
             981          (i) inland marine insurance; and
             982          (ii) ocean marine insurance.
             983          [(136)] (138) "Qualified long-term care insurance contract" or "federally tax qualified
             984      long-term care insurance contract" means:
             985          (a) an individual or group insurance contract that meets the requirements of Section
             986      7702B(b), Internal Revenue Code; or


             987          (b) the portion of a life insurance contract that provides long-term care insurance:
             988          (i) (A) by rider; or
             989          (B) as a part of the contract; and
             990          (ii) that satisfies the requirements of Sections 7702B(b) and (e), Internal Revenue
             991      Code.
             992          [(137)] (139) "Qualified United States financial institution" means an institution that:
             993          (a) is:
             994          (i) organized under the laws of the United States or any state; or
             995          (ii) in the case of a United States office of a foreign banking organization, licensed
             996      under the laws of the United States or any state;
             997          (b) is regulated, supervised, and examined by a United States federal or state authority
             998      having regulatory authority over a bank or trust company; and
             999          (c) meets the standards of financial condition and standing that are considered
             1000      necessary and appropriate to regulate the quality of a financial institution whose letters of credit
             1001      will be acceptable to the commissioner as determined by:
             1002          (i) the commissioner by rule; or
             1003          (ii) the Securities Valuation Office of the National Association of Insurance
             1004      Commissioners.
             1005          [(138)] (140) (a) "Rate" means:
             1006          (i) the cost of a given unit of insurance; or
             1007          (ii) for property or casualty insurance, that cost of insurance per exposure unit either
             1008      expressed as:
             1009          (A) a single number; or
             1010          (B) a pure premium rate, adjusted before the application of individual risk variations
             1011      based on loss or expense considerations to account for the treatment of:
             1012          (I) expenses;
             1013          (II) profit; and
             1014          (III) individual insurer variation in loss experience.
             1015          (b) "Rate" does not include a minimum premium.
             1016          [(139)] (141) (a) Except as provided in Subsection [(139)] (141)(b), "rate service
             1017      organization" means a person who assists an insurer in rate making or filing by:


             1018          (i) collecting, compiling, and furnishing loss or expense statistics;
             1019          (ii) recommending, making, or filing rates or supplementary rate information; or
             1020          (iii) advising about rate questions, except as an attorney giving legal advice.
             1021          (b) "Rate service organization" does not mean:
             1022          (i) an employee of an insurer;
             1023          (ii) a single insurer or group of insurers under common control;
             1024          (iii) a joint underwriting group; or
             1025          (iv) an individual serving as an actuarial or legal consultant.
             1026          [(140)] (142) "Rating manual" means any of the following used to determine initial and
             1027      renewal policy premiums:
             1028          (a) a manual of rates;
             1029          (b) a classification;
             1030          (c) a rate-related underwriting rule; and
             1031          (d) a rating formula that describes steps, policies, and procedures for determining
             1032      initial and renewal policy premiums.
             1033          [(141)] (143) "Received by the department" means:
             1034          (a) the date delivered to and stamped received by the department, if delivered in
             1035      person;
             1036          (b) the post mark date, if delivered by mail;
             1037          (c) the delivery service's post mark or pickup date, if delivered by a delivery service;
             1038          (d) the received date recorded on an item delivered, if delivered by:
             1039          (i) facsimile;
             1040          (ii) email; or
             1041          (iii) another electronic method; or
             1042          (e) a date specified in:
             1043          (i) a statute;
             1044          (ii) a rule; or
             1045          (iii) an order.
             1046          [(142)] (144) "Reciprocal" or "interinsurance exchange" means an unincorporated
             1047      association of persons:
             1048          (a) operating through an attorney-in-fact common to all of the persons; and


             1049          (b) exchanging insurance contracts with one another that provide insurance coverage
             1050      on each other.
             1051          [(143)] (145) "Reinsurance" means an insurance transaction where an insurer, for
             1052      consideration, transfers any portion of the risk it has assumed to another insurer. In referring to
             1053      reinsurance transactions, this title sometimes refers to:
             1054          (a) the insurer transferring the risk as the "ceding insurer"; and
             1055          (b) the insurer assuming the risk as the:
             1056          (i) "assuming insurer"; or
             1057          (ii) "assuming reinsurer."
             1058          [(144)] (146) "Reinsurer" means a person licensed in this state as an insurer with the
             1059      authority to assume reinsurance.
             1060          [(145)] (147) "Residential dwelling liability insurance" means insurance against
             1061      liability resulting from or incident to the ownership, maintenance, or use of a residential
             1062      dwelling that is a detached single family residence or multifamily residence up to four units.
             1063          [(146)] (148) (a) "Retrocession" means reinsurance with another insurer of a liability
             1064      assumed under a reinsurance contract.
             1065          (b) A reinsurer "retrocedes" when the reinsurer reinsures with another insurer part of a
             1066      liability assumed under a reinsurance contract.
             1067          [(147)] (149) "Rider" means an endorsement to:
             1068          (a) an insurance policy; or
             1069          (b) an insurance certificate.
             1070          [(148)] (150) (a) "Security" means a:
             1071          (i) note;
             1072          (ii) stock;
             1073          (iii) bond;
             1074          (iv) debenture;
             1075          (v) evidence of indebtedness;
             1076          (vi) certificate of interest or participation in a profit-sharing agreement;
             1077          (vii) collateral-trust certificate;
             1078          (viii) preorganization certificate or subscription;
             1079          (ix) transferable share;


             1080          (x) investment contract;
             1081          (xi) voting trust certificate;
             1082          (xii) certificate of deposit for a security;
             1083          (xiii) certificate of interest of participation in an oil, gas, or mining title or lease or in
             1084      payments out of production under such a title or lease;
             1085          (xiv) commodity contract or commodity option;
             1086          (xv) certificate of interest or participation in, temporary or interim certificate for,
             1087      receipt for, guarantee of, or warrant or right to subscribe to or purchase any of the items listed
             1088      in Subsections [(148)] (150)(a)(i) through (xiv); or
             1089          (xvi) another interest or instrument commonly known as a security.
             1090          (b) "Security" does not include:
             1091          (i) any of the following under which an insurance company promises to pay money in a
             1092      specific lump sum or periodically for life or some other specified period:
             1093          (A) insurance;
             1094          (B) an endowment policy; or
             1095          (C) an annuity contract; or
             1096          (ii) a burial certificate or burial contract.
             1097          [(149)] (151) "Secondary medical condition" means a complication related to an
             1098      exclusion from coverage in accident and health insurance.
             1099          [(150)] (152) (a) "Self-insurance" means an arrangement under which a person
             1100      provides for spreading its own risks by a systematic plan.
             1101          [(a)] (b) Except as provided in this Subsection [(150)] (152), "self-insurance" does not
             1102      include an arrangement under which a number of persons spread their risks among themselves.
             1103          [(b)] (c) "Self-insurance" includes:
             1104          (i) an arrangement by which a governmental entity undertakes to indemnify an
             1105      employee for liability arising out of the employee's employment; and
             1106          (ii) an arrangement by which a person with a managed program of self-insurance and
             1107      risk management undertakes to indemnify its affiliates, subsidiaries, directors, officers, or
             1108      employees for liability or risk that is related to the relationship or employment.
             1109          [(c)] (d) "Self-insurance" does not include an arrangement with an independent
             1110      contractor.


             1111          [(151)] (153) "Sell" means to exchange a contract of insurance:
             1112          (a) by any means;
             1113          (b) for money or its equivalent; and
             1114          (c) on behalf of an insurance company.
             1115          [(152)] (154) "Short-term care insurance" means an insurance policy or rider
             1116      advertised, marketed, offered, or designed to provide coverage that is similar to long-term care
             1117      insurance, but that provides coverage for less than 12 consecutive months for each covered
             1118      person.
             1119          [(153)] (155) "Significant break in coverage" means a period of 63 consecutive days
             1120      during each of which an individual does not have creditable coverage.
             1121          [(154)] (156) "Small employer," in connection with a health benefit plan, means an
             1122      employer who, with respect to a calendar year and to a plan year:
             1123          (a) employed an average of at least two employees but not more than 50 eligible
             1124      employees on each business day during the preceding calendar year; and
             1125          (b) employs at least two employees on the first day of the plan year.
             1126          [(155)] (157) "Special enrollment period," in connection with a health benefit plan, has
             1127      the same meaning as provided in federal regulations adopted pursuant to the Health Insurance
             1128      Portability and Accountability Act [of 1996, Pub. L. 104-191, 110 Stat. 1936].
             1129          [(156)] (158) (a) "Subsidiary" of a person means an affiliate controlled by that person
             1130      either directly or indirectly through one or more affiliates or intermediaries.
             1131          (b) "Wholly owned subsidiary" of a person is a subsidiary of which all of the voting
             1132      shares are owned by that person either alone or with its affiliates, except for the minimum
             1133      number of shares the law of the subsidiary's domicile requires to be owned by directors or
             1134      others.
             1135          [(157)] (159) Subject to Subsection [(83)] (85)(b), "surety insurance" includes:
             1136          (a) a guarantee against loss or damage resulting from the failure of a principal to pay or
             1137      perform the principal's obligations to a creditor or other obligee;
             1138          (b) bail bond insurance; and
             1139          (c) fidelity insurance.
             1140          [(158)] (160) (a) "Surplus" means the excess of assets over the sum of paid-in capital
             1141      and liabilities.


             1142          (b) (i) "Permanent surplus" means the surplus of a mutual insurer that is designated by
             1143      the insurer as permanent.
             1144          (ii) Sections 31A-5-211 , 31A-7-201 , 31A-8-209 , 31A-9-209 , and 31A-14-209 require
             1145      that mutuals doing business in this state maintain specified minimum levels of permanent
             1146      surplus.
             1147          (iii) Except for assessable mutuals, the minimum permanent surplus requirement is the
             1148      same as the minimum required capital requirement that applies to stock insurers.
             1149          (c) "Excess surplus" means:
             1150          (i) for a life insurer, accident and health insurer, health organization, or property and
             1151      casualty insurer as defined in Section 31A-17-601 , the lesser of:
             1152          (A) that amount of an insurer's or health organization's total adjusted capital that
             1153      exceeds the product of:
             1154          (I) 2.5; and
             1155          (II) the sum of the insurer's or health organization's minimum capital or permanent
             1156      surplus required under Section 31A-5-211 , 31A-9-209 , or 31A-14-205 ; or
             1157          (B) that amount of an insurer's or health organization's total adjusted capital that
             1158      exceeds the product of:
             1159          (I) 3.0; and
             1160          (II) the authorized control level RBC as defined in Subsection 31A-17-601 (8)(a); and
             1161          (ii) for a monoline mortgage guaranty insurer, financial guaranty insurer, or title insurer
             1162      that amount of an insurer's paid-in-capital and surplus that exceeds the product of:
             1163          (A) 1.5; and
             1164          (B) the insurer's total adjusted capital required by Subsection 31A-17-609 (1).
             1165          [(159)] (161) "Third party administrator" or "administrator" means a person who
             1166      collects charges or premiums from, or who, for consideration, adjusts or settles claims of
             1167      residents of the state in connection with insurance coverage, annuities, or service insurance
             1168      coverage, except:
             1169          (a) a union on behalf of its members;
             1170          (b) a person administering a:
             1171          (i) pension plan subject to the federal Employee Retirement Income Security Act of
             1172      1974;


             1173          (ii) governmental plan as defined in Section 414(d), Internal Revenue Code; or
             1174          (iii) nonelecting church plan as described in Section 410(d), Internal Revenue Code;
             1175          (c) an employer on behalf of the employer's employees or the employees of one or
             1176      more of the subsidiary or affiliated corporations of the employer;
             1177          (d) an insurer licensed under [Chapter 5, 7, 8, 9, or 14] the following, but only for a
             1178      line of insurance for which the insurer holds a license in this state[; or]:
             1179          (i) Chapter 5, Domestic Stock and Mutual Insurance Corporations;
             1180          (ii) Chapter 7, Nonprofit Health Service Insurance Corporations;
             1181          (iii) Chapter 8, Health Maintenance Organizations and Limited Health Plans;
             1182          (iv) Chapter 9, Insurance Fraternals; or
             1183          (v) Chapter 14, Foreign Insurers; or
             1184          (e) a person:
             1185          (i) licensed or exempt from licensing under:
             1186          (A) Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and
             1187      Reinsurance Intermediaries; or
             1188          (B) Chapter 26, Insurance Adjusters; and
             1189          (ii) whose activities are limited to those authorized under the license the person holds
             1190      or for which the person is exempt.
             1191          [(160)] (162) "Title insurance" means the insuring, guaranteeing, or indemnifying of an
             1192      owner of real or personal property or the holder of liens or encumbrances on that property, or
             1193      others interested in the property against loss or damage suffered by reason of liens or
             1194      encumbrances upon, defects in, or the unmarketability of the title to the property, or invalidity
             1195      or unenforceability of any liens or encumbrances on the property.
             1196          [(161)] (163) "Total adjusted capital" means the sum of an insurer's or health
             1197      organization's statutory capital and surplus as determined in accordance with:
             1198          (a) the statutory accounting applicable to the annual financial statements required to be
             1199      filed under Section 31A-4-113 ; and
             1200          (b) another item provided by the RBC instructions, as RBC instructions is defined in
             1201      Section 31A-17-601 .
             1202          [(162)] (164) (a) "Trustee" means "director" when referring to the board of directors of
             1203      a corporation.


             1204          (b) "Trustee," when used in reference to an employee welfare fund, means an
             1205      individual, firm, association, organization, joint stock company, or corporation, whether acting
             1206      individually or jointly and whether designated by that name or any other, that is charged with
             1207      or has the overall management of an employee welfare fund.
             1208          [(163)] (165) (a) "Unauthorized insurer," "unadmitted insurer," or "nonadmitted
             1209      insurer" means an insurer:
             1210          (i) not holding a valid certificate of authority to do an insurance business in this state;
             1211      or
             1212          (ii) transacting business not authorized by a valid certificate.
             1213          (b) "Admitted insurer" or "authorized insurer" means an insurer:
             1214          (i) holding a valid certificate of authority to do an insurance business in this state; and
             1215          (ii) transacting business as authorized by a valid certificate.
             1216          [(164)] (166) "Underwrite" means the authority to accept or reject risk on behalf of the
             1217      insurer.
             1218          [(165)] (167) "Vehicle liability insurance" means insurance against liability resulting
             1219      from or incident to ownership, maintenance, or use of a land vehicle or aircraft, exclusive of a
             1220      vehicle comprehensive or vehicle physical damage coverage under Subsection [(135)] (137).
             1221          [(166)] (168) "Voting security" means a security with voting rights, and includes a
             1222      security convertible into a security with a voting right associated with the security.
             1223          [(167)] (169) "Waiting period" for a health benefit plan means the period that must
             1224      pass before coverage for an individual, who is otherwise eligible to enroll under the terms of
             1225      the health benefit plan, can become effective.
             1226          [(168)] (170) "Workers' compensation insurance" means:
             1227          (a) insurance for indemnification of an employer against liability for compensation
             1228      based on:
             1229          (i) a compensable accidental injury; and
             1230          (ii) occupational disease disability;
             1231          (b) employer's liability insurance incidental to workers' compensation insurance and
             1232      written in connection with workers' compensation insurance; and
             1233          (c) insurance assuring to a person entitled to workers' compensation benefits the
             1234      compensation provided by law.


             1235          Section 2. Section 31A-2-208 is amended to read:
             1236           31A-2-208. Publications.
             1237          (1) The commissioner may prepare and distribute books, pamphlets, and other
             1238      publications relating to insurance. Except as otherwise provided under this title, the
             1239      [insurance] commissioner may charge the cost of producing [the publications] a publication to
             1240      those desiring to receive [them] the publication. Money collected from subscription fees
             1241      charged for [these publications] a publication shall be deposited [as dedicated credits to be used
             1242      solely for the production and mailing costs of the publications] into the Relative Value Study
             1243      Restricted Account, created in Section 59-9-105 , to be used as provided in Section 59-9-105 .
             1244          (2) The commissioner shall have the annual report required in Subsection
             1245      31A-2-207 (5) printed:
             1246          (a) in a form determined by [him] the commissioner; and
             1247          (b) in sufficient numbers to meet [all] requests for copies.
             1248          (3) The commissioner shall publish in [his] the annual report required in Subsection
             1249      31A-2-207 (5) an up-to-date chart and explanation of the organization of [his] the
             1250      commissioner's office, making clear the allocation of responsibility and authority among the
             1251      staff. This [document] up-to-date chart and explanation shall be printed in sufficient numbers
             1252      [sufficient] to meet [all] requests for copies.
             1253          Section 3. Section 31A-2-212 is amended to read:
             1254           31A-2-212. Miscellaneous duties.
             1255          (1) Upon issuance of [any] an order limiting, suspending, or revoking [an insurer's] a
             1256      person's authority to do business in Utah, and [on institution of any proceedings] when the
             1257      commissioner begins a proceeding against [the] an insurer under Chapter 27a, Insurer
             1258      Receivership Act, the commissioner:
             1259          (a) shall notify by mail [all agents] the producers of the person or insurer of whom the
             1260      commissioner has record; and
             1261          (b) may publish notice of the order or proceeding in any manner the commissioner
             1262      considers necessary to protect the rights of the public.
             1263          (2) When required for evidence in [any] a legal proceeding, the commissioner shall
             1264      furnish a certificate of [the] authority of [any] a licensee to transact [insurance] the business of
             1265      insurance in Utah on any particular date. The court or other officer shall receive the certificate


             1266      of authority in lieu of the commissioner's testimony.
             1267          (3) (a) On the request of [any] an insurer authorized to do a surety business, the
             1268      commissioner shall furnish a copy of the insurer's certificate of authority to [any] a designated
             1269      public officer in this state who requires that certificate of authority before accepting a bond.
             1270          (b) The public officer described in Subsection (3)(a) shall file the certificate of
             1271      authority furnished under Subsection (3)(a).
             1272          (c) After a certified copy of a certificate of authority [has been] is furnished to a public
             1273      officer, it is not necessary, while the certificate of authority remains effective, to attach a copy
             1274      of it to any instrument of suretyship filed with that public officer.
             1275          (d) Whenever the commissioner revokes the certificate of authority or [starts
             1276      proceedings] begins a proceeding under Chapter 27a, Insurer Receivership Act, against [any]
             1277      an insurer authorized to do a surety business, the commissioner shall immediately give notice
             1278      of that action to each public officer who [was] is sent a certified copy under this Subsection (3).
             1279          (4) (a) The commissioner shall immediately notify every judge and clerk of [all] the
             1280      courts of record in the state when:
             1281          (i) an authorized insurer doing a surety business:
             1282          (A) files a petition for receivership; or
             1283          (B) is in receivership; or
             1284          (ii) the commissioner has reason to believe that the authorized insurer doing surety
             1285      business:
             1286          (A) is in financial difficulty; or
             1287          (B) has unreasonably failed to carry out any of its contracts.
             1288          (b) Upon the receipt of the notice required by this Subsection (4), it is the duty of the
             1289      judges and clerks to notify and require [every] a person that [has filed] files with the court a
             1290      bond on which the authorized insurer doing surety business is surety[,] to immediately file a
             1291      new bond with a new surety.
             1292          (5) The commissioner shall require an insurer that issues, sells, renews, or offers health
             1293      insurance coverage in this state to comply with the Health Insurance Portability and
             1294      Accountability Act[, P.L. 104-191, pursuant to 110 Stat. 1968, Sec. 2722].
             1295          Section 4. Section 31A-3-304 is amended to read:
             1296           31A-3-304. Annual fees -- Other taxes or fees prohibited -- Captive Insurance


             1297      Restricted Account.
             1298          (1) (a) A captive insurance company shall pay an annual fee imposed under this section
             1299      to obtain or renew a certificate of authority.
             1300          (b) The commissioner shall:
             1301          (i) determine the annual fee pursuant to Section 31A-3-103 ; and
             1302          (ii) consider whether the annual fee is competitive with fees imposed by other states on
             1303      captive insurance companies.
             1304          (2) A captive insurance company that fails to pay the fee required by this section is
             1305      subject to the relevant sanctions of this title.
             1306          (3) (a) Except as provided in Subsection (3)[(b)](d) and notwithstanding Title 59,
             1307      Chapter 9, Taxation of Admitted Insurers, [the fee provided for in this section constitutes the
             1308      sole tax or fee] the following constitute the sole taxes, fees, or charges under the laws of this
             1309      state that may be [otherwise] levied or assessed on a captive insurance company[, and no other
             1310      occupation tax or other tax or fee may be levied or collected from a captive insurance company
             1311      by the state or a county, city, or municipality within this state.]:
             1312          [(b) Notwithstanding Subsection (3)(a), a]
             1313          (i) a fee under this section;
             1314          (ii) a fee under Chapter 37, Captive Insurance Companies Act; and
             1315          (iii) a fee under Chapter 37a, Special Purpose Financial Captive Insurance Company
             1316      Act.
             1317          (b) The state or a county, city, or town within the state may not levy or collect an
             1318      occupation tax or other tax, fee, or charge not described in Subsections (3)(a)(i) through (iii)
             1319      against a captive insurance company.
             1320          (c) The state may not levy, assess, or collect a withdrawal fee under Section 31A-4-115
             1321      against a captive insurance company.
             1322          (d) A captive insurance company is subject to real and personal property taxes.
             1323          (4) A captive insurance company shall pay the fee imposed by this section to the
             1324      commissioner by [March 31] June 20 of each year.
             1325          (5) (a) Money received pursuant to [Subsection (2)] a fee described in Subsection
             1326      (3)(a) shall be deposited into the Captive Insurance Restricted Account.
             1327          (b) There is created in the General Fund a restricted account known as the "Captive


             1328      Insurance Restricted Account."
             1329          (c) The Captive Insurance Restricted Account shall consist of the fees [imposed by the
             1330      commissioner in accordance with this section] described in Subsection (3)(a).
             1331          (d) The commissioner shall administer the Captive Insurance Restricted Account.
             1332      Subject to appropriations by the Legislature, the commissioner shall use the money deposited
             1333      into the Captive Insurance Restricted Account to:
             1334          (i) administer and enforce:
             1335          (A) Chapter 37, Captive Insurance Companies Act; and
             1336          (B) Chapter 37a, Special Purpose Financial Captive Insurance Company Act; and
             1337          (ii) promote the captive insurance industry in Utah.
             1338          (e) An appropriation from the Captive Insurance Restricted Account is nonlapsing,
             1339      except that at the end of each fiscal year, money received by the commissioner in excess of
             1340      [$600,000] $950,000 shall be treated as free revenue in the General Fund.
             1341          Section 5. Section 31A-14-211 is amended to read:
             1342           31A-14-211. Restrictions on foreign title insurers.
             1343          (1) An authorized foreign title insurer may not insure property in this state except:
             1344          (a) through a title insurance producer who is a resident in Utah; or
             1345          (b) through a bona fide [branch] office in Utah:
             1346          (i) that is under the direction and control of the authorized foreign title insurer [that
             1347      pays all];
             1348          (ii) for which the authorized foreign title insurer pays the expenses [of the branch
             1349      office], including compensation of [all] the employees[; or] of the bona fide office;
             1350          (iii) at which a person may request information about title services related to a real
             1351      estate transaction for which the person is a party;
             1352          (iv) at which a person may deliver written communications to the authorized foreign
             1353      title insurer as required by the real estate transaction for which the person is a party; and
             1354          (v) at which a person may deliver escrow money related to a real estate transaction for
             1355      which the person is a party.
             1356          [(c) through a subsidiary title insurer authorized to do business in Utah.]
             1357          (2) This section does not apply to reinsurance.
             1358          Section 6. Section 31A-22-305 is amended to read:


             1359           31A-22-305. Uninsured motorist coverage.
             1360          (1) As used in this section, "covered persons" includes:
             1361          (a) the named insured;
             1362          (b) persons related to the named insured by blood, marriage, adoption, or guardianship,
             1363      who are residents of the named insured's household, including those who usually make their
             1364      home in the same household but temporarily live elsewhere;
             1365          (c) any person occupying or using a motor vehicle:
             1366          (i) referred to in the policy; or
             1367          (ii) owned by a self-insured; and
             1368          (d) any person who is entitled to recover damages against the owner or operator of the
             1369      uninsured or underinsured motor vehicle because of bodily injury to or death of persons under
             1370      Subsection (1)(a), (b), or (c).
             1371          (2) As used in this section, "uninsured motor vehicle" includes:
             1372          (a) (i) a motor vehicle, the operation, maintenance, or use of which is not covered
             1373      under a liability policy at the time of an injury-causing occurrence; or
             1374          (ii) (A) a motor vehicle covered with lower liability limits than required by Section
             1375      31A-22-304 ; and
             1376          (B) the motor vehicle described in Subsection (2)(a)(ii)(A) is uninsured to the extent of
             1377      the deficiency;
             1378          (b) an unidentified motor vehicle that left the scene of an accident proximately caused
             1379      by the motor vehicle operator;
             1380          (c) a motor vehicle covered by a liability policy, but coverage for an accident is
             1381      disputed by the liability insurer for more than 60 days or continues to be disputed for more than
             1382      60 days; or
             1383          (d) (i) an insured motor vehicle if, before or after the accident, the liability insurer of
             1384      the motor vehicle is declared insolvent by a court of competent jurisdiction; and
             1385          (ii) the motor vehicle described in Subsection (2)(d)(i) is uninsured only to the extent
             1386      that the claim against the insolvent insurer is not paid by a guaranty association or fund.
             1387          (3) (a) Uninsured motorist coverage under Subsection 31A-22-302 (1)(b) provides
             1388      coverage for covered persons who are legally entitled to recover damages from owners or
             1389      operators of uninsured motor vehicles because of bodily injury, sickness, disease, or death.


             1390          (b) For new policies written on or after January 1, 2001, the limits of uninsured
             1391      motorist coverage shall be equal to the lesser of the limits of the insured's motor vehicle
             1392      liability coverage or the maximum uninsured motorist coverage limits available by the insurer
             1393      under the insured's motor vehicle policy, unless the insured purchases coverage in a lesser
             1394      amount by signing an acknowledgment form that:
             1395          (i) is filed with the department;
             1396          (ii) is provided by the insurer;
             1397          (iii) waives the higher coverage;
             1398          (iv) reasonably explains the purpose of uninsured motorist coverage; and
             1399          (v) discloses the additional premiums required to purchase uninsured motorist
             1400      coverage with limits equal to the lesser of the limits of the insured's motor vehicle liability
             1401      coverage or the maximum uninsured motorist coverage limits available by the insurer under the
             1402      insured's motor vehicle policy.
             1403          (c) A self-insured, including a governmental entity, may elect to provide uninsured
             1404      motorist coverage in an amount that is less than its maximum self-insured retention under
             1405      Subsections (3)(b) and (4)(a) by issuing a declaratory memorandum or policy statement from
             1406      the chief financial officer or chief risk officer that declares the:
             1407          (i) self-insured entity's coverage level; and
             1408          (ii) process for filing an uninsured motorist claim.
             1409          (d) Uninsured motorist coverage may not be sold with limits that are less than the
             1410      minimum bodily injury limits for motor vehicle liability policies under Section 31A-22-304 .
             1411          (e) The acknowledgment under Subsection (3)(b) continues for that issuer of the
             1412      uninsured motorist coverage until the insured, in writing, requests different uninsured motorist
             1413      coverage from the insurer.
             1414          [(f) (i) In conjunction with the first two renewal notices sent after January 1, 2001, for
             1415      policies existing on that date, the insurer shall disclose in the same medium as the premium
             1416      renewal notice, an explanation of:]
             1417          [(A) the purpose of uninsured motorist coverage; and]
             1418          [(B) the costs associated with increasing the coverage in amounts up to and including
             1419      the maximum amount available by the insurer under the insured's motor vehicle policy.]
             1420          [(ii) The disclosure required under this Subsection (3)(f) shall be sent to all insureds


             1421      that carry uninsured motorist coverage limits in an amount less than the insured's motor vehicle
             1422      liability policy limits or the maximum uninsured motorist coverage limits available by the
             1423      insurer under the insured's motor vehicle policy.]
             1424          (4) (a) (i) Except as provided in Subsection (4)(b), the named insured may reject
             1425      uninsured motorist coverage by an express writing to the insurer that provides liability
             1426      coverage under Subsection 31A-22-302 (1)(a).
             1427          (ii) This rejection shall be on a form provided by the insurer that includes a reasonable
             1428      explanation of the purpose of uninsured motorist coverage.
             1429          (iii) This rejection continues for that issuer of the liability coverage until the insured in
             1430      writing requests uninsured motorist coverage from that liability insurer.
             1431          (b) (i) All persons, including governmental entities, that are engaged in the business of,
             1432      or that accept payment for, transporting natural persons by motor vehicle, and all school
             1433      districts that provide transportation services for their students, shall provide coverage for all
             1434      motor vehicles used for that purpose, by purchase of a policy of insurance or by self-insurance,
             1435      uninsured motorist coverage of at least $25,000 per person and $500,000 per accident.
             1436          (ii) This coverage is secondary to any other insurance covering an injured covered
             1437      person.
             1438          (c) Uninsured motorist coverage:
             1439          (i) is secondary to the benefits provided by Title 34A, Chapter 2, Workers'
             1440      Compensation Act;
             1441          (ii) may not be subrogated by the workers' compensation insurance carrier;
             1442          (iii) may not be reduced by any benefits provided by workers' compensation insurance;
             1443          (iv) may be reduced by health insurance subrogation only after the covered person has
             1444      been made whole;
             1445          (v) may not be collected for bodily injury or death sustained by a person:
             1446          (A) while committing a violation of Section 41-1a-1314 ;
             1447          (B) who, as a passenger in a vehicle, has knowledge that the vehicle is being operated
             1448      in violation of Section 41-1a-1314 ; or
             1449          (C) while committing a felony; and
             1450          (vi) notwithstanding Subsection (4)(c)(v), may be recovered:
             1451          (A) for a person under 18 years of age who is injured within the scope of Subsection


             1452      (4)(c)(v) but limited to medical and funeral expenses; or
             1453          (B) by a law enforcement officer as defined in Section 53-13-103 , who is injured
             1454      within the course and scope of the law enforcement officer's duties.
             1455          (d) As used in this Subsection (4), "motor vehicle" has the same meaning as under
             1456      Section 41-1a-102 .
             1457          (5) When a covered person alleges that an uninsured motor vehicle under Subsection
             1458      (2)(b) proximately caused an accident without touching the covered person or the motor
             1459      vehicle occupied by the covered person, the covered person must show the existence of the
             1460      uninsured motor vehicle by clear and convincing evidence consisting of more than the covered
             1461      person's testimony.
             1462          (6) (a) The limit of liability for uninsured motorist coverage for two or more motor
             1463      vehicles may not be added together, combined, or stacked to determine the limit of insurance
             1464      coverage available to an injured person for any one accident.
             1465          (b) (i) Subsection (6)(a) applies to all persons except a covered person as defined under
             1466      Subsection (7)(b)(ii).
             1467          (ii) A covered person as defined under Subsection (7)(b)(ii) is entitled to the highest
             1468      limits of uninsured motorist coverage afforded for any one motor vehicle that the covered
             1469      person is the named insured or an insured family member.
             1470          (iii) This coverage shall be in addition to the coverage on the motor vehicle the covered
             1471      person is occupying.
             1472          (iv) Neither the primary nor the secondary coverage may be set off against the other.
             1473          (c) Coverage on a motor vehicle occupied at the time of an accident shall be primary
             1474      coverage, and the coverage elected by a person described under Subsections (1)(a) and (b) shall
             1475      be secondary coverage.
             1476          (7) (a) Uninsured motorist coverage under this section applies to bodily injury,
             1477      sickness, disease, or death of covered persons while occupying or using a motor vehicle only if
             1478      the motor vehicle is described in the policy under which a claim is made, or if the motor
             1479      vehicle is a newly acquired or replacement motor vehicle covered under the terms of the policy.
             1480      Except as provided in Subsection (6) or this Subsection (7), a covered person injured in a
             1481      motor vehicle described in a policy that includes uninsured motorist benefits may not elect to
             1482      collect uninsured motorist coverage benefits from any other motor vehicle insurance policy


             1483      under which the person is a covered person.
             1484          (b) Each of the following persons may also recover uninsured motorist benefits under
             1485      any one other policy in which they are described as a "covered person" as defined in Subsection
             1486      (1):
             1487          (i) a covered person injured as a pedestrian by an uninsured motor vehicle; and
             1488          (ii) except as provided in Subsection (7)(c), a covered person injured while occupying
             1489      or using a motor vehicle that is not owned, leased, or furnished:
             1490          (A) to the covered person;
             1491          (B) to the covered person's spouse; or
             1492          (C) to the covered person's resident parent or resident sibling.
             1493          (c) (i) A covered person may recover benefits from no more than two additional
             1494      policies, one additional policy from each parent's household if the covered person is:
             1495          (A) a dependent minor of parents who reside in separate households; and
             1496          (B) injured while occupying or using a motor vehicle that is not owned, leased, or
             1497      furnished:
             1498          (I) to the covered person;
             1499          (II) to the covered person's resident parent; or
             1500          (III) to the covered person's resident sibling.
             1501          (ii) Each parent's policy under this Subsection (7)(c) is liable only for the percentage of
             1502      the damages that the limit of liability of each parent's policy of uninsured motorist coverage
             1503      bears to the total of both parents' uninsured coverage applicable to the accident.
             1504          (d) A covered person's recovery under any available policies may not exceed the full
             1505      amount of damages.
             1506          (e) A covered person in Subsection (7)(b) is not barred against making subsequent
             1507      elections if recovery is unavailable under previous elections.
             1508          (f) (i) As used in this section, "interpolicy stacking" means recovering benefits for a
             1509      single incident of loss under more than one insurance policy.
             1510          (ii) Except to the extent permitted by Subsection (6) and this Subsection (7),
             1511      interpolicy stacking is prohibited for uninsured motorist coverage.
             1512          (8) (a) When a claim is brought by a named insured or a person described in
             1513      Subsection (1) and is asserted against the covered person's uninsured motorist carrier, the


             1514      claimant may elect to resolve the claim:
             1515          (i) by submitting the claim to binding arbitration; or
             1516          (ii) through litigation.
             1517          (b) Unless otherwise provided in the policy under which uninsured benefits are
             1518      claimed, the election provided in Subsection (8)(a) is available to the claimant only.
             1519          (c) Once the claimant has elected to commence litigation under Subsection (8)(a)(ii),
             1520      the claimant may not elect to resolve the claim through binding arbitration under this section
             1521      without the written consent of the uninsured motorist carrier.
             1522          (d) (i) Unless otherwise agreed to in writing by the parties, a claim that is submitted to
             1523      binding arbitration under Subsection (8)(a)(i) shall be resolved by a single arbitrator.
             1524          (ii) All parties shall agree on the single arbitrator selected under Subsection (8)(d)(i).
             1525          (iii) If the parties are unable to agree on a single arbitrator as required under Subsection
             1526      (8)(d)(ii), the parties shall select a panel of three arbitrators.
             1527          (e) If the parties select a panel of three arbitrators under Subsection (8)(d)(iii):
             1528          (i) each side shall select one arbitrator; and
             1529          (ii) the arbitrators appointed under Subsection (8)(e)(i) shall select one additional
             1530      arbitrator to be included in the panel.
             1531          (f) Unless otherwise agreed to in writing:
             1532          (i) each party shall pay an equal share of the fees and costs of the arbitrator selected
             1533      under Subsection (8)(d)(i); or
             1534          (ii) if an arbitration panel is selected under Subsection (8)(d)(iii):
             1535          (A) each party shall pay the fees and costs of the arbitrator selected by that party; and
             1536          (B) each party shall pay an equal share of the fees and costs of the arbitrator selected
             1537      under Subsection (8)(e)(ii).
             1538          (g) Except as otherwise provided in this section or unless otherwise agreed to in
             1539      writing by the parties, an arbitration proceeding conducted under this section shall be governed
             1540      by Title 78B, Chapter 11, Utah Uniform Arbitration Act.
             1541          (h) The arbitration shall be conducted in accordance with Rules 26 through 37, 54, and
             1542      68 of the Utah Rules of Civil Procedure.
             1543          (i) All issues of discovery shall be resolved by the arbitrator or the arbitration panel.
             1544          (j) A written decision by a single arbitrator or by a majority of the arbitration panel


             1545      shall constitute a final decision.
             1546          (k) (i) The amount of an arbitration award may not exceed the uninsured motorist
             1547      policy limits of all applicable uninsured motorist policies, including applicable uninsured
             1548      motorist umbrella policies.
             1549          (ii) If the initial arbitration award exceeds the uninsured motorist policy limits of all
             1550      applicable uninsured motorist policies, the arbitration award shall be reduced to an amount
             1551      equal to the combined uninsured motorist policy limits of all applicable uninsured motorist
             1552      policies.
             1553          (l) The arbitrator or arbitration panel may not decide the issues of coverage or
             1554      extra-contractual damages, including:
             1555          (i) whether the claimant is a covered person;
             1556          (ii) whether the policy extends coverage to the loss; or
             1557          (iii) any allegations or claims asserting consequential damages or bad faith liability.
             1558          (m) The arbitrator or arbitration panel may not conduct arbitration on a class-wide or
             1559      class-representative basis.
             1560          (n) If the arbitrator or arbitration panel finds that the action was not brought, pursued,
             1561      or defended in good faith, the arbitrator or arbitration panel may award reasonable attorney fees
             1562      and costs against the party that failed to bring, pursue, or defend the claim in good faith.
             1563          (o) An arbitration award issued under this section shall be the final resolution of all
             1564      claims not excluded by Subsection (8)(l) between the parties unless:
             1565          (i) the award was procured by corruption, fraud, or other undue means; or
             1566          (ii) either party, within 20 days after service of the arbitration award:
             1567          (A) files a complaint requesting a trial de novo in the district court; and
             1568          (B) serves the nonmoving party with a copy of the complaint requesting a trial de novo
             1569      under Subsection (8)(o)(ii)(A).
             1570          (p) (i) Upon filing a complaint for a trial de novo under Subsection (8)(o), the claim
             1571      shall proceed through litigation pursuant to the Utah Rules of Civil Procedure and Utah Rules
             1572      of Evidence in the district court.
             1573          (ii) In accordance with Rule 38, Utah Rules of Civil Procedure, either party may
             1574      request a jury trial with a complaint requesting a trial de novo under Subsection (8)(o)(ii)(A).
             1575          (q) (i) If the claimant, as the moving party in a trial de novo requested under


             1576      Subsection (8)(o), does not obtain a verdict that is at least $5,000 and is at least 20% greater
             1577      than the arbitration award, the claimant is responsible for all of the nonmoving party's costs.
             1578          (ii) If the uninsured motorist carrier, as the moving party in a trial de novo requested
             1579      under Subsection (8)(o), does not obtain a verdict that is at least 20% less than the arbitration
             1580      award, the uninsured motorist carrier is responsible for all of the nonmoving party's costs.
             1581          (iii) Except as provided in Subsection (8)(q)(iv), the costs under this Subsection (8)(q)
             1582      shall include:
             1583          (A) any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
             1584          (B) the costs of expert witnesses and depositions.
             1585          (iv) An award of costs under this Subsection (8)(q) may not exceed $2,500.
             1586          (r) For purposes of determining whether a party's verdict is greater or less than the
             1587      arbitration award under Subsection (8)(q), a court may not consider any recovery or other relief
             1588      granted on a claim for damages if the claim for damages:
             1589          (i) was not fully disclosed in writing prior to the arbitration proceeding; or
             1590          (ii) was not disclosed in response to discovery contrary to the Utah Rules of Civil
             1591      Procedure.
             1592          (s) If a district court determines, upon a motion of the nonmoving party, that the
             1593      moving party's use of the trial de novo process was filed in bad faith in accordance with
             1594      Section 78B-5-825 , the district court may award reasonable attorney fees to the nonmoving
             1595      party.
             1596          (t) Nothing in this section is intended to limit any claim under any other portion of an
             1597      applicable insurance policy.
             1598          (u) If there are multiple uninsured motorist policies, as set forth in Subsection (7), the
             1599      claimant may elect to arbitrate in one hearing the claims against all the uninsured motorist
             1600      carriers.
             1601          (9) (a) Within 30 days after a covered person elects to submit a claim for uninsured
             1602      motorist benefits to binding arbitration or files litigation, the covered person shall provide to
             1603      the uninsured motorist carrier:
             1604          (i) a written demand for payment of uninsured motorist coverage benefits, setting forth:
             1605          (A) the specific monetary amount of the demand; and
             1606          (B) the factual and legal basis and any supporting documentation for the demand;


             1607          (ii) a written statement under oath disclosing:
             1608          (A) (I) the names and last known addresses of all health care providers who have
             1609      rendered health care services to the covered person that are material to the claims for which
             1610      uninsured motorist benefits are sought for a period of five years preceding the date of the event
             1611      giving rise to the claim for uninsured motorist benefits up to the time the election for
             1612      arbitration or litigation has been exercised; and
             1613          (II) whether the covered person has seen other health care providers who have rendered
             1614      health care services to the covered person, which the covered person claims are immaterial to
             1615      the claims for which uninsured motorist benefits are sought, for a period of five years
             1616      preceding the date of the event giving rise to the claim for uninsured motorist benefits up to the
             1617      time the election for arbitration or litigation has been exercised that have not been disclosed
             1618      under Subsection (9)(a)(ii)(A)(I);
             1619          (B) (I) the names and last known addresses of all health insurers or other entities to
             1620      whom the covered person has submitted claims for health care services or benefits material to
             1621      the claims for which uninsured motorist benefits are sought, for a period of five years
             1622      preceding the date of the event giving rise to the claim for uninsured motorist benefits up to the
             1623      time the election for arbitration or litigation has been exercised; and
             1624          (II) whether the identity of any health insurers or other entities to whom the covered
             1625      person has submitted claims for health care services or benefits, which the covered person
             1626      claims are immaterial to the claims for which uninsured motorist benefits are sought, for a
             1627      period of five years preceding the date of the event giving rise to the claim for uninsured
             1628      motorist benefits up to the time the election for arbitration or litigation have not been disclosed;
             1629          (C) if lost wages, diminished earning capacity, or similar damages are claimed, all
             1630      employers of the covered person for a period of five years preceding the date of the event
             1631      giving rise to the claim for uninsured motorist benefits up to the time the election for
             1632      arbitration or litigation has been exercised;
             1633          (D) other documents to reasonably support the claims being asserted; and
             1634          (E) all state and federal statutory lienholders including a statement as to whether the
             1635      covered person is a recipient of Medicare or Medicaid benefits or Utah Children's Health
             1636      Insurance Program benefits under Title 26, Chapter 40, Utah Children's Health Insurance Act,
             1637      or if the claim is subject to any other state or federal statutory liens; and


             1638          (iii) signed authorizations to allow the uninsured motorist carrier to only obtain records
             1639      and billings from the individuals or entities disclosed.
             1640          (b) (i) If the uninsured motorist carrier determines that the disclosure of undisclosed
             1641      health care providers or health care insurers under Subsection (9)(a)(ii) is reasonably necessary,
             1642      the uninsured motorist carrier may:
             1643          (A) make a request for the disclosure of the identity of the health care providers or
             1644      health care insurers; and
             1645          (B) make a request for authorizations to allow the uninsured motorist carrier to only
             1646      obtain records and billings from the individuals or entities not disclosed.
             1647          (ii) If the covered person does not provide the requested information within 10 days:
             1648          (A) the covered person shall disclose, in writing, the legal or factual basis for the
             1649      failure to disclose the health care providers or health care insurers; and
             1650          (B) either the covered person or the uninsured motorist carrier may request the
             1651      arbitrator or arbitration panel to resolve the issue of whether the identities or records are to be
             1652      provided if the covered person has elected arbitration.
             1653          (iii) The time periods imposed by Subsection (9)(c)(i) are tolled pending resolution of
             1654      the dispute concerning the disclosure and production of records of the health care providers or
             1655      health care insurers.
             1656          (c) (i) An uninsured motorist carrier that receives an election for arbitration or a notice
             1657      of filing litigation and the demand for payment of uninsured motorist benefits under Subsection
             1658      (9)(a)(i) shall have a reasonable time, not to exceed 60 days from the date of the demand and
             1659      receipt of the items specified in Subsections (9)(a)(i) through (iii), to:
             1660          (A) provide a written response to the written demand for payment provided for in
             1661      Subsection (9)(a)(i);
             1662          (B) except as provided in Subsection (9)(c)(i)(C), tender the amount, if any, of the
             1663      uninsured motorist carrier's determination of the amount owed to the covered person; and
             1664          (C) if the covered person is a recipient of Medicare or Medicaid benefits or Utah
             1665      Children's Health Insurance Program benefits under Title 26, Chapter 40, Utah Children's
             1666      Health Insurance Act, or if the claim is subject to any other state or federal statutory liens,
             1667      tender the amount, if any, of the uninsured motorist carrier's determination of the amount owed
             1668      to the covered person less:


             1669          (I) if the amount of the state or federal statutory lien is established, the amount of the
             1670      lien; or
             1671          (II) if the amount of the state or federal statutory lien is not established, two times the
             1672      amount of the medical expenses subject to the state or federal statutory lien until such time as
             1673      the amount of the state or federal statutory lien is established.
             1674          (ii) If the amount tendered by the uninsured motorist carrier under Subsection (9)(c)(i)
             1675      is the total amount of the uninsured motorist policy limits, the tendered amount shall be
             1676      accepted by the covered person.
             1677          (d) A covered person who receives a written response from an uninsured motorist
             1678      carrier as provided for in Subsection (9)(c)(i), may:
             1679          (i) elect to accept the amount tendered in Subsection (9)(c)(i) as payment in full of all
             1680      uninsured motorist claims; or
             1681          (ii) elect to:
             1682          (A) accept the amount tendered in Subsection (9)(c)(i) as partial payment of all
             1683      uninsured motorist claims; and
             1684          (B) litigate or arbitrate the remaining claim.
             1685          (e) If a covered person elects to accept the amount tendered under Subsection (9)(c)(i)
             1686      as partial payment of all uninsured motorist claims, the final award obtained through
             1687      arbitration, litigation, or later settlement shall be reduced by any payment made by the
             1688      uninsured motorist carrier under Subsection (9)(c)(i).
             1689          (f) In an arbitration proceeding on the remaining uninsured claims:
             1690          (i) the parties may not disclose to the arbitrator or arbitration panel the amount paid
             1691      under Subsection (9)(c)(i) until after the arbitration award has been rendered; and
             1692          (ii) the parties may not disclose the amount of the limits of uninsured motorist benefits
             1693      provided by the policy.
             1694          (g) If the final award obtained through arbitration or litigation is greater than the
             1695      average of the covered person's initial written demand for payment provided for in Subsection
             1696      (9)(a)(i) and the uninsured motorist carrier's initial written response provided for in Subsection
             1697      (9)(c)(i), the uninsured motorist carrier shall pay:
             1698          (i) the final award obtained through arbitration or litigation, except that if the award
             1699      exceeds the policy limits of the subject uninsured motorist policy by more than $15,000, the


             1700      amount shall be reduced to an amount equal to the policy limits plus $15,000; and
             1701          (ii) any of the following applicable costs:
             1702          (A) any costs as set forth in Rule 54(d), Utah Rules of Civil Procedure;
             1703          (B) the arbitrator or arbitration panel's fee; and
             1704          (C) the reasonable costs of expert witnesses and depositions used in the presentation of
             1705      evidence during arbitration or litigation.
             1706          (h) (i) The covered person shall provide an affidavit of costs within five days of an
             1707      arbitration award.
             1708          (ii) (A) Objection to the affidavit of costs shall specify with particularity the costs to
             1709      which the uninsured motorist carrier objects.
             1710          (B) The objection shall be resolved by the arbitrator or arbitration panel.
             1711          (iii) The award of costs by the arbitrator or arbitration panel under Subsection (9)(g)(ii)
             1712      may not exceed $5,000.
             1713          (i) (i) A covered person shall disclose all material information, other than rebuttal
             1714      evidence, as specified in Subsection (9)(a).
             1715          (ii) If the information under Subsection (9)(i)(i) is not disclosed, the covered person
             1716      may not recover costs or any amounts in excess of the policy under Subsection (9)(g).
             1717          (j) This Subsection (9) does not limit any other cause of action that arose or may arise
             1718      against the uninsured motorist carrier from the same dispute.
             1719          (k) The provisions of this Subsection (9) only apply to motor vehicle accidents that
             1720      occur on or after March 30, 2010.
             1721          Section 7. Section 31A-22-607 is amended to read:
             1722           31A-22-607. Grace period.
             1723          (1) [Every] (a) An individual or franchise accident and health insurance policy shall
             1724      contain one or more clauses providing for a grace period for premium payment only of:
             1725          (i) at least 15 days for a weekly or monthly premium [policies] policy; and
             1726          (ii) 30 days for [all other policies] a policy that is not a weekly or monthly premium
             1727      policy, for each premium after the first premium payment. [A carrier]
             1728          (b) An insurer may elect to include a grace period that is longer than 15 days for a
             1729      weekly or monthly [policies] policy.
             1730          [(a) The] (c) An individual or franchise accident and health insurance policy is not in


             1731      force during [the] a grace period.
             1732          [(b) If the] (d) If an insurer receives payment before [the] a grace period expires, the
             1733      individual or franchise accident and health insurance policy continues in force with no gap in
             1734      coverage.
             1735          [(c) If the] (e) If an insurer does not receive payment before [the] a grace period
             1736      expires, the [policy shall be] individual or franchise accident and health insurance policy is
             1737      terminated as of the last date for which the premium [was] is paid in full.
             1738          [(d)] (f) A grace period is not required if the policyholder has requested that the
             1739      individual or franchise accident and health insurance policy be discontinued.
             1740          (2) [Every] (a) A group or blanket accident and health insurance policy shall provide
             1741      for a grace period of at least 30 days, unless the policyholder gives written notice of
             1742      discontinuance [prior to] before the date of discontinuance, in accordance with the policy
             1743      terms. [In group or blanket policies, the]
             1744          (b) A group or blanket accident and health insurance policy is in force during a grace
             1745      period.
             1746          (c) If an insurer does not receive payment before a grace period expires, the group or
             1747      blanket accident and health insurance policy is terminated as of the last day of the grace period.
             1748          (d) A group or blanket accident and health insurance policy may provide for payment
             1749      of a pro rata premium for the period the group or blanket accident and health insurance policy
             1750      is in effect during [the] a grace period under this Subsection (2).
             1751          (3) If [the] an insurer has not guaranteed the insured a right to renew an accident and
             1752      health insurance policy, [any] a grace period beyond the expiration or anniversary date may, if
             1753      provided in the accident and health insurance policy, be cut off by compliance with the notice
             1754      provision under Subsection 31A-21-303 (4)(b).
             1755          Section 8. Section 31A-22-610.6 is amended to read:
             1756           31A-22-610.6. Special enrollment for individuals receiving premium assistance.
             1757          (1) As used in this section:
             1758          (a) "Premium assistance" means assistance under Title 26, Chapter 18, Medical
             1759      Assistance Act, in the payment of premium.
             1760          (b) "Qualified beneficiary" means an individual who is approved to receive premium
             1761      assistance.


             1762          (2) Subject to the other provisions in this section, an individual may enroll under this
             1763      section at a time outside of an employer health benefit plan open enrollment period, regardless
             1764      of previously waiving coverage, if the individual is:
             1765          (a) a qualified beneficiary who is eligible for coverage as an employee under the
             1766      employer health benefit plan; or
             1767          (b) a dependent of the qualified beneficiary who is eligible for coverage under the
             1768      employer health benefit plan.
             1769          (3) To be eligible to enroll outside of an open enrollment period, an individual
             1770      described in Subsection (2) shall enroll in the employer health benefit plan by no later than 30
             1771      days from the day on which the qualified beneficiary receives initial written notification, after
             1772      July 1, 2008, that the qualified beneficiary is eligible to receive premium assistance.
             1773          (4) An individual described in Subsection (2) may enroll under this section only in an
             1774      employer health benefit plan that is available at the time of enrollment to similarly situated
             1775      eligible employees or dependents of eligible employees.
             1776          (5) Coverage under an employer health benefit plan for an individual described in
             1777      Subsection (2) may begin as soon as the first day of the month immediately following
             1778      enrollment of the individual in accordance with this section.
             1779          (6) This section does not modify any requirement related to premiums that applies
             1780      under an employer health benefit plan to a similarly situated eligible employee or dependent of
             1781      an eligible employee under the employer health benefit plan.
             1782          (7) An employer health benefit plan may require an individual described in Subsection
             1783      (2) to satisfy a preexisting condition waiting period that:
             1784          (a) is allowed under the Health Insurance Portability and Accountability Act [of 1996,
             1785      Pub. L. 104-191, 110 Stat. 1936]; and
             1786          (b) is not longer than 12 months.
             1787          Section 9. Section 31A-22-614.5 is amended to read:
             1788           31A-22-614.5. Uniform claims processing -- Electronic exchange of health
             1789      information.
             1790          (1) (a) Except as provided in Subsection (1)(c), all insurers offering health insurance
             1791      shall use a uniform claim form and uniform billing and claim codes.
             1792          (b) Beginning January 1, 2011, all health benefit plans, and dental and vision plans,


             1793      shall provide for the electronic exchange of uniform:
             1794          (i) eligibility and coverage information; and
             1795          (ii) coordination of benefits information.
             1796          (c) For purposes of Subsection (1)(a), "health insurance" does not include a policy or
             1797      certificate that provides benefits solely for:
             1798          (i) income replacement; or
             1799          (ii) long-term care.
             1800          (2) (a) The uniform electronic standards and information required in Subsection (1)
             1801      shall be adopted and approved by the commissioner in accordance with Title 63G, Chapter 3,
             1802      Utah Administrative Rulemaking Act.
             1803          (b) When adopting rules under this section the commissioner:
             1804          (i) shall:
             1805          (A) consult with national and state organizations involved with the standardized
             1806      exchange of health data, and the electronic exchange of health data, to develop the standards
             1807      for the use and electronic exchange of uniform:
             1808          (I) claim forms;
             1809          (II) billing and claim codes;
             1810          (III) insurance eligibility and coverage information; and
             1811          (IV) coordination of benefits information; and
             1812          (B) meet federal mandatory minimum standards following the adoption of national
             1813      requirements for transaction and data elements in the federal Health Insurance Portability and
             1814      Accountability Act [of 1996, Pub. L. 104-191, 110 Stat. 1936];
             1815          (ii) may not require an insurer or administrator to use a specific software product or
             1816      vendor; and
             1817          (iii) may require an insurer who participates in the all payer database created under
             1818      Section 26-33a-106.1 to allow data regarding demographic and insurance coverage information
             1819      to be electronically shared with the state's designated secure health information master person
             1820      index to be used:
             1821          (A) in compliance with data security standards established by:
             1822          (I) the federal Health Insurance Portability and Accountability Act [of 1996, Pub. L.
             1823      104-191, 110 Stat. 1936]; and


             1824          (II) the electronic commerce agreements established in a business associate agreement;
             1825      and
             1826          (B) for the purpose of coordination of health benefit plans.
             1827          (3) (a) The commissioner shall coordinate the administrative rules adopted under the
             1828      provisions of this section with the administrative rules adopted by the Department of Health for
             1829      the implementation of the standards for the electronic exchange of clinical health information
             1830      under Section 26-1-37 . The department shall establish procedures for developing the rules
             1831      adopted under this section, which ensure that the Department of Health is given the opportunity
             1832      to comment on proposed rules.
             1833          (b) (i) The commissioner may provide information to health care providers regarding
             1834      resources available to a health care provider to verify whether a health care provider's practice
             1835      management software system meets the uniform electronic standards for data exchange
             1836      required by this section.
             1837          (ii) The commissioner may provide the information described in Subsection (3)(b)(i)
             1838      by partnering with:
             1839          (A) a not-for-profit, broad based coalition of state health care insurers and health care
             1840      providers who are involved in the electronic exchange of the data required by this section; or
             1841          (B) some other person that the commissioner determines is appropriate to provide the
             1842      information described in Subsection (3)(b)(i).
             1843          (c) The commissioner shall regulate any fees charged by insurers to the providers for:
             1844          (i) uniform claim forms;
             1845          (ii) electronic billing; or
             1846          (iii) the electronic exchange of clinical health information permitted by Section
             1847      26-1-37 .
             1848          Section 10. Section 31A-22-618.5 is amended to read:
             1849           31A-22-618.5. Health benefit plan offerings.
             1850          (1) The purpose of this section is to increase the range of health benefit plans available
             1851      in the small group, small employer group, large group, and individual insurance markets.
             1852          (2) A health maintenance organization that is subject to Chapter 8, Health Maintenance
             1853      Organizations and Limited Health Plans:
             1854          (a) shall offer to potential purchasers at least one health benefit plan that is subject to


             1855      the requirements of Chapter 8, Health Maintenance Organizations and Limited Health Plans;
             1856      and
             1857          (b) may offer to a potential purchaser one or more health benefit plans that:
             1858          (i) are not subject to one or more of the following:
             1859          (A) the limitations on insured indemnity benefits in Subsection 31A-8-105 (4);
             1860          (B) the limitation on point of service products in Subsections 31A-8-408 (3) through
             1861      (6);
             1862          (C) except as provided in Subsection (2)(b)(ii), basic health care services as defined in
             1863      Section 31A-8-101 ; or
             1864          (D) coverage mandates enacted after January 1, 2009 that are not required by federal
             1865      law, provided that the insurer offers one plan under Subsection (2)(a) that covers the mandate
             1866      enacted after January 1, 2009; and
             1867          (ii) when offering a health plan under this section, provide coverage for an emergency
             1868      medical condition as required by Section 31A-22-627 as follows:
             1869          (A) within the organization's service area, covered services shall include health care
             1870      services from non-affiliated providers when medically necessary to stabilize an emergency
             1871      medical condition; and
             1872          (B) outside the organization's service area, covered services shall include medically
             1873      necessary health care services for the treatment of an emergency medical condition that are
             1874      immediately required while the enrollee is outside the geographic limits of the organization's
             1875      service area.
             1876          (3) An insurer that offers a health benefit plan that is not subject to Chapter 8, Health
             1877      Maintenance Organizations and Limited Health Plans:
             1878          (a) notwithstanding Subsection 31A-22-617 (2), may offer a health benefit plan that
             1879      groups providers into the following reimbursement levels:
             1880          (i) tier one contracted providers;
             1881          (ii) tier two contracted providers who the insurer must reimburse at least 75% of tier
             1882      one providers; and
             1883          (iii) one or more tiers of non-contracted providers; and
             1884          (b) notwithstanding Subsection 31A-22-617 (9) may offer a health benefit plan that is
             1885      not subject to Section 31A-22-618 ;


             1886          (c) beginning July 1, 2012, may offer [products under Subsection (3)(a)] health benefit
             1887      plans that:
             1888          (i) are not subject to Subsection 31A-22-617 (2); and
             1889          (ii) are subject to the reimbursement requirements in Section 31A-8-501 ;
             1890          (d) when offering a health plan under this Subsection (3), shall provide coverage of
             1891      emergency care services as required by Section 31A-22-627 by providing coverage at a
             1892      reimbursement level of at least 75% of [tier one providers] the health benefit plan's highest
             1893      contracted provider category; and
             1894          (e) are not subject to coverage mandates enacted after January 1, 2009 that are not
             1895      required by federal law, provided that an insurer offers one plan that covers a mandate enacted
             1896      after January 1, 2009.
             1897          (4) Section 31A-8-106 does not prohibit the offer of a health benefit plan under
             1898      Subsection (2)(b).
             1899          (5) (a) Any difference in price between a health benefit plan offered under Subsections
             1900      (2)(a) and (b) shall be based on actuarially sound data.
             1901          (b) Any difference in price between a health benefit plan offered under Subsections
             1902      (3)(a) and (b) shall be based on actuarially sound data.
             1903          (6) Nothing in this section limits the number of health benefit plans that an insurer may
             1904      offer.
             1905          Section 11. Section 31A-22-625 is amended to read:
             1906           31A-22-625. Catastrophic coverage of mental health conditions.
             1907          (1) As used in this section:
             1908          (a) (i) "Catastrophic mental health coverage" means coverage in a health benefit plan
             1909      that does not impose a lifetime limit, annual payment limit, episodic limit, inpatient or
             1910      outpatient service limit, or maximum out-of-pocket limit that places a greater financial burden
             1911      on an insured for the evaluation and treatment of a mental health condition than for the
             1912      evaluation and treatment of a physical health condition.
             1913          (ii) "Catastrophic mental health coverage" may include a restriction on cost sharing
             1914      factors, such as deductibles, copayments, or coinsurance, before reaching a maximum
             1915      out-of-pocket limit.
             1916          (iii) "Catastrophic mental health coverage" may include one maximum out-of-pocket


             1917      limit for physical health conditions and another maximum out-of-pocket limit for mental health
             1918      conditions, except that if separate out-of-pocket limits are established, the out-of-pocket limit
             1919      for mental health conditions may not exceed the out-of-pocket limit for physical health
             1920      conditions.
             1921          (b) (i) "50/50 mental health coverage" means coverage in a health benefit plan that
             1922      pays for at least 50% of covered services for the diagnosis and treatment of mental health
             1923      conditions.
             1924          (ii) "50/50 mental health coverage" may include a restriction on:
             1925          (A) episodic limits;
             1926          (B) inpatient or outpatient service limits; or
             1927          (C) maximum out-of-pocket limits.
             1928          (c) "Large employer" is as defined in 42 U.S.C. Sec. 300gg-91.
             1929          (d) (i) "Mental health condition" means a condition or disorder involving mental illness
             1930      that falls under a diagnostic category listed in the Diagnostic and Statistical Manual, as
             1931      periodically revised.
             1932          (ii) "Mental health condition" does not include the following when diagnosed as the
             1933      primary or substantial reason or need for treatment:
             1934          (A) a marital or family problem;
             1935          (B) a social, occupational, religious, or other social maladjustment;
             1936          (C) a conduct disorder;
             1937          (D) a chronic adjustment disorder;
             1938          (E) a psychosexual disorder;
             1939          (F) a chronic organic brain syndrome;
             1940          (G) a personality disorder;
             1941          (H) a specific developmental disorder or learning disability; or
             1942          (I) mental retardation.
             1943          (e) "Small employer" is as defined in 42 U.S.C. Sec. 300gg-91.
             1944          (2) (a) At the time of purchase and renewal, an insurer shall offer to a small employer
             1945      that it insures or seeks to insure a choice between catastrophic mental health coverage and
             1946      50/50 mental health coverage.
             1947          (b) In addition to complying with Subsection (2)(a), an insurer may offer to provide:


             1948          (i) catastrophic mental health coverage, 50/50 mental health coverage, or both at levels
             1949      that exceed the minimum requirements of this section; or
             1950          (ii) coverage that excludes benefits for mental health conditions.
             1951          (c) A small employer may, at its option, choose either catastrophic mental health
             1952      coverage, 50/50 mental health coverage, or coverage offered under Subsection (2)(b),
             1953      regardless of the employer's previous coverage for mental health conditions.
             1954          (d) An insurer is exempt from the 30% index rating restriction in Section
             1955      31A-30-106.1 and, for the first year only that catastrophic mental health coverage is chosen, the
             1956      15% annual adjustment restriction in Section 31A-30-106.1 , for any small employer with 20 or
             1957      less enrolled employees who chooses coverage that meets or exceeds catastrophic mental
             1958      health coverage.
             1959          (3) An insurer shall offer a large employer mental health and substance use disorder
             1960      benefit in compliance with Section 2705 of the Public Health Service Act, 42 U.S.C. Sec.
             1961      [300gg-5] 300gg-26, and federal regulations adopted pursuant to that act.
             1962          (4) (a) An insurer may provide catastrophic mental health coverage to a small employer
             1963      through a managed care organization or system in a manner consistent with Chapter 8, Health
             1964      Maintenance Organizations and Limited Health Plans, regardless of whether the insurance
             1965      policy uses a managed care organization or system for the treatment of physical health
             1966      conditions.
             1967          (b) (i) Notwithstanding any other provision of this title, an insurer may:
             1968          (A) establish a closed panel of providers for catastrophic mental health coverage; and
             1969          (B) refuse to provide a benefit to be paid for services rendered by a nonpanel provider
             1970      unless:
             1971          (I) the insured is referred to a nonpanel provider with the prior authorization of the
             1972      insurer; and
             1973          (II) the nonpanel provider agrees to follow the insurer's protocols and treatment
             1974      guidelines.
             1975          (ii) If an insured receives services from a nonpanel provider in the manner permitted by
             1976      Subsection (4)(b)(i)(B), the insurer shall reimburse the insured for not less than 75% of the
             1977      average amount paid by the insurer for comparable services of panel providers under a
             1978      noncapitated arrangement who are members of the same class of health care providers.


             1979          (iii) This Subsection (4)(b) may not be construed as requiring an insurer to authorize a
             1980      referral to a nonpanel provider.
             1981          (c) To be eligible for catastrophic mental health coverage, a diagnosis or treatment of a
             1982      mental health condition must be rendered:
             1983          (i) by a mental health therapist as defined in Section 58-60-102 ; or
             1984          (ii) in a health care facility:
             1985          (A) licensed or otherwise authorized to provide mental health services pursuant to:
             1986          (I) Title 26, Chapter 21, Health Care Facility Licensing and Inspection Act; or
             1987          (II) Title 62A, Chapter 2, Licensure of Programs and Facilities; and
             1988          (B) that provides a program for the treatment of a mental health condition pursuant to a
             1989      written plan.
             1990          (5) The commissioner may prohibit an insurance policy that provides mental health
             1991      coverage in a manner that is inconsistent with this section.
             1992          (6) The commissioner shall:
             1993          (a) adopt rules, in accordance with Title 63G, Chapter 3, Utah Administrative
             1994      Rulemaking Act, as necessary to ensure compliance with this section; and
             1995          (b) provide general figures on the percentage of insurance policies that include:
             1996          (i) no mental health coverage;
             1997          (ii) 50/50 mental health coverage;
             1998          (iii) catastrophic mental health coverage; and
             1999          (iv) coverage that exceeds the minimum requirements of this section.
             2000          (7) This section may not be construed as discouraging or otherwise preventing an
             2001      insurer from providing mental health coverage in connection with an individual insurance
             2002      policy.
             2003          (8) This section shall be repealed in accordance with Section 63I-1-231 .
             2004          Section 12. Section 31A-22-701 is amended to read:
             2005           31A-22-701. Groups eligible for group or blanket insurance.
             2006          (1) As used in this section, "association group" means a lawfully formed association of
             2007      individuals or business entities that:
             2008          (a) purchases insurance on a group basis on behalf of members; and
             2009          (b) is formed and maintained in good faith for purposes other than obtaining insurance.


             2010          (2) A group [or blanket] accident and health insurance policy may be issued to:
             2011          (a) a group:
             2012          (i) to which a group life insurance policy may be issued under Sections 31A-22-502 ,
             2013      31A-22-503 , 31A-22-504 , 31A-22-506 , 31A-22-507 , and 31A-22-509 ; and
             2014          (ii) that is formed [for a reason other than the purchase of insurance] and maintained in
             2015      good faith for a purpose other than obtaining insurance;
             2016          (b) an association group that:
             2017          (i) has been actively in existence for at least five years;
             2018          (ii) has a constitution and bylaws;
             2019          (iii) is formed and maintained in good faith for purposes other than obtaining
             2020      insurance;
             2021          (iv) does not condition membership in the association group on any health
             2022      status-related factor relating to an individual, including an employee of an employer or a
             2023      dependent of an employee;
             2024          (v) makes accident and health insurance coverage offered through the association
             2025      group available to all members regardless of any health status-related factor relating to the
             2026      members or individuals eligible for coverage through a member; [and]
             2027          (vi) does not make accident and health insurance coverage offered through the
             2028      association group available other than in connection with a member of the association group;
             2029      [or] and
             2030          (vii) is actuarially sound; or
             2031          (c) a group specifically authorized by the commissioner under Section 31A-22-509 ,
             2032      upon a finding that:
             2033          (i) authorization is not contrary to the public interest;
             2034          (ii) the [proposed] group is actuarially sound;
             2035          (iii) formation of the proposed group may result in economies of scale in acquisition,
             2036      administrative, marketing, and brokerage costs;
             2037          (iv) the insurance policy, insurance certificate, or other indicia of coverage that will be
             2038      offered to the proposed group is substantially equivalent to insurance policies that are
             2039      otherwise available to similar groups;
             2040          (v) the group would not present hazards of adverse selection; [and]


             2041          (vi) the premiums for the insurance policy and any contributions by or on behalf of the
             2042      insured persons are reasonable in relation to the benefits provided[.]; and
             2043          (vii) the group is formed and maintained in good faith for a purpose other than
             2044      obtaining insurance.
             2045          (3) A blanket accident and health insurance policy:
             2046          (a) covers a defined class of persons;
             2047          (b) may not be offered or underwritten on an individual basis;
             2048          (c) shall cover only a group that is:
             2049          (i) actuarially sound; and
             2050          (ii) formed and maintained in good faith for a purpose other than obtaining insurance;
             2051      and
             2052          (d) may [also] be issued only to:
             2053          [(a)] (i) a common carrier or an operator, owner, or lessee of a means of transportation,
             2054      as policyholder, covering persons who may become passengers as defined by reference to
             2055      [their] the person's travel status;
             2056          [(b)] (ii) an employer, as policyholder, covering any group of employees, dependents,
             2057      or guests, as defined by reference to specified hazards incident to any activities of the
             2058      policyholder;
             2059          [(c)] (iii) an institution of learning, including a school district, a school jurisdictional
             2060      [units] unit, or the head, principal, or governing board of [any of those units] a school
             2061      jurisdictional unit, as policyholder, covering students, teachers, or employees;
             2062          [(d)] (iv) a religious, charitable, recreational, educational, or civic organization, or
             2063      branch of one of those organizations, as policyholder, covering [any] a group of members or
             2064      participants as defined by reference to specified hazards incident to the activities sponsored or
             2065      supervised by the policyholder;
             2066          [(e)] (v) a sports team, camp, or sponsor of [the] a sports team or camp, as
             2067      policyholder, covering members, campers, employees, officials, or supervisors;
             2068          [(f)] (vi) a volunteer fire department, first aid, civil defense, or other similar volunteer
             2069      organization, as policyholder, covering [any] a group of members or participants as defined by
             2070      reference to specified hazards incident to activities sponsored, supervised, or participated in by
             2071      the policyholder;


             2072          [(g)] (vii) a newspaper or other publisher, as policyholder, covering its carriers;
             2073          [(h)] (viii) an association, including a labor union, [which] that has a constitution and
             2074      bylaws and [which has been] that is organized in good faith for purposes other than that of
             2075      obtaining insurance, as policyholder, covering [any] a group of members or participants as
             2076      defined by reference to specified hazards incident to the activities or operations sponsored or
             2077      supervised by the policyholder; and
             2078          [(i) a health insurance purchasing association, as defined in Section 31A-34-103 ,
             2079      organized and controlled solely by participating employers; and]
             2080          [(j)] (ix) any other class of risks that, in the judgment of the commissioner, may be
             2081      properly eligible for blanket accident and health insurance.
             2082          (4) The judgment of the commissioner may be exercised on the basis of:
             2083          (a) individual risks;
             2084          (b) a class of risks; or
             2085          (c) both Subsections (4)(a) and (b).
             2086          Section 13. Section 31A-22-716 is amended to read:
             2087           31A-22-716. Required provision for notice of termination.
             2088          (1) Every policy for group or blanket accident and health coverage issued or renewed
             2089      after July 1, 1990, shall include a provision that obligates the policyholder to give 30 days prior
             2090      written notice of termination to each employee or group member and to notify each employee
             2091      or group member of his rights to continue coverage upon termination.
             2092          (2) An insurer's monthly notice to the policyholder of premium payments due shall
             2093      include a statement of the policyholder's obligations as set forth in Subsection (1). Insurers
             2094      shall provide a sample notice to the policyholder at least once a year.
             2095          (3) For the purpose of compliance with federal law and the Health Insurance Portability
             2096      and Accountability Act[, P.L. No. 104-191, 110 Stat. 1960], all health benefit plans, health
             2097      insurers, and student health plans must provide a certificate of creditable coverage to each
             2098      covered person upon the person's termination from the plan as soon as reasonably possible.
             2099          Section 14. Section 31A-22-721 is amended to read:
             2100           31A-22-721. A health benefit plan for a plan sponsor -- Discontinuance and
             2101      nonrenewal.
             2102          (1) Except as otherwise provided in this section, a health benefit plan for a plan


             2103      sponsor is renewable and continues in force:
             2104          (a) with respect to all eligible employees and dependents; and
             2105          (b) at the option of the plan sponsor.
             2106          (2) A health benefit plan for a plan sponsor may be discontinued or nonrenewed:
             2107          (a) for a network plan, if:
             2108          (i) there is no longer any enrollee under the group health plan who lives, resides, or
             2109      works in:
             2110          (A) the service area of the insurer; or
             2111          (B) the area for which the insurer is authorized to do business; and
             2112          (ii) in the case of the small employer market, the insurer applies the same criteria the
             2113      insurer would apply in denying enrollment in the plan under Subsection 31A-30-108 (7); or
             2114          (b) for coverage made available in the small or large employer market only through an
             2115      association, if:
             2116          (i) the employer's membership in the association ceases; and
             2117          (ii) the coverage is terminated uniformly without regard to any health status-related
             2118      factor relating to any covered individual.
             2119          (3) A health benefit plan for a plan sponsor may be discontinued if:
             2120          (a) a condition described in Subsection (2) exists;
             2121          (b) the plan sponsor fails to pay premiums or contributions in accordance with the
             2122      terms of the contract;
             2123          (c) the plan sponsor:
             2124          (i) performs an act or practice that constitutes fraud; or
             2125          (ii) makes an intentional misrepresentation of material fact under the terms of the
             2126      coverage;
             2127          (d) the insurer:
             2128          (i) elects to discontinue offering a particular health benefit product delivered or issued
             2129      for delivery in this state;
             2130          (ii) (A) provides notice of the discontinuation in writing:
             2131          (I) to each plan sponsor, employee, and dependent of a plan sponsor or employee; and
             2132          (II) at least 90 days before the date the coverage will be discontinued;
             2133          (B) provides notice of the discontinuation in writing:


             2134          (I) to the commissioner; and
             2135          (II) at least three working days prior to the date the notice is sent to the affected plan
             2136      sponsors, employees, and dependents of plan sponsors or employees;
             2137          (C) offers to each plan sponsor, on a guaranteed issue basis, the option to purchase any
             2138      other health benefit products currently being offered:
             2139          (I) by the insurer in the market; or
             2140          (II) in the case of a large employer, any other health benefit plan currently being
             2141      offered in that market; and
             2142          (D) in exercising the option to discontinue that product and in offering the option of
             2143      coverage in this section, the insurer acts uniformly without regard to:
             2144          (I) the claims experience of a plan sponsor;
             2145          (II) any health status-related factor relating to any covered participant or beneficiary; or
             2146          (III) any health status-related factor relating to a new participant or beneficiary who
             2147      may become eligible for coverage; or
             2148          (e) the insurer:
             2149          (i) elects to discontinue all of the insurer's health benefit plans:
             2150          (A) in the small employer market; or
             2151          (B) the large employer market; or
             2152          (C) both the small and large employer markets; and
             2153          (ii) (A) provides notice of the discontinuance in writing:
             2154          (I) to each plan sponsor, employee, or dependent of a plan sponsor or an employee; and
             2155          (II) at least 180 days before the date the coverage will be discontinued;
             2156          (B) provides notice of the discontinuation in writing:
             2157          (I) to the commissioner in each state in which an affected insured individual is known
             2158      to reside; and
             2159          (II) at least 30 business days prior to the date the notice is sent to the affected plan
             2160      sponsors, employees, and dependents of a plan sponsor or employee;
             2161          (C) discontinues and nonrenews all plans issued or delivered for issuance in the
             2162      market; and
             2163          (D) provides a plan of orderly withdrawal as required by Section 31A-4-115 .
             2164          (4) A large employer health benefit plan may be discontinued or nonrenewed:


             2165          (a) if a condition described in Subsection (2) exists; or
             2166          (b) for noncompliance with the insurer's:
             2167          (i) minimum participation requirements; or
             2168          (ii) employer contribution requirements.
             2169          (5) A small employer health benefit plan may be discontinued or nonrenewed:
             2170          (a) if a condition described in Subsection (2) exists; or
             2171          (b) for noncompliance with the insurer's employer contribution requirements.
             2172          (6) A small employer health benefit plan may be nonrenewed:
             2173          (a) if a condition described in Subsection (2) exists; or
             2174          (b) for noncompliance with the insurer's minimum participation requirements.
             2175          (7) (a) Except as provided in Subsection (7)(d), an eligible employee may be
             2176      discontinued if after issuance of coverage the eligible employee:
             2177          (i) engages in an act or practice that constitutes fraud in connection with the coverage;
             2178      or
             2179          (ii) makes an intentional misrepresentation of material fact in connection with the
             2180      coverage.
             2181          (b) An eligible employee that is discontinued under Subsection (7)(a) may reenroll:
             2182          (i) 12 months after the date of discontinuance; and
             2183          (ii) if the plan sponsor's coverage is in effect at the time the eligible employee applies
             2184      to reenroll.
             2185          (c) At the time the eligible employee's coverage is discontinued under Subsection
             2186      (7)(a), the insurer shall notify the eligible employee of the right to reenroll when coverage is
             2187      discontinued.
             2188          (d) An eligible employee may not be discontinued under this Subsection (7) because of
             2189      a fraud or misrepresentation that relates to health status.
             2190          (8) (a) Except as provided in Subsection (8)(b), an insurer that elects to discontinue
             2191      offering a health benefit plan under Subsection (3)(e) shall be prohibited from writing new
             2192      business in such market in this state for a period of five years beginning on the date of
             2193      discontinuation of the last coverage that is discontinued.
             2194          (b) The commissioner may waive the prohibition under Subsection (8)(a) when the
             2195      commissioner finds that waiver is in the public interest:


             2196          (i) to promote competition; or
             2197          (ii) to resolve inequity in the marketplace.
             2198          (9) If an insurer is doing business in one established geographic service area of the
             2199      state, this section applies only to the insurer's operations in that geographic service area.
             2200          (10) An insurer may modify a health benefit plan for a plan sponsor only:
             2201          (a) at the time of coverage renewal; and
             2202          (b) if the modification is effective uniformly among all plans with a particular product
             2203      or service.
             2204          (11) For purposes of this section, a reference to "plan sponsor" includes a reference to
             2205      the employer:
             2206          (a) with respect to coverage provided to an employer member of the association; and
             2207          (b) if the health benefit plan is made available by an insurer in the employer market
             2208      only through:
             2209          (i) an association;
             2210          (ii) a trust; or
             2211          (iii) a discretionary group.
             2212          (12) (a) A small employer that, after purchasing a health benefit plan in the small group
             2213      market, employs on average more than 50 eligible employees on each business day in a
             2214      calendar year may continue to renew the health benefit plan purchased in the small group
             2215      market.
             2216          (b) A large employer that, after purchasing a health benefit plan in the large group
             2217      market, employs on average less than 51 eligible employees on each business day in a calendar
             2218      year may continue to renew the health benefit plan purchased in the large group market.
             2219          (13) An insurer offering employer sponsored health benefit plans shall comply with the
             2220      Health Insurance Portability and Accountability Act, [P. L. 104-191, 110 Stat. 1962, Sec. 2701
             2221      and 2702] 42 U.S.C. Sec. 300gg and 300gg-1.
             2222          Section 15. Section 31A-22-723 is amended to read:
             2223           31A-22-723. Conversion from group coverage.
             2224          (1) Notwithstanding Subsection 31A-1-103 (3)(f), and except as provided in Subsection
             2225      (3), [all policies] a policy of accident and health insurance offered on a group basis under this
             2226      title, or Title 49, Chapter 20, Public Employees' Benefit and Insurance Program Act, shall


             2227      provide that a person whose insurance under the group policy has been terminated is entitled to
             2228      choose a converted individual policy in accordance with this section and Section 31A-22-724 .
             2229          (2) A person who has lost group coverage may elect conversion coverage with the
             2230      insurer that provided prior group coverage if the person:
             2231          (a) has been continuously covered for a period of three months by the group policy or
             2232      the group's preceding policies immediately prior to termination;
             2233          (b) has exhausted either:
             2234          (i) Utah mini-COBRA coverage as required in Section 31A-22-722 ;
             2235          (ii) federal COBRA coverage; or
             2236          (iii) alternative coverage under Section 31A-22-724 ;
             2237          (c) has not acquired or is not covered under any other group coverage that covers [all]
             2238      preexisting conditions, including maternity, if the coverage exists; and
             2239          (d) resides in the insurer's service area.
             2240          (3) This section does not apply if the person's prior group coverage:
             2241          (a) is a stand alone policy that only provides one of the following:
             2242          (i) catastrophic benefits;
             2243          (ii) aggregate stop loss benefits;
             2244          (iii) specific stop loss benefits;
             2245          (iv) benefits for specific diseases;
             2246          (v) accidental injuries only;
             2247          (vi) dental; or
             2248          (vii) vision;
             2249          (b) is an income replacement policy;
             2250          (c) was terminated because the insured:
             2251          (i) failed to pay any required individual contribution;
             2252          (ii) performed an act or practice that constitutes fraud in connection with the coverage;
             2253      or
             2254          (iii) made intentional misrepresentation of material fact under the terms of coverage; or
             2255          (d) was terminated pursuant to Subsection 31A-8-402.3 (2)(a), 31A-22-721 (2)(a), or
             2256      31A-30-107 (2)(a).
             2257          (4) (a) The [employer] insurer shall provide written notification of the right to an


             2258      individual conversion policy within 30 days of the insurer receiving notice of, the insured's
             2259      termination of coverage to:
             2260          (i) the terminated insured;
             2261          (ii) the ex-spouse; or
             2262          (iii) in the case of the death of the insured:
             2263          (A) the surviving spouse; and
             2264          (B) the guardian of any dependents, if different from a surviving spouse.
             2265          (b) The notification required by Subsection (4)(a) shall:
             2266          (i) be sent by first class mail;
             2267          (ii) contain the name, address, and telephone number of the insurer that will provide
             2268      the conversion coverage; and
             2269          (iii) be sent to the insured's last-known address as shown on the records of the
             2270      employer of:
             2271          (A) the insured;
             2272          (B) the ex-spouse; and
             2273          (C) if the policy terminates by reason of the death of the insured to:
             2274          (I) the surviving spouse; and
             2275          (II) the guardian of any dependents, if different from a surviving spouse.
             2276          (5) (a) An insurer is not required to issue a converted policy [which] that provides
             2277      benefits in excess of those provided under the group policy from which conversion is made.
             2278          (b) Except as provided in Subsection (5)(c), if the conversion is made from a health
             2279      benefit plan, the employee or member shall be offered[: (i) at least the basic benefit plan as
             2280      provided in Section 31A-22-613.5 through December 31, 2009; and (ii) beginning January 1,
             2281      2010, only] the alternative coverage as provided in Subsection 31A-22-724 (1)(a).
             2282          (c) If the benefit levels required under Subsection (5)(b) exceed the benefit levels
             2283      provided under the group policy, the conversion policy may offer benefits [which] that are
             2284      substantially similar to those provided under the group policy.
             2285          (6) Written application for [the] a converted policy shall be made and the first premium
             2286      paid to the insurer no later than [60] 30 days after [termination of the group accident and health
             2287      insurance] the date of notice under Subsection (4)(a).
             2288          (7) [The] A converted policy shall be issued without evidence of insurability.


             2289          (8) (a) The initial premium for the converted policy for the first 12 months and
             2290      subsequent renewal premiums shall be determined in accordance with premium rates
             2291      applicable to age, class of risk of the person, and the type and amount of insurance provided.
             2292          (b) The initial premium for the first 12 months may not be raised based on pregnancy
             2293      of a covered insured.
             2294          (c) The premium for converted policies shall be payable monthly or quarterly as
             2295      required by the insurer for the policy form and plan selected, unless another mode or premium
             2296      payment is mutually agreed upon.
             2297          (9) [The] A converted policy becomes effective at the time the insurance under the
             2298      group policy terminates.
             2299          (10) (a) A newly issued converted policy covers the employee or the member and must
             2300      also cover [all] dependents covered by the group policy at the date of termination of the group
             2301      coverage.
             2302          (b) The only dependents that may be added after the policy has been issued are children
             2303      and dependents as required by Section 31A-22-610 and Subsections 31A-22-610.5 (6) and (7).
             2304          (c) At the option of the insurer, a separate converted policy may be issued to cover
             2305      [any] a dependent.
             2306          (11) (a) To the extent [the] a group policy provided maternity benefits, [the] a
             2307      conversion policy shall provide maternity benefits equal to the lesser of the maternity benefits
             2308      of the group policy or the conversion policy until termination of a pregnancy that exists on the
             2309      date of conversion if one of the following is pregnant on the date of the conversion:
             2310          (i) the insured;
             2311          (ii) a spouse of the insured; or
             2312          (iii) a dependent of the insured.
             2313          (b) [The requirements of this] This Subsection (11) [do] does not apply to a pregnancy
             2314      that occurs after the date of conversion.
             2315          (12) Except as provided in this Subsection (12), a converted policy is renewable with
             2316      respect to [all individuals or dependents] an individual or dependent at the option of the
             2317      insured. An insured may be terminated from a converted policy for the following reasons:
             2318          (a) a dependent is no longer eligible under the converted policy;
             2319          (b) for a network plan, if the individual no longer lives, resides, or works in:


             2320          (i) the insured's service area; or
             2321          (ii) the area for which the covered carrier is authorized to do business;
             2322          (c) the individual fails to pay premiums or contributions in accordance with the terms
             2323      of the converted policy, including any timeliness requirements;
             2324          (d) the individual performs an act or practice that constitutes fraud in connection with
             2325      the coverage;
             2326          (e) the individual makes an intentional misrepresentation of material fact under the
             2327      terms of the coverage; or
             2328          (f) coverage is terminated uniformly without regard to any health status-related factor
             2329      relating to any covered individual.
             2330          (13) Conditions pertaining to health may not be used as a basis for classification under
             2331      this section.
             2332          (14) An insurer is only required to offer a conversion policy that complies with
             2333      Subsection 31A-22-724 (1)(b) and, notwithstanding Sections 31A-8-402.5 and 31A-30-107.1 ,
             2334      may discontinue any other conversion policy if:
             2335          (a) the discontinued conversion policy is discontinued uniformly without regard to
             2336      [any] a health related factor;
             2337          (b) [any affected] an affected individual is provided with 90 days' advanced written
             2338      notice of the discontinuation of the existing conversion policy;
             2339          (c) the [policy holder] policyholder is offered the insurer's conversion policy that
             2340      complies with Subsection 31A-22-724 (1)(b); and
             2341          (d) the [policy holder] policyholder is not re-rated for purposes of premium calculation.
             2342          (15) This section does not apply to a blanket accident and health insurance policy
             2343      issued under Section 31A-22-701 .
             2344          Section 16. Section 31A-23a-102 is amended to read:
             2345           31A-23a-102. Definitions.
             2346          As used in this chapter:
             2347          (1) "Bail bond producer" means a person who:
             2348          (a) is appointed by:
             2349          (i) a surety insurer that issues bail bonds; or
             2350          (ii) a bail bond surety company licensed under Chapter 35, Bail Bond Act;


             2351          (b) is designated to execute or countersign undertakings of bail in connection with a
             2352      judicial proceeding; and
             2353          (c) receives or is promised money or other things of value for engaging in an act
             2354      described in Subsection (1)(b).
             2355          (2) "Escrow" means a license subline of authority in conjunction with the title
             2356      insurance line of authority that allows a person to conduct escrow as defined in Section
             2357      31A-1-301 .
             2358          (3) "Home state" means a state or territory of the United States or the District of
             2359      Columbia in which an insurance producer:
             2360          (a) maintains the insurance producer's principal:
             2361          (i) place of residence; or
             2362          (ii) place of business; and
             2363          (b) is licensed to act as an insurance producer.
             2364          (4) "Insurer" is as defined in Section 31A-1-301 , except that the following persons or
             2365      similar persons are not insurers for purposes of Part 7, Producer Controlled Insurers:
             2366          (a) a risk retention group as defined in:
             2367          (i) the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499;
             2368          (ii) the Risk Retention Act, 15 U.S.C. Sec. 3901 et seq.; and
             2369          (iii) Chapter 15, Part 2, Risk Retention Groups Act;
             2370          (b) a residual market pool;
             2371          (c) a joint underwriting authority or association; and
             2372          (d) a captive insurer.
             2373          (5) "License" is defined in Section 31A-1-301 .
             2374          (6) (a) "Managing general agent" means a person that:
             2375          (i) manages all or part of the insurance business of an insurer, including the
             2376      management of a separate division, department, or underwriting office;
             2377          (ii) acts as an agent for the insurer whether it is known as a managing general agent,
             2378      manager, or other similar term;
             2379          (iii) produces and underwrites an amount of gross direct written premium equal to, or
             2380      more than 5% of, the policyholder surplus as reported in the last annual statement of the insurer
             2381      in any one quarter or year:


             2382          (A) with or without the authority;
             2383          (B) separately or together with an affiliate; and
             2384          (C) directly or indirectly; and
             2385          (iv) (A) adjusts or pays claims in excess of an amount determined by the
             2386      commissioner; or
             2387          (B) negotiates reinsurance on behalf of the insurer.
             2388          (b) Notwithstanding Subsection (6)(a), the following persons may not be considered as
             2389      managing general agent for the purposes of this chapter:
             2390          (i) an employee of the insurer;
             2391          (ii) a United States manager of the United States branch of an alien insurer;
             2392          (iii) an underwriting manager that, pursuant to contract:
             2393          (A) manages all the insurance operations of the insurer;
             2394          (B) is under common control with the insurer;
             2395          (C) is subject to Chapter 16, Insurance Holding Companies; and
             2396          (D) is not compensated based on the volume of premiums written; and
             2397          (iv) the attorney-in-fact authorized by and acting for the subscribers of a reciprocal
             2398      insurer or inter-insurance exchange under powers of attorney.
             2399          (7) "Negotiate" means the act of conferring directly with or offering advice directly to a
             2400      purchaser or prospective purchaser of a particular contract of insurance concerning a
             2401      substantive benefit, term, or condition of the contract if the person engaged in that act:
             2402          (a) sells insurance; or
             2403          (b) obtains insurance from insurers for purchasers.
             2404          (8) "Reinsurance intermediary" means:
             2405          (a) a reinsurance intermediary-broker; or
             2406          (b) a reinsurance intermediary-manager.
             2407          (9) "Reinsurance intermediary-broker" means a person other than an officer or
             2408      employee of the ceding insurer, firm, association, or corporation who solicits, negotiates, or
             2409      places reinsurance cessions or retrocessions on behalf of a ceding insurer without the authority
             2410      or power to bind reinsurance on behalf of the insurer.
             2411          (10) (a) "Reinsurance intermediary-manager" means a person who:
             2412          (i) has authority to bind or who manages all or part of the assumed reinsurance


             2413      business of a reinsurer, including the management of a separate division, department, or
             2414      underwriting office; and
             2415          (ii) acts as an agent for the reinsurer whether the person is known as a reinsurance
             2416      intermediary-manager, manager, or other similar term.
             2417          (b) Notwithstanding Subsection (10)(a), the following persons may not be considered
             2418      reinsurance intermediary-managers for the purpose of this chapter with respect to the reinsurer:
             2419          (i) an employee of the reinsurer;
             2420          (ii) a United States manager of the United States branch of an alien reinsurer;
             2421          (iii) an underwriting manager that, pursuant to contract:
             2422          (A) manages all the reinsurance operations of the reinsurer;
             2423          (B) is under common control with the reinsurer;
             2424          (C) is subject to Chapter 16, Insurance Holding Companies; and
             2425          (D) is not compensated based on the volume of premiums written; and
             2426          (iv) the manager of a group, association, pool, or organization of insurers that:
             2427          (A) engage in joint underwriting or joint reinsurance; and
             2428          (B) are subject to examination by the insurance commissioner of the state in which the
             2429      manager's principal business office is located.
             2430          (11) "Search" means a license subline of authority in conjunction with the title
             2431      insurance line of authority that allows a person to issue title insurance commitments or policies
             2432      on behalf of a title insurer.
             2433          (12) "Sell" means to exchange a contract of insurance:
             2434          (a) by any means;
             2435          (b) for money or its equivalent; and
             2436          (c) on behalf of an insurance company.
             2437          (13) "Solicit" means:
             2438          (a) attempting to sell insurance;
             2439          (b) asking or urging a person to apply for:
             2440          (i) a particular kind of insurance; and
             2441          (ii) insurance from a particular insurance company;
             2442          (c) advertising insurance, including advertising for the purpose of obtaining leads for
             2443      the sale of insurance; or


             2444          (d) holding oneself out as being in the insurance business.
             2445          (14) "Terminate" means:
             2446          (a) the cancellation of the relationship between:
             2447          (i) an individual licensee or agency licensee and a particular insurer; or
             2448          (ii) an individual licensee and a particular agency licensee; or
             2449          (b) the termination of:
             2450          (i) an individual licensee's or agency licensee's authority to transact insurance on behalf
             2451      of a particular insurance company; or
             2452          (ii) an individual licensee's authority to transact insurance on behalf of a particular
             2453      agency licensee.
             2454          (15) "Title marketing representative" means a person who:
             2455          (a) represents a title insurer in soliciting, requesting, or negotiating the placing of:
             2456          (i) title insurance; or
             2457          (ii) escrow services; and
             2458          (b) does not have a search or escrow license as provided in Section 31A-23a-106 .
             2459          (16) "Uniform application" means the version of the National Association of Insurance
             2460      [Commissioner's] Commissioners' uniform application for resident and nonresident producer
             2461      licensing at the time the application is filed.
             2462          (17) "Uniform business entity application" means the version of the National
             2463      Association of Insurance [Commissioner's] Commissioners' uniform business entity application
             2464      for resident and nonresident business entities at the time the application is filed.
             2465          Section 17. Section 31A-23a-106 is amended to read:
             2466           31A-23a-106. License types.
             2467          (1) (a) A resident or nonresident license issued under this chapter shall be issued under
             2468      the license types described under Subsection (2).
             2469          (b) A license type and a line of authority pertaining to a license type describe the type
             2470      of licensee and the lines of business that a licensee may sell, solicit, or negotiate. A license type
             2471      is intended to describe the matters to be considered under any education, examination, and
             2472      training required of a license applicant under Sections 31A-23a-108 , 31A-23a-202 , and
             2473      31A-23a-203 .
             2474          (2) (a) A producer license type includes the following lines of authority:


             2475          (i) life insurance, including a nonvariable contract;
             2476          (ii) variable contracts, including variable life and annuity, if the producer has the life
             2477      insurance line of authority;
             2478          (iii) accident and health insurance, including a contract issued to a policyholder under
             2479      Chapter 7, Nonprofit Health Service Insurance Corporations, or Chapter 8, Health Maintenance
             2480      Organizations and Limited Health Plans;
             2481          (iv) property insurance;
             2482          (v) casualty insurance, including a surety or other bond;
             2483          (vi) title insurance under one or more of the following categories:
             2484          (A) search, including authority to act as a title marketing representative;
             2485          (B) escrow, including authority to act as a title marketing representative; and
             2486          (C) title marketing representative only;
             2487          (vii) personal lines insurance; and
             2488          (viii) surplus lines, if the producer has the property or casualty or both lines of
             2489      authority.
             2490          (b) A limited line producer license type includes the following limited lines of
             2491      authority:
             2492          (i) limited line credit insurance;
             2493          (ii) travel insurance;
             2494          (iii) motor club insurance;
             2495          (iv) car rental related insurance;
             2496          (v) legal expense insurance;
             2497          (vi) crop insurance;
             2498          (vii) self-service storage insurance; [and]
             2499          (viii) bail bond producer[.]; and
             2500          (ix) guaranteed asset protection waiver.
             2501          (c) A customer service representative license type includes the following lines of
             2502      authority, if held by the customer service representative's employer producer:
             2503          (i) life insurance, including a nonvariable contract;
             2504          (ii) accident and health insurance, including a contract issued to a policyholder under
             2505      Chapter 7, Nonprofit Health Service Insurance Corporations, or Chapter 8, Health Maintenance


             2506      Organizations and Limited Health Plans;
             2507          (iii) property insurance;
             2508          (iv) casualty insurance, including a surety or other bond;
             2509          (v) personal lines insurance; and
             2510          (vi) surplus lines, if the employer producer has the property or casualty or both lines of
             2511      authority.
             2512          (d) A consultant license type includes the following lines of authority:
             2513          (i) life insurance, including a nonvariable contract;
             2514          (ii) variable contracts, including variable life and annuity, if the consultant has the life
             2515      insurance line of authority;
             2516          (iii) accident and health insurance, including a contract issued to a policyholder under
             2517      Chapter 7, Nonprofit Health Service Insurance Corporations, or Chapter 8, Health Maintenance
             2518      Organizations and Limited Health Plans;
             2519          (iv) property insurance;
             2520          (v) casualty insurance, including a surety or other bond; and
             2521          (vi) personal lines insurance.
             2522          (e) A managing general agent license type includes the following lines of authority:
             2523          (i) life insurance, including a nonvariable contract;
             2524          (ii) variable contracts, including variable life and annuity, if the managing general
             2525      agent has the life insurance line of authority;
             2526          (iii) accident and health insurance, including a contract issued to a policyholder under
             2527      Chapter 7, Nonprofit Health Service Insurance Corporations, or Chapter 8, Health Maintenance
             2528      Organizations and Limited Health Plans;
             2529          (iv) property insurance;
             2530          (v) casualty insurance, including a surety or other bond; and
             2531          (vi) personal lines insurance.
             2532          (f) A reinsurance intermediary license type includes the following lines of authority:
             2533          (i) life insurance, including a nonvariable contract;
             2534          (ii) variable contracts, including variable life and annuity, if the reinsurance
             2535      intermediary has the life insurance line of authority;
             2536          (iii) accident and health insurance, including a contract issued to a policyholder under


             2537      Chapter 7, Nonprofit Health Service Insurance Corporations, or Chapter 8, Health Maintenance
             2538      Organizations and Limited Health Plans;
             2539          (iv) property insurance;
             2540          (v) casualty insurance, including a surety or other bond; and
             2541          (vi) personal lines insurance.
             2542          (g) A [holder of licenses] person who holds a license under [Subsections] Subsection
             2543      (2)(a), (d), (e), [and] or (f) has [all] the qualifications necessary to act as a holder of a license
             2544      under Subsections (2)(b) and (c), except that the person may not act under Subsection
             2545      (2)(b)(viii) or (ix).
             2546          (3) (a) The commissioner may by rule recognize other producer, limited line producer,
             2547      customer service representative, consultant, managing general agent, or reinsurance
             2548      intermediary lines of authority as to kinds of insurance not listed under Subsections (2)(a)
             2549      through (f).
             2550          (b) Notwithstanding Subsection (3)(a), for purposes of title insurance the Title and
             2551      Escrow Commission may by rule, with the concurrence of the commissioner and subject to
             2552      Section 31A-2-404 , recognize other categories for a title insurance producer line of authority
             2553      not listed under Subsection (2)(a)(vi).
             2554          (4) The variable contracts, including variable life and annuity line of authority requires:
             2555          (a) licensure as a registered agent or broker by the [National Association of Securities
             2556      Dealers] Financial Industry Regulatory Authority; and
             2557          (b) current registration with a securities broker-dealer.
             2558          (5) A surplus lines producer is a producer who has a surplus lines line of authority.
             2559          Section 18. Section 31A-23a-111 is amended to read:
             2560           31A-23a-111. Revocation, suspension, surrender, lapsing, limiting, or otherwise
             2561      terminating a license -- Rulemaking for renewal or reinstatement.
             2562          (1) A license type issued under this chapter remains in force until:
             2563          (a) revoked or suspended under Subsection (5);
             2564          (b) surrendered to the commissioner and accepted by the commissioner in lieu of
             2565      administrative action;
             2566          (c) the licensee dies or is adjudicated incompetent as defined under:
             2567          (i) Title 75, Chapter 5, Part 3, Guardians of Incapacitated Persons; or


             2568          (ii) Title 75, Chapter 5, Part 4, Protection of Property of Persons Under Disability and
             2569      Minors;
             2570          (d) lapsed under Section 31A-23a-113 ; or
             2571          (e) voluntarily surrendered.
             2572          (2) The following may be reinstated within one year after the day on which the license
             2573      is no longer in force:
             2574          (a) a lapsed license; or
             2575          (b) a voluntarily surrendered license, except that a voluntarily surrendered license may
             2576      not be reinstated after the license period in which the license is voluntarily surrendered.
             2577          (3) Unless otherwise stated in [the] a written agreement for the voluntary surrender of a
             2578      license, submission and acceptance of a voluntary surrender of a license does not prevent the
             2579      department from pursuing additional disciplinary or other action authorized under:
             2580          (a) this title; or
             2581          (b) rules made under this title in accordance with Title 63G, Chapter 3, Utah
             2582      Administrative Rulemaking Act.
             2583          (4) A line of authority issued under this chapter remains in force until:
             2584          (a) the qualifications pertaining to a line of authority are no longer met by the licensee;
             2585      or
             2586          (b) the supporting license type:
             2587          (i) is revoked or suspended under Subsection (5);
             2588          (ii) is surrendered to the commissioner and accepted by the commissioner in lieu of
             2589      administrative action;
             2590          (iii) the licensee dies or is adjudicated incompetent as defined under:
             2591          (A) Title 75, Chapter 5, Part 3, Guardians of Incapacitated Persons; or
             2592          (B) Title 75, Chapter 5, Part 4, Protection of Property of Persons Under Disability and
             2593      Minors;
             2594          (iv) lapsed under Section 31A-23a-113 ; or
             2595          (v) voluntarily surrendered.
             2596          (5) (a) If the commissioner makes a finding under Subsection (5)(b), as part of an
             2597      adjudicative proceeding under Title 63G, Chapter 4, Administrative Procedures Act, the
             2598      commissioner may:


             2599          (i) revoke:
             2600          (A) a license; or
             2601          (B) a line of authority;
             2602          (ii) suspend for a specified period of 12 months or less:
             2603          (A) a license; or
             2604          (B) a line of authority;
             2605          (iii) limit in whole or in part:
             2606          (A) a license; or
             2607          (B) a line of authority; or
             2608          (iv) deny a license application.
             2609          (b) The commissioner may take an action described in Subsection (5)(a) if the
             2610      commissioner finds that the licensee:
             2611          (i) is unqualified for a license or line of authority under Section 31A-23a-104 ,
             2612      31A-23a-105 , or 31A-23a-107 ;
             2613          (ii) violates:
             2614          (A) an insurance statute;
             2615          (B) a rule that is valid under Subsection 31A-2-201 (3); or
             2616          (C) an order that is valid under Subsection 31A-2-201 (4);
             2617          (iii) is insolvent or the subject of receivership, conservatorship, rehabilitation, or other
             2618      delinquency proceedings in any state;
             2619          (iv) fails to pay a final judgment rendered against the person in this state within 60
             2620      days after the day on which the judgment became final;
             2621          (v) fails to meet the same good faith obligations in claims settlement that is required of
             2622      admitted insurers;
             2623          (vi) is affiliated with and under the same general management or interlocking
             2624      directorate or ownership as another insurance producer that transacts business in this state
             2625      without a license;
             2626          (vii) refuses:
             2627          (A) to be examined; or
             2628          (B) to produce its accounts, records, and files for examination;
             2629          (viii) has an officer who refuses to:


             2630          (A) give information with respect to the insurance producer's affairs; or
             2631          (B) perform any other legal obligation as to an examination;
             2632          (ix) provides information in the license application that is:
             2633          (A) incorrect;
             2634          (B) misleading;
             2635          (C) incomplete; or
             2636          (D) materially untrue;
             2637          (x) violates an insurance law, valid rule, or valid order of another state's insurance
             2638      department;
             2639          (xi) obtains or attempts to obtain a license through misrepresentation or fraud;
             2640          (xii) improperly withholds, misappropriates, or converts money or properties received
             2641      in the course of doing insurance business;
             2642          (xiii) intentionally misrepresents the terms of an actual or proposed:
             2643          (A) insurance contract;
             2644          (B) application for insurance; or
             2645          (C) life settlement;
             2646          (xiv) is convicted of a felony;
             2647          (xv) admits or is found to have committed an insurance unfair trade practice or fraud;
             2648          (xvi) in the conduct of business in this state or elsewhere:
             2649          (A) uses fraudulent, coercive, or dishonest practices; or
             2650          (B) demonstrates incompetence, untrustworthiness, or financial irresponsibility;
             2651          (xvii) has an insurance license, or its equivalent, denied, suspended, or revoked in
             2652      another state, province, district, or territory;
             2653          (xviii) forges another's name to:
             2654          (A) an application for insurance; or
             2655          (B) a document related to an insurance transaction;
             2656          (xix) improperly uses notes or another reference material to complete an examination
             2657      for an insurance license;
             2658          (xx) knowingly accepts insurance business from an individual who is not licensed;
             2659          (xxi) fails to comply with an administrative or court order imposing a child support
             2660      obligation;


             2661          (xxii) fails to:
             2662          (A) pay state income tax; or
             2663          (B) comply with an administrative or court order directing payment of state income
             2664      tax;
             2665          (xxiii) violates or permits others to violate the federal Violent Crime Control and Law
             2666      Enforcement Act of 1994, 18 U.S.C. [Secs.] Sec. 1033 and 1034; or
             2667          (xxiv) engages in a method or practice in the conduct of business that endangers the
             2668      legitimate interests of customers and the public.
             2669          (c) For purposes of this section, if a license is held by an agency, both the agency itself
             2670      and any individual designated under the license are considered to be the holders of the license.
             2671          (d) If an individual designated under the agency license commits an act or fails to
             2672      perform a duty that is a ground for suspending, revoking, or limiting the individual's license,
             2673      the commissioner may suspend, revoke, or limit the license of:
             2674          (i) the individual;
             2675          (ii) the agency, if the agency:
             2676          (A) is reckless or negligent in its supervision of the individual; or
             2677          (B) knowingly participates in the act or failure to act that is the ground for suspending,
             2678      revoking, or limiting the license; or
             2679          (iii) (A) the individual; and
             2680          (B) the agency if the agency meets the requirements of Subsection (5)(d)(ii).
             2681          (6) A licensee under this chapter is subject to the penalties for acting as a licensee
             2682      without a license if:
             2683          (a) the licensee's license is:
             2684          (i) revoked;
             2685          (ii) suspended;
             2686          (iii) limited;
             2687          (iv) surrendered in lieu of administrative action;
             2688          (v) lapsed; or
             2689          (vi) voluntarily surrendered; and
             2690          (b) the licensee:
             2691          (i) continues to act as a licensee; or


             2692          (ii) violates the terms of the license limitation.
             2693          (7) A licensee under this chapter shall immediately report to the commissioner:
             2694          (a) a revocation, suspension, or limitation of the person's license in another state, the
             2695      District of Columbia, or a territory of the United States;
             2696          (b) the imposition of a disciplinary sanction imposed on that person by another state,
             2697      the District of Columbia, or a territory of the United States; or
             2698          (c) a judgment or injunction entered against that person on the basis of conduct
             2699      involving:
             2700          (i) fraud;
             2701          (ii) deceit;
             2702          (iii) misrepresentation; or
             2703          (iv) a violation of an insurance law or rule.
             2704          (8) (a) An order revoking a license under Subsection (5) or an agreement to surrender a
             2705      license in lieu of administrative action may specify a time, not to exceed five years, within
             2706      which the former licensee may not apply for a new license.
             2707          (b) If no time is specified in an order or agreement described in Subsection (8)(a), the
             2708      former licensee may not apply for a new license for five years from the day on which the order
             2709      or agreement is made without the express approval by the commissioner.
             2710          (9) The commissioner shall promptly withhold, suspend, restrict, or reinstate the use of
             2711      a license issued under this part if so ordered by a court.
             2712          (10) The commissioner shall by rule prescribe the license renewal and reinstatement
             2713      procedures in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             2714          Section 19. Section 31A-23a-202 is amended to read:
             2715           31A-23a-202. Continuing education requirements.
             2716          (1) Pursuant to this section, the commissioner shall by rule prescribe the continuing
             2717      education requirements for a producer and a consultant.
             2718          (2) (a) The commissioner may not state a continuing education requirement in terms of
             2719      formal education.
             2720          (b) The commissioner may state a continuing education requirement in terms of
             2721      [classroom hours, or their equivalent,] hours of insurance-related instruction received.
             2722          (c) Insurance-related formal education may be a substitute, in whole or in part, for


             2723      [classroom hours, or their equivalent,] the hours required under Subsection (2)(b).
             2724          (3) (a) The commissioner shall impose continuing education requirements in
             2725      accordance with a two-year licensing period in which the licensee meets the requirements of
             2726      this Subsection (3).
             2727          (b) (i) Except as provided in this section, the continuing education requirements shall
             2728      require:
             2729          (A) that a licensee complete 24 credit hours of continuing education for every two-year
             2730      licensing period;
             2731          (B) that 3 of the 24 credit hours described in Subsection (3)(b)(i)(A) be ethics courses;
             2732      and
             2733          (C) that the licensee complete at least half of the required hours through classroom
             2734      hours of insurance-related instruction.
             2735          (ii) [The hours not completed through classroom hours] An hour of continuing
             2736      education in accordance with Subsection (3)(b)(i)[(C)] may be obtained through:
             2737          (A) classroom attendance;
             2738          [(A)] (B) home study;
             2739          [(B)] (C) watching a video recording;
             2740          [(C)] (D) experience credit; or
             2741          [(D)] (E) another method provided by rule.
             2742          (iii) (A) Notwithstanding Subsections (3)(b)(i)(A) and (B), a title insurance producer is
             2743      required to complete 12 credit hours of continuing education for every two-year licensing
             2744      period, with 3 of the credit hours being ethics courses unless the title insurance producer is
             2745      licensed in this state as a title insurance producer for 20 or more consecutive years.
             2746          (B) If a title insurance producer is licensed in this state as a title insurance producer for
             2747      20 or more consecutive years, the title insurance producer is required to complete 6 credit hours
             2748      of continuing education for every two-year licensing period, with 3 of the credit hours being
             2749      ethics courses.
             2750          (C) Notwithstanding Subsection (3)(b)(iii)(A) or (B), a title insurance producer is
             2751      considered to have met the continuing education requirements imposed under Subsection
             2752      (3)(b)(iii)(A) or (B) if the title insurance producer:
             2753          (I) is an active member in good standing with the Utah State Bar;


             2754          (II) is in compliance with the continuing education requirements of the Utah State Bar;
             2755      and
             2756          (III) if requested by the department, provides the department evidence that the title
             2757      insurance producer complied with the continuing education requirements of the Utah State Bar.
             2758          (c) A licensee may obtain continuing education hours at any time during the two-year
             2759      licensing period.
             2760          (d) (i) A licensee is exempt from continuing education requirements under this section
             2761      if:
             2762          (A) the licensee was first licensed before April 1, 1978;
             2763          (B) the license does not have a continuous lapse for a period of more than one year,
             2764      except for a license for which the licensee has had an exemption approved before May 11,
             2765      2011;
             2766          [(B)] (C) the licensee requests an exemption from the department; and
             2767          [(C)] (D) the department approves the exemption.
             2768          (ii) If the department approves the exemption under Subsection (3)(d)(i), the licensee is
             2769      not required to apply again for the exemption.
             2770          (e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2771      commissioner shall, by rule:
             2772          (i) publish a list of insurance professional designations whose continuing education
             2773      requirements can be used to meet the requirements for continuing education under Subsection
             2774      (3)(b);
             2775          (ii) authorize a continuing education provider or a state or national professional
             2776      producer or consultant association to:
             2777          (A) offer a qualified program for a license type or line of authority on a geographically
             2778      accessible basis; and
             2779          (B) collect a reasonable fee for funding and administration of a continuing education
             2780      program, subject to the review and approval of the commissioner; and
             2781          (iii) provide that membership by a producer or consultant in a state or national
             2782      professional producer or consultant association is considered a substitute for the equivalent of
             2783      two hours for each year during which the producer or consultant is a member of the
             2784      professional association, except that the commissioner may not give more than two hours of


             2785      continuing education credit in a year regardless of the number of professional associations of
             2786      which the producer or consultant is a member.
             2787          (f) A fee permitted under Subsection (3)(e)(ii)(B) that is charged for attendance at a
             2788      professional producer or consultant association program may be less for an association
             2789      member, on the basis of the member's affiliation expense, but shall preserve the right of a
             2790      nonmember to attend without affiliation.
             2791          (4) The commissioner shall approve a continuing education provider or continuing
             2792      education course that satisfies the requirements of this section.
             2793          (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2794      commissioner shall by rule set the processes and procedures for continuing education provider
             2795      registration and course approval.
             2796          (6) The requirements of this section apply only to a producer or consultant who is an
             2797      individual.
             2798          (7) A nonresident producer or consultant is considered to have satisfied this state's
             2799      continuing education requirements if the nonresident producer or consultant satisfies the
             2800      nonresident producer's or consultant's home state's continuing education requirements for a
             2801      licensed insurance producer or consultant.
             2802          (8) A producer or consultant subject to this section shall keep documentation of
             2803      completing the continuing education requirements of this section for two years after the end of
             2804      the two-year licensing period to which the continuing education applies.
             2805          Section 20. Section 31A-23a-203 is amended to read:
             2806           31A-23a-203. Training period requirements.
             2807          (1) A producer is eligible to add the surplus lines of authority to the person's producer's
             2808      license if the producer:
             2809          (a) has passed the applicable examination;
             2810          (b) has been a producer with property and casualty lines of authority for at least three
             2811      years during the four years immediately preceding the date of application; and
             2812          (c) has paid the applicable fee under Section 31A-3-103 .
             2813          (2) A person is eligible to become a consultant only if the person has acted in a
             2814      capacity that would provide the person with preparation to act as an insurance consultant for a
             2815      period aggregating not less than three years during the four years immediately preceding the


             2816      date of application.
             2817          (3) (a) A resident producer with an accident and health line of authority may only sell
             2818      long-term care insurance if the producer:
             2819          (i) initially completes a minimum of three hours of long-term care training before
             2820      selling long-term care coverage; and
             2821          (ii) after completing the training required by Subsection (3)(a)(i), completes a
             2822      minimum of three hours of long-term care training during each subsequent two-year licensing
             2823      period.
             2824          (b) A course taken to satisfy a long-term care training requirement may be used toward
             2825      satisfying a producer continuing education requirement.
             2826          (c) Long-term care training is not a continuing education requirement to renew a
             2827      producer license.
             2828          (d) An insurer that issues long-term care insurance shall demonstrate to the
             2829      commissioner, upon request, that a producer who is appointed by the insurer and who sells
             2830      long-term care insurance coverage is in compliance with this Subsection (3).
             2831          [(3)] (4) The training periods required under this section apply only to an individual
             2832      applying for a license under this chapter.
             2833          Section 21. Section 31A-23a-204 is amended to read:
             2834           31A-23a-204. Special requirements for title insurance producers and agencies.
             2835          A title insurance producer, including an agency, shall be licensed in accordance with
             2836      this chapter, with the additional requirements listed in this section.
             2837          (1) (a) A person that receives a new license under this title as a title insurance agency,
             2838      shall at the time of licensure be owned or managed by [one or more individuals who are] at
             2839      least one individual who is licensed for at least three of the five years immediately [proceeding]
             2840      preceding the date on which the title insurance agency applies for a license with both:
             2841          (i) a search line of authority; and
             2842          (ii) an escrow line of authority.
             2843          (b) A title insurance agency subject to Subsection (1)(a) may comply with Subsection
             2844      (1)(a) by having the title insurance agency owned or managed by:
             2845          (i) one or more individuals who are licensed with the search line of authority for the
             2846      time period provided in Subsection (1)(a); and


             2847          (ii) one or more individuals who are licensed with the escrow line of authority for the
             2848      time period provided in Subsection (1)(a).
             2849          (c) A person licensed as a title insurance agency shall at all times during the term of
             2850      licensure be owned or managed by at least one individual who is licensed for at least three
             2851      years within the preceding five-year period with both:
             2852          (i) a search line of authority; and
             2853          (ii) an escrow line of authority.
             2854          [(c)] (d) The Title and Escrow Commission may by rule, subject to Section 31A-2-404 ,
             2855      exempt an attorney with real estate experience from the experience requirements in Subsection
             2856      (1)(a).
             2857          (2) (a) A title insurance agency or producer appointed by an insurer shall maintain:
             2858          (i) a fidelity bond;
             2859          (ii) a professional liability insurance policy; or
             2860          (iii) a financial protection:
             2861          (A) equivalent to that described in Subsection (2)(a)(i) or (ii); and
             2862          (B) that the commissioner considers adequate.
             2863          (b) The bond, insurance, or financial protection required by this Subsection (2):
             2864          (i) shall be supplied under a contract approved by the commissioner to provide
             2865      protection against the improper performance of any service in conjunction with the issuance of
             2866      a contract or policy of title insurance; and
             2867          (ii) be in a face amount no less than $50,000.
             2868          (c) The Title and Escrow Commission may by rule, subject to Section 31A-2-404 ,
             2869      exempt title insurance producers from the requirements of this Subsection (2) upon a finding
             2870      that, and only so long as, the required policy or bond is generally unavailable at reasonable
             2871      rates.
             2872          (3) A title insurance agency or producer appointed by an insurer may maintain a
             2873      reserve fund to the extent monies were deposited before July 1, 2008, and not withdrawn to the
             2874      income of the title insurance producer.
             2875          (4) An examination for licensure shall include questions regarding the search and
             2876      examination of title to real property.
             2877          (5) A title insurance producer may not perform the functions of escrow unless the title


             2878      insurance producer has been examined on the fiduciary duties and procedures involved in those
             2879      functions.
             2880          (6) The Title and Escrow Commission shall adopt rules, subject to Section 31A-2-404 ,
             2881      after consulting with the department and the department's test administrator, establishing an
             2882      examination for a license that will satisfy this section.
             2883          (7) A license may be issued to a title insurance producer who has qualified:
             2884          (a) to perform only searches and examinations of title as specified in Subsection (4);
             2885          (b) to handle only escrow arrangements as specified in Subsection (5); or
             2886          (c) to act as a title marketing representative.
             2887          (8) (a) A person licensed to practice law in Utah is exempt from the requirements of
             2888      Subsections (2) and (3) if that person issues 12 or less policies in any 12-month period.
             2889          (b) In determining the number of policies issued by a person licensed to practice law in
             2890      Utah for purposes of Subsection (8)(a), if the person licensed to practice law in Utah issues a
             2891      policy to more than one party to the same closing, the person is considered to have issued only
             2892      one policy.
             2893          (9) A person licensed to practice law in Utah, whether exempt under Subsection (8) or
             2894      not, shall maintain a trust account separate from a law firm trust account for all title and real
             2895      estate escrow transactions.
             2896          Section 22. Section 31A-23a-406 is amended to read:
             2897           31A-23a-406. Title insurance producer's business.
             2898          (1) A title insurance producer may do escrow involving real property transactions if all
             2899      of the following exist:
             2900          (a) the title insurance producer is licensed with:
             2901          (i) the title line of authority; and
             2902          (ii) the escrow subline of authority;
             2903          (b) the title insurance producer is appointed by a title insurer authorized to do business
             2904      in the state;
             2905          (c) the title insurance producer issues one or more of the following [is to be issued] as
             2906      part of the transaction:
             2907          (i) an owner's policy of title insurance; or
             2908          (ii) a lender's policy of title insurance;


             2909          (d) [(i) all funds] money deposited with the title insurance producer in connection with
             2910      any escrow:
             2911          [(A) are] (i) is deposited:
             2912          [(I)] (A) in a federally insured financial institution; and
             2913          [(II)] (B) in a trust account that is separate from all other trust account [funds that are]
             2914      money that is not related to real estate transactions; [and]
             2915          [(B) are] (ii) is the property of the one or more persons entitled to [them] the money
             2916      under the provisions of the escrow; and
             2917          [(ii) are] (iii) is segregated escrow by escrow in the records of the title insurance
             2918      producer;
             2919          (e) earnings on [funds] money held in escrow may be paid out of the escrow account to
             2920      any person in accordance with the conditions of the escrow; [and]
             2921          (f) the escrow does not require the title insurance producer to hold:
             2922          (i) construction [funds] money; or
             2923          (ii) [funds] money held for exchange under Section 1031, Internal Revenue Code[.];
             2924      and
             2925          (g) if the title insurance producer with an escrow subline of authority conducts a
             2926      closing, the title insurance producer is physically present with a borrower, seller, or purchaser
             2927      involving real estate that is the subject of the real estate transaction.
             2928          (2) Notwithstanding Subsection (1), a title insurance producer may engage in the
             2929      escrow business if:
             2930          (a) the escrow involves:
             2931          (i) a mobile home;
             2932          (ii) a grazing right;
             2933          (iii) a water right; or
             2934          (iv) other personal property authorized by the commissioner; and
             2935          (b) the title insurance producer complies with [all the requirements of] this section
             2936      except for [the requirement of] Subsection (1)(c).
             2937          (3) [Funds] Money held in escrow:
             2938          (a) [are] is not subject to any debts of the title insurance producer;
             2939          (b) may only be used to fulfill the terms of the individual escrow under which the


             2940      [funds were] money is accepted; and
             2941          (c) may not be used until [all] the conditions of the escrow [have been] are met.
             2942          (4) Assets or property other than escrow [funds] money received by a title insurance
             2943      producer in accordance with an escrow shall be maintained in a manner that will:
             2944          (a) reasonably preserve and protect the asset or property from loss, theft, or damages;
             2945      and
             2946          (b) otherwise comply with [all] the general duties and responsibilities of a fiduciary or
             2947      bailee.
             2948          (5) (a) A check from the trust account described in Subsection (1)(d) may not be
             2949      drawn, executed, or dated, or [funds] money otherwise disbursed unless the segregated escrow
             2950      account from which [funds are] money is to be disbursed contains a sufficient credit balance
             2951      consisting of collected [or] and cleared [funds] money at the time the check is drawn, executed,
             2952      or dated, or [funds are] money is otherwise disbursed.
             2953          (b) As used in this Subsection (5), [funds are] money is considered to be "collected [or]
             2954      and cleared," and may be disbursed as follows:
             2955          (i) cash may be disbursed on the same day the cash is deposited;
             2956          (ii) a wire transfer may be disbursed on the same day the wire transfer is deposited; and
             2957          [(iii) the following may be disbursed on the day following the date of deposit:]
             2958          [(A) a cashier's check;]
             2959          [(B) a certified check;]
             2960          [(C) a teller's check;]
             2961          [(D) a U.S. Postal Service money order; and]
             2962          [(E) a check drawn on a Federal Reserve Bank or Federal Home Loan Bank; and]
             2963          [(iv) any other check or deposit may be disbursed:]
             2964          [(A) within the time limits provided under the Expedited Funds Availability Act, 12
             2965      U.S.C. Section 4001 et seq., as amended, and related regulations of the Federal Reserve
             2966      System; or]
             2967          [(B) upon written notification from the financial institution to which the funds have
             2968      been deposited, that final settlement has occurred on the deposited item.]
             2969          [(c) Subject to Subsections (5)(a) and (b), any material change to a settlement
             2970      statement made after the final closing documents are executed must be authorized or


             2971      acknowledged by date and signature on each page of the settlement statement by the one or
             2972      more persons affected by the change before disbursement of funds.]
             2973          (iii) the proceeds of one or more of the following financial instruments may be
             2974      disbursed on the same day the financial instruments are deposited if received from a single
             2975      party to the real estate transaction and if the aggregate of the financial instruments for the real
             2976      estate transaction is less than $10,000:
             2977          (A) a cashier's check, certified check, or official check that is drawn on an existing
             2978      account at a federally insured financial institution;
             2979          (B) a check drawn on the trust account of a principal broker or associate broker
             2980      licensed under Title 61, Chapter 2f, Real Estate Licensing and Practices Act, if the title
             2981      producer has reasonable and prudent grounds to believe sufficient money will be available
             2982      from the trust account on which the check is drawn at the time of disbursement of proceeds
             2983      from the title producer's escrow account;
             2984          (C) a personal check not to exceed $500 per closing;
             2985          (D) a check drawn on the escrow account of another title producer, if the title producer
             2986      in the escrow transaction has reasonable and prudent grounds to believe that sufficient money
             2987      will be available for withdrawal from the account upon which the check is drawn at the time of
             2988      disbursement of money from the escrow account of the title producer in the escrow transaction;
             2989      or
             2990          (E) a check issued by a farm credit service authorized under the Farm Credit Act of
             2991      1971, 12 U.S.C. Sec. 2001 et seq., as amended.
             2992          (c) Money received from a financial instrument described in Subsection (5)(b)(iii)(B)
             2993      or (C) may be disbursed:
             2994          (i) within the time limits provided under the Expedited Funds Availability Act, 12
             2995      U.S.C. Sec. 4001 et seq., as amended, and related regulations of the Federal Reserve System; or
             2996          (ii) upon notification from the financial institution to which the money has been
             2997      deposited that final settlement has occurred on the deposited financial instrument.
             2998          (6) [The] A title insurance producer shall maintain [records of all receipts and
             2999      disbursements of escrow funds] a record of a receipt or disbursement of escrow money.
             3000          (7) [The] A title insurance producer shall comply with:
             3001          (a) Section 31A-23a-409 ;


             3002          (b) Title 46, Chapter 1, Notaries Public Reform Act; and
             3003          (c) any rules adopted by the Title and Escrow Commission, subject to Section
             3004      31A-2-404 , that govern escrows.
             3005          (8) If a title insurance producer conducts a search for real estate located in the state, the
             3006      title insurance producer shall conduct a minimum mandatory search, as defined by rule made
             3007      by the Title and Escrow Commission, subject to Section 31A-2-404 .
             3008          Section 23. Section 31A-23a-408 is amended to read:
             3009           31A-23a-408. Representations of agency.
             3010          [No] A person may not represent [himself as] that the person is acting in behalf of an
             3011      insurer unless a written agency contract is in effect giving the person authority from the insurer
             3012      and the insurer [has appointed] appoints that person to act in behalf of the insurer.
             3013          Section 24. Section 31A-23a-412 is amended to read:
             3014           31A-23a-412. Place of business and residence address -- Records.
             3015          (1) (a) [All licensees] A licensee under this chapter shall register and maintain with the
             3016      commissioner:
             3017          (i) the address and telephone numbers of [their] the licensee's principal place of
             3018      business[.]; and
             3019          (ii) a valid business email address at which the commissioner may contact the licensee.
             3020          (b) If [the] a licensee is an individual, in addition to complying with Subsection (1)(a)
             3021      the individual shall [provide to] register and maintain with the commissioner the individual's
             3022      residence address and telephone number.
             3023          (c) A licensee shall notify the commissioner within 30 days of [any] a change of any of
             3024      the following required to be registered with the commissioner under this section:
             3025          (i) an address [or];
             3026          (ii) a telephone number[.]; or
             3027          (iii) a business email address.
             3028          (2) (a) Except as provided under Subsection (3), [every] a licensee under this chapter
             3029      shall keep at the principal place of business address registered under Subsection (1), separate
             3030      and distinct books and records of [all] the transactions consummated under the Utah license.
             3031          (b) The books and records described in Subsection (2)(a) shall:
             3032          (i) be in an organized form;


             3033          (ii) be available to the commissioner for inspection upon reasonable notice; and
             3034          (iii) include all of the following:
             3035          (A) if the licensee is a producer, limited line producer, consultant, managing general
             3036      agent, or reinsurance intermediary:
             3037          (I) a record of each insurance contract procured by or issued through the licensee, with
             3038      the names of insurers and insureds, the amount of premium and commissions or other
             3039      compensation, and the subject of the insurance;
             3040          (II) the names of any other producers, limited line producers, consultants, managing
             3041      general agents, or reinsurance intermediaries from whom business is accepted, and of persons
             3042      to whom commissions or allowances of any kind are promised or paid; and
             3043          (III) a record of [all] the consumer complaints forwarded to the licensee by an
             3044      insurance regulator;
             3045          (B) if the licensee is a consultant, a record of each agreement outlining the work
             3046      performed and the fee for the work; and
             3047          (C) any additional information which:
             3048          (I) is customary for a similar business; or
             3049          (II) may reasonably be required by the commissioner by rule.
             3050          (3) Subsection (2) is satisfied if the books and records specified in Subsection (2) can
             3051      be obtained immediately from a central storage place or elsewhere by on-line computer
             3052      terminals located at the registered address.
             3053          (4) A licensee who represents only a single insurer satisfies Subsection (2) if the
             3054      insurer maintains the books and records pursuant to Subsection (2) at a place satisfying
             3055      Subsections (1) and (5).
             3056          (5) (a) The books and records maintained under Subsection (2) or Section
             3057      31A-23a-413 shall be available for the inspection of the commissioner during all business
             3058      hours for a period of time after the date of the transaction as specified by the commissioner by
             3059      rule, but in no case for less than the current calendar year plus three years.
             3060          (b) Discarding books and records after the applicable record retention period has
             3061      expired does not place the licensee in violation of a later-adopted longer record retention
             3062      period.
             3063          Section 25. Section 31A-23a-415 is amended to read:


             3064           31A-23a-415. Assessment on title insurance agencies or title insurers -- Account
             3065      created.
             3066          (1) For purposes of this section:
             3067          (a) "Premium" is as defined in Subsection 59-9-101 (3).
             3068          (b) "Title insurer" means a person:
             3069          (i) making any contract or policy of title insurance as:
             3070          (A) insurer;
             3071          (B) guarantor; or
             3072          (C) surety;
             3073          (ii) proposing to make any contract or policy of title insurance as:
             3074          (