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First Substitute H.B. 61

This document includes House Floor Amendments incorporated into the bill on Fri, Feb 10, 2012 at 11:24 AM by lerror. --> This document includes Senate 3rd Reading Floor Amendments incorporated into the bill on Tue, Feb 21, 2012 at 5:45 PM by khelgesen. -->

Representative Todd E. Kiser proposes the following substitute bill:


             1     
PORTABLE ELECTRONICS INSURANCE RELATED

             2     
AMENDMENTS

             3     
2012 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Todd E. Kiser

             6     
Senate Sponsor: John L. Valentine

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies the Insurance Code to enact the Portable Electronics Insurance Act,
             11      address adjusting of portable electronics insurance claims, and make conforming
             12      amendments.
             13      Highlighted Provisions:
             14          This bill:
             15          .    modifies definitions;
             16          .    enacts the Portable Electronics Insurance Act, including:
             17              .    defining terms;
             18              .    requiring vendors to hold a limited lines license to sell or offer coverage under a
             19      portable electronics insurance policy;
             20              .    providing for application and fees to obtain limited lines license;
             21              .    addressing employees and authorized representatives of vendors;
             22              .    providing for penalties for violation of part;
             23              .    imposing requirements for the sale of portable electronics insurance;
             24              .    making coverage primary coverage;
             25              .    addressing terminating or changing a portable electronics insurance policy; S. [ and ]
             25a      .S

             26              .    addressing billing; S. and
             26a      . addressing applicability of provisions; .S
             27          .    addresses portable electronics claims adjusting and supervision of nonlicensed
             28      individuals; and
             29          .    makes technical and conforming changes.
             30      Money Appropriated in this Bill:
             31          None
             32      Other Special Clauses:
             33          This bill takes effect on July 1, 2012.
             34      Utah Code Sections Affected:
             35      AMENDS:
             36          31A-1-301, as last amended by Laws of Utah 2011, Chapters 284 and 366
             37          31A-23a-106, as last amended by Laws of Utah 2011, Chapter 284
             38          31A-26-102, as last amended by Laws of Utah 1995, Chapter 20
             39      ENACTS:
             40          31A-22-1801, Utah Code Annotated 1953
             41          31A-22-1802, Utah Code Annotated 1953
             42          31A-22-1803, Utah Code Annotated 1953
             43          31A-22-1804, Utah Code Annotated 1953
             44          31A-22-1805, Utah Code Annotated 1953
             45          31A-22-1806, Utah Code Annotated 1953
             46          31A-22-1807, Utah Code Annotated 1953
             47          31A-22-1808, Utah Code Annotated 1953
             48          31A-22-1809, Utah Code Annotated 1953
             48a      S. 31A-22-1810, Utah Code Annotated 1953 .S
             49          31A-26-216, Utah Code Annotated 1953
             50     
             51      Be it enacted by the Legislature of the state of Utah:
             52          Section 1. Section 31A-1-301 is amended to read:
             53           31A-1-301. Definitions.
             54          As used in this title, unless otherwise specified:
             55          (1) (a) "Accident and health insurance" means insurance to provide protection against
             56      economic losses resulting from:

             57          (i) a medical condition including:
             58          (A) a medical care expense; or
             59          (B) the risk of disability;
             60          (ii) accident; or
             61          (iii) sickness.
             62          (b) "Accident and health insurance":
             63          (i) includes a contract with disability contingencies including:
             64          (A) an income replacement contract;
             65          (B) a health care contract;
             66          (C) an expense reimbursement contract;
             67          (D) a credit accident and health contract;
             68          (E) a continuing care contract; and
             69          (F) a long-term care contract; and
             70          (ii) may provide:
             71          (A) hospital coverage;
             72          (B) surgical coverage;
             73          (C) medical coverage;
             74          (D) loss of income coverage;
             75          (E) prescription drug coverage;
             76          (F) dental coverage; or
             77          (G) vision coverage.
             78          (c) "Accident and health insurance" does not include workers' compensation insurance.
             79          (2) "Actuary" is as defined by the commissioner by rule, made in accordance with Title
             80      63G, Chapter 3, Utah Administrative Rulemaking Act.
             81          (3) "Administrator" is defined in Subsection (161).
             82          (4) "Adult" means an individual who has attained the age of at least 18 years.
             83          (5) "Affiliate" means a person who controls, is controlled by, or is under common
             84      control with, another person. A corporation is an affiliate of another corporation, regardless of
             85      ownership, if substantially the same group of individuals manage the corporations.
             86          (6) "Agency" means:
             87          (a) a person other than an individual, including a sole proprietorship by which an

             88      individual does business under an assumed name; and
             89          (b) an insurance organization licensed or required to be licensed under Section
             90      31A-23a-301 , 31A-25-207 , or 31A-26-209 .
             91          (7) "Alien insurer" means an insurer domiciled outside the United States.
             92          (8) "Amendment" means an endorsement to an insurance policy or certificate.
             93          (9) "Annuity" means an agreement to make periodical payments for a period certain or
             94      over the lifetime of one or more individuals if the making or continuance of all or some of the
             95      series of the payments, or the amount of the payment, is dependent upon the continuance of
             96      human life.
             97          (10) "Application" means a document:
             98          (a) (i) completed by an applicant to provide information about the risk to be insured;
             99      and
             100          (ii) that contains information that is used by the insurer to evaluate risk and decide
             101      whether to:
             102          (A) insure the risk under:
             103          (I) the coverage as originally offered; or
             104          (II) a modification of the coverage as originally offered; or
             105          (B) decline to insure the risk; or
             106          (b) used by the insurer to gather information from the applicant before issuance of an
             107      annuity contract.
             108          (11) "Articles" or "articles of incorporation" means:
             109          (a) the original articles;
             110          (b) a special law;
             111          (c) a charter;
             112          (d) an amendment;
             113          (e) restated articles;
             114          (f) articles of merger or consolidation;
             115          (g) a trust instrument;
             116          (h) another constitutive document for a trust or other entity that is not a corporation;
             117      and
             118          (i) an amendment to an item listed in Subsections (11)(a) through (h).

             119          (12) "Bail bond insurance" means a guarantee that a person will attend court when
             120      required, up to and including surrender of the person in execution of a sentence imposed under
             121      Subsection 77-20-7 (1), as a condition to the release of that person from confinement.
             122          (13) "Binder" is defined in Section 31A-21-102 .
             123          (14) "Blanket insurance policy" means a group policy covering a defined class of
             124      persons:
             125          (a) without individual underwriting or application; and
             126          (b) that is determined by definition without designating each person covered.
             127          (15) "Board," "board of trustees," or "board of directors" means the group of persons
             128      with responsibility over, or management of, a corporation, however designated.
             129          (16) "Bona fide office" means a physical office in this state:
             130          (a) that is open to the public;
             131          (b) that is staffed during regular business hours on regular business days; and
             132          (c) at which the public may appear in person to obtain services.
             133          (17) "Business entity" means:
             134          (a) a corporation;
             135          (b) an association;
             136          (c) a partnership;
             137          (d) a limited liability company;
             138          (e) a limited liability partnership; or
             139          (f) another legal entity.
             140          (18) "Business of insurance" is defined in Subsection (87).
             141          (19) "Business plan" means the information required to be supplied to the
             142      commissioner under Subsections 31A-5-204 (2)(i) and (j), including the information required
             143      when these subsections apply by reference under:
             144          (a) Section 31A-7-201 ;
             145          (b) Section 31A-8-205 ; or
             146          (c) Subsection 31A-9-205 (2).
             147          (20) (a) "Bylaws" means the rules adopted for the regulation or management of a
             148      corporation's affairs, however designated.
             149          (b) "Bylaws" includes comparable rules for a trust or other entity that is not a

             150      corporation.
             151          (21) "Captive insurance company" means:
             152          (a) an insurer:
             153          (i) owned by another organization; and
             154          (ii) whose exclusive purpose is to insure risks of the parent organization and an
             155      affiliated company; or
             156          (b) in the case of a group or association, an insurer:
             157          (i) owned by the insureds; and
             158          (ii) whose exclusive purpose is to insure risks of:
             159          (A) a member organization;
             160          (B) a group member; or
             161          (C) an affiliate of:
             162          (I) a member organization; or
             163          (II) a group member.
             164          (22) "Casualty insurance" means liability insurance.
             165          (23) "Certificate" means evidence of insurance given to:
             166          (a) an insured under a group insurance policy; or
             167          (b) a third party.
             168          (24) "Certificate of authority" is included within the term "license."
             169          (25) "Claim," unless the context otherwise requires, means a request or demand on an
             170      insurer for payment of a benefit according to the terms of an insurance policy.
             171          (26) "Claims-made coverage" means an insurance contract or provision limiting
             172      coverage under a policy insuring against legal liability to claims that are first made against the
             173      insured while the policy is in force.
             174          (27) (a) "Commissioner" or "commissioner of insurance" means Utah's insurance
             175      commissioner.
             176          (b) When appropriate, the terms listed in Subsection (27)(a) apply to the equivalent
             177      supervisory official of another jurisdiction.
             178          (28) (a) "Continuing care insurance" means insurance that:
             179          (i) provides board and lodging;
             180          (ii) provides one or more of the following:

             181          (A) a personal service;
             182          (B) a nursing service;
             183          (C) a medical service; or
             184          (D) any other health-related service; and
             185          (iii) provides the coverage described in this Subsection (28)(a) under an agreement
             186      effective:
             187          (A) for the life of the insured; or
             188          (B) for a period in excess of one year.
             189          (b) Insurance is continuing care insurance regardless of whether or not the board and
             190      lodging are provided at the same location as a service described in Subsection (28)(a)(ii).
             191          (29) (a) "Control," "controlling," "controlled," or "under common control" means the
             192      direct or indirect possession of the power to direct or cause the direction of the management
             193      and policies of a person. This control may be:
             194          (i) by contract;
             195          (ii) by common management;
             196          (iii) through the ownership of voting securities; or
             197          (iv) by a means other than those described in Subsections (29)(a)(i) through (iii).
             198          (b) There is no presumption that an individual holding an official position with another
             199      person controls that person solely by reason of the position.
             200          (c) A person having a contract or arrangement giving control is considered to have
             201      control despite the illegality or invalidity of the contract or arrangement.
             202          (d) There is a rebuttable presumption of control in a person who directly or indirectly
             203      owns, controls, holds with the power to vote, or holds proxies to vote 10% or more of the
             204      voting securities of another person.
             205          (30) "Controlled insurer" means a licensed insurer that is either directly or indirectly
             206      controlled by a producer.
             207          (31) "Controlling person" means a person that directly or indirectly has the power to
             208      direct or cause to be directed, the management, control, or activities of a reinsurance
             209      intermediary.
             210          (32) "Controlling producer" means a producer who directly or indirectly controls an
             211      insurer.

             212          (33) (a) "Corporation" means an insurance corporation, except when referring to:
             213          (i) a corporation doing business:
             214          (A) as:
             215          (I) an insurance producer;
             216          (II) a limited line producer;
             217          (III) a consultant;
             218          (IV) a managing general agent;
             219          (V) a reinsurance intermediary;
             220          (VI) a third party administrator; or
             221          (VII) an adjuster; and
             222          (B) under:
             223          (I) Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and
             224      Reinsurance Intermediaries;
             225          (II) Chapter 25, Third Party Administrators; or
             226          (III) Chapter 26, Insurance Adjusters; or
             227          (ii) a noninsurer that is part of a holding company system under Chapter 16, Insurance
             228      Holding Companies.
             229          (b) "Stock corporation" means a stock insurance corporation.
             230          (c) "Mutual" or "mutual corporation" means a mutual insurance corporation.
             231          (34) (a) "Creditable coverage" has the same meaning as provided in federal regulations
             232      adopted pursuant to the Health Insurance Portability and Accountability Act.
             233          (b) "Creditable coverage" includes coverage that is offered through a public health plan
             234      such as:
             235          (i) the Primary Care Network Program under a Medicaid primary care network
             236      demonstration waiver obtained subject to Section 26-18-3 ;
             237          (ii) the Children's Health Insurance Program under Section 26-40-106 ; or
             238          (iii) the Ryan White Program Comprehensive AIDS Resources Emergency Act, Pub. L.
             239      101-381, and Ryan White HIV/AIDS Treatment Modernization Act of 2006, Pub. L. 109-415.
             240          (35) "Credit accident and health insurance" means insurance on a debtor to provide
             241      indemnity for payments coming due on a specific loan or other credit transaction while the
             242      debtor has a disability.

             243          (36) (a) "Credit insurance" means insurance offered in connection with an extension of
             244      credit that is limited to partially or wholly extinguishing that credit obligation.
             245          (b) "Credit insurance" includes:
             246          (i) credit accident and health insurance;
             247          (ii) credit life insurance;
             248          (iii) credit property insurance;
             249          (iv) credit unemployment insurance;
             250          (v) guaranteed automobile protection insurance;
             251          (vi) involuntary unemployment insurance;
             252          (vii) mortgage accident and health insurance;
             253          (viii) mortgage guaranty insurance; and
             254          (ix) mortgage life insurance.
             255          (37) "Credit life insurance" means insurance on the life of a debtor in connection with
             256      an extension of credit that pays a person if the debtor dies.
             257          (38) "Credit property insurance" means insurance:
             258          (a) offered in connection with an extension of credit; and
             259          (b) that protects the property until the debt is paid.
             260          (39) "Credit unemployment insurance" means insurance:
             261          (a) offered in connection with an extension of credit; and
             262          (b) that provides indemnity if the debtor is unemployed for payments coming due on a:
             263          (i) specific loan; or
             264          (ii) credit transaction.
             265          (40) "Creditor" means a person, including an insured, having a claim, whether:
             266          (a) matured;
             267          (b) unmatured;
             268          (c) liquidated;
             269          (d) unliquidated;
             270          (e) secured;
             271          (f) unsecured;
             272          (g) absolute;
             273          (h) fixed; or

             274          (i) contingent.
             275          (41) (a) "Customer service representative" means a person that provides an insurance
             276      service and insurance product information:
             277          (i) for the customer service representative's:
             278          (A) producer; or
             279          (B) consultant employer; and
             280          (ii) to the customer service representative's employer's:
             281          (A) customer;
             282          (B) client; or
             283          (C) organization.
             284          (b) A customer service representative may only operate within the scope of authority of
             285      the customer service representative's producer or consultant employer.
             286          (42) "Deadline" means a final date or time:
             287          (a) imposed by:
             288          (i) statute;
             289          (ii) rule; or
             290          (iii) order; and
             291          (b) by which a required filing or payment must be received by the department.
             292          (43) "Deemer clause" means a provision under this title under which upon the
             293      occurrence of a condition precedent, the commissioner is considered to have taken a specific
             294      action. If the statute so provides, a condition precedent may be the commissioner's failure to
             295      take a specific action.
             296          (44) "Degree of relationship" means the number of steps between two persons
             297      determined by counting the generations separating one person from a common ancestor and
             298      then counting the generations to the other person.
             299          (45) "Department" means the Insurance Department.
             300          (46) "Director" means a member of the board of directors of a corporation.
             301          (47) "Disability" means a physiological or psychological condition that partially or
             302      totally limits an individual's ability to:
             303          (a) perform the duties of:
             304          (i) that individual's occupation; or

             305          (ii) any occupation for which the individual is reasonably suited by education, training,
             306      or experience; or
             307          (b) perform two or more of the following basic activities of daily living:
             308          (i) eating;
             309          (ii) toileting;
             310          (iii) transferring;
             311          (iv) bathing; or
             312          (v) dressing.
             313          (48) "Disability income insurance" is defined in Subsection (78).
             314          (49) "Domestic insurer" means an insurer organized under the laws of this state.
             315          (50) "Domiciliary state" means the state in which an insurer:
             316          (a) is incorporated;
             317          (b) is organized; or
             318          (c) in the case of an alien insurer, enters into the United States.
             319          (51) (a) "Eligible employee" means:
             320          (i) an employee who:
             321          (A) works on a full-time basis; and
             322          (B) has a normal work week of 30 or more hours; or
             323          (ii) a person described in Subsection (51)(b).
             324          (b) "Eligible employee" includes, if the individual is included under a health benefit
             325      plan of a small employer:
             326          (i) a sole proprietor;
             327          (ii) a partner in a partnership; or
             328          (iii) an independent contractor.
             329          (c) "Eligible employee" does not include, unless eligible under Subsection (51)(b):
             330          (i) an individual who works on a temporary or substitute basis for a small employer;
             331          (ii) an employer's spouse; or
             332          (iii) a dependent of an employer.
             333          (52) "Employee" means an individual employed by an employer.
             334          (53) "Employee benefits" means one or more benefits or services provided to:
             335          (a) an employee; or

             336          (b) a dependent of an employee.
             337          (54) (a) "Employee welfare fund" means a fund:
             338          (i) established or maintained, whether directly or through a trustee, by:
             339          (A) one or more employers;
             340          (B) one or more labor organizations; or
             341          (C) a combination of employers and labor organizations; and
             342          (ii) that provides employee benefits paid or contracted to be paid, other than income
             343      from investments of the fund:
             344          (A) by or on behalf of an employer doing business in this state; or
             345          (B) for the benefit of a person employed in this state.
             346          (b) "Employee welfare fund" includes a plan funded or subsidized by a user fee or tax
             347      revenues.
             348          (55) "Endorsement" means a written agreement attached to a policy or certificate to
             349      modify the policy or certificate coverage.
             350          (56) "Enrollment date," with respect to a health benefit plan, means:
             351          (a) the first day of coverage; or
             352          (b) if there is a waiting period, the first day of the waiting period.
             353          (57) (a) "Escrow" means:
             354          (i) a real estate settlement or real estate closing conducted by a third party pursuant to
             355      the requirements of a written agreement between the parties in a real estate transaction; or
             356          (ii) a settlement or closing involving:
             357          (A) a mobile home;
             358          (B) a grazing right;
             359          (C) a water right; or
             360          (D) other personal property authorized by the commissioner.
             361          (b) "Escrow" includes the act of conducting a:
             362          (i) real estate settlement; or
             363          (ii) real estate closing.
             364          (58) "Escrow agent" means:
             365          (a) an insurance producer with:
             366          (i) a title insurance line of authority; and

             367          (ii) an escrow subline of authority; or
             368          (b) a person defined as an escrow agent in Section 7-22-101 .
             369          (59) (a) "Excludes" is not exhaustive and does not mean that another thing is not also
             370      excluded.
             371          (b) The items listed in a list using the term "excludes" are representative examples for
             372      use in interpretation of this title.
             373          (60) "Exclusion" means for the purposes of accident and health insurance that an
             374      insurer does not provide insurance coverage, for whatever reason, for one of the following:
             375          (a) a specific physical condition;
             376          (b) a specific medical procedure;
             377          (c) a specific disease or disorder; or
             378          (d) a specific prescription drug or class of prescription drugs.
             379          (61) "Expense reimbursement insurance" means insurance:
             380          (a) written to provide a payment for an expense relating to hospital confinement
             381      resulting from illness or injury; and
             382          (b) written:
             383          (i) as a daily limit for a specific number of days in a hospital; and
             384          (ii) to have a one or two day waiting period following a hospitalization.
             385          (62) "Fidelity insurance" means insurance guaranteeing the fidelity of a person holding
             386      a position of public or private trust.
             387          (63) (a) "Filed" means that a filing is:
             388          (i) submitted to the department as required by and in accordance with applicable
             389      statute, rule, or filing order;
             390          (ii) received by the department within the time period provided in applicable statute,
             391      rule, or filing order; and
             392          (iii) accompanied by the appropriate fee in accordance with:
             393          (A) Section 31A-3-103 ; or
             394          (B) rule.
             395          (b) "Filed" does not include a filing that is rejected by the department because it is not
             396      submitted in accordance with Subsection (63)(a).
             397          (64) "Filing," when used as a noun, means an item required to be filed with the

             398      department including:
             399          (a) a policy;
             400          (b) a rate;
             401          (c) a form;
             402          (d) a document;
             403          (e) a plan;
             404          (f) a manual;
             405          (g) an application;
             406          (h) a report;
             407          (i) a certificate;
             408          (j) an endorsement;
             409          (k) an actuarial certification;
             410          (l) a licensee annual statement;
             411          (m) a licensee renewal application;
             412          (n) an advertisement; or
             413          (o) an outline of coverage.
             414          (65) "First party insurance" means an insurance policy or contract in which the insurer
             415      agrees to pay a claim submitted to it by the insured for the insured's losses.
             416          (66) "Foreign insurer" means an insurer domiciled outside of this state, including an
             417      alien insurer.
             418          (67) (a) "Form" means one of the following prepared for general use:
             419          (i) a policy;
             420          (ii) a certificate;
             421          (iii) an application;
             422          (iv) an outline of coverage; or
             423          (v) an endorsement.
             424          (b) "Form" does not include a document specially prepared for use in an individual
             425      case.
             426          (68) "Franchise insurance" means an individual insurance policy provided through a
             427      mass marketing arrangement involving a defined class of persons related in some way other
             428      than through the purchase of insurance.

             429          (69) "General lines of authority" include:
             430          (a) the general lines of insurance in Subsection (70);
             431          (b) title insurance under one of the following sublines of authority:
             432          (i) search, including authority to act as a title marketing representative;
             433          (ii) escrow, including authority to act as a title marketing representative; and
             434          (iii) title marketing representative only;
             435          (c) surplus lines;
             436          (d) workers' compensation; and
             437          (e) any other line of insurance that the commissioner considers necessary to recognize
             438      in the public interest.
             439          (70) "General lines of insurance" include:
             440          (a) accident and health;
             441          (b) casualty;
             442          (c) life;
             443          (d) personal lines;
             444          (e) property; and
             445          (f) variable contracts, including variable life and annuity.
             446          (71) "Group health plan" means an employee welfare benefit plan to the extent that the
             447      plan provides medical care:
             448          (a) (i) to an employee; or
             449          (ii) to a dependent of an employee; and
             450          (b) (i) directly;
             451          (ii) through insurance reimbursement; or
             452          (iii) through another method.
             453          (72) (a) "Group insurance policy" means a policy covering a group of persons that is
             454      issued:
             455          (i) to a policyholder on behalf of the group; and
             456          (ii) for the benefit of a member of the group who is selected under a procedure defined
             457      in:
             458          (A) the policy; or
             459          (B) an agreement that is collateral to the policy.

             460          (b) A group insurance policy may include a member of the policyholder's family or a
             461      dependent.
             462          (73) "Guaranteed automobile protection insurance" means insurance offered in
             463      connection with an extension of credit that pays the difference in amount between the
             464      insurance settlement and the balance of the loan if the insured automobile is a total loss.
             465          (74) (a) Except as provided in Subsection (74)(b), "health benefit plan" means a policy
             466      or certificate that:
             467          (i) provides health care insurance;
             468          (ii) provides major medical expense insurance; or
             469          (iii) is offered as a substitute for hospital or medical expense insurance, such as:
             470          (A) a hospital confinement indemnity; or
             471          (B) a limited benefit plan.
             472          (b) "Health benefit plan" does not include a policy or certificate that:
             473          (i) provides benefits solely for:
             474          (A) accident;
             475          (B) dental;
             476          (C) income replacement;
             477          (D) long-term care;
             478          (E) a Medicare supplement;
             479          (F) a specified disease;
             480          (G) vision; or
             481          (H) a short-term limited duration; or
             482          (ii) is offered and marketed as supplemental health insurance.
             483          (75) "Health care" means any of the following intended for use in the diagnosis,
             484      treatment, mitigation, or prevention of a human ailment or impairment:
             485          (a) a professional service;
             486          (b) a personal service;
             487          (c) a facility;
             488          (d) equipment;
             489          (e) a device;
             490          (f) supplies; or

             491          (g) medicine.
             492          (76) (a) "Health care insurance" or "health insurance" means insurance providing:
             493          (i) a health care benefit; or
             494          (ii) payment of an incurred health care expense.
             495          (b) "Health care insurance" or "health insurance" does not include accident and health
             496      insurance providing a benefit for:
             497          (i) replacement of income;
             498          (ii) short-term accident;
             499          (iii) fixed indemnity;
             500          (iv) credit accident and health;
             501          (v) supplements to liability;
             502          (vi) workers' compensation;
             503          (vii) automobile medical payment;
             504          (viii) no-fault automobile;
             505          (ix) equivalent self-insurance; or
             506          (x) a type of accident and health insurance coverage that is a part of or attached to
             507      another type of policy.
             508          (77) "Health Insurance Portability and Accountability Act" means the Health Insurance
             509      Portability and Accountability Act of 1996, Pub. L. 104-191, 110 Stat. 1936, as amended.
             510          (78) "Income replacement insurance" or "disability income insurance" means insurance
             511      written to provide payments to replace income lost from accident or sickness.
             512          (79) "Indemnity" means the payment of an amount to offset all or part of an insured
             513      loss.
             514          (80) "Independent adjuster" means an insurance adjuster required to be licensed under
             515      Section 31A-26-201 who engages in insurance adjusting as a representative of an insurer.
             516          (81) "Independently procured insurance" means insurance procured under Section
             517      31A-15-104 .
             518          (82) "Individual" means a natural person.
             519          (83) "Inland marine insurance" includes insurance covering:
             520          (a) property in transit on or over land;
             521          (b) property in transit over water by means other than boat or ship;

             522          (c) bailee liability;
             523          (d) fixed transportation property such as bridges, electric transmission systems, radio
             524      and television transmission towers and tunnels; and
             525          (e) personal and commercial property floaters.
             526          (84) "Insolvency" means that:
             527          (a) an insurer is unable to pay its debts or meet its obligations as the debts and
             528      obligations mature;
             529          (b) an insurer's total adjusted capital is less than the insurer's mandatory control level
             530      RBC under Subsection 31A-17-601 (8)(c); or
             531          (c) an insurer is determined to be hazardous under this title.
             532          (85) (a) "Insurance" means:
             533          (i) an arrangement, contract, or plan for the transfer of a risk or risks from one or more
             534      persons to one or more other persons; or
             535          (ii) an arrangement, contract, or plan for the distribution of a risk or risks among a
             536      group of persons that includes the person seeking to distribute that person's risk.
             537          (b) "Insurance" includes:
             538          (i) a risk distributing arrangement providing for compensation or replacement for
             539      damages or loss through the provision of a service or a benefit in kind;
             540          (ii) a contract of guaranty or suretyship entered into by the guarantor or surety as a
             541      business and not as merely incidental to a business transaction; and
             542          (iii) a plan in which the risk does not rest upon the person who makes an arrangement,
             543      but with a class of persons who have agreed to share the risk.
             544          (86) "Insurance adjuster" means a person who directs the investigation, negotiation, or
             545      settlement of a claim under an insurance policy other than life insurance or an annuity, on
             546      behalf of an insurer, policyholder, or a claimant under an insurance policy.
             547          (87) "Insurance business" or "business of insurance" includes:
             548          (a) providing health care insurance by an organization that is or is required to be
             549      licensed under this title;
             550          (b) providing a benefit to an employee in the event of a contingency not within the
             551      control of the employee, in which the employee is entitled to the benefit as a right, which
             552      benefit may be provided either:

             553          (i) by a single employer or by multiple employer groups; or
             554          (ii) through one or more trusts, associations, or other entities;
             555          (c) providing an annuity:
             556          (i) including an annuity issued in return for a gift; and
             557          (ii) except an annuity provided by a person specified in Subsections 31A-22-1305 (2)
             558      and (3);
             559          (d) providing the characteristic services of a motor club as outlined in Subsection
             560      (115);
             561          (e) providing another person with insurance;
             562          (f) making as insurer, guarantor, or surety, or proposing to make as insurer, guarantor,
             563      or surety, a contract or policy of title insurance;
             564          (g) transacting or proposing to transact any phase of title insurance, including:
             565          (i) solicitation;
             566          (ii) negotiation preliminary to execution;
             567          (iii) execution of a contract of title insurance;
             568          (iv) insuring; and
             569          (v) transacting matters subsequent to the execution of the contract and arising out of
             570      the contract, including reinsurance;
             571          (h) transacting or proposing a life settlement; and
             572          (i) doing, or proposing to do, any business in substance equivalent to Subsections
             573      (87)(a) through (h) in a manner designed to evade this title.
             574          (88) "Insurance consultant" or "consultant" means a person who:
             575          (a) advises another person about insurance needs and coverages;
             576          (b) is compensated by the person advised on a basis not directly related to the insurance
             577      placed; and
             578          (c) except as provided in Section 31A-23a-501 , is not compensated directly or
             579      indirectly by an insurer or producer for advice given.
             580          (89) "Insurance holding company system" means a group of two or more affiliated
             581      persons, at least one of whom is an insurer.
             582          (90) (a) "Insurance producer" or "producer" means a person licensed or required to be
             583      licensed under the laws of this state to sell, solicit, or negotiate insurance.

             584          (b) (i) "Producer for the insurer" means a producer who is compensated directly or
             585      indirectly by an insurer for selling, soliciting, or negotiating an insurance product of that
             586      insurer.
             587          (ii) "Producer for the insurer" may be referred to as an "agent."
             588          (c) (i) "Producer for the insured" means a producer who:
             589          (A) is compensated directly and only by an insurance customer or an insured; and
             590          (B) receives no compensation directly or indirectly from an insurer for selling,
             591      soliciting, or negotiating an insurance product of that insurer to an insurance customer or
             592      insured.
             593          (ii) "Producer for the insured" may be referred to as a "broker."
             594          (91) (a) "Insured" means a person to whom or for whose benefit an insurer makes a
             595      promise in an insurance policy and includes:
             596          (i) a policyholder;
             597          (ii) a subscriber;
             598          (iii) a member; and
             599          (iv) a beneficiary.
             600          (b) The definition in Subsection (91)(a):
             601          (i) applies only to this title; and
             602          (ii) does not define the meaning of this word as used in an insurance policy or
             603      certificate.
             604          (92) (a) "Insurer" means a person doing an insurance business as a principal including:
             605          (i) a fraternal benefit society;
             606          (ii) an issuer of a gift annuity other than an annuity specified in Subsections
             607      31A-22-1305 (2) and (3);
             608          (iii) a motor club;
             609          (iv) an employee welfare plan; and
             610          (v) a person purporting or intending to do an insurance business as a principal on that
             611      person's own account.
             612          (b) "Insurer" does not include a governmental entity to the extent the governmental
             613      entity is engaged in an activity described in Section 31A-12-107 .
             614          (93) "Interinsurance exchange" is defined in Subsection (144).

             615          (94) "Involuntary unemployment insurance" means insurance:
             616          (a) offered in connection with an extension of credit; and
             617          (b) that provides indemnity if the debtor is involuntarily unemployed for payments
             618      coming due on a:
             619          (i) specific loan; or
             620          (ii) credit transaction.
             621          (95) "Large employer," in connection with a health benefit plan, means an employer
             622      who, with respect to a calendar year and to a plan year:
             623          (a) employed an average of at least 51 eligible employees on each business day during
             624      the preceding calendar year; and
             625          (b) employs at least two employees on the first day of the plan year.
             626          (96) "Late enrollee," with respect to an employer health benefit plan, means an
             627      individual whose enrollment is a late enrollment.
             628          (97) "Late enrollment," with respect to an employer health benefit plan, means
             629      enrollment of an individual other than:
             630          (a) on the earliest date on which coverage can become effective for the individual
             631      under the terms of the plan; or
             632          (b) through special enrollment.
             633          (98) (a) Except for a retainer contract or legal assistance described in Section
             634      31A-1-103 , "legal expense insurance" means insurance written to indemnify or pay for a
             635      specified legal expense.
             636          (b) "Legal expense insurance" includes an arrangement that creates a reasonable
             637      expectation of an enforceable right.
             638          (c) "Legal expense insurance" does not include the provision of, or reimbursement for,
             639      legal services incidental to other insurance coverage.
             640          (99) (a) "Liability insurance" means insurance against liability:
             641          (i) for death, injury, or disability of a human being, or for damage to property,
             642      exclusive of the coverages under:
             643          (A) Subsection (109) for medical malpractice insurance;
             644          (B) Subsection (136) for professional liability insurance; and
             645          (C) Subsection (170) for workers' compensation insurance;

             646          (ii) for a medical, hospital, surgical, and funeral benefit to a person other than the
             647      insured who is injured, irrespective of legal liability of the insured, when issued with or
             648      supplemental to insurance against legal liability for the death, injury, or disability of a human
             649      being, exclusive of the coverages under:
             650          (A) Subsection (109) for medical malpractice insurance;
             651          (B) Subsection (136) for professional liability insurance; and
             652          (C) Subsection (170) for workers' compensation insurance;
             653          (iii) for loss or damage to property resulting from an accident to or explosion of a
             654      boiler, pipe, pressure container, machinery, or apparatus;
             655          (iv) for loss or damage to property caused by:
             656          (A) the breakage or leakage of a sprinkler, water pipe, or water container; or
             657          (B) water entering through a leak or opening in a building; or
             658          (v) for other loss or damage properly the subject of insurance not within another kind
             659      of insurance as defined in this chapter, if the insurance is not contrary to law or public policy.
             660          (b) "Liability insurance" includes:
             661          (i) vehicle liability insurance;
             662          (ii) residential dwelling liability insurance; and
             663          (iii) making inspection of, and issuing a certificate of inspection upon, an elevator,
             664      boiler, machinery, or apparatus of any kind when done in connection with insurance on the
             665      elevator, boiler, machinery, or apparatus.
             666          (100) (a) "License" means authorization issued by the commissioner to engage in an
             667      activity that is part of or related to the insurance business.
             668          (b) "License" includes a certificate of authority issued to an insurer.
             669          (101) (a) "Life insurance" means:
             670          (i) insurance on a human life; and
             671          (ii) insurance pertaining to or connected with human life.
             672          (b) The business of life insurance includes:
             673          (i) granting a death benefit;
             674          (ii) granting an annuity benefit;
             675          (iii) granting an endowment benefit;
             676          (iv) granting an additional benefit in the event of death by accident;

             677          (v) granting an additional benefit to safeguard the policy against lapse; and
             678          (vi) providing an optional method of settlement of proceeds.
             679          (102) "Limited license" means a license that:
             680          (a) is issued for a specific product of insurance; and
             681          (b) limits an individual or agency to transact only for that product or insurance.
             682          (103) "Limited line credit insurance" includes the following forms of insurance:
             683          (a) credit life;
             684          (b) credit accident and health;
             685          (c) credit property;
             686          (d) credit unemployment;
             687          (e) involuntary unemployment;
             688          (f) mortgage life;
             689          (g) mortgage guaranty;
             690          (h) mortgage accident and health;
             691          (i) guaranteed automobile protection; and
             692          (j) another form of insurance offered in connection with an extension of credit that:
             693          (i) is limited to partially or wholly extinguishing the credit obligation; and
             694          (ii) the commissioner determines by rule should be designated as a form of limited line
             695      credit insurance.
             696          (104) "Limited line credit insurance producer" means a person who sells, solicits, or
             697      negotiates one or more forms of limited line credit insurance coverage to an individual through
             698      a master, corporate, group, or individual policy.
             699          (105) "Limited line insurance" includes:
             700          (a) bail bond;
             701          (b) limited line credit insurance;
             702          (c) legal expense insurance;
             703          (d) motor club insurance;
             704          (e) car rental related insurance;
             705          (f) travel insurance;
             706          (g) crop insurance;
             707          (h) self-service storage insurance;

             708          (i) guaranteed asset protection waiver; [and]
             709          (j) portable electronics insurance; and
             710          [(j)] (k) another form of limited insurance that the commissioner determines by rule
             711      should be designated a form of limited line insurance.
             712          (106) "Limited lines authority" includes:
             713          (a) the lines of insurance listed in Subsection (105); and
             714          (b) a customer service representative.
             715          (107) "Limited lines producer" means a person who sells, solicits, or negotiates limited
             716      lines insurance.
             717          (108) (a) "Long-term care insurance" means an insurance policy or rider advertised,
             718      marketed, offered, or designated to provide coverage:
             719          (i) in a setting other than an acute care unit of a hospital;
             720          (ii) for not less than 12 consecutive months for a covered person on the basis of:
             721          (A) expenses incurred;
             722          (B) indemnity;
             723          (C) prepayment; or
             724          (D) another method;
             725          (iii) for one or more necessary or medically necessary services that are:
             726          (A) diagnostic;
             727          (B) preventative;
             728          (C) therapeutic;
             729          (D) rehabilitative;
             730          (E) maintenance; or
             731          (F) personal care; and
             732          (iv) that may be issued by:
             733          (A) an insurer;
             734          (B) a fraternal benefit society;
             735          (C) (I) a nonprofit health hospital; and
             736          (II) a medical service corporation;
             737          (D) a prepaid health plan;
             738          (E) a health maintenance organization; or

             739          (F) an entity similar to the entities described in Subsections (108)(a)(iv)(A) through (E)
             740      to the extent that the entity is otherwise authorized to issue life or health care insurance.
             741          (b) "Long-term care insurance" includes:
             742          (i) any of the following that provide directly or supplement long-term care insurance:
             743          (A) a group or individual annuity or rider; or
             744          (B) a life insurance policy or rider;
             745          (ii) a policy or rider that provides for payment of benefits on the basis of:
             746          (A) cognitive impairment; or
             747          (B) functional capacity; or
             748          (iii) a qualified long-term care insurance contract.
             749          (c) "Long-term care insurance" does not include:
             750          (i) a policy that is offered primarily to provide basic Medicare supplement coverage;
             751          (ii) basic hospital expense coverage;
             752          (iii) basic medical/surgical expense coverage;
             753          (iv) hospital confinement indemnity coverage;
             754          (v) major medical expense coverage;
             755          (vi) income replacement or related asset-protection coverage;
             756          (vii) accident only coverage;
             757          (viii) coverage for a specified:
             758          (A) disease; or
             759          (B) accident;
             760          (ix) limited benefit health coverage; or
             761          (x) a life insurance policy that accelerates the death benefit to provide the option of a
             762      lump sum payment:
             763          (A) if the following are not conditioned on the receipt of long-term care:
             764          (I) benefits; or
             765          (II) eligibility; and
             766          (B) the coverage is for one or more the following qualifying events:
             767          (I) terminal illness;
             768          (II) medical conditions requiring extraordinary medical intervention; or
             769          (III) permanent institutional confinement.

             770          (109) "Medical malpractice insurance" means insurance against legal liability incident
             771      to the practice and provision of a medical service other than the practice and provision of a
             772      dental service.
             773          (110) "Member" means a person having membership rights in an insurance
             774      corporation.
             775          (111) "Minimum capital" or "minimum required capital" means the capital that must be
             776      constantly maintained by a stock insurance corporation as required by statute.
             777          (112) "Mortgage accident and health insurance" means insurance offered in connection
             778      with an extension of credit that provides indemnity for payments coming due on a mortgage
             779      while the debtor has a disability.
             780          (113) "Mortgage guaranty insurance" means surety insurance under which a mortgagee
             781      or other creditor is indemnified against losses caused by the default of a debtor.
             782          (114) "Mortgage life insurance" means insurance on the life of a debtor in connection
             783      with an extension of credit that pays if the debtor dies.
             784          (115) "Motor club" means a person:
             785          (a) licensed under:
             786          (i) Chapter 5, Domestic Stock and Mutual Insurance Corporations;
             787          (ii) Chapter 11, Motor Clubs; or
             788          (iii) Chapter 14, Foreign Insurers; and
             789          (b) that promises for an advance consideration to provide for a stated period of time
             790      one or more:
             791          (i) legal services under Subsection 31A-11-102 (1)(b);
             792          (ii) bail services under Subsection 31A-11-102 (1)(c); or
             793          (iii) (A) trip reimbursement;
             794          (B) towing services;
             795          (C) emergency road services;
             796          (D) stolen automobile services;
             797          (E) a combination of the services listed in Subsections (115)(b)(iii)(A) through (D); or
             798          (F) other services given in Subsections 31A-11-102 (1)(b) through (f).
             799          (116) "Mutual" means a mutual insurance corporation.
             800          (117) "Network plan" means health care insurance:

             801          (a) that is issued by an insurer; and
             802          (b) under which the financing and delivery of medical care is provided, in whole or in
             803      part, through a defined set of providers under contract with the insurer, including the financing
             804      and delivery of an item paid for as medical care.
             805          (118) "Nonparticipating" means a plan of insurance under which the insured is not
             806      entitled to receive a dividend representing a share of the surplus of the insurer.
             807          (119) "Ocean marine insurance" means insurance against loss of or damage to:
             808          (a) ships or hulls of ships;
             809          (b) goods, freight, cargoes, merchandise, effects, disbursements, profits, money,
             810      securities, choses in action, evidences of debt, valuable papers, bottomry, respondentia
             811      interests, or other cargoes in or awaiting transit over the oceans or inland waterways;
             812          (c) earnings such as freight, passage money, commissions, or profits derived from
             813      transporting goods or people upon or across the oceans or inland waterways; or
             814          (d) a vessel owner or operator as a result of liability to employees, passengers, bailors,
             815      owners of other vessels, owners of fixed objects, customs or other authorities, or other persons
             816      in connection with maritime activity.
             817          (120) "Order" means an order of the commissioner.
             818          (121) "Outline of coverage" means a summary that explains an accident and health
             819      insurance policy.
             820          (122) "Participating" means a plan of insurance under which the insured is entitled to
             821      receive a dividend representing a share of the surplus of the insurer.
             822          (123) "Participation," as used in a health benefit plan, means a requirement relating to
             823      the minimum percentage of eligible employees that must be enrolled in relation to the total
             824      number of eligible employees of an employer reduced by each eligible employee who
             825      voluntarily declines coverage under the plan because the employee:
             826          (a) has other group health care insurance coverage; or
             827          (b) receives:
             828          (i) Medicare, under the Health Insurance for the Aged Act, Title XVIII of the Social
             829      Security Amendments of 1965; or
             830          (ii) another government health benefit.
             831          (124) "Person" includes:

             832          (a) an individual;
             833          (b) a partnership;
             834          (c) a corporation;
             835          (d) an incorporated or unincorporated association;
             836          (e) a joint stock company;
             837          (f) a trust;
             838          (g) a limited liability company;
             839          (h) a reciprocal;
             840          (i) a syndicate; or
             841          (j) another similar entity or combination of entities acting in concert.
             842          (125) "Personal lines insurance" means property and casualty insurance coverage sold
             843      for primarily noncommercial purposes to:
             844          (a) an individual; or
             845          (b) a family.
             846          (126) "Plan sponsor" is as defined in 29 U.S.C. Sec. 1002(16)(B).
             847          (127) "Plan year" means:
             848          (a) the year that is designated as the plan year in:
             849          (i) the plan document of a group health plan; or
             850          (ii) a summary plan description of a group health plan;
             851          (b) if the plan document or summary plan description does not designate a plan year or
             852      there is no plan document or summary plan description:
             853          (i) the year used to determine deductibles or limits;
             854          (ii) the policy year, if the plan does not impose deductibles or limits on a yearly basis;
             855      or
             856          (iii) the employer's taxable year if:
             857          (A) the plan does not impose deductibles or limits on a yearly basis; and
             858          (B) (I) the plan is not insured; or
             859          (II) the insurance policy is not renewed on an annual basis; or
             860          (c) in a case not described in Subsection (127)(a) or (b), the calendar year.
             861          (128) (a) "Policy" means a document, including an attached endorsement or application
             862      that:

             863          (i) purports to be an enforceable contract; and
             864          (ii) memorializes in writing some or all of the terms of an insurance contract.
             865          (b) "Policy" includes a service contract issued by:
             866          (i) a motor club under Chapter 11, Motor Clubs;
             867          (ii) a service contract provided under Chapter 6a, Service Contracts; and
             868          (iii) a corporation licensed under:
             869          (A) Chapter 7, Nonprofit Health Service Insurance Corporations; or
             870          (B) Chapter 8, Health Maintenance Organizations and Limited Health Plans.
             871          (c) "Policy" does not include:
             872          (i) a certificate under a group insurance contract; or
             873          (ii) a document that does not purport to have legal effect.
             874          (129) "Policyholder" means a person who controls a policy, binder, or oral contract by
             875      ownership, premium payment, or otherwise.
             876          (130) "Policy illustration" means a presentation or depiction that includes
             877      nonguaranteed elements of a policy of life insurance over a period of years.
             878          (131) "Policy summary" means a synopsis describing the elements of a life insurance
             879      policy.
             880          (132) "Preexisting condition," with respect to a health benefit plan:
             881          (a) means a condition that was present before the effective date of coverage, whether or
             882      not medical advice, diagnosis, care, or treatment was recommended or received before that day;
             883      and
             884          (b) does not include a condition indicated by genetic information unless an actual
             885      diagnosis of the condition by a physician has been made.
             886          (133) (a) "Premium" means the monetary consideration for an insurance policy.
             887          (b) "Premium" includes, however designated:
             888          (i) an assessment;
             889          (ii) a membership fee;
             890          (iii) a required contribution; or
             891          (iv) monetary consideration.
             892          (c) (i) "Premium" does not include consideration paid to a third party administrator for
             893      the third party administrator's services.

             894          (ii) "Premium" includes an amount paid by a third party administrator to an insurer for
             895      insurance on the risks administered by the third party administrator.
             896          (134) "Principal officers" for a corporation means the officers designated under
             897      Subsection 31A-5-203 (3).
             898          (135) "Proceeding" includes an action or special statutory proceeding.
             899          (136) "Professional liability insurance" means insurance against legal liability incident
             900      to the practice of a profession and provision of a professional service.
             901          (137) (a) Except as provided in Subsection (137)(b), "property insurance" means
             902      insurance against loss or damage to real or personal property of every kind and any interest in
             903      that property:
             904          (i) from all hazards or causes; and
             905          (ii) against loss consequential upon the loss or damage including vehicle
             906      comprehensive and vehicle physical damage coverages.
             907          (b) "Property insurance" does not include:
             908          (i) inland marine insurance; and
             909          (ii) ocean marine insurance.
             910          (138) "Qualified long-term care insurance contract" or "federally tax qualified
             911      long-term care insurance contract" means:
             912          (a) an individual or group insurance contract that meets the requirements of Section
             913      7702B(b), Internal Revenue Code; or
             914          (b) the portion of a life insurance contract that provides long-term care insurance:
             915          (i) (A) by rider; or
             916          (B) as a part of the contract; and
             917          (ii) that satisfies the requirements of Sections 7702B(b) and (e), Internal Revenue
             918      Code.
             919          (139) "Qualified United States financial institution" means an institution that:
             920          (a) is:
             921          (i) organized under the laws of the United States or any state; or
             922          (ii) in the case of a United States office of a foreign banking organization, licensed
             923      under the laws of the United States or any state;
             924          (b) is regulated, supervised, and examined by a United States federal or state authority

             925      having regulatory authority over a bank or trust company; and
             926          (c) meets the standards of financial condition and standing that are considered
             927      necessary and appropriate to regulate the quality of a financial institution whose letters of credit
             928      will be acceptable to the commissioner as determined by:
             929          (i) the commissioner by rule; or
             930          (ii) the Securities Valuation Office of the National Association of Insurance
             931      Commissioners.
             932          (140) (a) "Rate" means:
             933          (i) the cost of a given unit of insurance; or
             934          (ii) for property or casualty insurance, that cost of insurance per exposure unit either
             935      expressed as:
             936          (A) a single number; or
             937          (B) a pure premium rate, adjusted before the application of individual risk variations
             938      based on loss or expense considerations to account for the treatment of:
             939          (I) expenses;
             940          (II) profit; and
             941          (III) individual insurer variation in loss experience.
             942          (b) "Rate" does not include a minimum premium.
             943          (141) (a) Except as provided in Subsection (141)(b), "rate service organization" means
             944      a person who assists an insurer in rate making or filing by:
             945          (i) collecting, compiling, and furnishing loss or expense statistics;
             946          (ii) recommending, making, or filing rates or supplementary rate information; or
             947          (iii) advising about rate questions, except as an attorney giving legal advice.
             948          (b) "Rate service organization" does not mean:
             949          (i) an employee of an insurer;
             950          (ii) a single insurer or group of insurers under common control;
             951          (iii) a joint underwriting group; or
             952          (iv) an individual serving as an actuarial or legal consultant.
             953          (142) "Rating manual" means any of the following used to determine initial and
             954      renewal policy premiums:
             955          (a) a manual of rates;

             956          (b) a classification;
             957          (c) a rate-related underwriting rule; and
             958          (d) a rating formula that describes steps, policies, and procedures for determining
             959      initial and renewal policy premiums.
             960          (143) "Received by the department" means:
             961          (a) the date delivered to and stamped received by the department, if delivered in
             962      person;
             963          (b) the post mark date, if delivered by mail;
             964          (c) the delivery service's post mark or pickup date, if delivered by a delivery service;
             965          (d) the received date recorded on an item delivered, if delivered by:
             966          (i) facsimile;
             967          (ii) email; or
             968          (iii) another electronic method; or
             969          (e) a date specified in:
             970          (i) a statute;
             971          (ii) a rule; or
             972          (iii) an order.
             973          (144) "Reciprocal" or "interinsurance exchange" means an unincorporated association
             974      of persons:
             975          (a) operating through an attorney-in-fact common to all of the persons; and
             976          (b) exchanging insurance contracts with one another that provide insurance coverage
             977      on each other.
             978          (145) "Reinsurance" means an insurance transaction where an insurer, for
             979      consideration, transfers any portion of the risk it has assumed to another insurer. In referring to
             980      reinsurance transactions, this title sometimes refers to:
             981          (a) the insurer transferring the risk as the "ceding insurer"; and
             982          (b) the insurer assuming the risk as the:
             983          (i) "assuming insurer"; or
             984          (ii) "assuming reinsurer."
             985          (146) "Reinsurer" means a person licensed in this state as an insurer with the authority
             986      to assume reinsurance.

             987          (147) "Residential dwelling liability insurance" means insurance against liability
             988      resulting from or incident to the ownership, maintenance, or use of a residential dwelling that is
             989      a detached single family residence or multifamily residence up to four units.
             990          (148) (a) "Retrocession" means reinsurance with another insurer of a liability assumed
             991      under a reinsurance contract.
             992          (b) A reinsurer "retrocedes" when the reinsurer reinsures with another insurer part of a
             993      liability assumed under a reinsurance contract.
             994          (149) "Rider" means an endorsement to:
             995          (a) an insurance policy; or
             996          (b) an insurance certificate.
             997          (150) (a) "Security" means a:
             998          (i) note;
             999          (ii) stock;
             1000          (iii) bond;
             1001          (iv) debenture;
             1002          (v) evidence of indebtedness;
             1003          (vi) certificate of interest or participation in a profit-sharing agreement;
             1004          (vii) collateral-trust certificate;
             1005          (viii) preorganization certificate or subscription;
             1006          (ix) transferable share;
             1007          (x) investment contract;
             1008          (xi) voting trust certificate;
             1009          (xii) certificate of deposit for a security;
             1010          (xiii) certificate of interest of participation in an oil, gas, or mining title or lease or in
             1011      payments out of production under such a title or lease;
             1012          (xiv) commodity contract or commodity option;
             1013          (xv) certificate of interest or participation in, temporary or interim certificate for,
             1014      receipt for, guarantee of, or warrant or right to subscribe to or purchase any of the items listed
             1015      in Subsections (150)(a)(i) through (xiv); or
             1016          (xvi) another interest or instrument commonly known as a security.
             1017          (b) "Security" does not include:

             1018          (i) any of the following under which an insurance company promises to pay money in a
             1019      specific lump sum or periodically for life or some other specified period:
             1020          (A) insurance;
             1021          (B) an endowment policy; or
             1022          (C) an annuity contract; or
             1023          (ii) a burial certificate or burial contract.
             1024          (151) "Secondary medical condition" means a complication related to an exclusion
             1025      from coverage in accident and health insurance.
             1026          (152) (a) "Self-insurance" means an arrangement under which a person provides for
             1027      spreading its own risks by a systematic plan.
             1028          (b) Except as provided in this Subsection (152), "self-insurance" does not include an
             1029      arrangement under which a number of persons spread their risks among themselves.
             1030          (c) "Self-insurance" includes:
             1031          (i) an arrangement by which a governmental entity undertakes to indemnify an
             1032      employee for liability arising out of the employee's employment; and
             1033          (ii) an arrangement by which a person with a managed program of self-insurance and
             1034      risk management undertakes to indemnify its affiliates, subsidiaries, directors, officers, or
             1035      employees for liability or risk that is related to the relationship or employment.
             1036          (d) "Self-insurance" does not include an arrangement with an independent contractor.
             1037          (153) "Sell" means to exchange a contract of insurance:
             1038          (a) by any means;
             1039          (b) for money or its equivalent; and
             1040          (c) on behalf of an insurance company.
             1041          (154) "Short-term care insurance" means an insurance policy or rider advertised,
             1042      marketed, offered, or designed to provide coverage that is similar to long-term care insurance,
             1043      but that provides coverage for less than 12 consecutive months for each covered person.
             1044          (155) "Significant break in coverage" means a period of 63 consecutive days during
             1045      each of which an individual does not have creditable coverage.
             1046          (156) "Small employer," in connection with a health benefit plan, means an employer
             1047      who, with respect to a calendar year and to a plan year:
             1048          (a) employed an average of at least two employees but not more than 50 eligible

             1049      employees on each business day during the preceding calendar year; and
             1050          (b) employs at least two employees on the first day of the plan year.
             1051          (157) "Special enrollment period," in connection with a health benefit plan, has the
             1052      same meaning as provided in federal regulations adopted pursuant to the Health Insurance
             1053      Portability and Accountability Act.
             1054          (158) (a) "Subsidiary" of a person means an affiliate controlled by that person either
             1055      directly or indirectly through one or more affiliates or intermediaries.
             1056          (b) "Wholly owned subsidiary" of a person is a subsidiary of which all of the voting
             1057      shares are owned by that person either alone or with its affiliates, except for the minimum
             1058      number of shares the law of the subsidiary's domicile requires to be owned by directors or
             1059      others.
             1060          (159) Subject to Subsection (85)(b), "surety insurance" includes:
             1061          (a) a guarantee against loss or damage resulting from the failure of a principal to pay or
             1062      perform the principal's obligations to a creditor or other obligee;
             1063          (b) bail bond insurance; and
             1064          (c) fidelity insurance.
             1065          (160) (a) "Surplus" means the excess of assets over the sum of paid-in capital and
             1066      liabilities.
             1067          (b) (i) "Permanent surplus" means the surplus of a mutual insurer that is designated by
             1068      the insurer as permanent.
             1069          (ii) Sections 31A-5-211 , 31A-7-201 , 31A-8-209 , 31A-9-209 , and 31A-14-209 require
             1070      that mutuals doing business in this state maintain specified minimum levels of permanent
             1071      surplus.
             1072          (iii) Except for assessable mutuals, the minimum permanent surplus requirement is the
             1073      same as the minimum required capital requirement that applies to stock insurers.
             1074          (c) "Excess surplus" means:
             1075          (i) for a life insurer, accident and health insurer, health organization, or property and
             1076      casualty insurer as defined in Section 31A-17-601 , the lesser of:
             1077          (A) that amount of an insurer's or health organization's total adjusted capital that
             1078      exceeds the product of:
             1079          (I) 2.5; and

             1080          (II) the sum of the insurer's or health organization's minimum capital or permanent
             1081      surplus required under Section 31A-5-211 , 31A-9-209 , or 31A-14-205 ; or
             1082          (B) that amount of an insurer's or health organization's total adjusted capital that
             1083      exceeds the product of:
             1084          (I) 3.0; and
             1085          (II) the authorized control level RBC as defined in Subsection 31A-17-601 (8)(a); and
             1086          (ii) for a monoline mortgage guaranty insurer, financial guaranty insurer, or title insurer
             1087      that amount of an insurer's paid-in-capital and surplus that exceeds the product of:
             1088          (A) 1.5; and
             1089          (B) the insurer's total adjusted capital required by Subsection 31A-17-609 (1).
             1090          (161) "Third party administrator" or "administrator" means a person who collects
             1091      charges or premiums from, or who, for consideration, adjusts or settles claims of residents of
             1092      the state in connection with insurance coverage, annuities, or service insurance coverage,
             1093      except:
             1094          (a) a union on behalf of its members;
             1095          (b) a person administering a:
             1096          (i) pension plan subject to the federal Employee Retirement Income Security Act of
             1097      1974;
             1098          (ii) governmental plan as defined in Section 414(d), Internal Revenue Code; or
             1099          (iii) nonelecting church plan as described in Section 410(d), Internal Revenue Code;
             1100          (c) an employer on behalf of the employer's employees or the employees of one or
             1101      more of the subsidiary or affiliated corporations of the employer;
             1102          (d) an insurer licensed under the following, but only for a line of insurance for which
             1103      the insurer holds a license in this state:
             1104          (i) Chapter 5, Domestic Stock and Mutual Insurance Corporations;
             1105          (ii) Chapter 7, Nonprofit Health Service Insurance Corporations;
             1106          (iii) Chapter 8, Health Maintenance Organizations and Limited Health Plans;
             1107          (iv) Chapter 9, Insurance Fraternals; or
             1108          (v) Chapter 14, Foreign Insurers; or
             1109          (e) a person:
             1110          (i) licensed or exempt from licensing under:

             1111          (A) Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and
             1112      Reinsurance Intermediaries; or
             1113          (B) Chapter 26, Insurance Adjusters; and
             1114          (ii) whose activities are limited to those authorized under the license the person holds
             1115      or for which the person is exempt.
             1116          (162) "Title insurance" means the insuring, guaranteeing, or indemnifying of an owner
             1117      of real or personal property or the holder of liens or encumbrances on that property, or others
             1118      interested in the property against loss or damage suffered by reason of liens or encumbrances
             1119      upon, defects in, or the unmarketability of the title to the property, or invalidity or
             1120      unenforceability of any liens or encumbrances on the property.
             1121          (163) "Total adjusted capital" means the sum of an insurer's or health organization's
             1122      statutory capital and surplus as determined in accordance with:
             1123          (a) the statutory accounting applicable to the annual financial statements required to be
             1124      filed under Section 31A-4-113 ; and
             1125          (b) another item provided by the RBC instructions, as RBC instructions is defined in
             1126      Section 31A-17-601 .
             1127          (164) (a) "Trustee" means "director" when referring to the board of directors of a
             1128      corporation.
             1129          (b) "Trustee," when used in reference to an employee welfare fund, means an
             1130      individual, firm, association, organization, joint stock company, or corporation, whether acting
             1131      individually or jointly and whether designated by that name or any other, that is charged with
             1132      or has the overall management of an employee welfare fund.
             1133          (165) (a) "Unauthorized insurer," "unadmitted insurer," or "nonadmitted insurer"
             1134      means an insurer:
             1135          (i) not holding a valid certificate of authority to do an insurance business in this state;
             1136      or
             1137          (ii) transacting business not authorized by a valid certificate.
             1138          (b) "Admitted insurer" or "authorized insurer" means an insurer:
             1139          (i) holding a valid certificate of authority to do an insurance business in this state; and
             1140          (ii) transacting business as authorized by a valid certificate.
             1141          (166) "Underwrite" means the authority to accept or reject risk on behalf of the insurer.

             1142          (167) "Vehicle liability insurance" means insurance against liability resulting from or
             1143      incident to ownership, maintenance, or use of a land vehicle or aircraft, exclusive of a vehicle
             1144      comprehensive or vehicle physical damage coverage under Subsection (137).
             1145          (168) "Voting security" means a security with voting rights, and includes a security
             1146      convertible into a security with a voting right associated with the security.
             1147          (169) "Waiting period" for a health benefit plan means the period that must pass before
             1148      coverage for an individual, who is otherwise eligible to enroll under the terms of the health
             1149      benefit plan, can become effective.
             1150          (170) "Workers' compensation insurance" means:
             1151          (a) insurance for indemnification of an employer against liability for compensation
             1152      based on:
             1153          (i) a compensable accidental injury; and
             1154          (ii) occupational disease disability;
             1155          (b) employer's liability insurance incidental to workers' compensation insurance and
             1156      written in connection with workers' compensation insurance; and
             1157          (c) insurance assuring to a person entitled to workers' compensation benefits the
             1158      compensation provided by law.
             1159          Section 2. Section 31A-22-1801 is enacted to read:
             1160     
Part 18. Portable Electronics Insurance Act

             1161          31A-22-1801. Title.
             1162          This part is known as the "Portable Electronics Insurance Act."
             1163          Section 3. Section 31A-22-1802 is enacted to read:
             1164          31A-22-1802. Definitions.
             1165          As used in this part:
             1166          (1) "Customer" means a person who purchases portable electronics.
             1167          (2) "Enrolled customer" means a customer who elects coverage under a portable
             1168      electronics insurance policy issued to a vendor of portable electronics.
             1169          (3) "Location" means a physical location in the state or a website, call center site, or
             1170      similar location directed to residents of the state.
             1171          (4) "Portable electronics" means:
             1172          (a) an electronic device that is portable in nature; and

             1173          (b) an accessory or service related to the use of the portable electronic device.
             1174          (5) (a) "Portable electronics insurance" means insurance providing coverage for the
             1175      repair or replacement of portable electronics that provides coverage for portable electronics
             1176      against any one or more of the following:
             1177          (i) loss;
             1178          (ii) theft;
             1179          (iii) inoperability due to mechanical failure;
             1180          (iv) malfunction;
             1181          (v) damage; or
             1182          (vi) other similar cause of loss.
             1183          (b) "Portable electronics insurance" does not include:
             1183a           S. (i) a manufacturer's or vendor's warranty; .S
             1184           S. [ (i) ] (ii) .S a service contract S. [ governed by Chapter 6a, Service Contracts ] .S ;
             1185           S. [ (ii) ] (iii) .S a policy of insurance covering a vendor's or manufacturer's obligations
             1185a      under a
             1186      warranty; or
             1187           S. [ (iii) ] (iv) .S a homeowner's, renter's, private passenger motor vehicle, commercial
             1187a      multi-peril,
             1188      or similar policy.
             1189          (6) "Portable electronics transaction" means:
             1190          (a) the sale or lease of portable electronics by a vendor to a customer; or
             1191          (b) the sale by a vendor to a customer of an accessory or a service related to the use of
             1192      portable electronics.
             1192a           S. (7) "Service contract" means a contract or agreement for the repair or
             1192b      maintenance of goods or property, for their operational or structural failure due to a defect in
             1192c      materials, workmanship, or normal wear and tear, with or without additional provisions for
             1192d      incidental payment of indemnity under limited circumstances. .S
             1193           S. [ (7) ] (8) .S "Supervising entity" mean a business entity that is:
             1194          (a) a licensed insurer; or
             1195          (b) an insurance producer that is appointed by an insurer to supervise the
             1196      administration of a portable electronics insurance program.
             1197           S. [ (8) ] (9) .S "Vendor" means a person in the business of engaging in portable electronics
             1198      transactions directly or indirectly.
             1198a           S. (10) "Warranty" means a promise made solely by the manufacturer,

             1198b      importer, seller, or lessor of property or services without consideration, that is not negotiated
             1198c      or separated from the sale of the product and is incidental to the sale of the product, that
             1198d      guarantees indemnity for defective parts, mechanical or electrical breakdown, labor, or other
             1198e      remedial measures, such as repair or replacement of the property or repetition of services. .S
             1199          Section 4. Section 31A-22-1803 is enacted to read:
             1200          31A-22-1803. Licensure required.
             1201          (1) Subject to Subsection 31A-22-1804 (2) and Section 31A-23a-103 , a vendor is
             1202      required to hold a portable electronics limited lines license to sell or offer coverage under a
             1203      portable electronics insurance policy.

             1204          (2) A portable electronics limited lines license issued under this section authorizes an
             1205      employee or authorized representative of the vendor to sell or offer coverage under a portable
             1206      electronics insurance policy to a customer at each location at which the vendor who holds the
             1207      limited lines license engages in portable electronics transactions.
             1208          (3) Notwithstanding any other provision of law, a limited lines license issued under
             1209      this section authorizes the licensee and the licensee's employees or authorized representatives
             1210      to engage in those activities that are permitted by this section.
             1211          (4) A supervising entity shall maintain a registry of vendor locations at which the
             1212      vendor is authorized to sell or offer portable electronics insurance coverage in this state. Upon
             1213      request by the commissioner and with three business days notice to the supervising entity, the
             1214      supervising entity shall make the registry open to inspection and examination by the
             1215      commissioner during regular business hours of the supervising entity.
             1216          Section 5. Section 31A-22-1804 is enacted to read:
             1217          31A-22-1804. Application for license and fees.
             1218          (1) To obtain or renew a portable electronics insurance limited lines license under this
             1219      part, a person shall:
             1220          (a) file with the department an application for a portable electronics limited lines
             1221      license on forms and in the manner the commissioner prescribes;
             1222          (b) subject to Subsection (4), provide the name H. [ , residence address, ] .H and other
             1223      information required by the commissioner for H. [ an employee or officer of the vendor that ] a
             1223a      licensed individual who .H is
             1224      designated by the applicant as the person responsible for the vendor's compliance with the
             1225      requirements of this chapter; and
             1226          (c) pay a fee established by the department in accordance with Section 31A-3-103 ,
             1227      except for an initial or renewal portable electronics limited lines license in no event may the fee
             1228      exceed $100 per location in the state at which the vendor engages in portable electronics
             1229      transactions.
             1230          (2) A vendor engaged in portable electronics insurance transactions before July 1,
             1231      2012, shall apply for licensure within 90 days of the application being made available by the
             1232      department. An applicant commencing operations on or after July 1, 2012, shall obtain a
             1233      portable electronics limited lines license before offering portable electronics insurance.
             1234          (3) A portable electronics limited lines license under this part has a term of two years

             1235      and expires two years after issuance, unless renewed.
             1236          (4) If the vendor derives more than 50% of its revenue from the sale of portable
             1237      electronics insurance, the applicant shall provide the information listed in Subsection (1)(b) for
             1238      all officers, directors, and shareholders of record having beneficial ownership of 10% or more
             1239      of any class of securities registered under the federal securities law.
             1240          Section 6. Section 31A-22-1805 is enacted to read:
             1241          31A-22-1805. Employees and authorized representatives of a vendor.
             1242          (1) An employee or authorized representative of a vendor may sell or offer portable
             1243      electronics insurance to a customer and is not subject to licensure as an insurance producer
             1244      under this title if:
             1245          (a) the vendor obtains a portable electronics limited lines license that authorizes the
             1246      vendor's employee or authorized representative to sell or offer portable electronics insurance
             1247      pursuant to this section;
             1248          (b) the insurer issuing the portable electronics insurance either directly supervises or
             1249      appoints a supervising entity to supervise the administration of the portable electronics
             1250      insurance program, including development of a training program for each employee or
             1251      authorized representative of the vendor that complies with the following:
             1252          (i) the training shall be delivered to an employee or authorized representative of a
             1253      vendor who is directly engaged in the activity of selling or offering portable electronics
             1254      insurance;
             1255          (ii) the training may be provided in electronic form if the supervising entity implements
             1256      a supplemental education program regarding the portable electronics insurance product that is
             1257      conducted and overseen by a licensed employee of the supervising entity that holds a portable
             1258      electronics limited lines producer license; and
             1259          (iii) each employee and authorized representative shall receive basic instruction about
             1260      the portable electronics insurance offered to customers and the disclosures required under
             1261      Section 31A-22-1807 ; and
             1262          (c) an employee or authorized representative of a vendor of portable electronics may
             1263      not advertise, represent, or otherwise hold the individual out as an insurance producer of any
             1264      type.
             1265          (2) Notwithstanding any other provision of law, an employee or authorized

             1266      representative of a vendor of portable electronics may not be compensated based primarily on
             1267      the number of customers enrolled for portable electronics insurance coverage, but may receive
             1268      compensation for activities under the limited lines license that are incidental to the employee's
             1269      or authorized representative's overall compensation.
             1270          Section 7. Section 31A-22-1806 is enacted to read:
             1271          31A-22-1806. Penalties.
             1272          Notwithstanding Section 31A-2-308 , if a vendor or the vendor's employee or authorized
             1273      representative violate this part, the commissioner may do any of the following in accordance
             1274      with Title 63G, Chapter 4, Administrative Procedures Act:
             1275          (1) impose a fine not to exceed:
             1276          (a) (i) H. [ $100 ] $2,500 .H per violation by H. [ an ] a licensed .H individual; or
             1277          (ii) $5,000 per violation by an entity; or
             1278          (b) $40,000 in the aggregate for the conduct; or
             1279          (2) impose other penalties that the commissioner considers necessary and reasonable to
             1280      carry out the purpose of this part, including:
             1281          (a) suspending or revoking the privilege of transacting portable electronics insurance
             1282      pursuant to this part at a specific location where violations have occurred; and
             1283          (b) suspending or revoking the ability of individual employees or authorized
             1284      representatives to act under the vendor's limited lines license.
             1285          Section 8. Section 31A-22-1807 is enacted to read:
             1286          31A-22-1807. Requirements for sale of portable electronics insurance -- Policy
             1287      provides primary coverage.
             1288          (1) At each location where a vendor offers portable electronics insurance to a customer,
             1289      the vendor shall make available to a prospective customer written materials that:
             1290          (a) disclose that portable electronics insurance may provide a duplication of coverage
             1291      already provided by the customer's homeowner's insurance policy, renter's insurance policy,
             1292      private passenger motor vehicle policy, or other source of coverage;
             1293          (b) state that the enrollment by the customer in a portable electronics insurance
             1294      program is not required in order to purchase or lease portable electronics;
             1295          (c) summarize the material terms of the portable electronics insurance coverage,
             1296      including:

             1297          (i) the identity of the insurer;
             1298          (ii) the identity of the supervising entity;
             1299          (iii) the amount of any applicable deductible and how it is to be paid;
             1300          (iv) benefits of the coverage; and
             1301          (v) key terms and conditions of coverage, such as whether portable electronics may be
             1302      repaired or replaced with similar make and model reconditioned or non-original manufacturer
             1303      parts or equipment;
             1304          (d) summarize the process for filing a claim, including a description of how to return
             1305      portable electronics and the maximum fee applicable in the event the customer fails to comply
             1306      with any equipment return requirements; and
             1307          (e) state the cancellation rights under Subsection (2).
             1308          (2) An enrolled customer may cancel enrollment for coverage under a portable
             1309      electronics insurance policy at any time, and the person paying the premium shall receive a
             1310      refund or credit of any applicable unearned premium.
             1311          (3) Portable electronics insurance may be offered on a month to month or other
             1312      periodic basis as a group or master commercial inland marine policy issued to a vendor of
             1313      portable electronics for its enrolled customers. Notwithstanding any other provision of law to
             1314      the contrary, H. [ a policy of ] forms for .H portable electronics insurance shall be filed with the
             1314a      commissioner in
             1315      accordance with Section 31A-21-201, and rates for portable electronics insurance shall be filed
             1316      in accordance with Section 31A-19a-203.
             1317          (4) Eligibility and underwriting standards for customers electing to enroll in coverage
             1318      shall be filed with the department for each portable electronics insurance program.
             1319          (5) A policy of portable electronics insurance shall provide primary coverage in the
             1320      event of a covered loss under more than one policy.
             1321          Section 9. Section 31A-22-1808 is enacted to read:
             1322          31A-22-1808. Termination of or changes to portable electronics insurance.
             1323          Notwithstanding any other provision of law:
             1324          (1) (a) An insurer may terminate or otherwise change the terms and conditions of a
             1325      policy of portable electronics insurance only upon providing the policyholder and enrolled
             1326      customers with at least 30 days notice.
             1327          (b) Notwithstanding Subsection (1)(a), an insurer may terminate an enrolled customer's

             1328      enrollment under a portable electronics insurance policy upon 30 days notice for discovery of
             1329      fraud or material misrepresentation in obtaining coverage or in the presentation of a claim
             1330      under the portable electronics insurance policy.
             1331          (c) Notwithstanding Subsection (1)(a), an insurer may immediately terminate an
             1332      enrolled customer's enrollment under a portable electronics insurance policy:
             1333          (i) for nonpayment of premium;
             1334          (ii) if the enrolled customer ceases to have an active service with the vendor of the
             1335      portable electronics; or
             1336          (iii) subject to Subsection (2), if the enrolled customer exhausts the aggregate limit of
             1337      liability, if any, under the terms of the portable electronics insurance policy and the insurer
             1338      sends notice of termination to the enrolled customer within 30 days after exhaustion of the
             1339      limit.
             1340          (2) If notice is not timely sent under Subsection (1)(c)(iii), enrollment shall continue
             1341      notwithstanding the aggregate limit of liability until the insurer sends notice of termination to
             1342      the enrolled customer.
             1343          (3) If an insurer changes the terms and conditions of a portable electronics insurance
             1344      policy, the insurer shall provide:
             1345          (a) the vendor policyholder with a revised policy or endorsement; and
             1346          (b) each enrolled customer with:
             1347          (i) a revised certificate, endorsement, brochure, or other evidence indicating a change
             1348      in the terms and conditions has occurred; and
             1349          (ii) a summary of material changes.
             1350          (4) When a vendor policyholder of a portable electronics insurance policy terminates
             1351      the portable electronics insurance policy, the vendor policyholder shall mail or deliver written
             1352      notice to each enrolled customer advising the enrolled customer of the termination of the
             1353      portable electronics insurance policy and the effective date of termination. The vendor shall
             1354      mail or deliver the written notice to the enrolled customer at least 30 days before the
             1355      termination.
             1356          (5) (a) When notice or correspondence with respect to coverage under a policy of
             1357      portable electronics insurance is required under this section or is otherwise required by law, the
             1358      notice or correspondence shall be in writing and be mailed or delivered to the vendor at the

             1359      vendor's mailing address and to its affected enrolled customers' last known mailing addresses
             1360      on file with the insurer.
             1361          (b) If mailed, the insurer or vendor, as the case may be, shall maintain proof of mailing
             1362      in a form authorized or accepted by the United States Postal Service or other commercial mail
             1363      delivery service.
             1364          (c) An insurer or vendor policyholder may comply with this Subsection (5) by
             1365      providing notice or correspondence to a vendor or its affected enrolled customers, as the case
             1366      may be, by electronic means. If accomplished through electronic means, the insurer or vendor,
             1367      as the case may be, shall maintain proof that the notice or correspondence was sent. For
             1368      purposes of this Subsection (5)(c) and Title 46, Chapter 4, Uniform Electronic Transactions
             1369      Act, the provision of an electronic mail address to an insurer or vendor by an enrolled customer
             1370      is considered consent to receive notice and correspondence by electronic means as long as a
             1371      disclosure to the effect is provided to the customer.
             1372          (6) Notice or correspondence required by this section or otherwise required by law may
             1373      be sent on behalf of an insurer or vendor by the supervising entity appointed by the insurer.
             1374          Section 10. Section 31A-22-1809 is enacted to read:
             1375          31A-22-1809. Billing.
             1376          (1) A vendor may bill and collect the premium for portable electronics insurance
             1377      coverage.
             1378          (2) (a) Any charge to an enrolled customer for portable electronics insurance coverage
             1379      that is not included in the cost associated with the purchase or lease of portable electronics or
             1380      related services shall be separately itemized on the enrolled customer's bill.
             1381          (b) If the portable electronics insurance coverage is included with the purchase or lease
             1382      of portable electronics or related services, the vendor shall clearly and conspicuously disclose
             1383      to the enrolled customer that the portable electronics insurance coverage is included with the
             1384      portable electronics or related services.
             1385          (3) A vendor who bills and collects the premium for the portable electronics insurance
             1386      may not be required to maintain the money in a segregated account if the vendor is authorized
             1387      by the insurer to hold the money in an alternative manner and remits the money to the
             1388      supervising entity within 60 days of receipt. Money received by a vendor from an enrolled
             1389      customer for the sale of portable electronics insurance is considered money held in trust by the

             1390      vendor in a fiduciary capacity for the benefit of the insurer.
             1391          (4) A vendor may receive compensation for billing and collection services.
             1391a      S.Section. 11. Section 31A-22-1810 is enacted to read:
             1391b      31A-22-1810. Applicability.
             1391c      This part is not applicable to a loan or lease originated by a federally insured depository
             1391d      institution, or a subsidiary or affiliate of a federally insured depository institution, or
             1391e      originated by any other entity as part of a plan to sell or assign an interest in the loan or lease
             1391f      to a federally insured depository institution, or a subsidiary or affiliate of a federally insured
             1391g      depository institution. .S
             1392          Section S. [ 11 ] 12 .S . Section 31A-23a-106 is amended to read:
             1393           31A-23a-106. License types.
             1394          (1) (a) A resident or nonresident license issued under this chapter shall be issued under
             1395      the license types described under Subsection (2).
             1396          (b) A license type and a line of authority pertaining to a license type describe the type
             1397      of licensee and the lines of business that a licensee may sell, solicit, or negotiate. A license
             1398      type is intended to describe the matters to be considered under any education, examination, and
             1399      training required of a license applicant under Sections 31A-23a-108 , 31A-23a-202 , and
             1400      31A-23a-203 .
             1401          (2) (a) A producer license type includes the following lines of authority:
             1402          (i) life insurance, including a nonvariable contract;
             1403          (ii) variable contracts, including variable life and annuity, if the producer has the life
             1404      insurance line of authority;
             1405          (iii) accident and health insurance, including a contract issued to a policyholder under
             1406      Chapter 7, Nonprofit Health Service Insurance Corporations, or Chapter 8, Health Maintenance
             1407      Organizations and Limited Health Plans;
             1408          (iv) property insurance;
             1409          (v) casualty insurance, including a surety or other bond;
             1410          (vi) title insurance under one or more of the following categories:
             1411          (A) search, including authority to act as a title marketing representative;
             1412          (B) escrow, including authority to act as a title marketing representative; and
             1413          (C) title marketing representative only;
             1414          (vii) personal lines insurance; and
             1415          (viii) surplus lines, if the producer has the property or casualty or both lines of
             1416      authority.

             1417          (b) A limited line producer license type includes the following limited lines of
             1418      authority:
             1419          (i) limited line credit insurance;
             1420          (ii) travel insurance;

             1421          (iii) motor club insurance;
             1422          (iv) car rental related insurance;
             1423          (v) legal expense insurance;
             1424          (vi) crop insurance;
             1425          (vii) self-service storage insurance;
             1426          (viii) bail bond producer; [and]
             1427          (ix) guaranteed asset protection waiver[.]; and
             1428          (x) portable electronics insurance.
             1429          (c) A customer service representative license type includes the following lines of
             1430      authority, if held by the customer service representative's employer producer:
             1431          (i) life insurance, including a nonvariable contract;
             1432          (ii) accident and health insurance, including a contract issued to a policyholder under
             1433      Chapter 7, Nonprofit Health Service Insurance Corporations, or Chapter 8, Health Maintenance
             1434      Organizations and Limited Health Plans;
             1435          (iii) property insurance;
             1436          (iv) casualty insurance, including a surety or other bond;
             1437          (v) personal lines insurance; and
             1438          (vi) surplus lines, if the employer producer has the property or casualty or both lines of
             1439      authority.
             1440          (d) A consultant license type includes the following lines of authority:
             1441          (i) life insurance, including a nonvariable contract;
             1442          (ii) variable contracts, including variable life and annuity, if the consultant has the life
             1443      insurance line of authority;
             1444          (iii) accident and health insurance, including a contract issued to a policyholder under
             1445      Chapter 7, Nonprofit Health Service Insurance Corporations, or Chapter 8, Health Maintenance
             1446      Organizations and Limited Health Plans;
             1447          (iv) property insurance;
             1448          (v) casualty insurance, including a surety or other bond; and
             1449          (vi) personal lines insurance.
             1450          (e) A managing general agent license type includes the following lines of authority:
             1451          (i) life insurance, including a nonvariable contract;

             1452          (ii) variable contracts, including variable life and annuity, if the managing general
             1453      agent has the life insurance line of authority;
             1454          (iii) accident and health insurance, including a contract issued to a policyholder under
             1455      Chapter 7, Nonprofit Health Service Insurance Corporations, or Chapter 8, Health Maintenance
             1456      Organizations and Limited Health Plans;
             1457          (iv) property insurance;
             1458          (v) casualty insurance, including a surety or other bond; and
             1459          (vi) personal lines insurance.
             1460          (f) A reinsurance intermediary license type includes the following lines of authority:
             1461          (i) life insurance, including a nonvariable contract;
             1462          (ii) variable contracts, including variable life and annuity, if the reinsurance
             1463      intermediary has the life insurance line of authority;
             1464          (iii) accident and health insurance, including a contract issued to a policyholder under
             1465      Chapter 7, Nonprofit Health Service Insurance Corporations, or Chapter 8, Health Maintenance
             1466      Organizations and Limited Health Plans;
             1467          (iv) property insurance;
             1468          (v) casualty insurance, including a surety or other bond; and
             1469          (vi) personal lines insurance.
             1470          (g) A person who holds a license under Subsection (2)(a), (d), (e), or (f) has the
             1471      qualifications necessary to act as a holder of a license under Subsections (2)(b) and (c), except
             1472      that the person may not act under Subsection (2)(b)(viii) or (ix).
             1473          (3) (a) The commissioner may by rule recognize other producer, limited line producer,
             1474      customer service representative, consultant, managing general agent, or reinsurance
             1475      intermediary lines of authority as to kinds of insurance not listed under Subsections (2)(a)
             1476      through (f).
             1477          (b) Notwithstanding Subsection (3)(a), for purposes of title insurance the Title and
             1478      Escrow Commission may by rule, with the concurrence of the commissioner and subject to
             1479      Section 31A-2-404 , recognize other categories for a title insurance producer line of authority
             1480      not listed under Subsection (2)(a)(vi).
             1481          (4) The variable contracts, including variable life and annuity line of authority requires:
             1482          (a) licensure as a registered agent or broker by the Financial Industry Regulatory

             1483      Authority; and
             1484          (b) current registration with a securities broker-dealer.
             1485          (5) A surplus lines producer is a producer who has a surplus lines line of authority.
             1486          Section 12. Section 31A-26-102 is amended to read:
             1487           31A-26-102. Definitions.
             1488          As used in this chapter, unless expressly provided otherwise:
             1489          (1) "Company adjuster" means a person employed by an insurer whose regular duties
             1490      include insurance adjusting.
             1491          (2) "Independent adjuster" means an insurance adjuster required to be licensed under
             1492      Section 31A-26-201 , who engages in insurance adjusting as a representative of insurers.
             1493          (3) "Insurance adjusting" or "adjusting" means directing the investigation, negotiation,
             1494      or settlement of a claim under an insurance policy, on behalf of an insurer, policyholder, or a
             1495      claimant under an insurance policy.
             1496          (4) "Organization" means a person other than a natural person, and includes a sole
             1497      proprietorship by which a natural person does business under an assumed name.
             1498          (5) "Portable electronics insurance" is as defined in Section 31A-22-1802 .
             1499          [(5)] (6) "Public adjuster" means a person required to be licensed under Section
             1500      31A-26-201 , who engages in insurance adjusting as a representative of insureds and claimants
             1501      under insurance policies.
             1502          Section 13. Section 31A-26-216 is enacted to read:
             1503          31A-26-216. Portable electronics adjusting.
             1504          (1) As used in this section, "automated claims adjudication system" means a
             1505      preprogrammed computer system designed for the collection, data entry, calculation, and final
             1506      resolution of a portable electronics insurance claim that:
             1507          (a) may only be used by a Utah licensed independent adjuster, a Utah licensed
             1508      producer, or an individual supervised as provided in this section;
             1509          (b) complies with the claims payment requirements of this title; and
             1510          (c) is certified as compliant with this section by a Utah licensed independent adjuster
             1511      that is an officer of an organization licensed under this chapter.
             1512          (2) An individual is exempt from licensure as an adjuster, if the individual for purposes
             1513      of a portable electronics insurance claim:

             1514          (a) collects claim information from, or furnishes claim information to, insureds or
             1515      claimants;
             1516          (b) conducts data entry, including entering data into an automated claims adjudication
             1517      system;
             1518          (c) is an employee of a licensed independent adjuster or its affiliate; and
             1519          (d) is one of no more than 25 individuals who are under the supervision of:
             1520          (i) a Utah licensed independent adjuster; or
             1521          (ii) a Utah licensed producer who is exempt from licensure pursuant to Section
             1522      31A-26-201 .
             1523          Section 14. Effective date.
             1524          This bill takes effect on July 1, 2012.

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