Chief Sponsor: Curtis S. Bramble

House Sponsor: R. Curt Webb


8     General Description:
9          This bill modifies the Insurance Code to address issues related to title and escrow
10     insurance.
11     Highlighted Provisions:
12          This bill:
13          ▸     modifies definition provisions;
14          ▸     changes references from searches to title examinations;
15          ▸     addresses duties of the commissioner and the Title and Escrow Commission related
16     to title insurance;
17          ▸     addresses adjudication of a title insurance matter and the imposition of penalties;
18          ▸     modifies definitions related to licensing;
19          ▸     modifies financial requirements for a producer;
20          ▸     changes assessment provisions; and
21          ▸     makes technical and conforming amendments.
22     Money Appropriated in this Bill:
23          None
24     Other Special Clauses:
25          None
26     Utah Code Sections Affected:
27     AMENDS:
28          31A-1-301, as last amended by Laws of Utah 2014, Chapters 290 and 300
29          31A-2-402, as last amended by Laws of Utah 2013, Chapter 319

30          31A-2-403, as last amended by Laws of Utah 2013, Chapter 319
31          31A-2-404, as last amended by Laws of Utah 2013, Chapters 43 and 319
32          31A-19a-209, as last amended by Laws of Utah 2013, Chapter 319
33          31A-20-110, as last amended by Laws of Utah 2013, Chapter 319
34          31A-23a-102, as last amended by Laws of Utah 2014, Chapters 290 and 300
35          31A-23a-106, as last amended by Laws of Utah 2014, Chapter 277
36          31A-23a-204, as last amended by Laws of Utah 2013, Chapter 319
37          31A-23a-415, as last amended by Laws of Utah 2013, Chapter 319
38          31A-23a-504, as last amended by Laws of Utah 2014, Chapter 277
39          31A-41-202, as last amended by Laws of Utah 2013, Chapter 319
40          31A-41-203, as enacted by Laws of Utah 2008, Chapter 220

42     Be it enacted by the Legislature of the state of Utah:
43          Section 1. Section 31A-1-301 is amended to read:
44          31A-1-301. Definitions.
45          As used in this title, unless otherwise specified:
46          (1) (a) "Accident and health insurance" means insurance to provide protection against
47     economic losses resulting from:
48          (i) a medical condition including:
49          (A) a medical care expense; or
50          (B) the risk of disability;
51          (ii) accident; or
52          (iii) sickness.
53          (b) "Accident and health insurance":
54          (i) includes a contract with disability contingencies including:
55          (A) an income replacement contract;
56          (B) a health care contract;
57          (C) an expense reimbursement contract;

58          (D) a credit accident and health contract;
59          (E) a continuing care contract; and
60          (F) a long-term care contract; and
61          (ii) may provide:
62          (A) hospital coverage;
63          (B) surgical coverage;
64          (C) medical coverage;
65          (D) loss of income coverage;
66          (E) prescription drug coverage;
67          (F) dental coverage; or
68          (G) vision coverage.
69          (c) "Accident and health insurance" does not include workers' compensation insurance.
70          (2) "Actuary" is as defined by the commissioner by rule, made in accordance with Title
71     63G, Chapter 3, Utah Administrative Rulemaking Act.
72          (3) "Administrator" is defined in Subsection (164).
73          (4) "Adult" means an individual who has attained the age of at least 18 years.
74          (5) "Affiliate" means a person who controls, is controlled by, or is under common
75     control with, another person. A corporation is an affiliate of another corporation, regardless of
76     ownership, if substantially the same group of individuals manage the corporations.
77          (6) "Agency" means:
78          (a) a person other than an individual, including a sole proprietorship by which an
79     individual does business under an assumed name; and
80          (b) an insurance organization licensed or required to be licensed under Section
81     31A-23a-301, 31A-25-207, or 31A-26-209.
82          (7) "Alien insurer" means an insurer domiciled outside the United States.
83          (8) "Amendment" means an endorsement to an insurance policy or certificate.
84          (9) "Annuity" means an agreement to make periodical payments for a period certain or
85     over the lifetime of one or more individuals if the making or continuance of all or some of the

86     series of the payments, or the amount of the payment, is dependent upon the continuance of
87     human life.
88          (10) "Application" means a document:
89          (a) (i) completed by an applicant to provide information about the risk to be insured;
90     and
91          (ii) that contains information that is used by the insurer to evaluate risk and decide
92     whether to:
93          (A) insure the risk under:
94          (I) the coverage as originally offered; or
95          (II) a modification of the coverage as originally offered; or
96          (B) decline to insure the risk; or
97          (b) used by the insurer to gather information from the applicant before issuance of an
98     annuity contract.
99          (11) "Articles" or "articles of incorporation" means:
100          (a) the original articles;
101          (b) a special law;
102          (c) a charter;
103          (d) an amendment;
104          (e) restated articles;
105          (f) articles of merger or consolidation;
106          (g) a trust instrument;
107          (h) another constitutive document for a trust or other entity that is not a corporation;
108     and
109          (i) an amendment to an item listed in Subsections (11)(a) through (h).
110          (12) "Bail bond insurance" means a guarantee that a person will attend court when
111     required, up to and including surrender of the person in execution of a sentence imposed under
112     Subsection 77-20-7(1), as a condition to the release of that person from confinement.
113          (13) "Binder" is defined in Section 31A-21-102.

114          (14) "Blanket insurance policy" means a group policy covering a defined class of
115     persons:
116          (a) without individual underwriting or application; and
117          (b) that is determined by definition without designating each person covered.
118          (15) "Board," "board of trustees," or "board of directors" means the group of persons
119     with responsibility over, or management of, a corporation, however designated.
120          (16) "Bona fide office" means a physical office in this state:
121          (a) that is open to the public;
122          (b) that is staffed during regular business hours on regular business days; and
123          (c) at which the public may appear in person to obtain services.
124          (17) "Business entity" means:
125          (a) a corporation;
126          (b) an association;
127          (c) a partnership;
128          (d) a limited liability company;
129          (e) a limited liability partnership; or
130          (f) another legal entity.
131          (18) "Business of insurance" is defined in Subsection (88).
132          (19) "Business plan" means the information required to be supplied to the
133     commissioner under Subsections 31A-5-204(2)(i) and (j), including the information required
134     when these subsections apply by reference under:
135          (a) Section 31A-7-201;
136          (b) Section 31A-8-205; or
137          (c) Subsection 31A-9-205(2).
138          (20) (a) "Bylaws" means the rules adopted for the regulation or management of a
139     corporation's affairs, however designated.
140          (b) "Bylaws" includes comparable rules for a trust or other entity that is not a
141     corporation.

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

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

198          (31) "Controlling person" means a person that directly or indirectly has the power to
199     direct or cause to be directed, the management, control, or activities of a reinsurance
200     intermediary.
201          (32) "Controlling producer" means a producer who directly or indirectly controls an
202     insurer.
203          (33) (a) "Corporation" means an insurance corporation, except when referring to:
204          (i) a corporation doing business:
205          (A) as:
206          (I) an insurance producer;
207          (II) a surplus lines producer;
208          (III) a limited line producer;
209          (IV) a consultant;
210          (V) a managing general agent;
211          (VI) a reinsurance intermediary;
212          (VII) a third party administrator; or
213          (VIII) an adjuster; and
214          (B) under:
215          (I) Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and
216     Reinsurance Intermediaries;
217          (II) Chapter 25, Third Party Administrators; or
218          (III) Chapter 26, Insurance Adjusters; or
219          (ii) a noninsurer that is part of a holding company system under Chapter 16, Insurance
220     Holding Companies.
221          (b) "Stock corporation" means a stock insurance corporation.
222          (c) "Mutual" or "mutual corporation" means a mutual insurance corporation.
223          (34) (a) "Creditable coverage" has the same meaning as provided in federal regulations
224     adopted pursuant to the Health Insurance Portability and Accountability Act.
225          (b) "Creditable coverage" includes coverage that is offered through a public health plan

226     such as:
227          (i) the Primary Care Network Program under a Medicaid primary care network
228     demonstration waiver obtained subject to Section 26-18-3;
229          (ii) the Children's Health Insurance Program under Section 26-40-106; or
230          (iii) the Ryan White Program Comprehensive AIDS Resources Emergency Act, Pub. L.
231     101-381, and Ryan White HIV/AIDS Treatment Modernization Act of 2006, Pub. L. 109-415.
232          (35) "Credit accident and health insurance" means insurance on a debtor to provide
233     indemnity for payments coming due on a specific loan or other credit transaction while the
234     debtor has a disability.
235          (36) (a) "Credit insurance" means insurance offered in connection with an extension of
236     credit that is limited to partially or wholly extinguishing that credit obligation.
237          (b) "Credit insurance" includes:
238          (i) credit accident and health insurance;
239          (ii) credit life insurance;
240          (iii) credit property insurance;
241          (iv) credit unemployment insurance;
242          (v) guaranteed automobile protection insurance;
243          (vi) involuntary unemployment insurance;
244          (vii) mortgage accident and health insurance;
245          (viii) mortgage guaranty insurance; and
246          (ix) mortgage life insurance.
247          (37) "Credit life insurance" means insurance on the life of a debtor in connection with
248     an extension of credit that pays a person if the debtor dies.
249          [(40)] (38) "Creditor" means a person, including an insured, having a claim, whether:
250          (a) matured;
251          (b) unmatured;
252          (c) liquidated;
253          (d) unliquidated;

254          (e) secured;
255          (f) unsecured;
256          (g) absolute;
257          (h) fixed; or
258          (i) contingent.
259          [(38)] (39) "Credit property insurance" means insurance:
260          (a) offered in connection with an extension of credit; and
261          (b) that protects the property until the debt is paid.
262          [(39)] (40) "Credit unemployment insurance" means insurance:
263          (a) offered in connection with an extension of credit; and
264          (b) that provides indemnity if the debtor is unemployed for payments coming due on a:
265          (i) specific loan; or
266          (ii) credit transaction.
267          (41) (a) "Crop insurance" means insurance providing protection against damage to
268     crops from unfavorable weather conditions, fire or lightning, flood, hail, insect infestation,
269     disease, or other yield-reducing conditions or perils that is:
270          (i) provided by the private insurance market; or
271          (ii) subsidized by the Federal Crop Insurance Corporation.
272          (b) "Crop insurance" includes multiperil crop insurance.
273          (42) (a) "Customer service representative" means a person that provides an insurance
274     service and insurance product information:
275          (i) for the customer service representative's:
276          (A) producer;
277          (B) surplus lines producer; or
278          (C) consultant employer; and
279          (ii) to the customer service representative's employer's:
280          (A) customer;
281          (B) client; or

282          (C) organization.
283          (b) A customer service representative may only operate within the scope of authority of
284     the customer service representative's producer, surplus lines producer, or consultant employer.
285          (43) "Deadline" means a final date or time:
286          (a) imposed by:
287          (i) statute;
288          (ii) rule; or
289          (iii) order; and
290          (b) by which a required filing or payment must be received by the department.
291          (44) "Deemer clause" means a provision under this title under which upon the
292     occurrence of a condition precedent, the commissioner is considered to have taken a specific
293     action. If the statute so provides, a condition precedent may be the commissioner's failure to
294     take a specific action.
295          (45) "Degree of relationship" means the number of steps between two persons
296     determined by counting the generations separating one person from a common ancestor and
297     then counting the generations to the other person.
298          (46) "Department" means the Insurance Department.
299          (47) "Director" means a member of the board of directors of a corporation.
300          (48) "Disability" means a physiological or psychological condition that partially or
301     totally limits an individual's ability to:
302          (a) perform the duties of:
303          (i) that individual's occupation; or
304          (ii) an occupation for which the individual is reasonably suited by education, training,
305     or experience; or
306          (b) perform two or more of the following basic activities of daily living:
307          (i) eating;
308          (ii) toileting;
309          (iii) transferring;

310          (iv) bathing; or
311          (v) dressing.
312          (49) "Disability income insurance" is defined in Subsection (79).
313          (50) "Domestic insurer" means an insurer organized under the laws of this state.
314          (51) "Domiciliary state" means the state in which an insurer:
315          (a) is incorporated;
316          (b) is organized; or
317          (c) in the case of an alien insurer, enters into the United States.
318          (52) (a) "Eligible employee" means:
319          (i) an employee who:
320          (A) works on a full-time basis; and
321          (B) has a normal work week of 30 or more hours; or
322          (ii) a person described in Subsection (52)(b).
323          (b) "Eligible employee" includes, if the individual is included under a health benefit
324     plan of a small employer:
325          (i) a sole proprietor;
326          (ii) a partner in a partnership; or
327          (iii) an independent contractor.
328          (c) "Eligible employee" does not include, unless eligible under Subsection (52)(b):
329          (i) an individual who works on a temporary or substitute basis for a small employer;
330          (ii) an employer's spouse; or
331          (iii) a dependent of an employer.
332          (53) "Employee" means an individual employed by an employer.
333          (54) "Employee benefits" means one or more benefits or services provided to:
334          (a) an employee; or
335          (b) a dependent of an employee.
336          (55) (a) "Employee welfare fund" means a fund:
337          (i) established or maintained, whether directly or through a trustee, by:

338          (A) one or more employers;
339          (B) one or more labor organizations; or
340          (C) a combination of employers and labor organizations; and
341          (ii) that provides employee benefits paid or contracted to be paid, other than income
342     from investments of the fund:
343          (A) by or on behalf of an employer doing business in this state; or
344          (B) for the benefit of a person employed in this state.
345          (b) "Employee welfare fund" includes a plan funded or subsidized by a user fee or tax
346     revenues.
347          (56) "Endorsement" means a written agreement attached to a policy or certificate to
348     modify the policy or certificate coverage.
349          (57) "Enrollment date," with respect to a health benefit plan, means:
350          (a) the first day of coverage; or
351          (b) if there is a waiting period, the first day of the waiting period.
352          (58) (a) "Escrow" means:
353          (i) a transaction that effects the sale, transfer, encumbering, or leasing of real property,
354     when a person not a party to the transaction, and neither having nor acquiring an interest in the
355     title, performs, in accordance with the written instructions or terms of the written agreement
356     between the parties to the transaction, any of the following actions:
357          (A) the explanation, holding, or creation of a document; or
358          (B) the receipt, deposit, and disbursement of money;
359          (ii) a settlement or closing involving:
360          (A) a mobile home;
361          (B) a grazing right;
362          (C) a water right; or
363          (D) other personal property authorized by the commissioner.
364          (b) "Escrow" does not include:
365          (i) the following notarial acts performed by a notary within the state:

366          (A) an acknowledgment;
367          (B) a copy certification;
368          (C) jurat; and
369          (D) an oath or affirmation;
370          (ii) the receipt or delivery of a document; or
371          (iii) the receipt of money for delivery to the escrow agent.
372          (59) "Escrow agent" means an agency title insurance producer meeting the
373     requirements of Sections 31A-4-107, 31A-14-211, and 31A-23a-204, who is acting through an
374     individual title insurance producer licensed with an escrow subline of authority.
375          (60) (a) "Excludes" is not exhaustive and does not mean that another thing is not also
376     excluded.
377          (b) The items listed in a list using the term "excludes" are representative examples for
378     use in interpretation of this title.
379          (61) "Exclusion" means for the purposes of accident and health insurance that an
380     insurer does not provide insurance coverage, for whatever reason, for one of the following:
381          (a) a specific physical condition;
382          (b) a specific medical procedure;
383          (c) a specific disease or disorder; or
384          (d) a specific prescription drug or class of prescription drugs.
385          (62) "Expense reimbursement insurance" means insurance:
386          (a) written to provide a payment for an expense relating to hospital confinement
387     resulting from illness or injury; and
388          (b) written:
389          (i) as a daily limit for a specific number of days in a hospital; and
390          (ii) to have a one or two day waiting period following a hospitalization.
391          (63) "Fidelity insurance" means insurance guaranteeing the fidelity of a person holding
392     a position of public or private trust.
393          (64) (a) "Filed" means that a filing is:

394          (i) submitted to the department as required by and in accordance with applicable
395     statute, rule, or filing order;
396          (ii) received by the department within the time period provided in applicable statute,
397     rule, or filing order; and
398          (iii) accompanied by the appropriate fee in accordance with:
399          (A) Section 31A-3-103; or
400          (B) rule.
401          (b) "Filed" does not include a filing that is rejected by the department because it is not
402     submitted in accordance with Subsection (64)(a).
403          (65) "Filing," when used as a noun, means an item required to be filed with the
404     department including:
405          (a) a policy;
406          (b) a rate;
407          (c) a form;
408          (d) a document;
409          (e) a plan;
410          (f) a manual;
411          (g) an application;
412          (h) a report;
413          (i) a certificate;
414          (j) an endorsement;
415          (k) an actuarial certification;
416          (l) a licensee annual statement;
417          (m) a licensee renewal application;
418          (n) an advertisement; or
419          (o) an outline of coverage.
420          (66) "First party insurance" means an insurance policy or contract in which the insurer
421     agrees to pay a claim submitted to it by the insured for the insured's losses.

422          (67) "Foreign insurer" means an insurer domiciled outside of this state, including an
423     alien insurer.
424          (68) (a) "Form" means one of the following prepared for general use:
425          (i) a policy;
426          (ii) a certificate;
427          (iii) an application;
428          (iv) an outline of coverage; or
429          (v) an endorsement.
430          (b) "Form" does not include a document specially prepared for use in an individual
431     case.
432          (69) "Franchise insurance" means an individual insurance policy provided through a
433     mass marketing arrangement involving a defined class of persons related in some way other
434     than through the purchase of insurance.
435          (70) "General lines of authority" include:
436          (a) the general lines of insurance in Subsection (71);
437          (b) title insurance under one of the following sublines of authority:
438          (i) [search] title examination, including authority to act as a title marketing
439     representative;
440          (ii) escrow, including authority to act as a title marketing representative; and
441          (iii) title marketing representative only;
442          (c) surplus lines;
443          (d) workers' compensation; and
444          (e) another line of insurance that the commissioner considers necessary to recognize in
445     the public interest.
446          (71) "General lines of insurance" include:
447          (a) accident and health;
448          (b) casualty;
449          (c) life;

450          (d) personal lines;
451          (e) property; and
452          (f) variable contracts, including variable life and annuity.
453          (72) "Group health plan" means an employee welfare benefit plan to the extent that the
454     plan provides medical care:
455          (a) (i) to an employee; or
456          (ii) to a dependent of an employee; and
457          (b) (i) directly;
458          (ii) through insurance reimbursement; or
459          (iii) through another method.
460          (73) (a) "Group insurance policy" means a policy covering a group of persons that is
461     issued:
462          (i) to a policyholder on behalf of the group; and
463          (ii) for the benefit of a member of the group who is selected under a procedure defined
464     in:
465          (A) the policy; or
466          (B) an agreement that is collateral to the policy.
467          (b) A group insurance policy may include a member of the policyholder's family or a
468     dependent.
469          (74) "Guaranteed automobile protection insurance" means insurance offered in
470     connection with an extension of credit that pays the difference in amount between the
471     insurance settlement and the balance of the loan if the insured automobile is a total loss.
472          (75) (a) Except as provided in Subsection (75)(b), "health benefit plan" means a policy
473     or certificate that:
474          (i) provides health care insurance;
475          (ii) provides major medical expense insurance; or
476          (iii) is offered as a substitute for hospital or medical expense insurance, such as:
477          (A) a hospital confinement indemnity; or

478          (B) a limited benefit plan.
479          (b) "Health benefit plan" does not include a policy or certificate that:
480          (i) provides benefits solely for:
481          (A) accident;
482          (B) dental;
483          (C) income replacement;
484          (D) long-term care;
485          (E) a Medicare supplement;
486          (F) a specified disease;
487          (G) vision; or
488          (H) a short-term limited duration; or
489          (ii) is offered and marketed as supplemental health insurance.
490          (76) "Health care" means any of the following intended for use in the diagnosis,
491     treatment, mitigation, or prevention of a human ailment or impairment:
492          (a) a professional service;
493          (b) a personal service;
494          (c) a facility;
495          (d) equipment;
496          (e) a device;
497          (f) supplies; or
498          (g) medicine.
499          (77) (a) "Health care insurance" or "health insurance" means insurance providing:
500          (i) a health care benefit; or
501          (ii) payment of an incurred health care expense.
502          (b) "Health care insurance" or "health insurance" does not include accident and health
503     insurance providing a benefit for:
504          (i) replacement of income;
505          (ii) short-term accident;

506          (iii) fixed indemnity;
507          (iv) credit accident and health;
508          (v) supplements to liability;
509          (vi) workers' compensation;
510          (vii) automobile medical payment;
511          (viii) no-fault automobile;
512          (ix) equivalent self-insurance; or
513          (x) a type of accident and health insurance coverage that is a part of or attached to
514     another type of policy.
515          (78) "Health Insurance Portability and Accountability Act" means the Health Insurance
516     Portability and Accountability Act of 1996, Pub. L. 104-191, 110 Stat. 1936, as amended.
517          (79) "Income replacement insurance" or "disability income insurance" means insurance
518     written to provide payments to replace income lost from accident or sickness.
519          (80) "Indemnity" means the payment of an amount to offset all or part of an insured
520     loss.
521          (81) "Independent adjuster" means an insurance adjuster required to be licensed under
522     Section 31A-26-201 who engages in insurance adjusting as a representative of an insurer.
523          (82) "Independently procured insurance" means insurance procured under Section
524     31A-15-104.
525          (83) "Individual" means a natural person.
526          (84) "Inland marine insurance" includes insurance covering:
527          (a) property in transit on or over land;
528          (b) property in transit over water by means other than boat or ship;
529          (c) bailee liability;
530          (d) fixed transportation property such as bridges, electric transmission systems, radio
531     and television transmission towers and tunnels; and
532          (e) personal and commercial property floaters.
533          (85) "Insolvency" means that:

534          (a) an insurer is unable to pay its debts or meet its obligations as the debts and
535     obligations mature;
536          (b) an insurer's total adjusted capital is less than the insurer's mandatory control level
537     RBC under Subsection 31A-17-601(8)(c); or
538          (c) an insurer is determined to be hazardous under this title.
539          (86) (a) "Insurance" means:
540          (i) an arrangement, contract, or plan for the transfer of a risk or risks from one or more
541     persons to one or more other persons; or
542          (ii) an arrangement, contract, or plan for the distribution of a risk or risks among a
543     group of persons that includes the person seeking to distribute that person's risk.
544          (b) "Insurance" includes:
545          (i) a risk distributing arrangement providing for compensation or replacement for
546     damages or loss through the provision of a service or a benefit in kind;
547          (ii) a contract of guaranty or suretyship entered into by the guarantor or surety as a
548     business and not as merely incidental to a business transaction; and
549          (iii) a plan in which the risk does not rest upon the person who makes an arrangement,
550     but with a class of persons who have agreed to share the risk.
551          (87) "Insurance adjuster" means a person who directs or conducts the investigation,
552     negotiation, or settlement of a claim under an insurance policy other than life insurance or an
553     annuity, on behalf of an insurer, policyholder, or a claimant under an insurance policy.
554          (88) "Insurance business" or "business of insurance" includes:
555          (a) providing health care insurance by an organization that is or is required to be
556     licensed under this title;
557          (b) providing a benefit to an employee in the event of a contingency not within the
558     control of the employee, in which the employee is entitled to the benefit as a right, which
559     benefit may be provided either:
560          (i) by a single employer or by multiple employer groups; or
561          (ii) through one or more trusts, associations, or other entities;

562          (c) providing an annuity:
563          (i) including an annuity issued in return for a gift; and
564          (ii) except an annuity provided by a person specified in Subsections 31A-22-1305(2)
565     and (3);
566          (d) providing the characteristic services of a motor club as outlined in Subsection
567     (116);
568          (e) providing another person with insurance;
569          (f) making as insurer, guarantor, or surety, or proposing to make as insurer, guarantor,
570     or surety, a contract or policy of title insurance;
571          (g) transacting or proposing to transact any phase of title insurance, including:
572          (i) solicitation;
573          (ii) negotiation preliminary to execution;
574          (iii) execution of a contract of title insurance;
575          (iv) insuring; and
576          (v) transacting matters subsequent to the execution of the contract and arising out of
577     the contract, including reinsurance;
578          (h) transacting or proposing a life settlement; and
579          (i) doing, or proposing to do, any business in substance equivalent to Subsections
580     (88)(a) through (h) in a manner designed to evade this title.
581          (89) "Insurance consultant" or "consultant" means a person who:
582          (a) advises another person about insurance needs and coverages;
583          (b) is compensated by the person advised on a basis not directly related to the insurance
584     placed; and
585          (c) except as provided in Section 31A-23a-501, is not compensated directly or
586     indirectly by an insurer or producer for advice given.
587          (90) "Insurance holding company system" means a group of two or more affiliated
588     persons, at least one of whom is an insurer.
589          (91) (a) "Insurance producer" or "producer" means a person licensed or required to be

590     licensed under the laws of this state to sell, solicit, or negotiate insurance.
591          (b) (i) "Producer for the insurer" means a producer who is compensated directly or
592     indirectly by an insurer for selling, soliciting, or negotiating an insurance product of that
593     insurer.
594          (ii) "Producer for the insurer" may be referred to as an "agent."
595          (c) (i) "Producer for the insured" means a producer who:
596          (A) is compensated directly and only by an insurance customer or an insured; and
597          (B) receives no compensation directly or indirectly from an insurer for selling,
598     soliciting, or negotiating an insurance product of that insurer to an insurance customer or
599     insured.
600          (ii) "Producer for the insured" may be referred to as a "broker."
601          (92) (a) "Insured" means a person to whom or for whose benefit an insurer makes a
602     promise in an insurance policy and includes:
603          (i) a policyholder;
604          (ii) a subscriber;
605          (iii) a member; and
606          (iv) a beneficiary.
607          (b) The definition in Subsection (92)(a):
608          (i) applies only to this title; and
609          (ii) does not define the meaning of this word as used in an insurance policy or
610     certificate.
611          (93) (a) "Insurer" means a person doing an insurance business as a principal including:
612          (i) a fraternal benefit society;
613          (ii) an issuer of a gift annuity other than an annuity specified in Subsections
614     31A-22-1305(2) and (3);
615          (iii) a motor club;
616          (iv) an employee welfare plan; and
617          (v) a person purporting or intending to do an insurance business as a principal on that

618     person's own account.
619          (b) "Insurer" does not include a governmental entity to the extent the governmental
620     entity is engaged in an activity described in Section 31A-12-107.
621          (94) "Interinsurance exchange" is defined in Subsection (147).
622          (95) "Involuntary unemployment insurance" means insurance:
623          (a) offered in connection with an extension of credit; and
624          (b) that provides indemnity if the debtor is involuntarily unemployed for payments
625     coming due on a:
626          (i) specific loan; or
627          (ii) credit transaction.
628          (96) "Large employer," in connection with a health benefit plan, means an employer
629     who, with respect to a calendar year and to a plan year:
630          (a) employed an average of at least 51 eligible employees on each business day during
631     the preceding calendar year; and
632          (b) employs at least two employees on the first day of the plan year.
633          (97) "Late enrollee," with respect to an employer health benefit plan, means an
634     individual whose enrollment is a late enrollment.
635          (98) "Late enrollment," with respect to an employer health benefit plan, means
636     enrollment of an individual other than:
637          (a) on the earliest date on which coverage can become effective for the individual
638     under the terms of the plan; or
639          (b) through special enrollment.
640          (99) (a) Except for a retainer contract or legal assistance described in Section
641     31A-1-103, "legal expense insurance" means insurance written to indemnify or pay for a
642     specified legal expense.
643          (b) "Legal expense insurance" includes an arrangement that creates a reasonable
644     expectation of an enforceable right.
645          (c) "Legal expense insurance" does not include the provision of, or reimbursement for,

646     legal services incidental to other insurance coverage.
647          (100) (a) "Liability insurance" means insurance against liability:
648          (i) for death, injury, or disability of a human being, or for damage to property,
649     exclusive of the coverages under:
650          (A) Subsection (110) for medical malpractice insurance;
651          (B) Subsection (138) for professional liability insurance; and
652          (C) Subsection (173) for workers' compensation insurance;
653          (ii) for a medical, hospital, surgical, and funeral benefit to a person other than the
654     insured who is injured, irrespective of legal liability of the insured, when issued with or
655     supplemental to insurance against legal liability for the death, injury, or disability of a human
656     being, exclusive of the coverages under:
657          (A) Subsection (110) for medical malpractice insurance;
658          (B) Subsection (138) for professional liability insurance; and
659          (C) Subsection (173) for workers' compensation insurance;
660          (iii) for loss or damage to property resulting from an accident to or explosion of a
661     boiler, pipe, pressure container, machinery, or apparatus;
662          (iv) for loss or damage to property caused by:
663          (A) the breakage or leakage of a sprinkler, water pipe, or water container; or
664          (B) water entering through a leak or opening in a building; or
665          (v) for other loss or damage properly the subject of insurance not within another kind
666     of insurance as defined in this chapter, if the insurance is not contrary to law or public policy.
667          (b) "Liability insurance" includes:
668          (i) vehicle liability insurance;
669          (ii) residential dwelling liability insurance; and
670          (iii) making inspection of, and issuing a certificate of inspection upon, an elevator,
671     boiler, machinery, or apparatus of any kind when done in connection with insurance on the
672     elevator, boiler, machinery, or apparatus.
673          (101) (a) "License" means authorization issued by the commissioner to engage in an

674     activity that is part of or related to the insurance business.
675          (b) "License" includes a certificate of authority issued to an insurer.
676          (102) (a) "Life insurance" means:
677          (i) insurance on a human life; and
678          (ii) insurance pertaining to or connected with human life.
679          (b) The business of life insurance includes:
680          (i) granting a death benefit;
681          (ii) granting an annuity benefit;
682          (iii) granting an endowment benefit;
683          (iv) granting an additional benefit in the event of death by accident;
684          (v) granting an additional benefit to safeguard the policy against lapse; and
685          (vi) providing an optional method of settlement of proceeds.
686          (103) "Limited license" means a license that:
687          (a) is issued for a specific product of insurance; and
688          (b) limits an individual or agency to transact only for that product or insurance.
689          (104) "Limited line credit insurance" includes the following forms of insurance:
690          (a) credit life;
691          (b) credit accident and health;
692          (c) credit property;
693          (d) credit unemployment;
694          (e) involuntary unemployment;
695          (f) mortgage life;
696          (g) mortgage guaranty;
697          (h) mortgage accident and health;
698          (i) guaranteed automobile protection; and
699          (j) another form of insurance offered in connection with an extension of credit that:
700          (i) is limited to partially or wholly extinguishing the credit obligation; and
701          (ii) the commissioner determines by rule should be designated as a form of limited line

702     credit insurance.
703          (105) "Limited line credit insurance producer" means a person who sells, solicits, or
704     negotiates one or more forms of limited line credit insurance coverage to an individual through
705     a master, corporate, group, or individual policy.
706          (106) "Limited line insurance" includes:
707          (a) bail bond;
708          (b) limited line credit insurance;
709          (c) legal expense insurance;
710          (d) motor club insurance;
711          (e) car rental related insurance;
712          (f) travel insurance;
713          (g) crop insurance;
714          (h) self-service storage insurance;
715          (i) guaranteed asset protection waiver;
716          (j) portable electronics insurance; and
717          (k) another form of limited insurance that the commissioner determines by rule should
718     be designated a form of limited line insurance.
719          (107) "Limited lines authority" includes the lines of insurance listed in Subsection
720     (106).
721          (108) "Limited lines producer" means a person who sells, solicits, or negotiates limited
722     lines insurance.
723          (109) (a) "Long-term care insurance" means an insurance policy or rider advertised,
724     marketed, offered, or designated to provide coverage:
725          (i) in a setting other than an acute care unit of a hospital;
726          (ii) for not less than 12 consecutive months for a covered person on the basis of:
727          (A) expenses incurred;
728          (B) indemnity;
729          (C) prepayment; or

730          (D) another method;
731          (iii) for one or more necessary or medically necessary services that are:
732          (A) diagnostic;
733          (B) preventative;
734          (C) therapeutic;
735          (D) rehabilitative;
736          (E) maintenance; or
737          (F) personal care; and
738          (iv) that may be issued by:
739          (A) an insurer;
740          (B) a fraternal benefit society;
741          (C) (I) a nonprofit health hospital; and
742          (II) a medical service corporation;
743          (D) a prepaid health plan;
744          (E) a health maintenance organization; or
745          (F) an entity similar to the entities described in Subsections (109)(a)(iv)(A) through (E)
746     to the extent that the entity is otherwise authorized to issue life or health care insurance.
747          (b) "Long-term care insurance" includes:
748          (i) any of the following that provide directly or supplement long-term care insurance:
749          (A) a group or individual annuity or rider; or
750          (B) a life insurance policy or rider;
751          (ii) a policy or rider that provides for payment of benefits on the basis of:
752          (A) cognitive impairment; or
753          (B) functional capacity; or
754          (iii) a qualified long-term care insurance contract.
755          (c) "Long-term care insurance" does not include:
756          (i) a policy that is offered primarily to provide basic Medicare supplement coverage;
757          (ii) basic hospital expense coverage;

758          (iii) basic medical/surgical expense coverage;
759          (iv) hospital confinement indemnity coverage;
760          (v) major medical expense coverage;
761          (vi) income replacement or related asset-protection coverage;
762          (vii) accident only coverage;
763          (viii) coverage for a specified:
764          (A) disease; or
765          (B) accident;
766          (ix) limited benefit health coverage; or
767          (x) a life insurance policy that accelerates the death benefit to provide the option of a
768     lump sum payment:
769          (A) if the following are not conditioned on the receipt of long-term care:
770          (I) benefits; or
771          (II) eligibility; and
772          (B) the coverage is for one or more the following qualifying events:
773          (I) terminal illness;
774          (II) medical conditions requiring extraordinary medical intervention; or
775          (III) permanent institutional confinement.
776          (110) "Medical malpractice insurance" means insurance against legal liability incident
777     to the practice and provision of a medical service other than the practice and provision of a
778     dental service.
779          (111) "Member" means a person having membership rights in an insurance
780     corporation.
781          (112) "Minimum capital" or "minimum required capital" means the capital that must be
782     constantly maintained by a stock insurance corporation as required by statute.
783          (113) "Mortgage accident and health insurance" means insurance offered in connection
784     with an extension of credit that provides indemnity for payments coming due on a mortgage
785     while the debtor has a disability.

786          (114) "Mortgage guaranty insurance" means surety insurance under which a mortgagee
787     or other creditor is indemnified against losses caused by the default of a debtor.
788          (115) "Mortgage life insurance" means insurance on the life of a debtor in connection
789     with an extension of credit that pays if the debtor dies.
790          (116) "Motor club" means a person:
791          (a) licensed under:
792          (i) Chapter 5, Domestic Stock and Mutual Insurance Corporations;
793          (ii) Chapter 11, Motor Clubs; or
794          (iii) Chapter 14, Foreign Insurers; and
795          (b) that promises for an advance consideration to provide for a stated period of time
796     one or more:
797          (i) legal services under Subsection 31A-11-102(1)(b);
798          (ii) bail services under Subsection 31A-11-102(1)(c); or
799          (iii) (A) trip reimbursement;
800          (B) towing services;
801          (C) emergency road services;
802          (D) stolen automobile services;
803          (E) a combination of the services listed in Subsections (116)(b)(iii)(A) through (D); or
804          (F) other services given in Subsections 31A-11-102(1)(b) through (f).
805          (117) "Mutual" means a mutual insurance corporation.
806          (118) "Network plan" means health care insurance:
807          (a) that is issued by an insurer; and
808          (b) under which the financing and delivery of medical care is provided, in whole or in
809     part, through a defined set of providers under contract with the insurer, including the financing
810     and delivery of an item paid for as medical care.
811          (119) "Nonparticipating" means a plan of insurance under which the insured is not
812     entitled to receive a dividend representing a share of the surplus of the insurer.
813          (120) "Ocean marine insurance" means insurance against loss of or damage to:

814          (a) ships or hulls of ships;
815          (b) goods, freight, cargoes, merchandise, effects, disbursements, profits, money,
816     securities, choses in action, evidences of debt, valuable papers, bottomry, respondentia
817     interests, or other cargoes in or awaiting transit over the oceans or inland waterways;
818          (c) earnings such as freight, passage money, commissions, or profits derived from
819     transporting goods or people upon or across the oceans or inland waterways; or
820          (d) a vessel owner or operator as a result of liability to employees, passengers, bailors,
821     owners of other vessels, owners of fixed objects, customs or other authorities, or other persons
822     in connection with maritime activity.
823          (121) "Order" means an order of the commissioner.
824          (122) "Outline of coverage" means a summary that explains an accident and health
825     insurance policy.
826          (123) "Participating" means a plan of insurance under which the insured is entitled to
827     receive a dividend representing a share of the surplus of the insurer.
828          (124) "Participation," as used in a health benefit plan, means a requirement relating to
829     the minimum percentage of eligible employees that must be enrolled in relation to the total
830     number of eligible employees of an employer reduced by each eligible employee who
831     voluntarily declines coverage under the plan because the employee:
832          (a) has other group health care insurance coverage; or
833          (b) receives:
834          (i) Medicare, under the Health Insurance for the Aged Act, Title XVIII of the Social
835     Security Amendments of 1965; or
836          (ii) another government health benefit.
837          (125) "Person" includes:
838          (a) an individual;
839          (b) a partnership;
840          (c) a corporation;
841          (d) an incorporated or unincorporated association;

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

870          (ii) memorializes in writing some or all of the terms of an insurance contract.
871          (b) "Policy" includes a service contract issued by:
872          (i) a motor club under Chapter 11, Motor Clubs;
873          (ii) a service contract provided under Chapter 6a, Service Contracts; and
874          (iii) a corporation licensed under:
875          (A) Chapter 7, Nonprofit Health Service Insurance Corporations; or
876          (B) Chapter 8, Health Maintenance Organizations and Limited Health Plans.
877          (c) "Policy" does not include:
878          (i) a certificate under a group insurance contract; or
879          (ii) a document that does not purport to have legal effect.
880          (130) "Policyholder" means a person who controls a policy, binder, or oral contract by
881     ownership, premium payment, or otherwise.
882          (131) "Policy illustration" means a presentation or depiction that includes
883     nonguaranteed elements of a policy of life insurance over a period of years.
884          (132) "Policy summary" means a synopsis describing the elements of a life insurance
885     policy.
886          (133) "PPACA" means the Patient Protection and Affordable Care Act, Pub. L. No.
887     111-148 and the Health Care Education Reconciliation Act of 2010, Pub. L. No. 111-152, and
888     related federal regulations and guidance.
889          (134) "Preexisting condition," with respect to a health benefit plan:
890          (a) means a condition that was present before the effective date of coverage, whether or
891     not medical advice, diagnosis, care, or treatment was recommended or received before that day;
892     and
893          (b) does not include a condition indicated by genetic information unless an actual
894     diagnosis of the condition by a physician has been made.
895          (135) (a) "Premium" means the monetary consideration for an insurance policy.
896          (b) "Premium" includes, however designated:
897          (i) an assessment;

898          (ii) a membership fee;
899          (iii) a required contribution; or
900          (iv) monetary consideration.
901          (c) (i) "Premium" does not include consideration paid to a third party administrator for
902     the third party administrator's services.
903          (ii) "Premium" includes an amount paid by a third party administrator to an insurer for
904     insurance on the risks administered by the third party administrator.
905          (136) "Principal officers" for a corporation means the officers designated under
906     Subsection 31A-5-203(3).
907          (137) "Proceeding" includes an action or special statutory proceeding.
908          (138) "Professional liability insurance" means insurance against legal liability incident
909     to the practice of a profession and provision of a professional service.
910          (139) (a) Except as provided in Subsection (139)(b), "property insurance" means
911     insurance against loss or damage to real or personal property of every kind and any interest in
912     that property:
913          (i) from all hazards or causes; and
914          (ii) against loss consequential upon the loss or damage including vehicle
915     comprehensive and vehicle physical damage coverages.
916          (b) "Property insurance" does not include:
917          (i) inland marine insurance; and
918          (ii) ocean marine insurance.
919          (140) "Qualified long-term care insurance contract" or "federally tax qualified
920     long-term care insurance contract" means:
921          (a) an individual or group insurance contract that meets the requirements of Section
922     7702B(b), Internal Revenue Code; or
923          (b) the portion of a life insurance contract that provides long-term care insurance:
924          (i) (A) by rider; or
925          (B) as a part of the contract; and

926          (ii) that satisfies the requirements of Sections 7702B(b) and (e), Internal Revenue
927     Code.
928          (141) "Qualified United States financial institution" means an institution that:
929          (a) is:
930          (i) organized under the laws of the United States or any state; or
931          (ii) in the case of a United States office of a foreign banking organization, licensed
932     under the laws of the United States or any state;
933          (b) is regulated, supervised, and examined by a United States federal or state authority
934     having regulatory authority over a bank or trust company; and
935          (c) meets the standards of financial condition and standing that are considered
936     necessary and appropriate to regulate the quality of a financial institution whose letters of credit
937     will be acceptable to the commissioner as determined by:
938          (i) the commissioner by rule; or
939          (ii) the Securities Valuation Office of the National Association of Insurance
940     Commissioners.
941          (142) (a) "Rate" means:
942          (i) the cost of a given unit of insurance; or
943          (ii) for property or casualty insurance, that cost of insurance per exposure unit either
944     expressed as:
945          (A) a single number; or
946          (B) a pure premium rate, adjusted before the application of individual risk variations
947     based on loss or expense considerations to account for the treatment of:
948          (I) expenses;
949          (II) profit; and
950          (III) individual insurer variation in loss experience.
951          (b) "Rate" does not include a minimum premium.
952          (143) (a) Except as provided in Subsection (143)(b), "rate service organization" means
953     a person who assists an insurer in rate making or filing by:

954          (i) collecting, compiling, and furnishing loss or expense statistics;
955          (ii) recommending, making, or filing rates or supplementary rate information; or
956          (iii) advising about rate questions, except as an attorney giving legal advice.
957          (b) "Rate service organization" does not mean:
958          (i) an employee of an insurer;
959          (ii) a single insurer or group of insurers under common control;
960          (iii) a joint underwriting group; or
961          (iv) an individual serving as an actuarial or legal consultant.
962          (144) "Rating manual" means any of the following used to determine initial and
963     renewal policy premiums:
964          (a) a manual of rates;
965          (b) a classification;
966          (c) a rate-related underwriting rule; and
967          (d) a rating formula that describes steps, policies, and procedures for determining
968     initial and renewal policy premiums.
969          (145) (a) "Rebate" means a licensee paying, allowing, giving, or offering to pay, allow,
970     or give, directly or indirectly:
971          (i) a refund of premium or portion of premium;
972          (ii) a refund of commission or portion of commission;
973          (iii) a refund of all or a portion of a consultant fee; or
974          (iv) providing services or other benefits not specified in an insurance or annuity
975     contract.
976          (b) "Rebate" does not include:
977          (i) a refund due to termination or changes in coverage;
978          (ii) a refund due to overcharges made in error by the licensee; or
979          (iii) savings or wellness benefits as provided in the contract by the licensee.
980          (146) "Received by the department" means:
981          (a) the date delivered to and stamped received by the department, if delivered in

982     person;
983          (b) the post mark date, if delivered by mail;
984          (c) the delivery service's post mark or pickup date, if delivered by a delivery service;
985          (d) the received date recorded on an item delivered, if delivered by:
986          (i) facsimile;
987          (ii) email; or
988          (iii) another electronic method; or
989          (e) a date specified in:
990          (i) a statute;
991          (ii) a rule; or
992          (iii) an order.
993          (147) "Reciprocal" or "interinsurance exchange" means an unincorporated association
994     of persons:
995          (a) operating through an attorney-in-fact common to all of the persons; and
996          (b) exchanging insurance contracts with one another that provide insurance coverage
997     on each other.
998          (148) "Reinsurance" means an insurance transaction where an insurer, for
999     consideration, transfers any portion of the risk it has assumed to another insurer. In referring to
1000     reinsurance transactions, this title sometimes refers to:
1001          (a) the insurer transferring the risk as the "ceding insurer"; and
1002          (b) the insurer assuming the risk as the:
1003          (i) "assuming insurer"; or
1004          (ii) "assuming reinsurer."
1005          (149) "Reinsurer" means a person licensed in this state as an insurer with the authority
1006     to assume reinsurance.
1007          (150) "Residential dwelling liability insurance" means insurance against liability
1008     resulting from or incident to the ownership, maintenance, or use of a residential dwelling that is
1009     a detached single family residence or multifamily residence up to four units.

1010          (151) (a) "Retrocession" means reinsurance with another insurer of a liability assumed
1011     under a reinsurance contract.
1012          (b) A reinsurer "retrocedes" when the reinsurer reinsures with another insurer part of a
1013     liability assumed under a reinsurance contract.
1014          (152) "Rider" means an endorsement to:
1015          (a) an insurance policy; or
1016          (b) an insurance certificate.
1017          (153) (a) "Security" means a:
1018          (i) note;
1019          (ii) stock;
1020          (iii) bond;
1021          (iv) debenture;
1022          (v) evidence of indebtedness;
1023          (vi) certificate of interest or participation in a profit-sharing agreement;
1024          (vii) collateral-trust certificate;
1025          (viii) preorganization certificate or subscription;
1026          (ix) transferable share;
1027          (x) investment contract;
1028          (xi) voting trust certificate;
1029          (xii) certificate of deposit for a security;
1030          (xiii) certificate of interest of participation in an oil, gas, or mining title or lease or in
1031     payments out of production under such a title or lease;
1032          (xiv) commodity contract or commodity option;
1033          (xv) certificate of interest or participation in, temporary or interim certificate for,
1034     receipt for, guarantee of, or warrant or right to subscribe to or purchase any of the items listed
1035     in Subsections (153)(a)(i) through (xiv); or
1036          (xvi) another interest or instrument commonly known as a security.
1037          (b) "Security" does not include:

1038          (i) any of the following under which an insurance company promises to pay money in a
1039     specific lump sum or periodically for life or some other specified period:
1040          (A) insurance;
1041          (B) an endowment policy; or
1042          (C) an annuity contract; or
1043          (ii) a burial certificate or burial contract.
1044          (154) "Secondary medical condition" means a complication related to an exclusion
1045     from coverage in accident and health insurance.
1046          (155) (a) "Self-insurance" means an arrangement under which a person provides for
1047     spreading its own risks by a systematic plan.
1048          (b) Except as provided in this Subsection (155), "self-insurance" does not include an
1049     arrangement under which a number of persons spread their risks among themselves.
1050          (c) "Self-insurance" includes:
1051          (i) an arrangement by which a governmental entity undertakes to indemnify an
1052     employee for liability arising out of the employee's employment; and
1053          (ii) an arrangement by which a person with a managed program of self-insurance and
1054     risk management undertakes to indemnify its affiliates, subsidiaries, directors, officers, or
1055     employees for liability or risk that is related to the relationship or employment.
1056          (d) "Self-insurance" does not include an arrangement with an independent contractor.
1057          (156) "Sell" means to exchange a contract of insurance:
1058          (a) by any means;
1059          (b) for money or its equivalent; and
1060          (c) on behalf of an insurance company.
1061          (157) "Short-term care insurance" means an insurance policy or rider advertised,
1062     marketed, offered, or designed to provide coverage that is similar to long-term care insurance,
1063     but that provides coverage for less than 12 consecutive months for each covered person.
1064          (158) "Significant break in coverage" means a period of 63 consecutive days during
1065     each of which an individual does not have creditable coverage.

1066          (159) "Small employer" means, in connection with a health benefit plan and with
1067     respect to a calendar year and to a plan year, an employer who:
1068          (a) employed at least one employee but not more than an average of 50 eligible
1069     employees on business days during the preceding calendar year; and
1070          (b) employs at least one employee on the first day of the plan year.
1071          (160) "Special enrollment period," in connection with a health benefit plan, has the
1072     same meaning as provided in federal regulations adopted pursuant to the Health Insurance
1073     Portability and Accountability Act.
1074          (161) (a) "Subsidiary" of a person means an affiliate controlled by that person either
1075     directly or indirectly through one or more affiliates or intermediaries.
1076          (b) "Wholly owned subsidiary" of a person is a subsidiary of which all of the voting
1077     shares are owned by that person either alone or with its affiliates, except for the minimum
1078     number of shares the law of the subsidiary's domicile requires to be owned by directors or
1079     others.
1080          (162) Subject to Subsection (86)(b), "surety insurance" includes:
1081          (a) a guarantee against loss or damage resulting from the failure of a principal to pay or
1082     perform the principal's obligations to a creditor or other obligee;
1083          (b) bail bond insurance; and
1084          (c) fidelity insurance.
1085          (163) (a) "Surplus" means the excess of assets over the sum of paid-in capital and
1086     liabilities.
1087          (b) (i) "Permanent surplus" means the surplus of an insurer or organization that is
1088     designated by the insurer or organization as permanent.
1089          (ii) Sections 31A-5-211, 31A-7-201, 31A-8-209, 31A-9-209, and 31A-14-205 require
1090     that insurers or organizations doing business in this state maintain specified minimum levels of
1091     permanent surplus.
1092          (iii) Except for assessable mutuals, the minimum permanent surplus requirement is the
1093     same as the minimum required capital requirement that applies to stock insurers.

1094          (c) "Excess surplus" means:
1095          (i) for a life insurer, accident and health insurer, health organization, or property and
1096     casualty insurer as defined in Section 31A-17-601, the lesser of:
1097          (A) that amount of an insurer's or health organization's total adjusted capital that
1098     exceeds the product of:
1099          (I) 2.5; and
1100          (II) the sum of the insurer's or health organization's minimum capital or permanent
1101     surplus required under Section 31A-5-211, 31A-9-209, or 31A-14-205; or
1102          (B) that amount of an insurer's or health organization's total adjusted capital that
1103     exceeds the product of:
1104          (I) 3.0; and
1105          (II) the authorized control level RBC as defined in Subsection 31A-17-601(8)(a); and
1106          (ii) for a monoline mortgage guaranty insurer, financial guaranty insurer, or title insurer
1107     that amount of an insurer's paid-in-capital and surplus that exceeds the product of:
1108          (A) 1.5; and
1109          (B) the insurer's total adjusted capital required by Subsection 31A-17-609(1).
1110          (164) "Third party administrator" or "administrator" means a person who collects
1111     charges or premiums from, or who, for consideration, adjusts or settles claims of residents of
1112     the state in connection with insurance coverage, annuities, or service insurance coverage,
1113     except:
1114          (a) a union on behalf of its members;
1115          (b) a person administering a:
1116          (i) pension plan subject to the federal Employee Retirement Income Security Act of
1117     1974;
1118          (ii) governmental plan as defined in Section 414(d), Internal Revenue Code; or
1119          (iii) nonelecting church plan as described in Section 410(d), Internal Revenue Code;
1120          (c) an employer on behalf of the employer's employees or the employees of one or
1121     more of the subsidiary or affiliated corporations of the employer;

1122          (d) an insurer licensed under the following, but only for a line of insurance for which
1123     the insurer holds a license in this state:
1124          (i) Chapter 5, Domestic Stock and Mutual Insurance Corporations;
1125          (ii) Chapter 7, Nonprofit Health Service Insurance Corporations;
1126          (iii) Chapter 8, Health Maintenance Organizations and Limited Health Plans;
1127          (iv) Chapter 9, Insurance Fraternals; or
1128          (v) Chapter 14, Foreign Insurers;
1129          (e) a person:
1130          (i) licensed or exempt from licensing under:
1131          (A) Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and
1132     Reinsurance Intermediaries; or
1133          (B) Chapter 26, Insurance Adjusters; and
1134          (ii) whose activities are limited to those authorized under the license the person holds
1135     or for which the person is exempt; or
1136          (f) an institution, bank, or financial institution:
1137          (i) that is:
1138          (A) an institution whose deposits and accounts are to any extent insured by a federal
1139     deposit insurance agency, including the Federal Deposit Insurance Corporation or National
1140     Credit Union Administration; or
1141          (B) a bank or other financial institution that is subject to supervision or examination by
1142     a federal or state banking authority; and
1143          (ii) that does not adjust claims without a third party administrator license.
1144          (165) "Title insurance" means the insuring, guaranteeing, or indemnifying of an owner
1145     of real or personal property or the holder of liens or encumbrances on that property, or others
1146     interested in the property against loss or damage suffered by reason of liens or encumbrances
1147     upon, defects in, or the unmarketability of the title to the property, or invalidity or
1148     unenforceability of any liens or encumbrances on the property.
1149          (166) "Total adjusted capital" means the sum of an insurer's or health organization's

1150     statutory capital and surplus as determined in accordance with:
1151          (a) the statutory accounting applicable to the annual financial statements required to be
1152     filed under Section 31A-4-113; and
1153          (b) another item provided by the RBC instructions, as RBC instructions is defined in
1154     Section 31A-17-601.
1155          (167) (a) "Trustee" means "director" when referring to the board of directors of a
1156     corporation.
1157          (b) "Trustee," when used in reference to an employee welfare fund, means an
1158     individual, firm, association, organization, joint stock company, or corporation, whether acting
1159     individually or jointly and whether designated by that name or any other, that is charged with
1160     or has the overall management of an employee welfare fund.
1161          (168) (a) "Unauthorized insurer," "unadmitted insurer," or "nonadmitted insurer"
1162     means an insurer:
1163          (i) not holding a valid certificate of authority to do an insurance business in this state;
1164     or
1165          (ii) transacting business not authorized by a valid certificate.
1166          (b) "Admitted insurer" or "authorized insurer" means an insurer:
1167          (i) holding a valid certificate of authority to do an insurance business in this state; and
1168          (ii) transacting business as authorized by a valid certificate.
1169          (169) "Underwrite" means the authority to accept or reject risk on behalf of the insurer.
1170          (170) "Vehicle liability insurance" means insurance against liability resulting from or
1171     incident to ownership, maintenance, or use of a land vehicle or aircraft, exclusive of a vehicle
1172     comprehensive or vehicle physical damage coverage under Subsection (139).
1173          (171) "Voting security" means a security with voting rights, and includes a security
1174     convertible into a security with a voting right associated with the security.
1175          (172) "Waiting period" for a health benefit plan means the period that must pass before
1176     coverage for an individual, who is otherwise eligible to enroll under the terms of the health
1177     benefit plan, can become effective.

1178          (173) "Workers' compensation insurance" means:
1179          (a) insurance for indemnification of an employer against liability for compensation
1180     based on:
1181          (i) a compensable accidental injury; and
1182          (ii) occupational disease disability;
1183          (b) employer's liability insurance incidental to workers' compensation insurance and
1184     written in connection with workers' compensation insurance; and
1185          (c) insurance assuring to a person entitled to workers' compensation benefits the
1186     compensation provided by law.
1187          Section 2. Section 31A-2-402 is amended to read:
1188          31A-2-402. Definitions.
1189          As used in this part:
1190          (1) "Commission" means the Title and Escrow Commission created in Section
1191     31A-2-403.
1192          (2) "Concurrence" means the entities given a concurring role must jointly agree for the
1193     action to be taken.
1194          (3) "Dual licensed title licensee" means a title licensee who holds:
1195          (a) an individual title insurance producer license as a title licensee; and
1196          (b) a license or certificate under:
1197          (i) Title 61, Chapter 2c, Utah Residential Mortgage Practices and Licensing Act;
1198          (ii) Title 61, Chapter 2f, Real Estate Licensing and Practices Act; or
1199          (iii) Title 61, Chapter 2g, Real Estate Appraiser Licensing and Certification Act.
1200          (4) "Real Estate Commission" means the Real Estate Commission created in Section
1201     61-2f-103.
1202          (5) "Title insurance matter" means a matter related to:
1203          (a) title insurance;
1204          (b) an escrow conducted by an individual title insurance producer or agency title
1205     insurance producer;

1206          (c) licensing, examination, and continuing education of an applicant to be a title
1207     licensee; or
1208          (d) conduct of a title licensee.
1209          [(5)] (6) "Title licensee" means a person licensed under this title as:
1210          (a) an agency title insurance producer with a title insurance line of authority;
1211          (b) an individual title insurance producer with:
1212          (i) a general title insurance line of authority; or
1213          (ii) a specific category of authority for title insurance; or
1214          (c) a title insurance adjuster.
1215          Section 3. Section 31A-2-403 is amended to read:
1216          31A-2-403. Title and Escrow Commission created.
1217          (1) (a) Subject to Subsection (1)(b), there is created within the department the Title and
1218     Escrow Commission that is comprised of five members appointed by the governor with the
1219     consent of the Senate as follows [beginning July 1, 2013]:
1220          (i) two members shall be employees of a title insurer;
1221          (ii) two members shall:
1222          (A) be employees of a Utah agency title insurance producer;
1223          (B) be or have been licensed under the title insurance line of authority;
1224          (C) as of the day on which the member is appointed, be or have been licensed with the
1225     [search] title examination or escrow subline of authority for at least five years; and
1226          (D) as of the day on which the member is appointed, not be from the same county as
1227     another member appointed under this Subsection (1)(a)(ii); and
1228          (iii) one member shall be a member of the general public from any county in the state.
1229          (b) No more than one commission member may be appointed from a single company
1230     or an affiliate or subsidiary of the company.
1231          (2) (a) Subject to Subsection (2)(c), a commission member shall file with the
1232     commissioner a disclosure of any position of employment or ownership interest that the
1233     commission member has with respect to a person that is subject to the jurisdiction of the

1234     commissioner.
1235          (b) The disclosure statement required by this Subsection (2) shall be:
1236          (i) filed by no later than the day on which the person begins that person's appointment;
1237     and
1238          (ii) amended when a significant change occurs in any matter required to be disclosed
1239     under this Subsection (2).
1240          (c) A commission member is not required to disclose an ownership interest that the
1241     commission member has if the ownership interest is in a publicly traded company or held as
1242     part of a mutual fund, trust, or similar investment.
1243          (3) (a) Except as required by Subsection (3)(b), as terms of current commission
1244     members expire, the governor shall appoint each new commission member to a four-year term
1245     ending on June 30.
1246          (b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the
1247     time of appointment, adjust the length of terms to ensure that the terms of the commission
1248     members are staggered so that approximately half of the members appointed under Subsection
1249     (1)(a)(i) and half of the members appointed under Subsection (1)(a)(ii) are appointed every two
1250     years.
1251          (c) A commission member may not serve more than one consecutive term.
1252          (d) When a vacancy occurs in the membership for any reason, the governor, with the
1253     consent of the Senate, shall appoint a replacement for the unexpired term.
1254          (e) Notwithstanding the other provisions of this Subsection (3), a commission member
1255     serves until a successor is appointed by the governor with the consent of the Senate.
1256          (4) A commission member may not receive compensation or benefits for the
1257     commission member's service, but may receive per diem and travel expenses in accordance
1258     with:
1259          (a) Section 63A-3-106;
1260          (b) Section 63A-3-107; and
1261          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and

1262     63A-3-107.
1263          (5) Members of the commission shall annually select one commission member to serve
1264     as chair.
1265          (6) (a) The commission shall meet at least monthly. Notwithstanding Section
1266     52-4-207, a commission member shall physically attend a regularly scheduled monthly meeting
1267     of the commission and may not attend through electronic means. A commission member may
1268     attend subcommittee meetings, emergency meetings, or other not regularly scheduled meetings
1269     electronically in accordance with Section 52-4-207.
1270          (b) The commissioner may call additional meetings:
1271          (i) at the commissioner's discretion;
1272          (ii) upon the request of the chair of the commission; or
1273          (iii) upon the written request of three or more commission members.
1274          (c) (i) Three commission members constitute a quorum for the transaction of business.
1275          (ii) The action of a majority of the commission members when a quorum is present is
1276     the action of the commission.
1277          (7) The commissioner shall staff the commission.
1278          Section 4. Section 31A-2-404 is amended to read:
1279          31A-2-404. Duties of the commissioner and Title and Escrow Commission.
1280          (1) (a) Notwithstanding the other provisions of this chapter, to the extent provided in
1281     this part, the commissioner shall administer and enforce the provisions in this title related to[:
1282     (a) title insurance; and (b) escrow conducted by a title licensee or title insurer] a title insurance
1283     matter.
1284          (b) (i) The commissioner may impose a penalty:
1285          (A) under this title related to a title insurance matter;
1286          (B) after investigation by the commissioner in accordance with Part 3, Procedures and
1287     Enforcement; and
1288          (C) that is enforced by the commissioner.
1289          (ii) The commissioner shall consult with and seek concurrence of the commission in a

1290     meeting subject to Title 52, Chapter 4, Open and Public Meetings Act, regarding the
1291     imposition of a penalty, and if concurrence cannot be reached, the commissioner has final
1292     authority.
1293          (c) Unless a provision of this title grants specific authority to the commission, the
1294     commissioner has authority over the implementation of this title related to a title insurance
1295     matter. When a provision requires concurrence between the commission and commissioner,
1296     and concurrence cannot be reached, the commissioner has final authority.
1297          (d) Except as provided in Subsection (1)(e), when this title requires concurrence
1298     between the commissioner and commission related to a title insurance matter:
1299          (i) the commissioner shall report to and update the commission on a regular basis
1300     related to that title insurance matter; and
1301          (ii) the commission shall review the report submitted by the commissioner under this
1302     Subsection (1)(d) and concur with the report, or:
1303          (A) provide a reason for not concurring with the report; and
1304          (B) provide recommendations to the commissioner.
1305          (e) When this title requires concurrence between the commissioner and commission
1306     under Subsection (2), (3), or (4):
1307          (i) the commission shall report to and update the commissioner on a regular basis
1308     related to that title insurance matter; and
1309          (ii) the commissioner shall review a report submitted by the commission under this
1310     Subsection (1)(e) and concur with the report or:
1311          (A) provide a reason for not concurring with the report; and
1312          (B) provide recommendations to the commission.
1313          (2) The commission shall:
1314          (a) [in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1315     and] subject to Subsection (4), make rules for the administration of the provisions in this title
1316     related to title insurance matters including rules related to:
1317          (i) rating standards and rating methods for a title licensee, as provided in Section

1318     31A-19a-209;
1319          (ii) the licensing for a title licensee, including the licensing requirements of Section
1320     31A-23a-204;
1321          (iii) continuing education requirements of Section 31A-23a-202; and
1322          (iv) standards of conduct for a title licensee;
1323          (b) concur in the issuance and renewal of a license in accordance with Section
1324     31A-23a-105 or 31A-26-203;
1325          (c) in accordance with Section 31A-3-103, establish, with the concurrence of the
1326     commissioner, the fees imposed by this title on a title licensee;
1327          (d) in accordance with Section 31A-23a-415 determine, after consulting with the
1328     commissioner, the assessment on a title insurer as defined in Section 31A-23a-415;
1329          [(e) conduct an administrative hearing not delegated by the commission to an
1330     administrative law judge related to the:]
1331          [(i) licensing of an applicant;]
1332          [(ii) conduct of a title licensee; or]
1333          [(iii) approval of a continuing education program required by Section 31A-23a-202;]
1334          [(f)] (e) with the concurrence of the commissioner, approve a continuing education
1335     program required by Section 31A-23a-202;
1336          [(g) with the concurrence of the commissioner, impose a penalty:]
1337          [(i) under this title related to:]
1338          [(A) title insurance; or]
1339          [(B) escrow conducted by a title licensee;]
1340          [(ii) after investigation by the commissioner in accordance with Part 3, Procedures and
1341     Enforcement; and]
1342          [(iii) that is enforced by the commissioner;]
1343          [(h) advise the commissioner on the administration and enforcement of any matter
1344     affecting the title insurance industry;]
1345          (f) on a regular basis advise the commissioner of the most critical matters affecting the

1346     title insurance industry and request the commissioner to direct the department's investigative
1347     resources to investigate and enforce those matters;
1348          (g) in accordance with Section 31A-23a-204, participate in the annual license testing
1349     evaluation conducted by the commissioner's test administrator;
1350          [(i)] (h) advise the commissioner on matters affecting the commissioner's budget
1351     related to title insurance; and
1352          [(j)] (i) perform other duties as provided in this title.
1353          (3) The commission may make rules establishing an examination for a license that will
1354     satisfy Section 31A-23a-204:
1355          (a) after consultation with [the commissioner and] the commissioner's test
1356     administrator; and
1357          [(b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
1358     and]
1359          [(c)] (b) subject to Subsection (4).
1360          (4) (a) The commission may make a rule under this title only:
1361          (i) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
1362          (ii) with the concurrence of the commissioner, except that if concurrence cannot be
1363     reached, the commissioner has final authority; and
1364          (iii) if at the time the commission files its proposed rule and rule analysis with the
1365     Division of Administrative Rules in accordance with Section 63G-3-301, the commission
1366     provides the Real Estate Commission that same information.
1367          (b) The commission may not make a rule regarding adjudicative procedures.
1368          (c) In accordance with Section 31A-2-201, the commissioner may make rules regarding
1369     adjudicative procedures.
1370          (5) (a) The commissioner shall annually report the information described in Subsection
1371     (5)(b) in writing to the commission.
1372          (b) The information required to be reported under this Subsection (5):
1373          (i) may not identify a person; and

1374          (ii) shall include:
1375          (A) the number of complaints the commissioner receives with regard to transactions
1376     involving title insurance or a title licensee during the calendar year immediately proceeding the
1377     report;
1378          (B) the type of complaints described in Subsection (5)(b)(ii)(A); and
1379          (C) for each complaint described in Subsection (5)(b)(ii)(A):
1380          (I) any action taken by the commissioner with regard to the complaint; and
1381          (II) the time-period beginning the day on which a complaint is made and ending the
1382     day on which the commissioner determines it will take no further action with regard to the
1383     complaint.
1384          [(6) The commission may not impose a penalty in a manner inconsistent with
1385     Subsection (2)(g) or make a rule that conflicts with Subsection (2)(g).]
1386          Section 5. Section 31A-19a-209 is amended to read:
1387          31A-19a-209. Special provisions for title insurance.
1388          (1) (a) (i) The Title and Escrow Commission shall adopt rules subject to Section
1389     31A-2-404, establishing rate standards and rating methods for individual title insurance
1390     producers and agency title insurance producers.
1391          (ii) The commissioner shall determine compliance with rate standards and rating
1392     methods for title insurance insurers, individual title insurance producers, and agency title
1393     insurance producers.
1394          (b) In addition to the considerations in determining compliance with rate standards and
1395     rating methods as set forth in Sections 31A-19a-201 and 31A-19a-202, including for title
1396     insurers, the commissioner and the Title and Escrow Commission shall consider the costs and
1397     expenses incurred by title insurance insurers, individual title insurance producers, and agency
1398     title insurance producers peculiar to the business of title insurance. including:
1399          (i) the maintenance of title plants; and
1400          (ii) the [searching and] examining of public records to determine insurability of title to
1401     real redevelopment property.

1402          (2) (a) Every title insurance insurer or agency title insurance producer, and every
1403     individual title insurance producer who is not designated by an agency title insurance producer,
1404     shall file with the commissioner:
1405          (i) a schedule of the escrow charges that the title insurance insurer, individual title
1406     insurance producer, or agency title insurance producer proposes to use in this state for services
1407     performed in connection with the issuance of policies of title insurance; and
1408          (ii) any changes to the schedule of the escrow charges described in Subsection (2)(a)(i).
1409          (b) Except for a schedule filed by a title insurance insurer under this Subsection (2), a
1410     schedule filed under this Subsection (2) is subject to review by the Title and Escrow
1411     Commission.
1412          (c) (i) The schedule of escrow charges required to be filed by Subsection (2)(a)(i) takes
1413     effect on the day on which the schedule of escrow charges is filed.
1414          (ii) Any changes to the schedule of the escrow charges required to be filed by
1415     Subsection (2)(a)(ii) take effect on the day specified in the change to the schedule of escrow
1416     charges except that the effective date may not be less than 30 calendar days after the day on
1417     which the change to the schedule of escrow charges is filed.
1418          (3) A title insurance insurer, individual title insurance producer, or agency title
1419     insurance producer may not file or use any rate or other charge relating to the business of title
1420     insurance, including rates or charges filed for escrow that would cause the title insurance
1421     company, individual title insurance producer, or agency title insurance producer to:
1422          (a) operate at less than the cost of doing:
1423          (i) the insurance business; or
1424          (ii) the escrow business; or
1425          (b) fail to adequately underwrite a title insurance policy.
1426          (4) (a) All or any of the schedule of rates or schedule of charges, including the schedule
1427     of escrow charges, may be changed or amended at any time, subject to the limitations in this
1428     Subsection (4).
1429          (b) Each change or amendment shall:

1430          (i) be filed with the commissioner, subject to review by the Title and Escrow
1431     Commission; and
1432          (ii) state the effective date of the change or amendment, which may not be less than 30
1433     calendar days after the day on which the change or amendment is filed.
1434          (c) Any change or amendment remains in force for a period of at least 90 calendar days
1435     from the change or amendment's effective date.
1436          (5) While the schedule of rates and schedule of charges are effective, a copy of each
1437     shall be:
1438          (a) retained in each of the offices of:
1439          (i) the title insurance insurer in this state;
1440          (ii) the title insurance insurer's individual title insurance producers or agency title
1441     insurance producers in this state; and
1442          (b) upon request, furnished to the public.
1443          (6) Except in accordance with the schedules of rates and charges filed with the
1444     commissioner, a title insurance insurer, individual title insurance producer, or agency title
1445     insurance producer may not make or impose any premium or other charge:
1446          (a) in connection with the issuance of a policy of title insurance; or
1447          (b) for escrow services performed in connection with the issuance of a policy of title
1448     insurance.
1449          Section 6. Section 31A-20-110 is amended to read:
1450          31A-20-110. Underwriting rules for title insurance.
1451          (1) A title insurance policy may not be written until the title insurer or its individual
1452     title insurance producer or agency title insurance producer has conducted a reasonable [search
1453     and] examination of the title and has made a determination of insurability of title under sound
1454     underwriting principles. Evidence of this [search] examination and reasonable determination
1455     shall be retained in the files of the title insurer or its individual title insurance producer or
1456     agency title insurance producer for not less than 15 years after the policy has been issued, either
1457     in its original form or as recorded by any process which can accurately and reliably reproduce

1458     the original. This section does not apply to a company assuming liability through a contract of
1459     reinsurance, or to a company acting as coinsurer, if another coinsuring company has complied
1460     with this section.
1461          (2) A title insurance policy may not be issued except by a title insurer, an individual
1462     title insurance producer who is appointed by an insurer, or agency title insurance producer
1463     licensed under Section 31A-23a-105.
1464          (3) This section is enforceable only by the commissioner. It does not create, eliminate,
1465     or modify any private cause of action or remedy.
1466          Section 7. Section 31A-23a-102 is amended to read:
1467          31A-23a-102. Definitions.
1468          As used in this chapter:
1469          (1) "Bail bond producer" is as defined in Section 31A-35-102.
1470          (2) "Home state" means a state or territory of the United States or the District of
1471     Columbia in which an insurance producer:
1472          (a) maintains the insurance producer's principal:
1473          (i) place of residence; or
1474          (ii) place of business; and
1475          (b) is licensed to act as an insurance producer.
1476          (3) "Insurer" is as defined in Section 31A-1-301, except that the following persons or
1477     similar persons are not insurers for purposes of Part 7, Producer Controlled Insurers:
1478          (a) a risk retention group as defined in:
1479          (i) the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499;
1480          (ii) the Risk Retention Act, 15 U.S.C. Sec. 3901 et seq.; and
1481          (iii) Chapter 15, Part 2, Risk Retention Groups Act;
1482          (b) a residual market pool;
1483          (c) a joint underwriting authority or association; and
1484          (d) a captive insurer.
1485          (4) "License" is defined in Section 31A-1-301.

1486          (5) (a) "Managing general agent" means a person that:
1487          (i) manages all or part of the insurance business of an insurer, including the
1488     management of a separate division, department, or underwriting office;
1489          (ii) acts as an agent for the insurer whether it is known as a managing general agent,
1490     manager, or other similar term;
1491          (iii) produces and underwrites an amount of gross direct written premium equal to, or
1492     more than, 5% of the policyholder surplus as reported in the last annual statement of the insurer
1493     in any one quarter or year:
1494          (A) with or without the authority;
1495          (B) separately or together with an affiliate; and
1496          (C) directly or indirectly; and
1497          (iv) (A) adjusts or pays claims in excess of an amount determined by the
1498     commissioner; or
1499          (B) negotiates reinsurance on behalf of the insurer.
1500          (b) Notwithstanding Subsection (5)(a), the following persons may not be considered as
1501     managing general agent for the purposes of this chapter:
1502          (i) an employee of the insurer;
1503          (ii) a United States manager of the United States branch of an alien insurer;
1504          (iii) an underwriting manager that, pursuant to contract:
1505          (A) manages all the insurance operations of the insurer;
1506          (B) is under common control with the insurer;
1507          (C) is subject to Chapter 16, Insurance Holding Companies; and
1508          (D) is not compensated based on the volume of premiums written; and
1509          (iv) the attorney-in-fact authorized by and acting for the subscribers of a reciprocal
1510     insurer or inter-insurance exchange under powers of attorney.
1511          (6) "Negotiate" means the act of conferring directly with or offering advice directly to a
1512     purchaser or prospective purchaser of a particular contract of insurance concerning a
1513     substantive benefit, term, or condition of the contract if the person engaged in that act:

1514          (a) sells insurance; or
1515          (b) obtains insurance from insurers for purchasers.
1516          (7) "Reinsurance intermediary" means:
1517          (a) a reinsurance intermediary-broker; or
1518          (b) a reinsurance intermediary-manager.
1519          (8) "Reinsurance intermediary-broker" means a person other than an officer or
1520     employee of the ceding insurer, firm, association, or corporation who solicits, negotiates, or
1521     places reinsurance cessions or retrocessions on behalf of a ceding insurer without the authority
1522     or power to bind reinsurance on behalf of the insurer.
1523          (9) (a) "Reinsurance intermediary-manager" means a person who:
1524          (i) has authority to bind or who manages all or part of the assumed reinsurance
1525     business of a reinsurer, including the management of a separate division, department, or
1526     underwriting office; and
1527          (ii) acts as an agent for the reinsurer whether the person is known as a reinsurance
1528     intermediary-manager, manager, or other similar term.
1529          (b) Notwithstanding Subsection (9)(a), the following persons may not be considered
1530     reinsurance intermediary-managers for the purpose of this chapter with respect to the reinsurer:
1531          (i) an employee of the reinsurer;
1532          (ii) a United States manager of the United States branch of an alien reinsurer;
1533          (iii) an underwriting manager that, pursuant to contract:
1534          (A) manages all the reinsurance operations of the reinsurer;
1535          (B) is under common control with the reinsurer;
1536          (C) is subject to Chapter 16, Insurance Holding Companies; and
1537          (D) is not compensated based on the volume of premiums written; and
1538          (iv) the manager of a group, association, pool, or organization of insurers that:
1539          (A) engage in joint underwriting or joint reinsurance; and
1540          (B) are subject to examination by the insurance commissioner of the state in which the
1541     manager's principal business office is located.

1542          (10) "Resident" is as defined by rule made by the commissioner in accordance with
1543     Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
1544          [(11) "Search" means a license subline of authority in conjunction with the title
1545     insurance line of authority that allows a person to issue title insurance commitments or policies
1546     on behalf of a title insurer.]
1547          [(12)] (11) "Sell" means to exchange a contract of insurance:
1548          (a) by any means;
1549          (b) for money or its equivalent; and
1550          (c) on behalf of an insurance company.
1551          [(13)] (12) "Solicit" means:
1552          (a) attempting to sell insurance;
1553          (b) asking or urging a person to apply for:
1554          (i) a particular kind of insurance; and
1555          (ii) insurance from a particular insurance company;
1556          (c) advertising insurance, including advertising for the purpose of obtaining leads for
1557     the sale of insurance; or
1558          (d) holding oneself out as being in the insurance business.
1559          [(14)] (13) "Terminate" means:
1560          (a) the cancellation of the relationship between:
1561          (i) an individual licensee or agency licensee and a particular insurer; or
1562          (ii) an individual licensee and a particular agency licensee; or
1563          (b) the termination of:
1564          (i) an individual licensee's or agency licensee's authority to transact insurance on behalf
1565     of a particular insurance company; or
1566          (ii) an individual licensee's authority to transact insurance on behalf of a particular
1567     agency licensee.
1568          (14) "Title examination" means a license subline of authority in conjunction with the
1569     title insurance line of authority that allows a person to issue title insurance commitments or

1570     policies on behalf of a title insurer.
1571          (15) "Title marketing representative" means a person who:
1572          (a) represents a title insurer in soliciting, requesting, or negotiating the placing of:
1573          (i) title insurance; or
1574          (ii) escrow services; and
1575          (b) does not have [a search] a title examination or escrow license as provided in
1576     Section 31A-23a-106.
1577          (16) "Uniform application" means the version of the National Association of Insurance
1578     Commissioners' uniform application for resident and nonresident producer licensing at the time
1579     the application is filed.
1580          (17) "Uniform business entity application" means the version of the National
1581     Association of Insurance Commissioners' uniform business entity application for resident and
1582     nonresident business entities at the time the application is filed.
1583          Section 8. Section 31A-23a-106 is amended to read:
1584          31A-23a-106. License types.
1585          (1) (a) A resident or nonresident license issued under this chapter shall be issued under
1586     the license types described under Subsection (2).
1587          (b) A license type and a line of authority pertaining to a license type describe the type
1588     of licensee and the lines of business that a licensee may sell, solicit, or negotiate. A license
1589     type is intended to describe the matters to be considered under any education, examination, and
1590     training required of a license applicant under Sections 31A-23a-108, 31A-23a-202, and
1591     31A-23a-203.
1592          (2) (a) A producer license type includes the following lines of authority:
1593          (i) life insurance, including a nonvariable contract;
1594          (ii) variable contracts, including variable life and annuity, if the producer has the life
1595     insurance line of authority;
1596          (iii) accident and health insurance, including a contract issued to a policyholder under
1597     Chapter 7, Nonprofit Health Service Insurance Corporations, or Chapter 8, Health Maintenance

1598     Organizations and Limited Health Plans;
1599          (iv) property insurance;
1600          (v) casualty insurance, including a surety or other bond;
1601          (vi) title insurance under one or more of the following categories:
1602          (A) [search] title examination, including authority to act as a title marketing
1603     representative;
1604          (B) escrow, including authority to act as a title marketing representative; and
1605          (C) title marketing representative only; and
1606          (vii) personal lines insurance.
1607          (b) A surplus lines producer license type includes the following lines of authority:
1608          (i) property insurance, if the person holds an underlying producer license with the
1609     property line of insurance; and
1610          (ii) casualty insurance, if the person holds an underlying producer license with the
1611     casualty line of authority.
1612          (c) A limited line producer license type includes the following limited lines of
1613     authority:
1614          (i) limited line credit insurance;
1615          (ii) travel insurance, as set forth in Part 9, Travel Insurance Act;
1616          (iii) motor club insurance;
1617          (iv) car rental related insurance;
1618          (v) legal expense insurance;
1619          (vi) crop insurance;
1620          (vii) self-service storage insurance;
1621          (viii) bail bond producer;
1622          (ix) guaranteed asset protection waiver; and
1623          (x) portable electronics insurance.
1624          (d) A consultant license type includes the following lines of authority:
1625          (i) life insurance, including a nonvariable contract;

1626          (ii) variable contracts, including variable life and annuity, if the consultant has the life
1627     insurance line of authority;
1628          (iii) accident and health insurance, including a contract issued to a policyholder under
1629     Chapter 7, Nonprofit Health Service Insurance Corporations, or Chapter 8, Health Maintenance
1630     Organizations and Limited Health Plans;
1631          (iv) property insurance;
1632          (v) casualty insurance, including a surety or other bond; and
1633          (vi) personal lines insurance.
1634          (e) A managing general agent license type includes the following lines of authority:
1635          (i) life insurance, including a nonvariable contract;
1636          (ii) variable contracts, including variable life and annuity, if the managing general
1637     agent has the life insurance line of authority;
1638          (iii) accident and health insurance, including a contract issued to a policyholder under
1639     Chapter 7, Nonprofit Health Service Insurance Corporations, or Chapter 8, Health Maintenance
1640     Organizations and Limited Health Plans;
1641          (iv) property insurance;
1642          (v) casualty insurance, including a surety or other bond; and
1643          (vi) personal lines insurance.
1644          (f) A reinsurance intermediary license type includes the following lines of authority:
1645          (i) life insurance, including a nonvariable contract;
1646          (ii) variable contracts, including variable life and annuity, if the reinsurance
1647     intermediary has the life insurance line of authority;
1648          (iii) accident and health insurance, including a contract issued to a policyholder under
1649     Chapter 7, Nonprofit Health Service Insurance Corporations, or Chapter 8, Health Maintenance
1650     Organizations and Limited Health Plans;
1651          (iv) property insurance;
1652          (v) casualty insurance, including a surety or other bond; and
1653          (vi) personal lines insurance.

1654          (g) A person who holds a license under Subsection (2)(a) has the qualifications
1655     necessary to act as a holder of a license under Subsection (2)(c), except that the person may not
1656     act under Subsection (2)(c)(viii) or (ix).
1657          (3) (a) The commissioner may by rule recognize other producer, surplus lines producer,
1658     limited line producer, consultant, managing general agent, or reinsurance intermediary lines of
1659     authority as to kinds of insurance not listed under Subsections (2)(a) through (f).
1660          (b) Notwithstanding Subsection (3)(a), for purposes of title insurance the Title and
1661     Escrow Commission may by rule, with the concurrence of the commissioner and subject to
1662     Section 31A-2-404, recognize other categories for an individual title insurance producer or
1663     agency title insurance producer line of authority not listed under Subsection (2)(a)(vi).
1664          (4) The variable contracts line of authority requires:
1665          (a) for a producer, licensure by the Financial Industry Regulatory Authority as a:
1666          (i) registered broker-dealer; or
1667          (ii) broker-dealer agent, with a current registration with a broker-dealer; and
1668          (b) for a consultant, registration with the Securities and Exchange Commission or
1669     licensure by the Utah Division of Securities as an:
1670          (i) investment adviser; or
1671          (ii) investment adviser representative, with a current association with an investment
1672     adviser.
1673          (5) A surplus lines producer is a producer who has a surplus lines license.
1674          Section 9. Section 31A-23a-204 is amended to read:
1675          31A-23a-204. Special requirements for title insurance producers and agencies.
1676          An individual title insurance producer or agency title insurance producer shall be
1677     licensed in accordance with this chapter, with the additional requirements listed in this section.
1678          (1) (a) A person that receives a new license under this title as an agency title insurance
1679     producer shall at the time of licensure be owned or managed by at least one individual who is
1680     licensed for at least three of the five years immediately preceding the date on which the agency
1681     title insurance producer applies for a license with both:

1682          (i) [a search] a title examination line of authority; and
1683          (ii) an escrow line of authority.
1684          (b) An agency title insurance producer subject to Subsection (1)(a) may comply with
1685     Subsection (1)(a) by having the agency title insurance producer owned or managed by:
1686          (i) one or more individuals who are licensed with the [search] title examination line of
1687     authority for the time period provided in Subsection (1)(a); and
1688          (ii) one or more individuals who are licensed with the escrow line of authority for the
1689     time period provided in Subsection (1)(a).
1690          (c) A person licensed as an agency title insurance producer shall at all times during the
1691     term of licensure be owned or managed by at least one individual who is licensed for at least
1692     three years within the preceding five-year period with both:
1693          (i) [a search] a title examination line of authority; and
1694          (ii) an escrow line of authority.
1695          (d) The Title and Escrow Commission may by rule, subject to Section 31A-2-404,
1696     exempt an attorney with real estate experience from the experience requirements in Subsection
1697     (1)(a).
1698          (e) An individual who satisfies the requirements of this Subsection (1) is known as a
1699     "qualifying licensee." At any given time, an individual may be a qualifying licensee for not
1700     more than two agency title insurance producers.
1701          (2) (a) An individual title insurance producer or agency title insurance producer
1702     appointed by an insurer shall maintain:
1703          (i) a fidelity bond;
1704          (ii) a professional liability insurance policy; or
1705          (iii) a financial protection:
1706          (A) equivalent to that described in Subsection (2)(a)(i) or (ii); and
1707          (B) that the commissioner considers adequate.
1708          (b) The bond, insurance, or financial protection required by this Subsection (2):
1709          (i) shall be supplied under a contract approved by the commissioner to provide

1710     protection against the improper performance of any service in conjunction with the issuance of
1711     a contract or policy of title insurance; and
1712          (ii) be in a face amount no less than [$50,000] $250,000.
1713          (c) The Title and Escrow Commission may by rule, subject to Section 31A-2-404,
1714     exempt individual title insurance producer or agency title insurance producers from the
1715     requirements of this Subsection (2) upon a finding that, and only so long as, the required policy
1716     or bond is generally unavailable at reasonable rates.
1717          (3) An individual title insurance producer or agency title insurance producer appointed
1718     by an insurer may maintain a reserve fund to the extent money was deposited before July 1,
1719     2008, and not withdrawn to the income of the individual title insurance producer or agency title
1720     insurance producer.
1721          (4) An examination for licensure shall include questions regarding the [search and]
1722     examination of title to real property.
1723          (5) An individual title insurance producer may not perform the functions of escrow
1724     unless the individual title insurance producer has been examined on the fiduciary duties and
1725     procedures involved in those functions.
1726          (6) The Title and Escrow Commission may adopt rules, [subject to Section 31A-2-404,
1727     after consulting with the commissioner and the commissioner's test administrator,] establishing
1728     an examination for a license that will satisfy this section, subject to Section 31A-2-404, and
1729     after consulting with the commissioner's test administrator.
1730          (7) A license may be issued to an individual title insurance producer or agency title
1731     insurance producer who has qualified:
1732          (a) to perform only [searches and] examinations of title as specified in Subsection (4);
1733          (b) to handle only escrow arrangements as specified in Subsection (5); or
1734          (c) to act as a title marketing representative.
1735          (8) (a) A person licensed to practice law in Utah is exempt from the requirements of
1736     Subsections (2) and (3) if that person issues 12 or less policies in any 12-month period.
1737          (b) In determining the number of policies issued by a person licensed to practice law in

1738     Utah for purposes of Subsection (8)(a), if the person licensed to practice law in Utah issues a
1739     policy to more than one party to the same closing, the person is considered to have issued only
1740     one policy.
1741          (9) A person licensed to practice law in Utah, whether exempt under Subsection (8) or
1742     not, shall maintain a trust account separate from a law firm trust account for all title and real
1743     estate escrow transactions.
1744          Section 10. Section 31A-23a-415 is amended to read:
1745          31A-23a-415. Assessment on agency title insurance producers or title insurers --
1746     Account created.
1747          (1) For purposes of this section:
1748          (a) "Premium" is as defined in Subsection 59-9-101(3).
1749          (b) "Title insurer" means a person:
1750          (i) making any contract or policy of title insurance as:
1751          (A) insurer;
1752          (B) guarantor; or
1753          (C) surety;
1754          (ii) proposing to make any contract or policy of title insurance as:
1755          (A) insurer;
1756          (B) guarantor; or
1757          (C) surety; or
1758          (iii) transacting or proposing to transact any phase of title insurance, including:
1759          (A) soliciting;
1760          (B) negotiating preliminary to execution;
1761          (C) executing of a contract of title insurance;
1762          (D) insuring; and
1763          (E) transacting matters subsequent to the execution of the contract and arising out of
1764     the contract.
1765          (c) "Utah risks" means insuring, guaranteeing, or indemnifying with regard to real or

1766     personal property located in Utah, an owner of real or personal property, the holders of liens or
1767     encumbrances on that property, or others interested in the property against loss or damage
1768     suffered by reason of:
1769          (i) liens or encumbrances upon, defects in, or the unmarketability of the title to the
1770     property; or
1771          (ii) invalidity or unenforceability of any liens or encumbrances on the property.
1772          (2) (a) The commissioner may assess each title insurer, each individual title insurance
1773     producer who is not designated by an agency title insurance producer, and each agency title
1774     insurance producer an annual assessment:
1775          (i) determined by the Title and Escrow Commission:
1776          (A) after consultation with the commissioner; and
1777          (B) in accordance with this Subsection (2); and
1778          (ii) to be used for the purposes described in Subsection (3).
1779          (b) An agency title insurance producer and individual title insurance producer who is
1780     not designated by an agency title insurance producer shall be assessed up to:
1781          (i) $250 for the first office in each county in which the agency title insurance producer
1782     or individual title insurance producer maintains an office; and
1783          (ii) $150 for each additional office the agency title insurance producer or individual
1784     title insurance producer maintains in the county described in Subsection (2)(b)(i).
1785          (c) A title insurer shall be assessed up to:
1786          (i) $250 for the first office in each county in which the title insurer maintains an office;
1787          (ii) $150 for each additional office the title insurer maintains in the county described in
1788     Subsection (2)(c)(i); and
1789          (iii) an amount calculated by:
1790          (A) aggregating the assessments imposed on:
1791          (I) agency title insurance producers and individual title insurance producers under
1792     Subsection (2)(b); and
1793          (II) title insurers under Subsections (2)(c)(i) and (2)(c)(ii);

1794          (B) subtracting the amount determined under Subsection (2)(c)(iii)(A) from the total
1795     costs and expenses determined under Subsection (2)(d); and
1796          (C) multiplying:
1797          (I) the amount calculated under Subsection (2)(c)(iii)(B); and
1798          (II) the percentage of total premiums for title insurance on Utah risk that are premiums
1799     of the title insurer.
1800          (d) Notwithstanding Section 31A-3-103 and subject to Section 31A-2-404, the Title
1801     and Escrow Commission by rule shall establish the amount of costs and expenses described
1802     under Subsection (3) that will be covered by the assessment, except the costs or expenses to be
1803     covered by the assessment may not exceed [$80,000] $100,000 annually.
1804          (3) (a) Money received by the state under this section shall be deposited into the Title
1805     Licensee Enforcement Restricted Account.
1806          (b) There is created in the General Fund a restricted account known as the "Title
1807     Licensee Enforcement Restricted Account."
1808          (c) The Title Licensee Enforcement Restricted Account shall consist of the money
1809     received by the state under this section.
1810          (d) The commissioner shall administer the Title Licensee Enforcement Restricted
1811     Account. Subject to appropriations by the Legislature, the commissioner shall use the money
1812     deposited into the Title Licensee Enforcement Restricted Account only to pay for a cost or
1813     expense incurred by the department in the administration, investigation, and enforcement of
1814     this part and Part 5, Compensation of Producers and Consultants, related to:
1815          (i) the marketing of title insurance; and
1816          (ii) audits of agency title insurance producers.
1817          (e) An appropriation from the Title Licensee Enforcement Restricted Account is
1818     nonlapsing.
1819          (4) The assessment imposed by this section shall be in addition to any premium
1820     assessment imposed under Subsection 59-9-101(3).
1821          Section 11. Section 31A-23a-504 is amended to read:

1822          31A-23a-504. Sharing commissions.
1823          (1) (a) Except as provided in Subsection 31A-15-103(3), a licensee under this chapter
1824     or an insurer may only pay consideration or reimburse out-of-pocket expenses to a person if the
1825     licensee knows that the person is licensed under this chapter as to the particular type of
1826     insurance to act in Utah as:
1827          (i) a producer;
1828          (ii) a limited line producer;
1829          (iii) a consultant;
1830          (iv) a managing general agent; or
1831          (v) a reinsurance intermediary.
1832          (b) A person may only accept commission compensation or other compensation as a
1833     person described in Subsections (1)(a)(i) through (v) that is directly or indirectly the result of
1834     an insurance transaction if that person is licensed under this chapter to act as described in
1835     Subsection (1)(a).
1836          (2) (a) Except as provided in Section 31A-23a-501, a consultant may not pay or receive
1837     a commission or other compensation that is directly or indirectly the result of an insurance
1838     transaction.
1839          (b) A consultant may share a consultant fee or other compensation received for
1840     consulting services performed within Utah only:
1841          (i) with another consultant licensed under this chapter; and
1842          (ii) to the extent that the other consultant contributed to the services performed.
1843          (3) This section does not prohibit:
1844          (a) the payment of renewal commissions to former licensees under this chapter, former
1845     Title 31, Chapter 17, or their successors in interest under a deferred compensation or agency
1846     sales agreement;
1847          (b) compensation paid to or received by a person for referral of a potential customer
1848     that seeks to purchase or obtain an opinion or advice on an insurance product if:
1849          (i) the person is not licensed to sell insurance;

1850          (ii) the person does not sell or provide opinions or advice on the product; and
1851          (iii) the compensation does not depend on whether the referral results in a purchase or
1852     sale; or
1853          (c) the payment or assignment of a commission, service fee, brokerage, or other
1854     valuable consideration to an agency or a person who does not sell, solicit, or negotiate
1855     insurance in this state, unless the payment would constitute an inducement or commission
1856     rebate under Section 31A-23a-402 or 31A-23a-402.5.
1857          (4) (a) In selling a policy of title insurance, sharing of commissions under Subsection
1858     (1) may not occur if it will result in:
1859          (i) an unlawful rebate;
1860          (ii) compensation in connection with controlled business; or
1861          (iii) payment of a forwarding fee or finder's fee.
1862          (b) A person may share compensation for the issuance of a title insurance policy only
1863     to the extent that the person contributed to the [search and] examination of the title or other
1864     services connected with the title insurance policy.
1865          (5) This section does not apply to:
1866          (a) a bail bond producer or bail enforcement agent as defined in Section 31A-35-102
1867     and as described in Subsection 31A-23a-106(2)(c);
1868          (b) a travel retailer registered pursuant to Part 9, Travel Insurance Act; or
1869          (c) a nonlicensed individual employee or authorized representative of a licensed
1870     limited line producer who holds one or more of the following limited lines of authority as
1871     described in Subsection 31A-23a-106(2)(c):
1872          (i) car rental related insurance;
1873          (ii) self-service storage insurance;
1874          (iii) portable electronics insurance; or
1875          (iv) travel insurance.
1876          Section 12. Section 31A-41-202 is amended to read:
1877          31A-41-202. Assessments.

1878          (1) Beginning January 1, 2009, an agency title insurance producer licensed under this
1879     title shall pay an annual assessment determined by the commission by rule made in accordance
1880     with [Title 63G, Chapter 3, Utah Administrative Rulemaking Act] Section 31A-2-404, except
1881     that the annual assessment:
1882          (a) may not exceed $1,000; and
1883          (b) shall be determined on the basis of title insurance premium volume.
1884          (2) Beginning January 1, 2009, an individual who applies for a license or renewal of a
1885     license as an individual title insurance producer, shall pay in addition to any other fee required
1886     by this title, an assessment not to exceed $20, as determined by the commission by rule made
1887     in accordance with [Title 63G, Chapter 3, Utah Administrative Rulemaking Act] Section
1888     31A-2-404, except that if the individual holds more than one license, the total of all
1889     assessments under this Subsection (2) may not exceed $20 in a fiscal year.
1890          (3) (a) To be licensed as an agency title insurance producer on or after July 1, 2008, a
1891     person shall pay to the department an assessment of $1,000 before the day on which the person
1892     is licensed as a title insurance agency.
1893          (b) (i) By no later than July 15, 2008, the department shall assess on an agency title
1894     insurance producer licensed as of June 30, 2008, an amount equal to the greater of:
1895          (A) $1,000; or
1896          (B) subject to Subsection (3)(b)(ii), 2% of the balance as of December 31, 2007, in the
1897     agency title insurance producer's reserve account described in Subsection 31A-23a-204(3).
1898          (ii) The department may assess on an agency title insurance producer an amount less
1899     than 2% of the balance described in Subsection (3)(b)(i)(B) if:
1900          (A) before issuing the assessments under this Subsection (3)(b) the department
1901     determines that the total of all assessments under Subsection (3)(b)(i) will exceed $250,000;
1902          (B) the amount assessed on the agency title insurance producer is not less than $1,000;
1903     and
1904          (C) the department reduces the assessment in a proportionate amount for agency title
1905     insurance producers assessed on the basis of the 2% of the balance described in Subsection

1906     (3)(b)(i)(B).
1907          (iii) An agency title insurance producer assessed under this Subsection (3)(b) shall pay
1908     the assessment by no later than August 1, 2008.
1909          (4) The department may not assess a title insurance licensee an assessment for
1910     purposes of the fund if that assessment is not expressly provided for in this section.
1911          Section 13. Section 31A-41-203 is amended to read:
1912          31A-41-203. Use of money.
1913          (1) Money in the fund may be used to pay claims made under Part 3, Claims on Fund.
1914          (2) (a) Except as limited by Subsection (2)(b), money in the fund in excess of $250,000
1915     may be used by the commissioner, with the consent of the commission, to:
1916          (i) investigate violations of this chapter related to fraud by a title insurance licensee;
1917          (ii) conduct education and research in the field of title insurance; or
1918          (iii) examine a title insurance licensee's:
1919          (A) escrow and trust account;
1920          (B) [search and examine] examination procedures; or
1921          (C) compliance with applicable statutes and rules.
1922          (b) The commissioner may not use more than 75% of money collected under this
1923     chapter in a fiscal year from assessments and interest for the purposes outlined in this
1924     Subsection (2).
1925          (3) The disclosure of an examination conducted under this section is governed by
1926     Section 31A-2-204.