Utah Code § 31A-22-1001 — Utah Code / Title 31A / Chapter 31A-22 / § 31A-22-1001
§ 31A-22-1001. Obligation to write workers' compensation insurance.
Status: in_force

(1) As used in this section, "Workers' Compensation Fund" means the mutual corporation that is the successor to the quasi-public corporation created under Chapter 33, Workers' Compensation Fund, which is the chapter repealed by Laws of Utah 2017, Chapter 363. (2) The Workers' Compensation Fund shall write all workers' compensation insurance for which application is made to the Workers' Compensation Fund until the time designated by the commissioner, but no later than December 31, 2020. As a condition of the rights granted under this Subsection (2), the Workers' Compensation Fund agrees to provide notice by no later than July 1, 2018, if the Workers' Compensation Fund does not intend to seek a contract under Subsection (3). (3) (a) Before entering the contract required under Subsection (3)(b), the commissioner shall work with the Workers' Compensation Fund and other workers' compensation insurance carriers to determine what constitutes the residual market within this state. After consulting with the Workers' Compensation Fund and other workers' compensation insurance carriers, the commissioner shall make the final decision of how to define the residual market. As part of the process of determining the residual market, the commissioner may make reasonable requests of data from the Workers' Compensation Fund and other workers' compensation insurance carriers. (b) Beginning no later than January 1, 2021, the commissioner shall enter into a contract with a workers' compensation insurance carrier to write all workers' compensation insurance for which application is made to the workers' compensation insurance carrier. (c) The commissioner shall comply with Title 63G, Chapter 6a, Utah Procurement Code, in selecting the workers' compensation insurance carrier described in Subsection (3)(b).Criteria the commissioner may consider include: (i) the rating of the workers' compensation insurance carrier by a nationally recognized statistical ratings organization; (ii) the financial size category of the workers' compensation insurance carrier as determined by a nationally recognized statistical ratings organization; (iii) the length of time the workers' compensation insurance carrier has held a certificate of authority and has been active in the Utah workers' compensation insurance market; and (iv) the workers' compensation insurance carrier's demonstration of the intent to provide statewide: (A) safety consultation, employer training ability, and accident prevention expertise; (B) claims handling, medical case management, rehabilitation, cost containment, and employee return to work capabilities; and (C) physical offices and electronic access for the convenience of Utah employers and employees. (d) A contract entered into under this Subsection (3) shall: (i) notwithstanding Section 63G-6a-1204, be for a term of at least 10 years; (ii) provide for an option to renew the contract; (iii) require a workers' compensation insurance carrier with whom the commissioner contracts to provide notice that the workers' compensation carrier will not seek to renew the contract at least three years before the end of the contract; and (iv) contain other terms necessary to ensure that the workers' compensation insurance carrier awarded the contract will provide workers' compensation insurance to the residual market. (4) The commissioner shall annually submit a written report in accordance with Section 68-3-14 to the Business and Labor Interim Committee by no later than October 1 that: (a) describes the status of the commissioner's activities under Subsection (3); and (b) the need, if any, for legislation to address the residual market.