reglab/statecodes huggingface dataset:
2023 Utah Code › Title 31A - Insurance Code › Chapter 40 - Professional Employer Organization Licensing Act › Part 2 - Coemployment Relationship and Professional Employer Services › Section 206 - Professional employer service not insurance.

31A-40-206.
Professional employer service not insurance.
(1) A professional employer organization licensed under this chapter is not considered
engaged in the sale of insurance or as acting as a third party administrator when the professional employer organization engages in one or more of the following with respect to a professional employer service:
(a) offering;
(b) marketing;
(c) selling;
(d) administering; or
(e) providing.
(2) Subsection (1) applies to a professional employer service that includes an employee benefit plan for a covered employee.
Enacted by Chapter 318, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 40 - Professional Employer Organization Licensing Act › Part 2 - Coemployment Relationship and Professional Employer Services › Section 207 - Taxation.

31A-40-207.
Taxation.
(1)
(a) A covered employee whose service is subject to a sales or use tax under Title 59, Chapter 12, Sales and Use Tax Act, is considered the employee of the client for purposes of imposing and collecting the sales or use tax on the service performed by the covered employee.
(b) This chapter may not be interpreted to relieve a client of a sales or use tax liability with respect to a good or service of the client.
(2)
(a) If the amount of a tax or fee described in Subsection (2)(b) is determined on the basis of the gross receipts of a professional employer organization, only an administrative fee collected by the professional employer organization is considered gross receipts.
(b) This Subsection (2) applies to:
(i) a tax on a professional employer service;
(ii) a business license fee; or
(iii) another fee or charge.
(3) A taxing entity shall assess a tax assessed on a per capita or per employee basis:
(a) on a client for a covered employee; and
(b) on the professional employer organization for an employee of the professional employer organization who is not a covered employee coemployed with a client.
(4) If a tax is imposed or calculated on the basis of total payroll, the professional employer organization is eligible to apply a small business allowance or exemption available to the client for a covered employee for the purpose of computing the tax.
Enacted by Chapter 318, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 40 - Professional Employer Organization Licensing Act › Part 2 - Coemployment Relationship and Professional Employer Services › Section 208 - Benefit plan.

Effective 5/10/2016
31A-40-208.
Benefit plan.
(1) A client and a professional employer organization licensed under this chapter shall each be considered an employer for purposes of sponsoring a retirement or welfare benefit plan for a covered employee.
(2)
(a) A fully insured welfare benefit plan offered to a covered employee of a single professional employer organization licensed under this chapter is to be treated as a single employer welfare benefit plan for purposes of this title and rules made under this title.
(b) The single professional employer organization that sponsors the fully insured welfare plan is exempt from the registration requirements under this title for:
(i) an insurance provider; or
(ii) an employer welfare fund or plan.
(3) For purposes of Chapter 30, Individual, Small Employer, and Group Health Insurance Act:
(a) a professional employer organization licensed under this chapter is considered the employer of a covered employee; and
(b) all covered employees of one or more clients participating in a health benefit plan sponsored by a single professional employer organization licensed under this chapter are considered employees of that professional employer organization.
(4) A professional employer organization licensed under this chapter may offer to a covered employee a health benefit plan that is not fully insured by an authorized insurer, only if:
(a) the professional employer organization has operated as a professional employer organization for at least one year before the day on which the professional employer organization offers the health benefit plan; and
(b) the health benefit plan:
(i) is administered by a third-party administrator licensed to do business in this state;
(ii) holds all assets of the health benefit plan, including participant contributions, in a trust account;
(iii) has and maintains reserves that are sound for the health benefit plan as determined by an actuary who:
(A) uses generally accepted actuarial standards of practice; and
(B) is an independent qualified actuary, including not being an employee or covered employee of the professional employer organization;
(iv) provides written notice to a covered employee participating in the health benefit plan that the health benefit plan is self-insured or is not fully insured;
(v) consents to an audit:
(A) on a random basis; or
(B) upon a finding of a reasonable need by the commissioner; and
(vi) provides for continuation of coverage in compliance with Section 31A-22-722.
(5) The cost of an audit described in Subsection (4)(b)(v) shall be paid by the sponsoring professional employer organization.
(6) A plan of a professional employer organization described in Subsection (4) that is not fully insured:
(a) is subject to the requirements of this section; and
(b) is not subject to another licensure or approval requirement of this title.
Amended by Chapter 138, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 40 - Professional Employer Organization Licensing Act › Part 2 - Coemployment Relationship and Professional Employer Services › Section 209 - Workers' compensation.

Effective 12/31/2017
31A-40-209.
Workers' compensation.
(1) In accordance with Section 34A-2-103, a client is responsible for securing workers' compensation coverage for a covered employee.
(2) Subject to the requirements of Section 34A-2-103, if a professional employer organization obtains or assists a client in obtaining workers' compensation insurance pursuant to a professional employer agreement:
(a) the professional employer organization shall ensure that the client maintains and provides workers' compensation coverage for a covered employee in accordance with Subsection 34A-2-201(1) and rules of the Labor Commission, made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(b) the workers' compensation coverage may show the professional employer organization as the named insured through a master policy, if:
(i) the client is shown as an insured by means of an endorsement for each individual client;
(ii) the experience modification of a client is used; and
(iii) the insurer files the endorsement with the Division of Industrial Accidents as directed by a rule of the Labor Commission, made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(c) at the termination of the professional employer agreement, if requested by the client, the insurer shall provide the client records regarding the loss experience related to workers' compensation insurance provided to a covered employee pursuant to the professional employer agreement; and
(d) the insurer shall notify a client if the workers' compensation coverage for the client is terminated.
(3) In accordance with Section 34A-2-105, the exclusive remedy provisions of Section 34A-2-105 apply to both the client and the professional employer organization under a professional employer agreement regulated under this chapter.
(4) Notwithstanding the other provisions in this section, an insurer may choose whether to issue:
(a) a policy for a client; or
(b) a master policy with the client shown as an additional insured by means of an individual endorsement.
Amended by Chapter 363, 2017 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 40 - Professional Employer Organization Licensing Act › Part 2 - Coemployment Relationship and Professional Employer Services › Section 210 - Unemployment compensation insurance.

31A-40-210.
Unemployment compensation insurance.
(1) For purposes of Title 35A, Chapter 4, Employment Security Act, a covered employee of a professional employer organization licensed under this chapter is considered the employee of the professional employer organization.
(2) The professional employer organization described in Subsection (1) shall pay a contribution, penalty, or interest required under Title 35A, Chapter 4, Employment Security Act, on wages, as defined in Section 35A-4-208, paid by the professional employer organization to the covered employee during the term of the professional employer agreement.
(3) A professional employer organization shall report and pay a required contribution to the unemployment compensation fund when due using the state employer account number and the contribution rate of the professional employer organization.
(4) Unless a client is otherwise eligible for an experience rating, the Unemployment Insurance Division of the Department of Workforce Services shall treat a client as a new employer without a previous experience record beginning on the day on which:
(a) a professional employer agreement between the client and a professional employer organization terminates; or
(b) the professional employer organization fails to submit a report or make a tax payment when due as required by this chapter.
Enacted by Chapter 318, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 40 - Professional Employer Organization Licensing Act › Part 2 - Coemployment Relationship and Professional Employer Services › Section 211 - Employment related economic incentives -- Employment information -- Client's status.

31A-40-211.
Employment related economic incentives -- Employment information -- Client's status.
(1) Notwithstanding the other provisions of this chapter, for purposes of determining eligibility for an employment related economic incentive, a covered employee is considered only an employee of the client.
(2)
(a) If eligibility for an employment related economic incentive relates to a covered employee, the client is entitled to the employment related economic incentive if the client is otherwise eligible for the employment related economic incentive.
(b) A professional employer organization is not eligible for an employment related economic incentive described in Subsection (2)(a).
(3) If eligibility for or the amount of an employment related economic incentive is determined on the basis of the number of employees, a client is treated as employing only:
(a) a covered employee coemployed by the client under the professional employer agreement; or
(b) an employee solely employed by the client.
(4) Subject to a confidentiality provision in federal or state law, a professional employer organization shall provide employment information:
(a) upon the request of:
(i) the client; or
(ii) the governmental entity administering an employment related economic incentive; and
(b) reasonably required for:
(i) administration of an employment related economic incentive; or
(ii) necessary to support any of the following by a client seeking an employment related economic incentive:
(A) a request;
(B) a claim;
(C) an application; or
(D) another action.
(5) With respect to a bid, contract, purchase order, or agreement entered into with the state or a political subdivision of the state, the fact that the client enters into a professional employer agreement does not affect the client's status or certification as a:
(a) small business;
(b) minority-owned business;
(c) disadvantaged business;
(d) woman-owned business; or
(e) historically underutilized business.
Enacted by Chapter 318, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 40 - Professional Employer Organization Licensing Act › Part 2 - Coemployment Relationship and Professional Employer Services › Section 212 - Determination of joint employers -- Franchisors excluded.

Effective 5/10/2016
31A-40-212.
Determination of joint employers -- Franchisors excluded.
(1)
(a) For purposes of determining whether two or more persons are considered joint employers under this chapter, an administrative ruling of a federal executive agency may not be considered a generally applicable law unless that administrative ruling is determined to be generally applicable by a court of law, or adopted by statute or rule.
(b) Nothing in this Subsection (1) prohibits the commissioner, in making policy decisions and taking enforcement action, from applying an administrative ruling or opinion issued by the United States Department of Labor that decides or opines on whether an employee welfare benefit plan is established and maintained for a single employer, multiple employer, or co-employer under the Employee Retirement Income Security Act of 1974, 29 U.S.C. Sec. 1001 et seq.
(2)
(a) For purposes of this chapter, a franchisor is not considered to be an employer of:
(i) a franchisee; or
(ii) a franchisee's employee.
(b) With respect to a specific claim for relief under this chapter made by a franchisee or a franchisee's employee, this Subsection (2) does not apply to a franchisor under a franchise that exercises a type or degree of control over the franchisee or the franchisee's employee not customarily exercised by a franchisor for the purpose of protecting the franchisor's trademarks and brand.
Enacted by Chapter 370, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 40 - Professional Employer Organization Licensing Act › Part 3 - Licensing Requirements › Section 301 - Licensing required.

31A-40-301.
Licensing required.
(1) Except as otherwise provided in this chapter, a person may not engage in the following before the day on which the person is licensed under this chapter:
(a) providing a professional employer service in this state;
(b) advertising that the person provides a professional employer service in this state; or
(c) holding itself out as providing a professional employer service in this state.
(2) A person described in Subsection (1) is subject to this chapter regardless of whether the person uses one of the following terms with or without the term "registered" or "licensed":
(a) "administrative employer";
(b) "employee leasing company";
(c) "professional employer organization";
(d) "PEO";
(e) "staff leasing company"; or
(f) another name.
Enacted by Chapter 318, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 40 - Professional Employer Organization Licensing Act › Part 3 - Licensing Requirements › Section 302 - Licensing process.

31A-40-302.
Licensing process.
(1) To apply for an initial or renewal license under this chapter, a person shall:
(a)
(i) submit an application with the commissioner on a form and in a manner the commissioner shall determine by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
(ii) pay a license fee determined in accordance with Section 31A-3-103 that is not refunded if the application:
(A) is denied;
(B) does not comply with Section 31A-40-303; or
(C) if incomplete, is never completed by the person filing the application; or
(b) comply with Section 31A-40-303.
(2) In the application described in Subsection (1)(a), the person shall provide:
(a) any name under which the professional employer organization will engage in a professional employer service;
(b) the address of the principal place of business of the professional employer organization;
(c) the address of each location the professional employer organization maintains in this state;
(d) the professional employer organization's federal taxpayer or employer identification number;
(e) the following information by jurisdiction of each name under which the professional employer organization operated in the five years preceding the day on which the person submits the application:
(i) the name;
(ii) an alternative name, if any;
(iii) a name of a predecessor; and
(iv) if known, a successor business entity;
(f) a statement of ownership that includes the name and evidence of the business experience of a person that, individually or acting in concert with one or more other persons, owns or controls, directly or indirectly, 10% or more of the equity interests of the professional employer organization;
(g) a statement of management that includes the name and evidence of the business experience of an individual who:
(i) serves as president of the professional employer organization;
(ii) serves as chief executive officer of the professional employer organization; or
(iii) may act as a senior executive officer of the professional employer organization; and
(h) a financial statement that:
(i) sets forth the financial condition of:
(A) the professional employer organization; or
(B) a professional employer organization group in which the professional employer organization is a member;
(ii) states whether or not the professional employer organization complies with Section 31A-40-205; and
(iii) complies with Section 31A-40-305.
(3) A professional employer organization shall renew its license by no later than October 1 of each year.
Amended by Chapter 10, 2010 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 40 - Professional Employer Organization Licensing Act › Part 3 - Licensing Requirements › Section 304 - Small operation license.

31A-40-304.
Small operation license.
(1) A professional employer organization may obtain a small operation license under this chapter if the professional employer organization:
(a) files an application for a small operation license with the commissioner:
(i) on a form and in a manner the commissioner shall determine by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
(ii) that includes the information and documentation the commissioner determines is necessary to show that the professional employer organization qualifies for a small operation license;
(b) pays a small operation license fee determined in accordance with Section 31A-3-103, that is not refunded if the application:
(i) is denied; or
(ii) if incomplete, is never completed by the person filing the application;
(c) is domiciled outside of this state;
(d) is licensed or registered as a professional employer organization in another state;
(e) does not maintain an office in this state or directly solicit a client that:
(i) is domiciled in this state; or
(ii) maintains a location within this state;
(f) does not have at any time more than 50 covered employees employed or domiciled in this state; and
(g) is not owned or directed by another professional employer organization operating in the state.
(2)
(a) A small operation license is valid for one year.
(b) A professional employer organization may annually renew a small operation license.
(3) A professional employer organization with a small operation license under this chapter is not subject to Section 31A-40-205.
Enacted by Chapter 318, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 40 - Professional Employer Organization Licensing Act › Part 3 - Licensing Requirements › Section 305 - Financial statements required for licensing.

31A-40-305.
Financial statements required for licensing.
(1)
(a) A person that files a financial statement with an application for an initial license under Section 31A-40-302 shall file the professional employer organization's most recent audit as of the day the application is filed, except that the financial statement may not be older than 10 months from the day on which the application is filed.
(b) A person that files a financial statement to renew a license shall file the most recent financial statement of the professional employer organization as of the day the application for renewal is filed with the commission.
(c)
(i) The person filing an application may apply for an extension with the commissioner if the request for an extension is accompanied by a letter from the person conducting the audit for the financial statement stating:
(A) the reason for the delay; and
(B) the anticipated date on which the audit will be completed.
(ii) If a person complies with Subsection (1)(c)(i), the commissioner may grant an extension up to 30 days from the day on which the financial statement is due under this section.
(d) A professional employer organization may file a combined or consolidated financial statement if:
(i) the professional employer organization is owned by or in common control with another person; and
(ii) the combined or consolidated financial statement clearly identifies the following of the professional employer organization:
(A) its working capital;
(B) its assets; and
(C) its liabilities.
(2) A financial statement required by this chapter shall be:
(a) prepared in accordance with generally accepted accounting principles;
(b) audited by an independent certified public accountant licensed to practice in the jurisdiction in which the person conducting the audit is located; and
(c) without qualification as to the going concern status of the professional employer organization.
(3) Notwithstanding the other provisions of this section, the commissioner shall license a professional employer organization that does not have sufficient operating history to have an audited financial statement on the basis of at least 12 months if:
(a) the professional employer organization complies with the other requirements for licensure, including Section 31A-40-205; and
(b) the person filing the application for license files a financial statement that is reviewed by a certified public accountant.
Enacted by Chapter 318, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 40 - Professional Employer Organization Licensing Act › Part 3 - Licensing Requirements › Section 306 - Professional employer organization group.

31A-40-306.
Professional employer organization group.
(1) Subject to Subsection (2), a professional employer organization that is a member of a professional employer organization group may comply with Section 31A-40-205 or Sections 31A-40-302 through 31A-40-305 on a combined or consolidated basis if each member of the professional employer organization group guarantees the obligations under this chapter of each other member of the professional employer organization group.
(2) The controlling entity of a professional employer organization group shall guarantee the obligations of a professional employer organization under this chapter if the professional employer organization group files a combined or consolidated audited financial statement that includes a person that is not:
(a) a professional employer organization; or
(b) a member of the professional employer organization group.
Enacted by Chapter 318, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 40 - Professional Employer Organization Licensing Act › Part 3 - Licensing Requirements › Section 307 - Voluntary surrender of professional employer organization license.

31A-40-307.
Voluntary surrender of professional employer organization license.
(1) When a professional employer organization wants to voluntarily surrender its professional employer organization license, the professional employer organization shall:
(a) notify in writing each coemployer regarding the impending loss of the following provided under the professional employer agreement:
(i) workers' compensation insurance coverage;
(ii) health care benefits, if a coemployers' employee welfare plan includes fully insured or partially insured health insurance benefits; and
(iii) any other insurance benefit provided to coemployers by the professional employer organization; and
(b) submit a letter of intent to voluntarily surrender the license to the commissioner:
(i) after providing the notice to coemployers under Subsection (1)(a); and
(ii) not less than 45 days before the day on which the professional employer organization surrenders its professional employer organization license.
(2) The letter of intent to voluntarily surrender a professional employer organization license shall include the following:
(a) the reason the professional employer organization license is being surrendered;
(b) a discussion of each process or plan to handle the obligations to coemployers and employees;
(c) a list of coemployers as of the date of the letter;
(d) a copy of the notice sent to the coemployers under Subsection (1)(a);
(e) certification that the professional employer organization has notified the coemployers located in Utah of the professional employer organization's intent to cease doing business in Utah; and
(f) the signature of the professional employer organization's chief executive officer or controlling individual.
Enacted by Chapter 10, 2010 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 40 - Professional Employer Organization Licensing Act › Part 3 - Licensing Requirements › Section 308 - Material changes.

31A-40-308.
Material changes.
A professional employer organization shall notify the commissioner within 30 days of a change in:
(1) ownership;
(2) an address or telephone number;
(3) a contact person; or
(4) business email address at which the commissioner may contact the professional employer organization.
Enacted by Chapter 284, 2011 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 40 - Professional Employer Organization Licensing Act › Part 3 - Licensing Requirements › Section 309 - Applicability of other provisions of law.

31A-40-309.
Applicability of other provisions of law.
A professional employer organization is subject to Sections 31A-23a-402 and 31A-23a-402.5.
Enacted by Chapter 169, 2012 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 40 - Professional Employer Organization Licensing Act › Part 4 - Enforcement › Section 402 - Disciplinary action.

31A-40-402.
Disciplinary action.
(1) Notwithstanding Section 31A-2-308, in accordance with this section the commissioner may take action against a person if the commissioner finds that the person:
(a) is violating or has violated Section 31A-40-401; or
(b)
(i) is a:
(A) professional employer organization licensed under this chapter; or
(B) controlling person of a professional employer organization licensed under this chapter; and
(ii) is convicted of a crime that relates to:
(A) the operation of a professional employer organization;
(B) fraud or deceit; or
(C) the ability of the professional employer organization or a controlling person of the professional employer organization to operate a professional employer organization.
(2) After notice and an opportunity for a hearing in accordance with Title 63G, Chapter 4, Administrative Procedures Act, if the commissioner makes a finding described in Subsection (1), the commissioner may:
(a) deny an application for a license;
(b) revoke, restrict, or refuse to renew a license;
(c) place a licensee on probation for the period and subject to conditions specified by the commissioner;
(d) impose an administrative penalty in an amount not to exceed $2,500 for each violation; or
(e) issue a cease and desist order.
Enacted by Chapter 318, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 41 - Title Insurance Recovery, Education, and Research Fund Act › Part 1 - General Provisions › Section 102 - Definitions.

31A-41-102.
Definitions.
As used in this chapter:
(1) "Commission" means the Title and Escrow Commission created in Section 31A-2-403.
(2) "Fund" means the Title Insurance Recovery, Education, and Research Fund created in Section 31A-41-201.
(3) "Title insurance licensee" means:
(a) an agency title insurance producer; or
(b) an individual title insurance producer.
Amended by Chapter 319, 2013 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 41 - Title Insurance Recovery, Education, and Research Fund Act › Part 1 - General Provisions › Section 103 - Authority to take disciplinary action not limited.

31A-41-103.
Authority to take disciplinary action not limited.
(1) This chapter does not limit the authority of the commissioner or the commission to take disciplinary action against a title insurance licensee for a violation of this title or rules made by the department or commission under this title.
(2) The repayment in full of obligations to the fund by a title insurance licensee does not nullify or modify the effect of another disciplinary proceeding brought pursuant to this title or rules and regulations made by the department or commission under this title.
Enacted by Chapter 220, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 41 - Title Insurance Recovery, Education, and Research Fund Act › Part 2 - Creation of Fund › Section 201 - Creation of Title Insurance Recovery, Education, and Research Fund.

31A-41-201.
Creation of Title Insurance Recovery, Education, and Research Fund.
(1) There is created an expendable special revenue fund to be known as the "Title Insurance Recovery, Education, and Research Fund."
(2) The fund shall consist of:
(a) assessments on individual title insurance producers and agency title insurance producers made under this chapter;
(b) amounts collected under Section 31A-41-305; and
(c) interest earned on the fund.
(3) Interest on fund money shall be deposited into the fund.
(4) The department shall administer the fund.
Amended by Chapter 319, 2013 General Session
Amended by Chapter 400, 2013 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 41 - Title Insurance Recovery, Education, and Research Fund Act › Part 2 - Creation of Fund › Section 202 - Assessments.

Effective 5/10/2016
31A-41-202.
Assessments.
(1) An agency title insurance producer licensed under this title shall pay an annual assessment determined by the commission by rule made in accordance with Section 31A-2-404, except that the annual assessment:
(a) may not exceed $1,000; and
(b) shall be determined on the basis of title insurance premium volume.
(2) An individual who applies for a license or renewal of a license as an individual title insurance producer, shall pay in addition to any other fee required by this title, an assessment not to exceed $20, as determined by the commission by rule made in accordance with Section 31A-2-404, except that if the individual holds more than one license, the total of all assessments under this Subsection (2) may not exceed $20 in a fiscal year.
(3)
(a) To be licensed as an agency title insurance producer, a person shall pay to the department an assessment of $1,000 before the day on which the person is licensed as a title insurance agency.
(b)
(i) The department shall assess on a licensed agency title insurance producer an amount equal to the greater of:
(A) $1,000; or
(B) subject to Subsection (3)(b)(ii), 2% of the balance in the agency title insurance producer's reserve account described in Subsection 31A-23a-204(3).
(ii) The department may assess on an agency title insurance producer an amount less than 2% of the balance described in Subsection (3)(b)(i)(B) if:
(A) before issuing the assessments under this Subsection (3)(b) the department determines that the total of all assessments under Subsection (3)(b)(i) will exceed $250,000;
(B) the amount assessed on the agency title insurance producer is not less than $1,000; and
(C) the department reduces the assessment in a proportionate amount for agency title insurance producers assessed on the basis of the 2% of the balance described in Subsection (3)(b)(i)(B).
(iii) An agency title insurance producer assessed under this Subsection (3)(b) shall pay the assessment by no later than August 1.
(4) The department may not assess a title insurance licensee an assessment for purposes of the fund if that assessment is not expressly provided for in this section.
Amended by Chapter 138, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 41 - Title Insurance Recovery, Education, and Research Fund Act › Part 2 - Creation of Fund › Section 203 - Use of money.

Effective 5/12/2015
31A-41-203.
Use of money.
(1) Money in the fund may be used to pay claims made under Part 3, Claims on Fund.
(2)
(a) Except as limited by Subsection (2)(b), money in the fund in excess of $250,000 may be used by the commissioner, with the consent of the commission, to:
(i) investigate violations of this chapter related to fraud by a title insurance licensee;
(ii) conduct education and research in the field of title insurance; or
(iii) examine a title insurance licensee's:
(A) escrow and trust account;
(B) examination procedures; or
(C) compliance with applicable statutes and rules.
(b) The commissioner may not use more than 75% of money collected under this chapter in a fiscal year from assessments and interest for the purposes outlined in this Subsection (2).
(3) The disclosure of an examination conducted under this section is governed by Section 31A-2-204.
Amended by Chapter 330, 2015 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 41 - Title Insurance Recovery, Education, and Research Fund Act › Part 3 - Claims on Fund › Section 301 - Procedure for making a claim against the fund.

Effective 5/10/2016
31A-41-301.
Procedure for making a claim against the fund.
(1) To recover from the fund, a person shall:
(a) obtain a final judgment against a title insurance licensee establishing that fraud, misrepresentation, or deceit by the licensee in a real estate transaction proximately caused economic harm to the person; and
(b) apply to the department to receive compensation for the economic harm from the fund.
(2) An application under Subsection (1)(b) shall establish all of the following:
(a) the applicant is not a spouse of the judgment debtor or the personal representative of the spouse;
(b) the applicant has obtained a final judgment in accordance with Subsections (1)(a) and (3);
(c) an amount is still owed on the judgment at the date of the application;
(d) the applicant has had a writ of execution issued under the judgment, and the officer executing the writ has returned showing that:
(i) no property subject to execution in satisfaction of the judgment could be found; or
(ii) the amount realized upon the execution levied against the property of the judgment debtor is insufficient to satisfy the judgment;
(e) the applicant has made reasonable searches and inquiries to ascertain whether the judgment debtor has any interest in property, real or personal, that may satisfy the judgment; and
(f) the applicant has exercised reasonable diligence to secure payment of the judgment from the assets of the judgment debtor.
(3)
(a) A final judgment under Subsection (1)(a) does not include a default judgment entered against a title insurance licensee. If grounds exist for a default judgment against a title insurance licensee, the requirement of a final judgment may be satisfied by complying with Section 31A-41-302.
(b) A final judgment under Subsection (1)(a) does not include a judgment that is discharged in bankruptcy. If a bankruptcy proceeding is open or is commenced during the pendency of an application under Subsection (1)(b) before the department or the court, the applicant shall obtain an order from the bankruptcy court declaring the judgment and debt to be non-dischargeable.
(4) The department may hold a hearing on the application filed pursuant to Subsection (2). The hearing shall be an informal adjudicative proceeding under Title 63G, Chapter 4, Administrative Procedures Act, with rights of appeal as provided in Title 63G, Chapter 4, Administrative Procedures Act.
Amended by Chapter 138, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 41 - Title Insurance Recovery, Education, and Research Fund Act › Part 3 - Claims on Fund › Section 302 - Department may defend action in which title insurance licensee does not appear or defend.

Effective 5/10/2016
31A-41-302.
Department may defend action in which title insurance licensee does not appear or defend.
(1) In a lawsuit alleging that fraud, misrepresentation, or deceit by a title insurance licensee in a real estate transaction proximately caused economic harm, if grounds arise for the entry of a default judgment against the title insurance licensee, the plaintiff may petition the court to join the department as a defendant in the lawsuit.
(2) After being served, the department may appear, conduct discovery, and otherwise defend against any claim asserted against the title insurance licensee for which the fund may be liable under this part. A judgment under this Subsection (2) may not be issued against the department.
Repealed and Re-enacted by Chapter 138, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 41 - Title Insurance Recovery, Education, and Research Fund Act › Part 3 - Claims on Fund › Section 303 - Determination and amount of fund liability.

Effective 5/10/2016
31A-41-303.
Determination and amount of fund liability.
(1) Subject to the requirements of this part, if the department determines that a claim should be levied against the fund, the department shall enter an order that the fund pay that portion of the petitioner's judgment that is eligible for payment from the fund.
(2) A payment from the fund may not compensate for punitive damages, attorney fees, interest, or court costs.
(3) Regardless of the number of claimants or parcels of real estate involved in a single transaction, the liability of the fund may not exceed:
(a) $15,000 for a single real estate transaction; or
(b) $50,000 for all transactions of a title insurance licensee.
Amended by Chapter 138, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 41 - Title Insurance Recovery, Education, and Research Fund Act › Part 3 - Claims on Fund › Section 304 - Insufficient funds to satisfy judgment.

31A-41-304.
Insufficient funds to satisfy judgment.
If the money in the fund is insufficient to satisfy a claim ordered to be paid under Section 31A-41-303, when sufficient money is in the fund, the department shall pay a person with an unpaid claim:
(1) in the order that petitions related to unpaid claims are originally served on the department; and
(2) an amount equal to the sum of:
(a) the unpaid claim; and
(b) interest on the unpaid claim at a rate of 5% per annum from the date the court orders payment from the fund until the day on which the claim is paid.
Amended by Chapter 342, 2011 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 41 - Title Insurance Recovery, Education, and Research Fund Act › Part 3 - Claims on Fund › Section 305 - Department subrogated -- Authority to revoke license.

31A-41-305.
Department subrogated -- Authority to revoke license.
(1)
(a) If the department makes payment from the fund, the department is subrogated to all the rights of the person who received money from the fund for the amounts paid out of the fund.
(b) Any amounts recovered by the department under the subrogated rights shall be deposited in the fund.
(2)
(a) The license of a title insurance licensee for whom payment from the fund is made under this chapter is automatically revoked.
(b) Before a title insurance licensee whose license is revoked under this section may apply for a new license under this title, the title insurance licensee shall pay to the department for deposit in the fund:
(i) the amounts paid by the fund because of an action brought against the title insurance licensee; and
(ii) interest at a rate determined by the commissioner with the concurrence of the commission.
Enacted by Chapter 220, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 41 - Title Insurance Recovery, Education, and Research Fund Act › Part 3 - Claims on Fund › Section 306 - Failure to comply constitutes a waiver.

31A-41-306.
Failure to comply constitutes a waiver.
The failure of a person to comply with this chapter constitutes a waiver of any right provided under this chapter.
Enacted by Chapter 220, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 43 - Small Employer Stop-Loss Insurance Act › Part 1 - General Provisions › Section 102 - Definitions.

Effective 5/13/2014
31A-43-102.
Definitions.
For purposes of this chapter:
(1) "Actuarial certification" means a written statement by a member of the American Academy of Actuaries, or by another individual acceptable to the commissioner, that an insurer is in compliance with this chapter, based upon the individual's examination and including a review of the appropriate records and the actuarial assumptions and methods used by the stop-loss insurer in establishing attachment points and other applicable determinations in conjunction with the provision of stop-loss insurance coverage.
(2) "Aggregate attachment point" means the dollar amount of covered claims incurred by a small employer plan beyond which the stop-loss insurer incurs liability for losses incurred by the small employer plan, subject to limitations included in the contract.
(3) "Coverage" means the combination of the employer plan design and the stop-loss contract design.
(4) "Expected claims" means the amount of claims that, in the absence of aggregate stop-loss insurance, are projected to be incurred by a small employer health plan using reasonable and accepted actuarial principles.
(5) "Lasering":
(a) means increasing or removing stop-loss coverage for a specific individual within an employer group; and
(b) includes other practices that are prohibited by the commissioner by administrative rule that result in lowering the stop-loss premium for the employer by transferring the risk for an individual's claims back to the employer.
(6) "Small employer" means an employer who, with respect to a calendar year and to a plan year:
(a) employed an average of at least two employees but not more than 50 eligible employees on each business day during the preceding calendar year; and
(b) employs at least two employees on the first day of the plan year.
(7) "Specific attachment point" means the dollar amount of covered claims attributable to a single individual covered by a small employer plan in a contract year beyond which the stop-loss insurer assumes the liability for losses incurred by the small employer plan, subject to limitations included in the contract.
(8) "Stop-loss insurance" means insurance purchased by a small employer for which the stop-loss insurer assumes all loss amounts of the small employer's plan in excess of a stated amount, subject to the policy limit.
Amended by Chapter 290, 2014 General Session
Amended by Chapter 300, 2014 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 43 - Small Employer Stop-Loss Insurance Act › Part 2 - Scope of Chapter › Section 201 - Scope of chapter.

31A-43-201.
Scope of chapter.
(1) This chapter establishes criteria for the issuance of stop-loss insurance contracts or re-insurance contracts for small employers that establish self-funded or partially self-funded health plans for the small employer's employees. This chapter does not:
(a) impose any requirement or duty on any person other than a stop-loss insurer or re-insurer who issues a stop-loss insurance contract to a small employer;
(b) treat any stop-loss insurance contract as a direct policy of health insurance; or
(c) constitute an attempt to exercise authority over self-funded or partially self-funded health benefit plans sponsored by a small employer.
(2) This chapter applies to a small employer stop-loss contract issued or renewed on or after July 1, 2013.
Enacted by Chapter 341, 2013 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 43 - Small Employer Stop-Loss Insurance Act › Part 2 - Scope of Chapter › Section 202 - Laws applicable to stop-loss insurance.

31A-43-202.
Laws applicable to stop-loss insurance.
A stop-loss insurance contract or a re-insurance contract issued to a small employer that establishes a self-funded or partially self-funded health plan:
(1) is not reinsurance under this title, and is not subject to the regulations for reinsurance under this title;
(2) is subject to regulation as stop-loss insurance under this chapter; and
(3) is subject to the contract provisions of this title in the same manner as insurance contracts issued by any other insurer.
Enacted by Chapter 341, 2013 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 43 - Small Employer Stop-Loss Insurance Act › Part 3 - Stop-Loss Insurance › Section 301 - Stop-loss insurance coverage standards.

Effective 5/12/2015
31A-43-301.
Stop-loss insurance coverage standards.
(1) A small employer stop-loss insurance contract shall:
(a) be issued to the small employer to provide insurance to the group health benefit plan, not the employees of the small employer;
(b) have a contract term with guaranteed rates for at least 12 months, without adjustment, unless there is a change in the benefits provided under the small employer's health plan during the contract period;
(c) include both a specific attachment point and an aggregate attachment point in a contract;
(d) align stop-loss plan benefit limitations and exclusions with a small employer's health plan benefit limitations and exclusions, including any annual or lifetime limits in the employer's health plan;
(e) have an annual specific attachment point that is at least $10,000;
(f) have an annual aggregate attachment point that may not be less than 85% of expected claims;
(g) pay stop-loss claims:
(i) incurred during the contract period; and
(ii) paid within 12 months after the expiration date of the contract; and
(h) include provisions to cover incurred and unpaid stop-loss claims when the small employer's stop-loss plan terminates.
(2) A small employer stop-loss contract shall not:
(a) include lasering; and
(b) pay claims directly to an individual employee, member, or participant.
Amended by Chapter 244, 2015 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 43 - Small Employer Stop-Loss Insurance Act › Part 3 - Stop-Loss Insurance › Section 302 - Stop-loss restrictions -- Filing requirements.

Effective 5/13/2014
31A-43-302.
Stop-loss restrictions -- Filing requirements.
(1) A stop-loss insurer shall file the stop-loss insurance contract form and rate methodology with the commissioner pursuant to Sections 31A-2-201 and 31A-2-201.1 before the stop-loss insurance contract may be issued or delivered in the state.
(2) A stop-loss insurer shall file with the commissioner, annually on or before April 1, in a form and manner required by the commissioner by administrative rule adopted by the commissioner:
(a) an actuarial memorandum and certification which demonstrates that the insurer is in compliance with this chapter; and
(b) the stop-loss insurer's stop-loss experience.
(3) An insurer shall maintain at its principal place of business:
(a) a complete and detailed description of its rating practices and renewal underwriting practices, including information and documentation that demonstrate the rating methods and practices are:
(i) based upon commonly accepted actuarial assumptions; and
(ii) in accordance with sound actuarial principles; and
(b) a copy of the annual filing required by Subsection (2).
Amended by Chapter 290, 2014 General Session
Amended by Chapter 300, 2014 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 43 - Small Employer Stop-Loss Insurance Act › Part 3 - Stop-Loss Insurance › Section 303 - Stop-loss insurance disclosure.

Effective 5/8/2018
31A-43-303.
Stop-loss insurance disclosure.
A stop-loss insurance contract delivered, issued for delivery, or entered into shall include the disclosure exhibit required by the commissioner through administrative rule, which shall include at least the following information:
(1) the complete costs for the stop-loss contract;
(2) the date on which the insurance takes effect and terminates, including renewability provisions;
(3) the aggregate attachment point and the specific attachment point;
(4) limitations on coverage;
(5) an explanation of monthly accommodation and disclosure about any monthly accommodation features included in the stop-loss contract;
(6) a description of terminal liability funding, including the cost of processing claims before and after the termination of the contract;
(7) maximum claims liability to the employer; and
(8) a summary of the policy.
Amended by Chapter 319, 2018 General Session