reglab/statecodes huggingface dataset:
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 8 - Discharge › Section 804 - Disposition of records during and after termination of liquidation.

31A-27a-804.
Disposition of records during and after termination of liquidation.
(1) Whenever it appears to the receiver that records of the insurer in receivership are no longer useful, the receiver may recommend to the receivership court, and the receivership court shall direct what records shall be destroyed.
(2)
(a) If the receiver determines that records should be maintained after the closing of the delinquency proceeding, the receiver may reserve property from the receivership estate for the maintenance of the records.
(b) Any amounts retained under this Subsection (2) are an administrative expense of the estate under Subsection 31A-27a-701(2)(a).
(c) Any records retained pursuant to this Subsection (2) shall be transferred to the custody of the commissioner, and the commissioner may retain or dispose of the records as appropriate, at the commissioner's discretion.
(d) Records of a delinquent insurer that are transferred to the commissioner:
(i) may not be considered a record of the department for any purpose; and
(ii) are not subject to Title 63G, Chapter 2, Government Records Access and Management Act.
Amended by Chapter 382, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 8 - Discharge › Section 805 - External audit of the receiver's books.

31A-27a-805.
External audit of the receiver's books.
(1) As used in this section, "books" means:
(a) the business operations of the receiver;
(b) the accounting systems and procedures of the receiver; and
(c) the financial records of the receiver.
(2)
(a) The receivership court may, as it considers desirable, order an audit to be made of the books of the receiver relating to any receivership established under this chapter.
(b) A report of each audit under this Subsection (1) shall be filed with:
(i) the commissioner; and
(ii) the receivership court.
(3) The books of the receivership shall be made available to the auditor at any time without notice.
(4) The expense of each audit shall be considered a cost of administration of the receivership.
Enacted by Chapter 309, 2007 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 9 - Interstate Relations › Section 901 - Ancillary conservation of foreign insurers.

31A-27a-901.
Ancillary conservation of foreign insurers.
(1) The commissioner may initiate an action against a foreign insurer pursuant to Section 31A-27a-201 on any of the grounds stated in that section or on the basis that:
(a) any of the foreign insurer's property is sequestered, garnished, or seized by official action in its domiciliary state or in any other state;
(b)
(i) the foreign insurer's certificate of authority to do business in this state is revoked or a certificate of authority is never issued; and
(ii) there is a resident of this state with an unpaid claim or in-force policy; or
(c) it is necessary to enforce a stay under Chapter 28, Guaranty Associations.
(2) If a domiciliary receiver is appointed, the commissioner may initiate an action against a foreign insurer under this section only with the consent of the domiciliary receiver.
(3)
(a) An order entered pursuant to this section shall appoint the commissioner as conservator.
(b) The conservator's title to assets shall be limited to the insurer's property and records located in this state.
(4)
(a) Notwithstanding Subsection 31A-27a-201(3), the conservator shall hold and conserve the assets located in this state until:
(i) the commissioner in the insurer's domiciliary state appoints its receiver; or
(ii) an order terminating conservation is entered under Subsection (7).
(b) Once a domiciliary receiver is appointed, the conservator shall turn over to the domiciliary receiver all property subject to an order under this section.
(5) The conservator may liquidate the property of the insurer that may be necessary to cover the costs incurred in the initiation or administration of a proceeding under this section.
(6)
(a) The court in which an action under this section is pending may issue a finding of insolvency or an ancillary liquidation order.
(b) An ancillary liquidation order shall be entered for the limited purposes of:
(i) liquidating assets in this state to pay costs under Subsection (5); or
(ii) activating applicable guaranty associations in this state to pay valid claims that are not being paid by the insurer.
(7) The conservator may at any time petition the receivership court for an order terminating an order entered under this section.
Enacted by Chapter 309, 2007 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 9 - Interstate Relations › Section 902 - Domiciliary receivers appointed in other states.

31A-27a-902.
Domiciliary receivers appointed in other states.
(1)
(a) A domiciliary receiver appointed in another state is vested by operation of law with title to, and may summarily take possession of, all property and records of the insurer in this state.
(b) Notwithstanding any other provision of law regarding special deposits, a special deposit held in this state for a guaranty association in this state as the only beneficiary shall be, upon the entry of an order of liquidation with a finding of insolvency, distributed to the guaranty association in this state as early access distributions, subject to Section 31A-27a-704, in relation to the lines of business for which the special deposit is made.
(c) The holder of a special deposit shall account to the domiciliary receiver for all distributions from the special deposit at the time of the distribution.
(d) The following shall be given full faith and credit in this state:
(i) a statutory provision of another state;
(ii) an order entered by a court of competent jurisdiction in relation to the appointment of a domiciliary receiver of an insurer; and
(iii) a related proceeding in another state.
(e) For purposes of this chapter, another state means any state other than this state.
(f) This state shall treat all foreign states as reciprocal states.
(2) The commissioner shall immediately transfer title to and possession of all property of the insurer under the commissioner's control to a domiciliary receiver:
(a) upon appointment of the domiciliary receiver in another state;
(b) unless otherwise agreed by the domiciliary receiver; and
(c) including all statutory general or special deposits other than special deposits where that state's guaranty association is the only beneficiary.
(3)
(a) Except as provided in Subsection (1), the domiciliary receiver shall handle a special deposit or special deposit claim in accordance with the statutes pursuant to which the special deposit is required and applicable federal law.
(b) All amounts in excess of the estimated amount necessary to administer the special deposit and pay the unpaid special deposit claims shall be considered general assets of the estate.
(c)
(i) Subject to Subsection (3)(c)(ii), if there is a deficiency in a special deposit so that a claim secured by the special deposit is not fully discharged from the special deposit, the claimant may share in the general assets of the insurer to the extent of the deficiency at the same priority as other claimants in the claimant's class of priority under Section 31A-27a-701.
(ii) The sharing described in Subsection (3)(c)(i) shall be deferred until the other claimants of the class are paid percentages of their claims equal to the percentage paid from the special deposit.
(iii) The intent of Subsection (3)(c)(ii) is to equalize to the extent provided in this Subsection (3) the advantage gained by the security provided by the special deposit.
Enacted by Chapter 309, 2007 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 28 - Guaranty Associations › Part 1 - Utah Life and Health Insurance Guaranty Association Act › Section 102 - Purpose.

Effective 1/1/2019
31A-28-102.
Purpose.
(1) The purpose of this part is to protect, subject to certain limitations, the persons specified in Subsections 31A-28-103(1) through (5) against failure in the performance of contractual obligations, under a life insurance, accident and health insurance, or annuity policy or contract specified in Subsections 31A-28-103(6) and (7), because of the impairment or insolvency of the member insurer that issued the policy or contract.
(2) To provide the protection described in Subsection (1):
(a) the Utah Life and Health Insurance Guaranty Association, which currently exists, is continued to pay benefits and to continue coverages as limited by this part; and
(b) members of the association are subject to assessment to provide funds to carry out the purpose of this part.
Amended by Chapter 391, 2018 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 28 - Guaranty Associations › Part 1 - Utah Life and Health Insurance Guaranty Association Act › Section 106 - Continuation of the association -- Association duties -- Allocation of assessments -- Not agency of state.

Effective 1/1/2019
31A-28-106.
Continuation of the association -- Association duties -- Allocation of assessments -- Not agency of state.
(1)
(a) There is continued under this part the nonprofit legal entity known as the Utah Life and Health Insurance Guaranty Association created under former provisions of this title.
(b) All member insurers shall be and remain members of the association as a condition of their authority to transact insurance in this state.
(c) The association shall:
(i) perform its functions under the plan of operation established and approved under Section 31A-28-110; and
(ii) exercise the association's powers through the board of directors.
(d) The association shall allocate assessments among the following classes or subclasses:
(i) the life insurance and annuity class, which includes the following subclasses:
(A) the life insurance subclass;
(B) the annuity subclass:
(I) which includes annuity contracts owned by a governmental retirement plan, or its trustee, established under Section 401, 403(b), or 457, Internal Revenue Code; and
(II) otherwise excludes unallocated annuities; and
(C) the unallocated annuity subclass, which excludes contracts owned by a governmental retirement benefit plan, or its trustee, established under Sections 401, 403(b), or 457, Internal Revenue Code; and
(ii) the accident and health insurance class.
(2)
(a) The association shall:
(i) come under the immediate supervision of the commissioner; and
(ii) be subject to the applicable provisions of the insurance laws of this state.
(b) Meetings or records of the association may be opened to the public upon majority vote of the board of directors.
(3) The association is not an agency of the state.
Amended by Chapter 391, 2018 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 28 - Guaranty Associations › Part 1 - Utah Life and Health Insurance Guaranty Association Act › Section 107 - Board of directors.

Effective 1/1/2019
31A-28-107.
Board of directors.
(1)
(a) The board of directors of the association shall consist of:
(i) at least seven but not more than eleven member insurers who:
(A) serve terms as established in the plan of operation; and
(B) are selected by member insurers, subject to the approval of the commissioner; and
(ii) two public representatives appointed by the commissioner.
(b)
(i) The commissioner shall make the appointment of a public representative coincide with the association's annual meeting at which the association's board of directors is elected.
(ii) A public representative may not be:
(A) an officer, director, or employee of an insurer; or
(B) a person engaged in the business of insurance.
(iii) A public representative shall serve a term of three years.
(c) When a vacancy occurs in the membership of the board of directors for any reason:
(i) if the vacancy is of a member insurer, a replacement may be elected for the unexpired term by a majority vote of the remaining board members, subject to the approval of the commissioner; and
(ii) if the vacancy is of a public representative, the commissioner shall appoint a replacement for the unexpired term.
(d) In approving a selection or in appointing a member to the board of directors, the commissioner shall consider, among other things, whether all member insurers are fairly represented.
(e) Notwithstanding Subsections (1)(a) and (b), the commissioner shall, at the time of election, reelection, appointment, or reappointment adjust the length of terms to ensure that the terms of board members are staggered so that approximately half of the board of directors is selected during any two-year period.
(2)
(a) A member of the board of directors may be reimbursed from the assets of the association for expenses incurred by the member as a member of the board of directors.
(b) A public representative appointed under Subsection (1)(a)(ii) may not receive compensation or benefits for the public representative's service, but in addition to reimbursement under Subsection (2)(a), a public representative may receive per diem and travel expenses established by the board with the approval of the commissioner.
(c) Except as provided in Subsections (2)(a) and (b), a member of the board of directors may not be compensated by the association for the member's services.
Amended by Chapter 391, 2018 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 28 - Guaranty Associations › Part 1 - Utah Life and Health Insurance Guaranty Association Act › Section 111 - Duties and powers under this part.

Effective 1/1/2019
31A-28-111.
Duties and powers under this part.
The duties and powers described in this section are in addition to the duties and powers enumerated elsewhere in this part.
(1) The commissioner shall:
(a) upon request of the board of directors, provide the association with a statement of the premiums for each member insurer:
(i) in this state; and
(ii) any other appropriate state; and
(b) if an impairment is declared and the amount of the impairment is determined, serve a demand upon the impaired insurer to make good the impairment within a reasonable time.
(2) Notice to the impaired insurer under Subsection (1)(b) constitutes notice to the shareholders of the impaired insurer if the impaired insurer has shareholders.
(3) The failure of the impaired insurer to promptly comply with the commissioner's demand under Subsection (1)(b) does not excuse the association from the performance of its powers and duties under this part.
(4)
(a) After notice and hearing, the commissioner may suspend or revoke the certificate of authority to transact business in this state of a member insurer not domiciled in this state that fails to:
(i) pay an assessment when due; or
(ii) comply with the plan of operation.
(b)
(i) As an alternative to suspending or revoking a certificate of authority under Subsection (4)(a), the commissioner may levy a forfeiture on any member insurer that fails to pay an assessment when due.
(ii) A forfeiture described in Subsection (4)(b)(i):
(A) may not exceed 5% of the unpaid assessment per month; and
(B) may not be less than $100 per month.
(5)
(a) A final action of the board of directors or the association may be appealed to the commissioner by any member insurer if appeal is taken within 60 days of the date the member insurer received notice of the final action being appealed.
(b) If a member insurer is appealing an assessment, the amount assessed shall be:
(i) paid to the association; and
(ii) made available to meet association obligations during the pendency of an appeal.
(c) If the appeal on the assessment described in Subsection (5)(b) is upheld, the amount paid in error or excess shall be returned to the member insurer.
(d) Any final action or order of the commissioner is subject to judicial review in a court of competent jurisdiction in accordance with the laws of this state that apply to the actions or orders of the commissioner.
(6) The receiver of an impaired insurer shall notify the interested persons of the effect of this part.
Amended by Chapter 391, 2018 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 28 - Guaranty Associations › Part 1 - Utah Life and Health Insurance Guaranty Association Act › Section 113 - Credit for assessments paid.

Effective 1/1/2019
31A-28-113.
Credit for assessments paid.
(1)
(a) A member insurer may offset against its premium tax, income tax, or franchise tax liability to this state an assessment described in Subsection 31A-28-109(2)(b) to the extent of 20% of the amount of the assessment for each of the five calendar years following the year in which the assessment was paid.
(b) To the extent that the offsets described in Subsection (1)(a) exceed premium tax liability, the offsets may be carried forward and used to offset premium tax liability in future years.
(c) If a member insurer ceases doing business, all uncredited assessments may be credited against its premium tax liability for the year it ceases doing business.
(2)
(a) A member insurer that is exempt from taxes described in Subsection (1) may recoup the member insurer's assessment by a surcharge on premiums in a sum reasonably calculated to recoup the assessments over a reasonable period of time, as approved by the commissioner.
(b) Amounts recouped shall not be considered premiums for any other purpose, including the computation of gross premium tax, income tax, franchise tax, producer commission, or, to the extent allowed under federal law, medical loss ratio.
(c) If a member insurer collects excess surcharges, the member insurer shall remit the excess amount to the association, and the excess amount shall be applied to reduce future assessments in the appropriate account.
(3)
(a) Money shall be paid by the member insurers to the state in a manner required by the State Tax Commission if the money:
(i) is acquired by refund in accordance with Subsection 31A-28-109(6) from the association by member insurers; and
(ii) has been offset against premium taxes as provided in Subsection (1).
(b) The association shall notify the commissioner that the refunds described in Subsection (3)(a) have been made.
Amended by Chapter 391, 2018 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 28 - Guaranty Associations › Part 1 - Utah Life and Health Insurance Guaranty Association Act › Section 115 - Examination of the association -- Annual report.

31A-28-115.
Examination of the association -- Annual report.
(1) The association shall be subject to examination and regulation by the commissioner.
(2) The board of directors shall submit to the commissioner each year, not later than 120 days after the association's fiscal year:
(a) a financial report in a form approved by the commissioner; and
(b) a report of its activities during the preceding fiscal year.
(3) At the request of a member insurer, the association shall provide the member insurer with a copy of a report submitted under Subsection (2).
Amended by Chapter 161, 2001 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 28 - Guaranty Associations › Part 1 - Utah Life and Health Insurance Guaranty Association Act › Section 116 - Tax exemptions.

31A-28-116.
Tax exemptions.
The association is exempt from payment of all fees and all taxes levied by this state or any of its subdivisions, except taxes levied on real property.
Repealed and Re-enacted by Chapter 211, 1991 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 28 - Guaranty Associations › Part 1 - Utah Life and Health Insurance Guaranty Association Act › Section 117 - Immunity.

31A-28-117.
Immunity.
(1) For any action or omission committed in the performance of their powers and duties under this part, there is no liability on the part of, and no cause of action of any nature shall arise against:
(a) any member insurer;
(b) a member insurer's agents or employees;
(c) the association;
(d) the association's:
(i) agents or employees; or
(ii) members of the board of directors;
(e) representatives of persons described in Subsections (1)(a) through (d);
(f) the commissioner; or
(g) the commissioner's representatives.
(2) The immunity described in Subsection (1) extends to:
(a) the participation in any organization of one or more other state associations of similar purposes;
(b) an organization described in Subsection (2)(a); and
(c) the agents or employees of an organization described in Subsection (2)(a).
Amended by Chapter 161, 2001 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 28 - Guaranty Associations › Part 1 - Utah Life and Health Insurance Guaranty Association Act › Section 118 - Stay of proceedings -- Reopening default judgments.

31A-28-118.
Stay of proceedings -- Reopening default judgments.
(1) A proceeding in which the insolvent insurer is a party in any court in this state shall be stayed 180 days from the date an order of liquidation, rehabilitation, or conservation is final to permit proper legal action by the association on any matters germane to its powers or duties.
(2) The association may apply to have a judgment under any decision, order, verdict, or finding based on default set aside by the same court that made the judgment. The association shall be permitted to defend against the suit on the merits.
Amended by Chapter 292, 2010 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 28 - Guaranty Associations › Part 1 - Utah Life and Health Insurance Guaranty Association Act › Section 120 - Prospective application.

Effective 1/1/2019
31A-28-120.
Prospective application.
Notwithstanding any prior or subsequent law, the provisions of this part that are in effect on the date on which the association first becomes obligated for the policies or contracts of an insolvent or impaired insurer govern the association's rights and obligations to the policy owners, contract owners, certificate holders, and enrollees of the insolvent or impaired insurer.
Amended by Chapter 391, 2018 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 28 - Guaranty Associations › Part 2 - Property and Casualty Guaranty Association › Section 202 - Scope.

31A-28-202.
Scope.
This part applies to protect resident policyowners and insureds under all types of direct insurance, except:
(1) life insurance;
(2) annuity;
(3) health insurance;
(4) disability insurance;
(5) mortgage guaranty insurance;
(6) financial guaranty, or other forms of insurance offering protection against investment risks;
(7) fidelity or surety bonds, or any other bonding obligation;
(8) credit insurance;
(9) vendor's single interest insurance;
(10) collateral protection insurance, or any similar insurance protecting the interests of a creditor in a creditor-debtor transaction;
(11) mechanical breakdown insurance, as defined in Section 31A-6a-101;
(12) insurance of a warranty or service contract as defined in Section 31A-6a-101;
(13) title insurance;
(14) ocean marine insurance;
(15) any transaction between a person and an insurer, or an affiliate of a person or insurer, that involves the transfer of investment or credit risk unaccompanied by transfer of insurance risk; or
(16) any insurance provided by or guaranteed by government.
Amended by Chapter 116, 2001 General Session
Amended by Chapter 363, 2001 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 28 - Guaranty Associations › Part 2 - Property and Casualty Guaranty Association › Section 204 - Unlawful statements.

31A-28-204.
Unlawful statements.
(1) It is unlawful to make any statement, written or oral, regarding the coverages and protections provided by the association for the purpose of promoting the purchase of any form of insurance.
(2) It is unlawful to indicate or imply that the association is an agency of the state or that the existence of the association is in any way a guarantee by the state or any of its instrumentalities to insure the payment of claims.
(3) The commissioner shall prescribe rules to prevent:
(a) use of the association as an inducement for the sale of insurance;
(b) the dissemination of false or misleading information regarding the association and its limited guarantees; and
(c) the dissemination of information implying that the association is an agency of the state and that the state in any way insures the payment of claims.
(4) Any person who violates Subsection (1) or (2) is guilty of a class A misdemeanor. Any person who violates a rule under Subsection (3) is liable to the state for a civil penalty of not less than $250 or more than $1,000.
Amended by Chapter 241, 1991 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 28 - Guaranty Associations › Part 2 - Property and Casualty Guaranty Association › Section 205 - Creation of the association.

31A-28-205.
Creation of the association.
(1)
(a) The Utah Property and Casualty Insurance Guaranty Association shall continue as a nonprofit legal entity.
(b) All member insurers of the association are, and remain, members of the association as a condition of their authority to transact insurance business in this state.
(c) The association shall:
(i) perform its functions under the plan of operation established and approved under Section 31A-28-209; and
(ii) exercise its powers through a board of directors established under Section 31A-28-206.
(d) For the purposes of administration and assessment, the association shall maintain an account known as the Property and Casualty Insurance Guaranty Association Account.
(e)
(i) If as of May 6, 2002, the association has more than one account, the association shall consolidate all accounts into the Property and Casualty Insurance Guaranty Association Account.
(ii) The Property and Casualty Insurance Guaranty Association Account:
(A) succeeds to all funds held by the association in an account existing on May 6, 2002; and
(B) is subject to any liability or obligation attributable to an account of the association existing on May 6, 2002.
(2)
(a) An insurer shall cease to be a member insurer on the day following the termination or expiration of the insurer's license to transact the kinds of insurance to which this part applies.
(b) Notwithstanding Subsection (2)(a), the insurer shall remain liable as a member insurer for all obligations, including assessments levied:
(i) before the termination or expiration of the insurer's license; and
(ii) after the termination or expiration of the insurer's license but that relate to an insurer that became an insolvent insurer before the termination or expiration of the insurer's license.
(3) Meetings or records of the association shall be open to the public upon a majority vote of the board of directors of the association.
(4) The association is not an agency of the state.
Amended by Chapter 308, 2002 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 28 - Guaranty Associations › Part 2 - Property and Casualty Guaranty Association › Section 206 - Board of directors.

31A-28-206.
Board of directors.
(1)
(a) The board of directors of the association consists of not less than five nor more than nine members, serving terms of four years each.
(b) The members of the board shall be selected by member insurers, subject to the commissioner's approval. When a vacancy occurs in the membership for any reason, the replacement shall be elected for the unexpired term by a majority vote of the remaining board members, subject to the commissioner's approval.
(c) In approving selections or in appointing members to the board, the commissioner shall consider whether all member insurers are fairly represented.
(d) Notwithstanding Subsection (1)(a), the commissioner shall, at the time of election or reelection, adjust the length of terms to ensure that the terms of board members are staggered so that approximately half of the board is selected every two years.
(2) A member of the board of directors may be reimbursed from the assets of the association for expenses the member incurs as a member of the board of directors.
Amended by Chapter 363, 2001 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 28 - Guaranty Associations › Part 2 - Property and Casualty Guaranty Association › Section 208 - Assessments.

31A-28-208.
Assessments.
(1)
(a) To provide the funds necessary to carry out the powers and duties of the association, the board of directors shall assess the member insurers at the time and in the amount the board finds necessary.
(b) An assessment under this section:
(i) is due not less than 30 days after written notice to the member insurers; and
(ii) accrues interest to the extent unpaid after the due date at the greater of:
(A) 10% per annum; or
(B) the then legal rate of interest provided in Section 15-1-1.
(2) An assessment is to be made in the amount necessary to carry out the powers and duties of the association under Section 31A-28-207 for an insolvent insurer.
(3) An assessment against a member insurer is in the proportion that the net direct written premiums of the member insurer for the preceding calendar year on the kinds of insurance for which this part applies bears to the net direct written premiums of all member insurers for the preceding calendar year on the kinds of insurance for which this part applies.
(4) A member insurer may not be assessed in any year for an amount greater than 2% of that member insurer's net direct written premiums for the preceding calendar year on the kinds of insurance for which this part applies.
(5) If the maximum assessment, together with the other assets of the association in the association account, do not provide in any one year an amount sufficient to make all necessary payments, the funds available shall be prorated and the unpaid portion shall be paid as soon as funds become available.
(6) The association may exempt or defer, in whole or in part, the assessment of any member insurer, if the assessment would cause the member insurer's financial statement to reflect amounts of capital or surplus less than the minimum amounts required for a certificate of authority by any jurisdiction in which the member insurer is authorized to transact insurance.
(7) Each member insurer may set off against any assessment authorized payments made on covered claims and expenses incurred in the payment of the claims by the member insurer, if they are chargeable to the association account.
Amended by Chapter 308, 2002 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 28 - Guaranty Associations › Part 2 - Property and Casualty Guaranty Association › Section 209 - Plan of operation.

31A-28-209.
Plan of operation.
(1)
(a) The association shall submit to the commissioner a plan of operation and any amendments necessary or suitable to assure the fair, reasonable, and equitable administration of the association.
(b) The plan of operation and amendments described in Subsection (1)(a) are effective upon approval in writing by the commissioner.
(c) Any amendments made under this section after July 1, 1986, shall be made within 180 days of the changed circumstance.
(2) The plan of operation shall continue in force until:
(a) modified by the commissioner; or
(b) superseded by a plan:
(i) submitted by the association; and
(ii) approved by the commissioner.
(3) All member insurers shall comply with the plan of operation.
(4) The plan of operation shall, in addition to requirements enumerated elsewhere in this part:
(a) establish procedures for handling the assets of the association;
(b) establish the amount and method of reimbursing members of the board of directors under Section 31A-28-206;
(c) establish regular places and times for meetings of the board of directors;
(d) establish procedures for records to be kept of all financial transactions of the association, the association's agents, and the board of directors;
(e) establish the procedures on how selections for the board of directors shall be made and submitted to the commissioner;
(f) establish a procedure for the disposition of dividends or distributions from the estate of the insolvent insurer;
(g) establish any additional procedures for assessments under Section 31A-28-208; and
(h) contain any additional provisions that are necessary or proper for the execution of the powers and duties of the association.
(5)
(a) The plan of operation may provide that any or all of the powers and duties of the association, except those under Sections 31A-28-207 and 31A-28-208, are delegated to one of the following that performs functions similar to the association:
(i) a corporation;
(ii) an association; or
(iii) organization other than one described in Subsections (5)(a)(i) and (ii).
(b) A corporation, association, or organization described in Subsection (5)(a) shall:
(i) be reimbursed for any payments made on behalf of the association; and
(ii) be paid for its performance of any function of the association.
(c) A delegation under this Subsection (5) takes effect only with the approval of:
(i) the board of directors; and
(ii) the commissioner.
Amended by Chapter 363, 2001 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 28 - Guaranty Associations › Part 2 - Property and Casualty Guaranty Association › Section 210 - Duties and powers of the commissioner.

31A-28-210.
Duties and powers of the commissioner.
(1) In addition to the duties and powers enumerated elsewhere in this part, the commissioner shall:
(a) notify the association of the existence of an insolvent insurer not later than three days after the commissioner receives notice of the order of liquidation; and
(b) upon request of the board of directors, provide the association with a statement of the premiums in this state for each member insurer.
(2)
(a) The commissioner may suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in this state of any member insurer that fails:
(i) to pay an assessment when due; or
(ii) to comply with the plan of operation or the rules adopted under this part.
(b)
(i) As an alternative to an action described in Subsection (2)(a), the commissioner may levy a fine on any member insurer that fails to pay an assessment when due.
(ii) The fine permitted under this Subsection (2)(b) may not:
(A) exceed 5% of the unpaid assessment per month; or
(B) be less than $100 per month.
(c) The commissioner may revoke the designation of any servicing facility if the commissioner finds claims are being handled unsatisfactorily.
(3) Any final action or order of the commissioner under this part is subject to judicial review in a court of competent jurisdiction.
Amended by Chapter 363, 2001 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 28 - Guaranty Associations › Part 2 - Property and Casualty Guaranty Association › Section 212 - Credits for assessments paid.

31A-28-212.
Credits for assessments paid.
(1) A member insurer may offset against its premium tax liability to this state an assessment described in Section 31A-28-208, but only up to 20% of the amount of the assessment for each of the five calendar years following the year in which the assessment was paid. If a member insurer ceases doing business, all uncredited assessments may be credited against its premium tax liabilities for the year it ceases doing business.
(2) Any sums acquired by a member insurer as a refund from the association which previously had been offset against premium taxes as provided in Subsection (1) shall be paid immediately by the member insurer to the State Tax Commission.
Amended by Chapter 204, 1986 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 28 - Guaranty Associations › Part 2 - Property and Casualty Guaranty Association › Section 214 - Examination of the association -- Annual report.

31A-28-214.
Examination of the association -- Annual report.
(1) The association is subject to examination and regulation by the commissioner.
(2) The board of directors shall submit, to the commission by no later than April 30 of each year:
(a) a financial report for the preceding calendar year in a form approved by the commissioner; and
(b) a report of the association's activities during the preceding calendar year.
Amended by Chapter 363, 2001 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 28 - Guaranty Associations › Part 2 - Property and Casualty Guaranty Association › Section 215 - Tax exemptions.

31A-28-215.
Tax exemptions.
The association is exempt from payment of all fees and taxes levied by this state or any of its subdivisions, except taxes levied on real property.
Enacted by Chapter 242, 1985 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 28 - Guaranty Associations › Part 2 - Property and Casualty Guaranty Association › Section 217 - Immunity.

31A-28-217.
Immunity.
(1) There is no liability on the part of and no cause of action of any nature shall arise against any member insurer or its agents or employees, the association or its agents or employees, members of the board of directors, or the commissioner or his representatives, for any action or omission by them in effecting this part.
(2) The state does not waive any defense under this part, including the defense of governmental immunity. The state is not liable for any action or omission of the association, its members, or their respective agents or employees. The state is not liable for any failure of the association to perform its duties or to fulfill its stated purpose under this part.
Amended by Chapter 97, 1988 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 28 - Guaranty Associations › Part 2 - Property and Casualty Guaranty Association › Section 218 - Stay of proceedings -- Reopening default judgments.

31A-28-218.
Stay of proceedings -- Reopening default judgments.
(1) Except for specific cases involving covered claims that are subject to waiver by the association, all proceedings in which the insolvent insurer is a party or is obligated to defend a party in any court in this state shall be stayed until the last day fixed by the court for the filing of claims to permit proper defense by the association of all pending causes of action.
(2) For any covered claim arising from a judgment under any decision, order, verdict, or finding based on the default of the insolvent insurer or its failure to defend an insured, the association either on its own behalf or on behalf of the insured:
(a) may apply to have the judgment set aside by the issuing court or administrator; and
(b) shall be permitted to defend against the claim on the merits.
Amended by Chapter 363, 2001 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 28 - Guaranty Associations › Part 2 - Property and Casualty Guaranty Association › Section 220 - Termination of association's operation.

31A-28-220.
Termination of association's operation.
(1) The commissioner shall by order terminate the operation of the association for any kind of insurance covered under this part when the commissioner finds that there is in effect a statutory or voluntary plan that:
(a) is a permanent plan that is adequately funded or where adequate funding is provided; or
(b) extends, or will extend to residents and policyholders, protection and benefits regarding insolvent insurers that are not substantially less favorable and effective to residents and policyholders than the protection and benefits provided regarding the kinds of insurance covered under this part.
(2)
(a) The commissioner shall, by the order under Subsection (1), authorize discontinuance of future payments by insurers to the association regarding the kinds of insurance that are the subject of the order.
(b) Notwithstanding Subsection (2)(a), the assessments and payments shall continue, as necessary, to liquidate covered claims of insurers who are adjudged insolvent prior to the order and to pay the related expenses not covered by any other plan.
(3)
(a) If the operation of the association is terminated under Subsection (1), the association shall, as soon as possible, distribute the balance of money and assets remaining, after discharging the functions of the association as to prior insurer insolvencies that were not covered by any other plan, together with related expenses, to the insurers that are then writing in this state policies of the kinds of insurance covered by this part, and that had made payments to the association.
(b) The reimbursement described in Subsection (3)(a) shall be:
(i) pro rata; and
(ii) based upon the aggregate of the payments made by the respective insurers during the period of five years next preceding the date of the order.
(c) For a reimbursement of an assessment that has been offset against premium taxes, the association may pay the amount of the reimbursement directly to the State Tax Commission.
(d) Upon completion of the distribution regarding all of the kinds of insurance covered by this part, this part shall terminate.
Amended by Chapter 363, 2001 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 28 - Guaranty Associations › Part 2 - Property and Casualty Guaranty Association › Section 222 - Application of amendments.

31A-28-222.
Application of amendments.
(1) The amendments in Laws of Utah 2001, Chapter 363, shall become effective on April 30, 2001 and apply to the association's obligations under policies of insolvent insurers as they exist on or after April 30, 2001.
(2) Notwithstanding Subsection (1), the amendments to Subsections 31A-28-203(3) and 31A-28-207(1)(a) in Laws of Utah 2001, Chapter 363, that add coverage for unearned premium claims shall apply only to insurers that become insolvent after April 30, 2001.
Amended by Chapter 250, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 30 - Individual, Small Employer, and Group Health Insurance Act › Part 1 - Individual and Small Employer Group › Section 102 - Purpose statement.

Effective 5/9/2017
31A-30-102.
Purpose statement.
The purpose of this chapter is to:
(1) prevent abusive rating practices;
(2) require disclosure of rating practices to purchasers;
(3) establish rules regarding:
(a) a universal individual and small group application; and
(b) renewability of coverage;
(4) improve the overall fairness and efficiency of the individual and small group insurance market; and
(5) provide increased access for individuals and small employers to health insurance.
Amended by Chapter 292, 2017 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 30 - Individual, Small Employer, and Group Health Insurance Act › Part 1 - Individual and Small Employer Group › Section 105 - Establishment of classes of business.

31A-30-105.
Establishment of classes of business.
Effective January 1, 2014, a covered carrier may establish up to four separate classes of business:
(1) one class of business for individual health benefit plans that are not grandfathered under PPACA;
(2) one class of business for small employer health benefit plans that are not grandfathered under PPACA;
(3) one class of business for individual health benefit plans that are grandfathered under PPACA; and
(4) one class of business for small employer health benefit plans that are grandfathered under PPACA.
Amended by Chapter 341, 2013 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 30 - Individual, Small Employer, and Group Health Insurance Act › Part 1 - Individual and Small Employer Group › Section 106.5 - Conversion policy -- Premiums -- Rating restrictions.

31A-30-106.5.
Conversion policy -- Premiums -- Rating restrictions.
(1) Section 31A-30-106 applies to conversion policies.
(2) Conversion policy premium rates may not exceed by more than 35% the index rate for small employers with similar case characteristics for any class of business in which the policy form has been filed.
(3) An insurer may not consider pregnancy of a covered insured in determining its conversion policy premium rates.
Amended by Chapter 284, 2011 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 30 - Individual, Small Employer, and Group Health Insurance Act › Part 1 - Individual and Small Employer Group › Section 106.7 - Surcharge for groups changing carriers.

Effective 5/9/2017
31A-30-106.7.
Surcharge for groups changing carriers.
(1)
(a) Except as provided in Subsection (1)(b), if prior notice is given, a covered carrier may impose upon a small group that changes coverage to that carrier from another carrier a one-time surcharge of up to 25% of the annualized premium that the carrier could otherwise charge under Section 31A-30-106.1.
(b) A covered carrier may not impose the surcharge described in Subsection (1)(a) if:
(i) the change in carriers occurs on the anniversary of the plan year, as defined in Section 31A-1-301;
(ii) the previous coverage was terminated under Subsection 31A-22-618.6(5);
(iii) employees from an existing group form a new business; and
(iv) the surcharge is not applied uniformly to all similarly situated small groups.
(2) A covered carrier may not impose the surcharge described in Subsection (1) if the offer to cover the group occurs at a time other than the anniversary of the plan year because:
(a)
(i) the application for coverage is made prior to the anniversary date in accordance with the covered carrier's published policies; and
(ii) the offer to cover the group is not issued until after the anniversary date; or
(b)
(i) the application for coverage is made prior to the anniversary date in accordance with the covered carrier's published policies; and
(ii) additional underwriting or rating information requested by the covered carrier is not received until after the anniversary date.
(3) If a covered carrier chooses to apply a surcharge under Subsection (1), the application of the surcharge and the criteria for incurring or avoiding the surcharge shall be clearly stated in the:
(a) written application materials provided to the applicant at the time of application; and
(b) written producer guidelines.
(4) The commissioner shall adopt rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to ensure compliance with this section.
Amended by Chapter 292, 2017 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 30 - Individual, Small Employer, and Group Health Insurance Act › Part 1 - Individual and Small Employer Group › Section 108 - Eligibility for small employer and individual market.

Effective 5/13/2014
31A-30-108.
Eligibility for small employer and individual market.
(1)
(a) A small employer carrier shall accept a small employer that applies for small group coverage as set forth in the Health Insurance Portability and Accountability Act, Sec. 2701(f) and 2711(a), and PPACA, Sec. 2702.
(b) An individual carrier shall accept an individual that applies for individual coverage as set forth in PPACA, Sec. 2702.
(2)
(a) A small employer carrier shall offer to accept all eligible employees and their dependents at the same level of benefits under any health benefit plan provided to a small employer.
(b) A small employer carrier may:
(i) request a small employer to submit a copy of the small employer's quarterly income tax withholdings to determine whether the employees for whom coverage is provided or requested are bona fide employees of the small employer; and
(ii) deny or terminate coverage if the small employer refuses to provide documentation requested under Subsection (2)(b)(i).
Amended by Chapter 290, 2014 General Session
Amended by Chapter 300, 2014 General Session
Amended by Chapter 425, 2014 General Session