reglab/statecodes huggingface dataset:
2023 Utah Code › Title 31A - Insurance Code › Chapter 5 - Domestic Stock and Mutual Insurance Corporations › Part 4 - Management of Insurance Corporations › Section 413 - Interlocking directorates and other relationships.

31A-5-413.
Interlocking directorates and other relationships.
Any person who is simultaneously an officer or director of more than one insurer shall, upon the commissioner's request, disclose all conflicts of interest arising from holding those positions simultaneously. This disclosure shall be given to the directors of the insurers and to the commissioner within 15 working days after receipt of the commissioner's request.
Amended by Chapter 204, 1986 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 5 - Domestic Stock and Mutual Insurance Corporations › Part 4 - Management of Insurance Corporations › Section 414 - Transactions in which directors and others are interested.

Superseded 7/1/2024
31A-5-414.
Transactions in which directors and others are interested.
(1) Any material transaction between an insurance corporation and one or more of its directors or officers, or between an insurance corporation and any other person in which one or more of its directors or officers or any person controlling the corporation has a material interest, is voidable by the corporation unless all the following exist:
(a) At the time the transaction is entered into it is fair to the interests of the corporation.
(b) The transaction has, with full knowledge of its terms and of the interests involved, been approved in advance by the board or by the shareholders.
(c) The transaction has been reported to the commissioner immediately after approval by the board or the shareholders.
(2) A director, whose interest or status makes the transaction subject to this section, may be counted in determining a quorum for a board meeting approving a transaction under Subsection (1)(b), but may not vote. Approval requires the affirmative vote of a majority of those present.
(3) The commissioner may by rule exempt certain types of transactions from the reporting requirement of Subsection (1)(c). The commissioner has standing to bring an action on behalf of an insurer to have a contract in violation of Subsection (1) declared void. Such an action shall be brought in the Third Judicial District Court for Salt Lake County.
Enacted by Chapter 242, 1985 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 5 - Domestic Stock and Mutual Insurance Corporations › Part 4 - Management of Insurance Corporations › Section 414 - Transactions in which directors and others are interested.

Effective 7/1/2024
31A-5-414.
Transactions in which directors and others are interested.
(1) Any material transaction between an insurance corporation and one or more of its directors or officers, or between an insurance corporation and any other person in which one or more of its directors or officers or any person controlling the corporation has a material interest, is voidable by the corporation unless all the following exist:
(a) At the time the transaction is entered into it is fair to the interests of the corporation.
(b) The transaction has, with full knowledge of its terms and of the interests involved, been approved in advance by the board or by the shareholders.
(c) The transaction has been reported to the commissioner immediately after approval by the board or the shareholders.
(2) A director, whose interest or status makes the transaction subject to this section, may be counted in determining a quorum for a board meeting approving a transaction under Subsection (1)(b), but may not vote. Approval requires the affirmative vote of a majority of those present.
(3)
(a) The commissioner may by rule exempt certain types of transactions from the reporting requirement of Subsection (1)(c).
(b) The commissioner has standing to bring an action on behalf of an insurer to have a contract in violation of Subsection (1) declared void.
Amended by Chapter 401, 2023 General Session
Amended by Chapter 401, 2023 General Session, (Coordination Clause)
2023 Utah Code › Title 31A - Insurance Code › Chapter 5 - Domestic Stock and Mutual Insurance Corporations › Part 4 - Management of Insurance Corporations › Section 415 - Officers', directors', and employees' liability and indemnification.

Superseded 7/1/2024
31A-5-415.
Officers', directors', and employees' liability and indemnification.
(1) Section 16-10a-841 applies to the liabilities of directors of a stock corporation. Subsection 16-6a-825(3) applies to loans to trustees and officers of a mutual. A director who votes for or assents to a violation of Subsection 16-6a-825(3) or Section 16-10a-842 is jointly and severally liable to the corporation for any loss on the distribution.
(2)Title 16, Chapter 10a, Part 9, Indemnification, applies to stock and mutual corporations, but no indemnification may be paid until 30 or more days after sending a notice to the commissioner of the full details of the proposed indemnification. The commissioner may bring an action in Third Judicial District Court for Salt Lake County to have such indemnification enjoined. The court may enjoin the indemnification to the extent it would render the insurer in a hazardous condition, or exacerbate an existing financially hazardous condition.
Amended by Chapter 300, 2000 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 5 - Domestic Stock and Mutual Insurance Corporations › Part 4 - Management of Insurance Corporations › Section 415 - Officers', directors', and employees' liability and indemnification.

Effective 7/1/2024
31A-5-415.
Officers', directors', and employees' liability and indemnification.
(1)
(a) Section 16-10a-841 applies to the liabilities of directors of a stock corporation.
(b) Subsection 16-6a-825(3) applies to loans to trustees and officers of a mutual.
(c) A director who votes for or assents to a violation of Subsection 16-6a-825(3) or Section 16-10a-842 is jointly and severally liable to the corporation for any loss on the distribution.
(2)
(a)Title 16, Chapter 10a, Part 9, Indemnification, applies to stock and mutual corporations, but no indemnification may be paid until 30 or more days after sending a notice to the commissioner of the full details of the proposed indemnification.
(b) The commissioner may bring an action in a court with jurisdiction under Title 78A, Judiciary and Judicial Administration, to have such indemnification enjoined.
(c) The court may enjoin the indemnification to the extent the indemnification would render the insurer in a hazardous condition, or exacerbate an existing financially hazardous condition.
Amended by Chapter 401, 2023 General Session
Amended by Chapter 401, 2023 General Session, (Coordination Clause)
2023 Utah Code › Title 31A - Insurance Code › Chapter 5 - Domestic Stock and Mutual Insurance Corporations › Part 4 - Management of Insurance Corporations › Section 417 - Exclusive management and exclusive agency contracts.

31A-5-417.
Exclusive management and exclusive agency contracts.
(1) No domestic insurer may enter into a contract that grants or surrenders the control and management of the insurer, unless the commissioner gives express approval of the contract. Such contracts, once approved, may not be amended without the commissioner's approval. Any contracts between a domestic reciprocal insurer, which insurers are governed under this chapter as any other mutual, and the insurer's attorney-in-fact are subject to this subsection.
(2) Unless the contract is filed and approved by the commissioner, no domestic insurer may enter into a contract granting, or allowing a person to have the exclusive or dominant right to produce the entire insurance business for the insurer. This type of contract is considered approved, unless disapproved by the commissioner within 30 days after filing. If disapproved, the commissioner shall notify the insurer in writing of the grounds of the disapproval.
(3) The commissioner may not approve any contract under Subsection (1) or (2) that:
(a) subjects the insurer to excessive charges for expenses or commissions;
(b) vests any control in a person over the general affairs of the insurer to the exclusion of its board of directors or officers;
(c) extends for an unreasonable length of time; or
(d) contains other inequitable provisions or provisions that may jeopardize the security of policyholders.
Enacted by Chapter 242, 1985 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 5 - Domestic Stock and Mutual Insurance Corporations › Part 4 - Management of Insurance Corporations › Section 418 - Dividends and other distributions.

31A-5-418.
Dividends and other distributions.
(1) Subject to the requirements of Section 16-10a-842 and Subsection 31A-16-106(2), a stock corporation may make distributions under Section 16-10a-640 if all the following conditions are satisfied:
(a) A dividend may not be paid that would reduce the insurer's total adjusted capital below the insurer's company action level RBC as defined in Subsection 31A-17-601(8)(b).
(b) Except as to excess surplus, or unless the commissioner issues an order allowing otherwise, a dividend may not be paid that exceeds the insurer's net gain from operations or net income for the period ending December 31 of the preceding year.
(2)Title 67, Chapter 4a, Revised Uniform Unclaimed Property Act, applies to unclaimed dividends and distributions in insurance corporations.
Amended by Chapter 116, 2001 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 5 - Domestic Stock and Mutual Insurance Corporations › Part 4 - Management of Insurance Corporations › Section 420 - Payment of dividends by mutual insurers.

31A-5-420.
Payment of dividends by mutual insurers.
(1) When it is in the best interests of the company, the directors of a domestic mutual insurer shall declare, apportion, and pay to its members dividends from its net savings and earnings.
(2) The insurer shall make a reasonable classification of its participating policies and its assumed risks. No dividend shall be paid that is inequitable, unfairly discriminates between classifications of insurance contracts, or unfairly discriminates between policies within the same classification.
(3) Unless stated in the policy, no dividend, otherwise earned, shall be contingent upon the payment of the renewal premium on any policy.
(4) Subsection (1) may not be construed to require an insurer determined by the United States Internal Revenue Service to be a nonprofit organization to pay a dividend in a manner which would jeopardize that status.
Enacted by Chapter 242, 1985 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 5 - Domestic Stock and Mutual Insurance Corporations › Part 5 - Corporate Reorganization › Section 501 - Merger of subsidiary corporation.

31A-5-501.
Merger of subsidiary corporation.
The merger of subsidiary insurance corporations is subject to the provisions of Chapter 16, Insurance Holding Companies. In addition, the merger procedures outlined under Title 16, Chapter 10a, Utah Revised Business Corporation Act, apply to the mergers of subsidiary insurance corporations. For the purposes of this section, if the surviving corporation owns at least 80% of the outstanding shares of each class of the corporation to be merged into the surviving corporation, the procedures of Section 16-10a-1104, including no requirement of shareholder approval, may be used.
Amended by Chapter 277, 1992 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 5 - Domestic Stock and Mutual Insurance Corporations › Part 5 - Corporate Reorganization › Section 502 - Merger and consolidation of stock insurance corporations.

31A-5-502.
Merger and consolidation of stock insurance corporations.
Any two or more stock insurance corporations may merge or consolidate, under the procedures set forth under Title 16, Chapter 10a, Utah Revised Business Corporation Act. All mergers are subject to the provisions of Chapter 16, Insurance Holding Companies.
Amended by Chapter 277, 1992 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 5 - Domestic Stock and Mutual Insurance Corporations › Part 5 - Corporate Reorganization › Section 503 - Merger and consolidation of mutuals.

31A-5-503.
Merger and consolidation of mutuals.
Any two or more mutuals may merge or consolidate, under the procedures set forth under Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act. All mergers of mutuals are subject to Chapter 16, Insurance Holding Companies.
Amended by Chapter 300, 2000 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 5 - Domestic Stock and Mutual Insurance Corporations › Part 5 - Corporate Reorganization › Section 507 - Conversion of assessable to nonassessable and nonassessable to assessable mutuals.

31A-5-507.
Conversion of assessable to nonassessable and nonassessable to assessable mutuals.
(1) When an assessable mutual accumulates enough surplus to satisfy the financial requirements for the operation of a nonassessable mutual, it may apply for a certificate of authority authorizing it to sell nonassessable policies. The commissioner shall issue a certificate of authority designating it a nonassessable mutual, if he finds that the applicant satisfies the requirements of the law and that the issuance of nonassessable policies will not endanger the interests of its insureds or the public. Policies issued after the issuance of this certificate of authority are nonassessable. Existing policies remain in effect and are nonassessable.
(2) A nonassessable mutual may apply to the commissioner for a certificate of authority designating it an assessable mutual. The commissioner shall issue the certificate if the law permits the corporation to issue assessable policies and if he finds that the conversion will not endanger the interests of insureds or the public. All policies issued after conversion are assessable, unless otherwise provided by contract.
Enacted by Chapter 242, 1985 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 5 - Domestic Stock and Mutual Insurance Corporations › Part 5 - Corporate Reorganization › Section 508 - Transfer of business or assets.

31A-5-508.
Transfer of business or assets.
(1) In the sale, lease, exchange, or mortgage of assets with or without shareholder action, and concerning the rights of dissenting shareholders in those transactions, Sections 16-10a-1201, 16-10a-1202, 16-10a-1320 through 16-10a-1328, 16-10a-1330, and 16-10a-1331 apply to stock corporations. In the sale, lease, exchange, or mortgage of assets, Section 16-6a-1201 applies to mutuals.
(2)Chapter 16, Insurance Holding Companies, applies to:
(a) the sale of a domestic insurer's assets or book of business, other than in the ordinary course of business; or
(b) the insurer entering into contracts of reinsurance which have substantially the same effect as a merger.
Amended by Chapter 300, 2000 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 5 - Domestic Stock and Mutual Insurance Corporations › Part 5 - Corporate Reorganization › Section 509 - Conversion of a domestic mutual life insurance company into a fraternal.

31A-5-509.
Conversion of a domestic mutual life insurance company into a fraternal.
A domestic mutual life insurance company may be converted into a fraternal under Chapter 9, Insurance Fraternals, in the following manner:
(1) The board of directors of the company shall adopt a plan of conversion stating:
(a) the basis for and the purposes of the proposed action;
(b) the proposed articles and bylaws for the new fraternal; and
(c) the proposed procedure and estimated expenses for implementing the conversion.
(2) The plan shall be filed with the commissioner for approval, together with the information under Subsection 31A-9-205(2) required by the commissioner. The commissioner shall approve the plan unless he finds, after a hearing, that:
(a) the conversion would be contrary to the law;
(b) the new fraternal would not satisfy the requirements for a certificate of authority under Section 31A-5-212 as incorporated by Section 31A-9-210; or
(c) the plan would be contrary to the interests of the policyholders or the public.
(3) After being approved by the commissioner, the plan shall be submitted to the policyholders for their approval.
(4) A copy of the plan adopted by the policyholders shall be filed with the commissioner, with a statement indicating the number and percentages of policyholders voting, the method of voting, and the number of votes cast in favor of the plan.
(5) If all requirements of the law are met, the commissioner shall issue a certificate of authority for the new fraternal. Upon this issuance, the mutual ceases its legal existence and the corporate existence of the new fraternal begins. The new fraternal is considered as having been incorporated on the date the converted mutual was incorporated. The new fraternal has all of the assets and is liable for all of the obligations of the converted mutual. The commissioner may grant a fraternal an adjustment period, not to exceed one year, for compliance with the requirements of Chapter 9, Insurance Fraternals. The commissioner's extension shall specify the extent to which particular provisions of Chapter 9, Insurance Fraternals, do not apply.
Amended by Chapter 204, 1986 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 5 - Domestic Stock and Mutual Insurance Corporations › Part 6 - Miscellaneous Provisions › Section 601 - Duties of officers, directors, agents, and employees.

31A-5-601.
Duties of officers, directors, agents, and employees.
(1) Any officer, director, agent, attorney, or employee upon whom legal process is properly served or who receives notice of any legal action that may affect or involve the property or business of the insurer, shall promptly communicate the service or notice and detailed information about it to facilitate informed response to persons in the insurer's organization who have authority to take responsive action or to instigate responsive action by those in authority.
(2) A director of an insurer is assumed to have enough knowledge of its affairs to determine whether any act, proceeding, or omission of its directors is a violation of any provision of this chapter. If a director is present at a meeting of directors at which a violation of any provision of this chapter occurs, he is considered as concurring in the violation unless at the meeting he requires his dissent to be entered on the minutes. If a director is absent from the meeting, he is considered as concurring in any violation if the facts of violation appear on the minutes of the meeting and he remains a director for six months after the violation without requiring that his dissent from the violation be entered upon the record or the minutes.
Enacted by Chapter 242, 1985 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 5 - Domestic Stock and Mutual Insurance Corporations › Part 6 - Miscellaneous Provisions › Section 602 - Doing business in other states.

31A-5-602.
Doing business in other states.
(1) Subject to Subsection (2), no domestic insurer may do an insurance business in any state in which it does not have a certificate of authority. It may not knowingly solicit in those states in any manner. Advertisements through printed media, radio, or television do not violate this subsection if they originate outside the state where there is no authority to do business, are not specifically directed to citizens of that state, and have a majority of their audience in states in which the insurer does have a certificate of authority.
(2) A domestic insurer may do a surplus lines business in a state in which it is not authorized, only if it complies with the surplus lines law of that state.
Enacted by Chapter 242, 1985 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 5 - Domestic Stock and Mutual Insurance Corporations › Part 7 - Disclosure of Material Transactions › Section 701 - General reporting requirement.

31A-5-701.
General reporting requirement.
(1) An insurer domiciled in this state shall file a report with the commissioner disclosing any transaction listed in Subsection (2), unless the transaction has been submitted to the commissioner for review, approval, or information purposes pursuant to other provisions of this title or rules or other requirements made pursuant to this title.
(2) A report is required under Subsection (1) to disclose:
(a) material acquisitions and dispositions of assets; or
(b) material nonrenewals, cancellations, or revisions of ceded reinsurance agreements.
(3) The report required in Subsection (1) is due within 15 days after the end of the calendar month in which any of the transactions described in Subsection (2) occurs.
(4)
(a) Except as provided in Subsection (4)(b), reports obtained by or disclosed to the commissioner pursuant to this part are confidential and are not subject to subpoena and may not be made public by the commissioner or any other person or organization, without the prior written consent of the insurer to which it pertains.
(b)
(i) The commissioner may publish all or any part of a report in the manner the commissioner considers appropriate if the commissioner determines that the interest of policyholders, shareholders, or the public will be served by publication, after giving notice and an opportunity to be heard to the insurer who would be affected.
(ii) All or any part of a report may be disclosed without notice or consent to insurance departments of other states.
Enacted by Chapter 9, 1996 Special Session 2
Enacted by Chapter 9, 1996 Special Session 2
2023 Utah Code › Title 31A - Insurance Code › Chapter 5 - Domestic Stock and Mutual Insurance Corporations › Part 7 - Disclosure of Material Transactions › Section 702 - Acquisitions and dispositions of assets.

31A-5-702.
Acquisitions and dispositions of assets.
(1)
(a) An acquisition or disposition of asset is not subject to the reporting requirements of Section 31A-5-701 if the acquisitions or dispositions are not material.
(b) For purposes of this part, an acquisition, a disposition, or the aggregate of any series of related acquisitions or related dispositions during any 30-day period, is material if it is:
(i) nonrecurring;
(ii) not in the ordinary course of business; and
(iii) involves more than 5% of the reporting insurer's total admitted assets as reported in its most recent statutory statement.
(2)
(a) An asset acquisition subject to this part includes every purchase, lease, exchange, merger, consolidation, succession, or other acquisition other than the construction or development of real property by or for the reporting insurer or the acquisition of materials for that purpose.
(b) An asset disposition subject to this part includes every sale, lease, exchange, merger, consolidation, mortgage, hypothecation, assignment, whether for the benefit of creditors or otherwise, abandonment, destruction, or other disposition.
(3)
(a) The following information is required to be disclosed in any report filed pursuant to Section 31A-5-701 of a material acquisition or disposition of assets:
(i) the date of the transaction;
(ii) the manner of acquisition or disposition;
(iii) a description of the assets involved;
(iv) the nature and amount of the consideration given or received;
(v) the purpose of, or reason for, the transaction;
(vi) the manner by which the amount of consideration was determined;
(vii) any gain or loss recognized or realized as a result of the transaction; and
(viii) the name of any person from whom the assets were acquired or to whom they were disposed.
(b)
(i) Insurers are required to report material acquisitions and dispositions on a nonconsolidated basis unless the insurer:
(A) is part of a consolidated group of insurers that uses a pooling arrangement or 100% reinsurance agreement that affects the solvency and integrity of the insurer's reserves; and
(B) ceded substantially all of its direct and assumed business to the pool.
(ii) For purposes of this section, an insurer is considered to have ceded substantially all of its direct and assumed business to a pool if:
(A) the insurer has less than $1,000,000 total direct plus assumed written premiums during a calendar year that are not subject to a pooling arrangement; and
(B) the net income of the business not subject to the pooling arrangement represents less than 5% of the insurer's capital and surplus.
Enacted by Chapter 9, 1996 Special Session 2
Enacted by Chapter 9, 1996 Special Session 2
2023 Utah Code › Title 31A - Insurance Code › Chapter 6a - Service Contracts › Section 102 - Scope and purposes.

31A-6a-102.
Scope and purposes.
(1) The purposes of this chapter are to:
(a) create a legal framework within which service contracts may be sold in this state;
(b) encourage innovation in the marketing and development of more economical and effective ways of providing services under service contracts, while placing the risk of innovation on the service contract providers rather than on consumers; and
(c) permit and encourage fair and effective competition among different systems of providing and paying for these services.
(2) Service contracts may not be issued, sold, or offered for sale in this state unless the provider has complied with this chapter.
(3) This chapter applies only to a service contract not otherwise exempted from this title by Section 31A-1-103.
Amended by Chapter 116, 2001 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 6a - Service Contracts › Section 105 - Prohibited acts.

Effective 5/8/2018
31A-6a-105.
Prohibited acts.
(1) Except as provided in Subsection 31A-6a-104(2), a service contract provider or warrantor may not use in the service contract provider or warrantor's name, a contract, or literature:
(a) any of the following words:
(i) "insurance";
(ii) "casualty";
(iii) "surety";
(iv) "mutual"; or
(v) another word descriptive of the insurance, casualty, or surety business; or
(b) a name deceptively similar to the name or description of:
(i) an insurance or surety corporation; or
(ii) another service contract provider.
(2) A service contract provider, a service contract provider's representative, a warrantor, or a warrantor's representative may not:
(a) make, permit, or cause to be made a false or misleading statement in connection with the sale, offer to sell, or advertisement of a service contract or vehicle protection product; or
(b) deliberately omit a material statement that would be considered misleading if omitted, in connection with the sale, offer to sell, or advertisement of a service contract or vehicle protection product.
(3) A bank, savings and loan association, insurance company, or other lending institution may not require the purchase of a service contract as a condition of a loan.
(4) Except for a bank, savings and loan association, industrial bank, or credit union, a service contract provider may not sell, or be the obligated party for:
(a) a guaranteed asset protection waiver, unless registered with the commissioner under Chapter 6b, Guaranteed Asset Protection Waiver Act;
(b) a debt cancellation agreement, unless licensed by the commissioner; or
(c) a debt suspension agreement, unless licensed by the commissioner.
(5) A warrantor or the warrantor's representative may not:
(a) require the purchase of a vehicle protection product as a condition of the financing, lease, or purchase of a motor vehicle; or
(b) sell a vehicle protection product to a consumer before providing the consumer, for review, a copy of the vehicle protection product warranty that is filed with the Department of Insurance.
Amended by Chapter 319, 2018 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 6a - Service Contracts › Section 106 - Recordkeeping requirements.

31A-6a-106.
Recordkeeping requirements.
(1)
(a) All service contract providers shall keep accurate accounts, books, and records concerning transactions regulated under this chapter.
(b) A service contract provider's accounts, books, and records shall include:
(i) copies of all service contracts issued;
(ii) the name and address of each service contract holder; and
(iii) claims files.
(c) Service contract providers shall retain all records pertaining to each service contract holder for at least three years after the specified period of coverage has expired.
(2) A provider discontinuing business in this state shall maintain its records until it furnishes the commissioner satisfactory proof that it has discharged all obligations to contract holders in this state.
(3) Service contract providers shall make all accounts, books, and records concerning transactions regulated under this chapter or other pertinent chapters available to the commissioner for the purpose of examination as provided in Sections 31A-2-203 and 31A-2-204.
Enacted by Chapter 203, 1992 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 6a - Service Contracts › Section 107 - Cancellation of reimbursement insurance.

31A-6a-107.
Cancellation of reimbursement insurance.
The issuer of a reimbursement insurance policy may not cancel the policy until a notice of cancellation in accordance with Section 31A-21-303, 31A-21-304, or 31A-21-305 has been mailed or delivered to the commissioner and to each insured provider. The cancellation of a reimbursement policy may not reduce the issuer's responsibility for service contracts issued by providers prior to the date of the cancellation.
Amended by Chapter 10, 1997 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 6a - Service Contracts › Section 108 - Obligation of reimbursement insurance issuers.

31A-6a-108.
Obligation of reimbursement insurance issuers.
Providers under this chapter are considered to be the agent of the issuer of the reimbursement insurance for purposes of Section 31A-23a-410. In cases where a provider is acting as an administrator and enlists other providers, the provider acting as the administrator shall notify the issuer of the reimbursement insurance of the other providers.
Amended by Chapter 298, 2003 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 6a - Service Contracts › Section 109 - Enforcement provisions.

31A-6a-109.
Enforcement provisions.
Anyone violating of any of the provisions of this chapter or any rule made pursuant to the grant of rulemaking authority under this title may be assessed an administrative forfeiture equal to two times the amount of any profit gained from the violation. In addition an administrative forfeiture may be assessed for each violation not to exceed $1,000 per violation. If the violations are continuing, or are of a serious nature, or a person's business practices in connection with the solicitation, sale, offering for sale, or performance under a service contract subject to this chapter, constitute a danger to the legitimate interests of consumers or the public, the commissioner may enjoin the person from soliciting, selling, or offering to sell service contracts in this state either permanently or for a stated period of time.
Enacted by Chapter 203, 1992 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 6a - Service Contracts › Section 110 - Rulemaking.

31A-6a-110.
Rulemaking.
(1) Pursuant to Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commissioner may make rules necessary to assist in the enforcement of this chapter.
(2) The commissioner may by rule or order, after a hearing, exempt certain service contract providers or service contract providers for a specific class of service contracts that are not otherwise exempt under Subsection 31A-1-103(3) from any provision of this title. The commissioner may order substitute requirements on a finding that a particular provision of this title is not necessary for the protection of the public or that the substitute requirement is reasonably certain to provide equivalent protection to the public.
Amended by Chapter 382, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 6a - Service Contracts › Section 111 - Vehicle protection product warranty requirements.

Effective 5/8/2018
31A-6a-111.
Vehicle protection product warranty requirements.
(1) A warrantor shall make a reimbursement promised under a vehicle protection product warranty as specified in the warranty, regardless of, and not contingent upon, the payment of a benefit provided for under the warranty holder's primary vehicle insurance or any other contract.
(2)
(a) If a vehicle protection product is represented as preventing the theft of a vehicle, the vehicle protection product warranty shall, at a minimum, provide for reimbursement of damage a theft causes to the motor vehicle up to $5,000, if the vehicle is recovered within the time period specified in the warranty following the theft of the vehicle, not to exceed 30 days after the day on which the vehicle is reported stolen.
(b) If a vehicle protection product is represented as aiding in the recovery of a stolen vehicle, the vehicle protection product warranty shall provide for reimbursement of the vehicle up to $5,000, if the vehicle is not recovered within the time period specified in the warranty following the theft of the vehicle, not to exceed 30 days after the day on which the vehicle is reported stolen.
Repealed and Re-enacted by Chapter 319, 2018 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 6b - Guaranteed Asset Protection Waiver Act › Part 1 - General Provisions › Section 102 - Definitions.

31A-6b-102.
Definitions.
(1) This section defines a term only for purposes of this chapter. A term defined in this section is not required to be used in a guaranteed asset protection waiver.
(2) For purposes of this chapter:
(a) "Administrative functions" includes providing:
(i) document development, processing, and management;
(ii) data processing and support;
(iii) compliance services;
(iv) waiver fee processing;
(v) benefit determination;
(vi) technology support; or
(vii) personnel support.
(b) "Administrator" means a person who provides administrative functions related to a guaranteed asset protection waiver.
(c) "Borrower" means a person who under a finance agreement is:
(i) a debtor;
(ii) a retail buyer; or
(iii) a lessee.
(d) "Creditor" means a person who is:
(i) a lender in a loan or credit transaction;
(ii) a retail seller of a vehicle that provides credit to a retail buyer of the vehicle;
(iii) a lessor in a lease transaction;
(iv) a seller in a commercial retail installment transaction; or
(v) an assignee of a person listed in this Subsection (2)(d) to whom a credit obligation is payable.
(e) "Finance agreement" means one or more of the following for the purchase or lease of a vehicle:
(i) a loan;
(ii) a retail installment sales contract; or
(iii) a lease.
(f) "Guaranteed asset protection waiver" means a contract for a separate charge:
(i) under which a creditor agrees to waive all or part of the amounts due on a borrower's finance agreement if a vehicle is subject to:
(A) a total physical damage loss; or
(B) unrecovered theft; and
(ii) that is made part of a finance agreement, even if the guaranteed asset protection waiver is stated in a separate addendum to the finance agreement.
(g) "Preliminary period" means a time period that:
(i) begins the day on which a guaranteed asset protection waiver becomes effective; and
(ii) ends the last day on which a borrower may cancel the guaranteed asset protection waiver with a full refund if no benefits have been provided.
(h) "Restricted account" means the Guaranteed Asset Protection Waiver Restricted Account created in Section 31A-6b-204.
(i)
(i) "Vehicle" means a vehicle that is:
(A) self propelled or towed; and
(B) designed for personal or commercial use.
(ii) "Vehicle" includes:
(A) an automobile;
(B) a truck;
(C) a motorcycle;
(D) a recreational vehicle;
(E) an all terrain vehicle;
(F) a snowmobile;
(G) a camper;
(H) a boat;
(I) a personal watercraft; or
(J) a trailer for a motorcycle, boat, camper, or personal watercraft.
Enacted by Chapter 274, 2010 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 6b - Guaranteed Asset Protection Waiver Act › Part 1 - General Provisions › Section 103 - Relationship to title -- Scope -- Exemptions.

31A-6b-103.
Relationship to title -- Scope -- Exemptions.
(1) A guaranteed asset protection waiver:
(a) is not an insurance contract; and
(b) is not considered a debt cancellation or debt suspension contract for purposes of Section 31A-21-109.
(2) A guaranteed asset protection waiver is exempt from the provisions of this title other than this chapter, except to the extent otherwise provided in this chapter.
(3) This chapter does not apply to:
(a) an insurance contract offered by an insurer under this title; or
(b) a debt cancellation or debt suspension contract that:
(i) is not a guaranteed asset protection waiver; and
(ii) is offered in compliance with:
(A) 12 C.F.R. Part 37;
(B) 12 C.F.R. Part 721;
(C) other federal law; or
(D) Section 31A-21-109.
(4) A person required to be licensed or registered in accordance with this chapter may not be required to be licensed under another provision of this title for engaging in an act regulated by this chapter.
(5) A guaranteed asset protection waiver offered in connection with a loan, lease, or retail installment sale associated with a commercial vehicle transaction is not subject to this title.
(6) The following are exempt from this chapter:
(a) a bank, as defined in Section 7-1-103;
(b) a credit union, as defined in Section 7-1-103;
(c) an industrial bank, as defined in Section 7-1-103;
(d) a savings and loan association, as defined in Section 7-1-103; or
(e) a subsidiary of an entity described in Subsections (6)(a) through (d).
Enacted by Chapter 274, 2010 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 6b - Guaranteed Asset Protection Waiver Act › Part 1 - General Provisions › Section 104 - Severability.

31A-6b-104.
Severability.
If a provision of this chapter or the application of a provision to a person or circumstance is held invalid, the remainder of this chapter shall be given effect without the invalid provision or application. The provisions of this chapter are severable.
Enacted by Chapter 274, 2010 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 6b - Guaranteed Asset Protection Waiver Act › Part 2 - Waiver Provider Licensing and Registration › Section 201 - Persons who may provide a guaranteed asset protection waiver -- Requirement to be licensed or registered.

31A-6b-201.
Persons who may provide a guaranteed asset protection waiver -- Requirement to be licensed or registered.
(1) Except as provided in Subsection (2), on and after July 1, 2010, a person may not sell, offer to sell, or otherwise provide a guaranteed asset protection waiver to a borrower in this state unless the person:
(a)
(i) is:
(A) a creditor; or
(B) an administrator; and
(ii) is registered in accordance with this part; or
(b)
(i) is an individual who sells vehicles at retail; and
(ii) holds a limited line producer license in accordance with Section 31A-23a-103.
(2)
(a) Subject to the other provisions of this Subsection (2), an entity retail seller of a vehicle may sell, offer to sell, or otherwise provide a guaranteed asset protection waiver to a borrower without being registered under this chapter if the retail seller assigns finance agreements within 90 days.
(b) The commissioner may assess each retail seller described in Subsection (2)(a) that is located in this state an annual assessment in accordance with this Subsection (2).
(c) The commissioner may assess an annual assessment under this section only if the fees received by the commissioner under Section 31A-6b-202 do not equal or exceed $100,000.
(d) The commissioner shall determine the amount of the annual assessment under this section in accordance with Section 31A-3-103, except that:
(i) the annual assessment may not exceed $50; and
(ii) the commissioner may not impose an amount that would reasonably be expected to result in the commissioner receiving in excess of $100,000 in a fiscal year from the aggregate of:
(A) the fees received under Section 31A-6b-202; and
(B) the annual assessments under this section.
(e) The commissioner shall deposit an annual assessment collected under this section into the restricted account.
Enacted by Chapter 274, 2010 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 6b - Guaranteed Asset Protection Waiver Act › Part 2 - Waiver Provider Licensing and Registration › Section 202 - Registration process -- Annual fee.

31A-6b-202.
Registration process -- Annual fee.
(1) If a person is required to register under Section 31A-6b-201, to register the person shall submit to the commissioner:
(a) an application for registration;
(b) a copy of any guaranteed asset protection waiver that the person will issue, market, sell, offer to sell, or otherwise provide in this state; and
(c) a registration fee established by the commissioner in accordance with Section 31A-3-103, except that the registration fee may not exceed $1,000.
(2)
(a) On and after July 1, 2011, a person registered under this title shall pay to the commissioner an annual fee:
(i) by no later than July 1 of each year after the day on which the person registers; and
(ii) established by the commissioner in accordance with Section 31A-3-103, except that the annual fee may not exceed $1,000.
(b) If a person fails to pay the annual fee required under this Subsection (2) by October 1, the person's registration expires.
(3) The commissioner shall deposit a fee collected under this section into the restricted account.
Enacted by Chapter 274, 2010 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 6b - Guaranteed Asset Protection Waiver Act › Part 2 - Waiver Provider Licensing and Registration › Section 203 - Filing new or changed guaranteed asset protection waiver.

31A-6b-203.
Filing new or changed guaranteed asset protection waiver.
A person required to be registered under Section 31A-6b-201 shall submit to the commissioner at least 30 days before the day on which the person issues, markets, sells, offers to sell, or otherwise provides a guaranteed asset protection waiver in this state:
(1) a change to a term of a guaranteed asset protection waiver previously submitted to the commissioner under this chapter; or
(2) a guaranteed asset protection waiver that has not previously been submitted to the commissioner under this chapter.
Enacted by Chapter 274, 2010 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 6b - Guaranteed Asset Protection Waiver Act › Part 2 - Waiver Provider Licensing and Registration › Section 204 - Guaranteed Asset Protection Waiver Restricted Account.

31A-6b-204.
Guaranteed Asset Protection Waiver Restricted Account.
(1) There is created in the General Fund a restricted account known as the "Guaranteed Asset Protection Waiver Restricted Account."
(2) The restricted account shall consist of the money received by the commissioner under this part.
(3) The commissioner shall administer the restricted account. Subject to appropriations by the Legislature, the commissioner shall use the money deposited into the restricted account to pay for a cost or expense incurred by the commissioner in the administration, investigation, and enforcement of this chapter.
Enacted by Chapter 274, 2010 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 6b - Guaranteed Asset Protection Waiver Act › Part 3 - Requirements for a Guaranteed Asset Protection Waiver › Section 301 - General requirements for a guaranteed asset protection waiver.

31A-6b-301.
General requirements for a guaranteed asset protection waiver.
(1) A person may not issue, market, sell, offer to sell, or otherwise provide a guaranteed asset protection waiver except in compliance with this chapter.
(2) If a creditor assigns, sells, or transfers a finance agreement, a guaranteed asset protection waiver remains a part of the finance agreement.
(3)
(a) If a borrower finances or otherwise pays the charge for a guaranteed asset protection waiver, the creditor is liable to the borrower for a benefit due under the guaranteed asset protection waiver regardless of whether the retail seller, administrator, or other person who receives the payment from the borrower remits the charge.
(b) This Subsection (3) may not be construed to prejudice any claim a creditor may have against a retail seller, administrator, or other person who receives a payment from a borrower but fails to remit the payment.
(4) A creditor may require that a guaranteed asset protection waiver that the creditor issues be sold for:
(a) a single payment; or
(b) periodic payments.
(5) The following may not be conditioned on a borrower purchasing a guaranteed asset protection waiver:
(a) the extension of credit;
(b) a term of credit; or
(c) a term of the related vehicle sale or lease.
Enacted by Chapter 274, 2010 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 6b - Guaranteed Asset Protection Waiver Act › Part 3 - Requirements for a Guaranteed Asset Protection Waiver › Section 302 - Required disclosures.

31A-6b-302.
Required disclosures.
(1) A guaranteed asset protection waiver shall disclose the information described in Subsection (2):
(a) in writing; and
(b) in understandable language that is easy to read.
(2) A guaranteed asset protection waiver shall disclose:
(a) the name and address of the initial creditor and the borrower at the time the guaranteed asset protection waiver is executed;
(b) if there is an administrator for the guaranteed asset protection waiver:
(i) the name of the administrator;
(ii) the address of the administrator; and
(iii) a toll-free number to contact the administrator;
(c) the charge for the guaranteed asset protection waiver;
(d) the terms of the guaranteed asset protection waiver, including:
(i) the requirements for receiving the protection of the guaranteed asset protection waiver;
(ii) the conditions imposed by the guaranteed asset protection waiver; and
(iii) the exclusions from the protection of the guaranteed asset protection waiver;
(e) the procedure the borrower must follow, if any, to obtain a benefit under the guaranteed asset protection waiver, including a telephone number and address where the borrower may apply for a benefit under the guaranteed asset protection waiver;
(f) that the borrower may cancel the guaranteed asset protection waiver;
(g) the rights the borrower has to a refund under Section 31A-6b-303;
(h) if the guaranteed asset protection waiver is cancelled or terminated after the preliminary period:
(i) the procedures for requesting a refund under Section 31A-6b-303, including that the borrower request a refund in writing in accordance with Section 31A-6b-303; and
(ii) the methodology for calculating the refund due, if any;
(i) that none of the following may be conditioned on the purchase of a guaranteed asset protection waiver:
(i) the extension of credit;
(ii) a term of credit; or
(iii) a term of the related vehicle sale or lease; and
(j)
(i) that a guaranteed asset protection waiver is subject to limited regulation by the commissioner; and
(ii) that a complaint regarding a guaranteed asset protection waiver may be submitted to the commissioner.
Enacted by Chapter 274, 2010 General Session