31A-6a-103 - Requirements for doing business.
31A-6a-103. Requirements for doing business.
(1) A service contract may not be issued, sold, or offered for sale in this state unless theservice contract is insured under a service contract reimbursement insurance policy issued by:
(a) an insurer authorized to do business in this state; or
(b) a recognized surplus lines carrier.
(2) (a) A service contract may not be issued, sold, or offered for sale unless the servicecontract provider completes the registration process described in this Subsection (2).
(b) To register, a service contract provider shall submit to the department the following:
(i) an application for registration;
(ii) a fee established in accordance with Section 31A-3-103;
(iii) a copy of any service contract that the service contract provider offers in this state;and
(iv) a copy of the service contract provider's reimbursement insurance policy.
(c) A service provider shall submit the information described in Subsection (2)(b) no lessthan 30 days before the day on which the service provider issues, sells, offers for sale, or uses aservice contract or reimbursement insurance policy in this state.
(d) A service provider shall file any modification of the terms of a service contract orreimbursement insurance policy 30 days before the day on which it is used in this state.
(e) A person complying with this chapter is not required to comply with:
(i) Subsections 31A-21-201(1) and 31A-23a-402(3); or
(ii) Chapter 19a, Utah Rate Regulation Act.
(3) (a) Premiums collected on a service contract are not subject to premium taxes.
(b) Premiums collected by an issuer of a reimbursement insurance policy are subject topremium taxes.
(4) A person marketing, selling, or offering to sell a service contract for a servicecontract provider that complies with this chapter is exempt from the licensing requirements ofthis title.
(5) A service contract provider complying with this chapter is not required to complywith:
(a) Chapter 5, Domestic Stock and Mutual Insurance Corporations;
(b) Chapter 7, Nonprofit Health Service Insurance Corporations;
(c) Chapter 8, Health Maintenance Organizations and Limited Health Plans;
(d) Chapter 9, Insurance Fraternals;
(e) Chapter 10, Annuities;
(f) Chapter 11, Motor Clubs;
(g) Chapter 12, State Risk Management Fund;
(h) Chapter 13, Employee Welfare Funds and Plans;
(i) Chapter 14, Foreign Insurers;
(j) Chapter 19a, Utah Rate Regulation Act;
(k) Chapter 25, Third Party Administrators; and
(l) Chapter 28, Guaranty Associations.
Amended by Chapter 345, 2008 General Session