a risk distributing arrangement providing for compensation or replacement for damages or loss through the provision of a service or a benefit in kind;
(ii)
a contract of guaranty or suretyship entered into by the guarantor or surety as a business and not as merely incidental to a business transaction; and
(iii)
a plan in which the risk does not rest upon the person who makes an arrangement, but with a class of persons who have agreed to share the risk. See Utah Code 31A-1-301
Insured: means a person to whom or for whose benefit an insurer makes a promise in an insurance policy and includes:
Insurer: is a s defined in Section 31A-1-301, except that the following persons or similar persons are not insurers for purposes of 7:
(a)
a risk retention group as defined in:
(i)
the Superfund Amendments and Reauthorization Act of 1986, Pub. See Utah Code 31A-23a-102
License: includes a certificate of authority issued to an insurer. See Utah Code 31A-1-301
Life insurance: means :
(i)
insurance on a human life; and
(ii)
insurance pertaining to or connected with human life. See Utah Code 31A-1-301
Negotiate: means the act of conferring directly with or offering advice directly to a purchaser or prospective purchaser of a particular contract of insurance concerning a substantive benefit, term, or condition of the contract if the person engaged in that act:
producer: means a person licensed or required to be licensed under the laws of this state to sell, solicit, or negotiate insurance. See Utah Code 31A-1-301
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
Trustee: means "director" when referring to the board of directors of a corporation. See Utah Code 31A-1-301
Trustee: A person or institution holding and administering property in trust.
(a)
an officer, director, or employee of an insurer or of an insurance producer if:
(i)
the officer, director, or employee does not receive any commission on a policy written or sold to insure risks residing, located, or to be performed in this state; and
(ii)
(A)
the officer’s, director’s, or employee’s activities are:
(I)
executive, administrative, managerial, clerical, or a combination of these activities; and
(II)
only indirectly related to the sale, solicitation, or negotiation of insurance;
(B)
the officer’s, director’s, or employee’s function relates to:
(I)
underwriting;
(II)
loss control;
(III)
inspection; or
(IV)
the processing, adjusting, investigating or settling of a claim on a contract of insurance; or
(C)
(I)
the officer, director, or employee is acting in the capacity of a special agent or agency supervisor assisting an insurance producer;
(II)
the officer’s, director’s, or employee’s activities are limited to providing technical advice and assistance to a licensed insurance producer; and
(III)
the officer’s, director’s, or employee’s activities do not include the sale, solicitation, or negotiation of insurance;
(b)
a person who:
(i)
is paid no commission for the services described in Subsection (1)(b)(ii); and
(ii)
secures and furnishes information for the purpose of:
(A)
group life insurance;
(B)
group property and casualty insurance;
(C)
group annuities;
(D)
a group insurance policy offering accident and health insurance or a blanket insurance policy offering accident and health insurance;
(E)
enrolling individuals under plans;
(F)
issuing certificates under plans; or
(G)
otherwise assisting in administering plans;
(c)
a person who:
(i)
is paid no commission for the services described in Subsection (1)(c)(ii); and
(ii)
performs administrative services related to mass marketed property and casualty insurance;
(d)
(i)
any of the following if the conditions of Subsection (1)(d)(ii) are met:
(A)
an employer or association; or
(B)
an officer, director, employee, or trustee of an employee trust plan;
(ii)
a person listed in Subsection (1)(d)(i):
(A)
to the extent that the employer, officer, employee, director, or trustee is engaged in the administration or operation of a program of employee benefits for:
(I)
the employer’s or association’s own employees; or
(II)
the employees of a subsidiary or affiliate of an employer or association;
(B)
the program involves the use of insurance issued by an insurer; and
(C)
the employer, association, officer, director, employee, or trustee is not in any manner compensated, directly or indirectly, by the company issuing the contract;
(e)
an employee of an insurer or organization employed by an insurer who:
(i)
is engaging in:
(A)
the inspection, rating, or classification of risks; or
(B)
the supervision of the training of insurance producers; and
(ii)
is not individually engaged in the sale, solicitation, or negotiation of insurance;
(f)
a person whose activities in this state are limited to advertising:
(i)
without the intent to solicit insurance in this state;
(ii)
through communications in mass media including:
(A)
a printed publication; or
(B)
a form of electronic mass media;
(iii)
that is distributed to residents outside of the state; and
(iv)
if the person does not sell, solicit, or negotiate insurance that would insure risks residing, located, or to be performed in this state;
(g)
a person who:
(i)
is not a resident of this state;
(ii)
sells, solicits, or negotiates a contract of insurance:
(A)
for commercial property and casualty risks to an insured with risks located in more than one state insured under that contract; and
(B)
insures risks located in a state in which the person is licensed as provided in Subsection (1)(g)(iii); and
(iii)
is licensed as an insurance producer to sell, solicit, or negotiate that insurance in the state where the insured maintains its principal place of business; or
(h)
if the employee does not sell, solicit, or receive a commission for a contract of insurance, a salaried full-time employee who counsels or advises the employee’s employer relating to the insurance interests of:
(i)
the employer; or
(ii)
a subsidiary or business affiliate of the employer.
(2)
The commissioner may by rule exempt a class of persons from the license requirement of Subsection 31A-23a-103(1) if:
(a)
the functions performed by the class of persons does not require:
(i)
special competence;
(ii)
special trustworthiness; or
(iii)
regulatory surveillance made possible by licensing; or
(b)
other existing safeguards make regulation unnecessary.
