13-64-202. Liability insurance — Security for payment — Provider net worth value.
(1)
A provider under a vehicle value protection agreement shall:
Terms Used In Utah Code 13-64-202
Covered vehicle: means a vehicle that is covered under a vehicle value protection agreement. See Utah Code 13-64-101
Division: means the Division of Consumer Protection established in Section 13-2-1. See Utah Code 13-64-101
Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
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
insure all vehicle value protection agreements the provider enters into under a contractual liability insurance policy that:
(i)
(A)
is issued by an insurer authorized to do business in this state that has a surplus as to policyholders and paid-in capital of less than $10,000,000 and more than $5,000,000 and provides evidence to the division that the insurer maintains a ratio of net written premiums to surplus as to policyholders and paid-in capital of not greater than three to one; or
(B)
is issued by an insurer authorized to do business in this state that has as a surplus as to policyholders and paid-in capital of more than $10,000,000; and
(ii)
(A)
requires the insurer to reimburse the purchaser if the provider fails to perform the provider’s obligations under a vehicle value protection agreement;
(B)
covers any amount the provider is required to pay for failure to perform under a vehicle value protection agreement; and
(C)
allows a purchaser to file with the insurer a claim for reimbursement under the vehicle value protection agreement if the provider does not pay the purchaser within 60 days after the day on which proof of damage, total loss, or unrecovered theft of the covered vehicle is provided to the provider in accordance with the terms of the vehicle value protection agreement;
(b)
(i)
maintain a funded reserve account to cover the provider’s obligations under all vehicle value protection agreements the provider enters into that is equal to or greater than 40% of money received by, less claims paid to, the provider for the vehicle value protection agreements; and
(ii)
place in trust with the division a security that is equal to at least 5% of money received by, less claims paid to, the provider for all vehicle value protection agreements the provider enters into and more than $25,000; or
(c)
maintain, or together with the provider’s parent company maintain, a net worth or stockholders’ equity of $100,000,000.
(2)
(a)
An insurer described in Subsection (1)(a) shall annually file with the division:
(i)
a copy of the insurer’s audited financial statements;
(ii)
the insurer’s National Association of Insurance Commissioner annual statement; and
(iii)
the actuarial certification filed in the insurer’s state of domicile.
(b)
The division may examine a reserve account described in Subsection (1)(b).
(c)
A provider shall, upon request, provide the division a copy of:
(i)
the provider’s or the provider’s parent company’s most recent Form 10-K or Form 20-F filed with the Securities and Exchange Commission; or
(ii)
if the provider does not file with the Securities and Exchange Commission, a copy of the provider’s audited financial statements that shows the net worth of the provider or the provider’s parent company.
