Utah Code 31A-11-102. Activities of motor clubs

(1)

Motor clubs authorized under this chapter may provide or arrange for the following services:

Terms Used In Utah Code 31A-11-102

Arrest: Taking physical custody of a person by lawful authority.
Contract: A legal written agreement that becomes binding when signed.
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
Corporation: means an insurance corporation, except when referring to:

(i)

a corporation doing business:

(A)

as:

(I)	an insurance producer;

(II)	a surplus lines producer;

(III)

a limited line producer;

(IV)	a consultant;

(V)	a managing general agent;

(VI)	a reinsurance intermediary;

(VII)

a third party administrator; or

(VIII)

an adjuster; and

(B)

under:

(I)	Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries;

(II)	Chapter 25, Third Party Administrators; or

(III)

Chapter 26, Insurance Adjusters; or

(ii)

a noninsurer that is part of a holding company system under Chapter 16, Insurance Holding Companies. See Utah Code 31A-1-301

Insurance: includes :

(i)	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

Motor club: means a person:

(a)

licensed under:

(i)	Chapter 5, Domestic Stock and Mutual Insurance Corporations;

(ii)	Chapter 11, Motor Clubs; or

(iii)

Chapter 14, Foreign Insurers; and

(b)

that promises for an advance consideration to provide for a stated period of time one or more:

(i)	legal services under Subsection 31A-11-102(1)(b);

(ii)	bail services under Subsection 31A-11-102(1)(c); or

(iii)

(A)	trip reimbursement;

(B)	towing services;

(C)	emergency road services;

(D)	stolen automobile services;

(E)	a combination of the services listed in Subsections (126)(b)(iii)(A) through (D); or

(F)

other services given in Subsections 31A-11-102(1)(b) through (f). See Utah Code 31A-1-301

Mutual: means a mutual insurance corporation. See Utah Code 31A-1-301

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

Reinsurance: means an insurance transaction where an insurer, for consideration, transfers any portion of the risk it has assumed to another insurer. See Utah Code 31A-1-301

Road: includes :Utah Code 68-3-12.5

(a)

service as producer in obtaining insurance coverage from authorized insurers, subject to Chapter 23a, Insurance Marketing – Licensing Producers, Consultants, and Reinsurance Intermediaries;

(b)

provision of, or payment for, legal services and costs in the defense of traffic offenses or other legal problems connected with the ownership or use of a motor vehicle, provided the maximum amount payable for any one incident is not more than 100 times the annual charge for the motor club contract;

(c)	guaranteed arrest bond certificates and cash bond guarantees as specified under Section 31A-11-112;

(d)	payment of specified expenses resulting from an automobile accident, other than expenses for personal injury or for damage to an automobile, provided the maximum amount payable for any one accident is not more than 100 times the annual charge for the motor club contract;

(e)	towing and emergency road services and theft services; and

(f)	any services relating to travel not involving the transfer and distribution of risk.

(2)	Unless they are also insurers under Chapter 5, Domestic Stock and Mutual Insurance Corporations, or Chapter 14, Foreign Insurers, motor clubs may not provide any liability or physical damage insurance or insurance of life or accident and health, whether or not related to motor vehicles.

(3)	If a motor club is a separate division of a corporation, the activities of the other divisions of the corporation are not limited by this section, if the motor club division complies with Subsection 31A-11-106(3).

Amended by Chapter 298, 2003 General Session

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