Utah Code 31A-11-103. Rates

(1)	Rates charged to holders of motor club service contracts may not be inadequate, excessive, or unfairly discriminatory.

Terms Used In Utah Code 31A-11-103

Filing: when used as a noun, means an item required to be filed with the department including:

(a)

a policy;

(b)

a rate;

(c)

a form;

(d)	a document;

(e)

a plan;

(f)

a manual;

(g)	an application;

(h)

a report;

(i)	a certificate;

(j)	an endorsement;

(k)	an actuarial certification;

(l)	a licensee annual statement;

(m)	a licensee renewal application;

(n)	an advertisement;

(o)	a binder; or

(p)

an outline of coverage. 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

Order: means an order of the commissioner. See Utah Code 31A-1-301

Rate: means :

(i)	the cost of a given unit of insurance; or

(ii)

for property or casualty insurance, that cost of insurance per exposure unit either expressed as:

(A)	a single number; or

(B)

a pure premium rate, adjusted before the application of individual risk variations based on loss or expense considerations to account for the treatment of:

(I)

expenses;

(II)	profit; and

(III)

individual insurer variation in loss experience. See Utah Code 31A-1-301

(2)

If, after a hearing, the commissioner finds a motor club’s rates in violation of this section, the commissioner may issue an order to the club to make a filing under Section 31A-19a-203. After issuance of such an order, the commissioner and the club shall proceed under Chapter 19a, Utah Rate Regulation Act, until the commissioner determines that the club’s rates conform to the requirements of this section. Chapter 19a, Utah Rate Regulation Act, is then inapplicable to the club until the issuance of another order under this section.

Amended by Chapter 130, 1999 General Session

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