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
Rate: means that cost of insurance per exposure unit either expressed as:
(i)
a single number; or
(ii)
as a pure premium rate, adjusted before any application of individual risk variations, based on loss or expense considerations to account for the treatment of:
Rate service organization: means a person who assists an insurer in rate making or filing by:
(i)
collecting, compiling, and furnishing loss or expense statistics;
(ii)
recommending, making, or filing rates or supplementary rate information; or
(iii)
advising about rate questions, except as an attorney giving legal advice. 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
(a)
A rate service organization may not provide any service relating to statistical collection or the rates of any insurance subject to this chapter unless the organization is licensed under Section 31A-19a-302.
(b)
An insurer may not use the services of the organization for the purposes described in Subsection (1)(a), unless the organization is licensed under Section 31A-19a-302.
(2)
A rate service organization may not refuse to supply any services for which it is licensed in this state to any insurer:
(a)
authorized to do business in this state; and
(b)
that offers to pay the fair and usual compensation for the services.
Renumbered and Amended by Chapter 130, 1999 General Session
