31A-22-1014. Conversion of Workers’ Compensation Fund to mutual insurance corporation.
(1)
As used in this section, “Workers’ Compensation Fund” means the mutual corporation that is the successor to the quasi-public corporation created under Chapter 33, Workers’ Compensation Fund, which is the chapter repealed by Laws of Utah 2017, Chapter 363.
Terms Used In Utah Code 31A-22-1014
articles of incorporation: means :
(a)
the original articles;
(b)
a special law;
(c)
a charter;
(d)
an amendment;
(e)
restated articles;
(f)
articles of merger or consolidation;
(g)
a trust instrument;
(h)
another constitutive document for a trust or other entity that is not a corporation; and
(i)
an amendment to an item listed in Subsections (11)(a) through (h). See Utah Code 31A-1-301
Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
Certificate: means evidence of insurance given to:
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:
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
insurance company: means a person doing an insurance business as a principal including:
(i)
a fraternal benefit society;
(ii)
an issuer of a gift annuity other than an annuity specified in Subsections 31A-22-1305(2) and (3);
(iii)
a motor club;
(iv)
an employee welfare plan;
(v)
a person purporting or intending to do an insurance business as a principal on that person's own account; and
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
(2)
As a consequence of the repeal of Chapter 33, Workers’ Compensation Fund, effective January 1, 2018:
On or before December 31, 2017, the Workers’ Compensation Fund shall file amended and restated articles of incorporation with the Department of Insurance and the Division of Corporations and Commercial Code that comply with Chapter 5, Domestic Stock and Mutual Insurance Corporations.
(c)
Following the filing of the Workers’ Compensation Fund’s amended and restated articles of incorporation, if the commissioner determines that the Workers’ Compensation Fund complies with Chapter 5, Domestic Stock and Mutual Insurance Corporations, the commissioner shall:
(i)
reissue a certificate of authority effective January 1, 2018, for the Workers’ Compensation Fund to write workers’ compensation insurance in Utah as a mutual insurance corporation; and
(ii)
reauthorize the Workers’ Compensation Fund’s existing filings, rates, forms, or other administrative matters on file with the department as a result of, or related to, Workers’ Compensation Fund’s existing insurance business in the state, so that the filings, rates, forms, or other administrative matters on file shall be effective January 1, 2018, with respect to the Workers’ Compensation Fund’s insurance business activities as a mutual insurance corporation.
(d)
The Workers’ Compensation Fund may adopt and conduct business under any name that complies with state law.
(3)
Subject to Subsection (2), the commissioner may, because of the Workers’ Compensation Fund’s developed status, waive or otherwise not impose requirements imposed on mutual insurance corporations by Chapter 5, Domestic Stock and Mutual Insurance Corporations, to facilitate the conversion of the Workers’ Compensation Fund to a mutual insurance corporation effective January 1, 2018, so long as the commissioner finds those requirements unnecessary to protect policyholders and the public.
(4)
(a)
From and after the Workers’ Compensation Fund’s conversion to a mutual insurance corporation, the Workers’ Compensation Fund shall retain title to all assets of, and remain responsible for all liabilities incurred by, the Workers’ Compensation Fund as a quasi-public corporation before the Workers’ Compensation Fund conversion described in this section.
(b)
The state is not liable for the expenses, liabilities, or debts of:
(i)
the mutual insurance company described in this section;
(ii)
the nonprofit, quasi-public corporation that preceded the mutual insurance company; or
(iii)
a subsidiary or joint enterprise involving the mutual insurance company or quasi-public corporation.
Revisor instructions Chapter 273, 2018 General Session Enacted by Chapter 363, 2017 General Session Revisor instructions Chapter 363, 2017 General Session
