Utah Code 31A-22-727. Renewal, cancellation, and modification

31A-22-727. Renewal, cancellation, and modification.

(1)

Except as provided in Section 31A-22-618.6, for a group insurance policy offering accident and health insurance or a blanket insurance policy offering accident and health insurance, an insurer may:

Terms Used In Utah Code 31A-22-727

Accident and health insurance: means insurance to provide protection against economic losses resulting from:

(i)

a medical condition including:

(A)	a medical care expense; or

(B)	the risk of disability;

(ii)	accident; or

(iii)

sickness. See Utah Code 31A-1-301

Endorsement: means a written agreement attached to a policy or certificate to modify the policy or certificate coverage. See Utah Code 31A-1-301

Fraud: Intentional deception resulting in injury to another.

health insurance: means insurance providing:

(i)	a health care benefit; or

(ii)

payment of an incurred health care expense. 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

Policy: includes a service contract issued by:

(i)	a motor club under Chapter 11, Motor Clubs;

(ii)	a service contract provided under Chapter 6a, Service Contracts; and

(iii)

a corporation licensed under:

(A)	Chapter 7, Nonprofit Health Service Insurance Corporations; or

(B)

Chapter 8, Health Maintenance Organizations and Limited Health Plans. See Utah Code 31A-1-301

Policyholder: means a person who controls a policy, binder, or oral contract by ownership, premium payment, or otherwise. See Utah Code 31A-1-301

Premium: includes , however designated:

(i)	an assessment;

(ii)	a membership fee;

(iii)

a required contribution; or

(iv)	monetary consideration. See Utah Code 31A-1-301 Writing: includes :Utah Code 68-3-12.5
(a)	decline to renew the policy on the date the policy term expires for a reason stated in the policy; or

(b)

cancel the policy at any time for:

(i)	nonpayment of a premium when due;

(ii)	intentional misrepresentation of a material fact in connection with the coverage;

(iii)

performance of an act or practice that constitutes fraud in connection with the coverage; or

(iv)	noncompliance with an employer eligibility provision.

(2)	Except for a modification required by law, an insurer may only modify a policy at renewal.

(3)

Subsection (2) does not apply to an endorsement by which the insurer:

(a)	effectuates a request the policyholder made in writing; or

(b)	exercises a specifically reserved right under the policy.

Enacted by Chapter 198, 2022 General Session

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