Except as provided under Subsection (2), all life insurance and accident and health insurance in connection with loans or other credit transactions are subject to this part.
Terms Used In Utah Code 31A-22-801
Accident and health insurance: means insurance to provide protection against economic losses resulting from:
Credit transaction: means any transaction under which the payment for money loaned or for goods, services, or properties sold or leased is to be made on future dates. See Utah Code 31A-22-802
Creditor: means the lender of money or the vendor or lessor of goods, services, or property, for which payment is arranged through a credit transaction, or any successor to the right, title, or interest of any lender or vendor. See Utah Code 31A-22-802
Deed: The legal instrument used to transfer title in real property from one person to another.
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
Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
(2)
(a)
Insurance written in connection with a credit transaction is not subject to this part, but is subject to other provisions of this title, if the credit transaction is:
(i)
secured by a first mortgage or deed of trust; and
(ii)
made to finance the purchase of real property or the construction of a dwelling thereon, or to refinance a prior credit transaction made for such a purpose.
(b)
Isolated transactions on the part of an insurer that are not related to an agreement or plan for insuring debtors of the creditor are not subject to this part.
