advises another person about insurance needs and coverages;
(b)
is compensated by the person advised on a basis not directly related to the insurance placed; and
(c)
except as provided in Section 31A-23a-501, is not compensated directly or indirectly by an insurer or producer for advice given. See Utah Code 31A-1-301
Contract: A legal written agreement that becomes binding when signed.
Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
Health care: means any of the following intended for use in the diagnosis, treatment, mitigation, or prevention of a human ailment or impairment:
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
Insured: means a person to whom or for whose benefit an insurer makes a promise in an insurance policy and includes:
Insurer: is a s defined in Section 31A-1-301, except that the following persons or similar persons are not insurers for purposes of 7:
(a)
a risk retention group as defined in:
(i)
the Superfund Amendments and Reauthorization Act of 1986, Pub. See Utah Code 31A-23a-102
Liability insurance: includes :
(i)
vehicle liability insurance;
(ii)
residential dwelling liability insurance; and
(iii)
making inspection of, and issuing a certificate of inspection upon, an elevator, boiler, machinery, or apparatus of any kind when done in connection with insurance on the elevator, boiler, machinery, or apparatus. See Utah Code 31A-1-301
License: includes a certificate of authority issued to an insurer. See Utah Code 31A-1-301
Member: means a person having membership rights in an insurance corporation. See Utah Code 31A-1-301
Person: includes :
(a)
an individual;
(b)
a partnership;
(c)
a corporation;
(d)
an incorporated or unincorporated association;
(e)
a joint stock company;
(f)
a trust;
(g)
a limited liability company;
(h)
a reciprocal;
(i)
a syndicate; or
(j)
another similar entity or combination of entities acting in concert. See Utah Code 31A-1-301
producer: means a person licensed or required to be licensed under the laws of this state to sell, solicit, or negotiate insurance. See Utah Code 31A-1-301
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:
Rebate: means a licensee paying, allowing, giving, or offering to pay, allow, or give, directly or indirectly:
(i)
a refund of premium or portion of premium;
(ii)
a refund of commission or portion of commission;
(iii)
a refund of all or a portion of a consultant fee; or
(iv)
providing services or other benefits not specified in an insurance or annuity contract. See Utah Code 31A-1-301
Security: means a:
(i)
note;
(ii)
stock;
(iii)
bond;
(iv)
debenture;
(v)
evidence of indebtedness;
(vi)
certificate of interest or participation in a profit-sharing agreement;
(vii)
collateral-trust certificate;
(viii)
preorganization certificate or subscription;
(ix)
transferable share;
(x)
investment contract;
(xi)
voting trust certificate;
(xii)
certificate of deposit for a security;
(xiii)
certificate of interest of participation in an oil, gas, or mining title or lease or in payments out of production under such a title or lease;
(xiv)
commodity contract or commodity option;
(xv)
certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase any of the items listed in Subsections (171)(a)(i) through (xiv); or
(xvi)
another interest or instrument commonly known as a security. 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
Terminate: means :
(a)
the cancellation of the relationship between:
(i)
an individual licensee or agency licensee and a particular insurer; or
(ii)
an individual licensee and a particular agency licensee; or
(b)
the termination of:
(i)
an individual licensee's or agency licensee's authority to transact insurance on behalf of a particular insurance company; or
(ii)
an individual licensee's authority to transact insurance on behalf of a particular agency licensee. See Utah Code 31A-23a-102
Title insurance: means the insuring, guaranteeing, or indemnifying of an owner of real or personal property or the holder of liens or encumbrances on that property, or others interested in the property against loss or damage suffered by reason of liens or encumbrances upon, defects in, or the unmarketability of the title to the property, or invalidity or unenforceability of any liens or encumbrances on the property. See Utah Code 31A-1-301
Except as provided in Subsection (2), a producer, consultant, or other licensee under this title, or an officer or employee of a licensee, may not induce a person to enter into, continue, or terminate an insurance contract by offering a benefit that is not:
(i)
specified in the insurance contract; or
(ii)
directly related to the insurance contract.
(b)
An insurer may not make or knowingly allow an agreement of insurance that is not clearly expressed in the insurance contract to be issued or renewed.
(c)
A licensee under this title may not absorb the tax under Section 31A-3-301.
(2)
This section does not apply to a title insurer, an individualtitle insurance producer, or agency title insurance producer, or an officer or employee of a title insurer, an individual title insurance producer, or an agency title insurance producer.
(3)
Items not prohibited by Subsection (1) include an insurer:
(a)
reducing premiums because of expense savings;
(b)
providing to a policyholder or insured one or more incentives, as defined by the commissioner by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to participate in a program or activity designed to reduce claims or claim expenses, including:
(i)
a premium discount offered to a small or large employer group based on a wellness program if:
(A)
the premium discount for the employer group does not exceed 20% of the group premium; and
(B)
the premium discount based on the wellness program is offered uniformly by the insurer to all employer groups in the large or small group market;
(ii)
a premium discount offered to employees of a small or large employer group in an amount that does not exceed federal limits on wellness program incentives;
(iii)
a combination of premium discounts offered to the employer group and the employees of an employer group, based on a wellness program, if:
(A)
the premium discounts for the employer group comply with Subsection (3)(b)(i); and
(B)
the premium discounts for the employees of an employer group comply with Subsection (3)(b)(ii); or
(iv)
rewards or incentives for employees of an employer group, if the rewards or incentives are for a savings reward program described in Section 31A-22-647; or
(c)
receiving premiums under an installment payment plan.
(4)
Items not prohibited by Subsection (1) include a producer, consultant, or other licensee, or an officer or employee of a licensee, either directly or through a third party:
(a)
engaging in a usual kind of social courtesy if receipt of the social courtesy is not conditioned on a quote or the purchase of a particular insurance product;
(b)
extending credit on a premium to the insured:
(i)
without interest, for no more than 90 days after the day on which the insurance contract becomes effective;
(ii)
for interest that is not less than the legal rate under Section 15-1-1, on the unpaid balance after the time period described in Subsection (4)(b)(i); and
(iii)
except that an installment or payroll deduction payment of premiums on an insurance contract issued under an insurer’s mass marketing program is not considered an extension of credit for purposes of this Subsection (4)(b);
(c)
preparing or conducting a survey that:
(i)
is directly related to an accident and health insurancepolicy purchased from the licensee; or
(ii)
is used by the licensee to assess the benefit needs and preferences of insureds, employers, or employees directly related to an insurance product sold by the licensee;
(d)
providing limited human resource services that are directly related to an insurance product sold by the licensee, including:
(i)
answering questions directly related to:
(A)
an employee benefit offering or administration, if the insurance product purchased from the licensee is accident and health insurance or health insurance; and
(B)
employment practices liability, if the insurance product offered by or purchased from the licensee is property or casualty insurance; and
(ii)
providing limited human resource compliance training and education directly pertaining to an insurance product purchased from the licensee;
(e)
providing the following types of information or guidance:
(i)
providing guidance directly related to compliance with federal and state laws for an insurance product purchased from the licensee;
(ii)
providing a workshop or seminar addressing an insurance issue that is directly related to an insurance product purchased from the licensee; or
(iii)
providing information regarding:
(A)
employee benefit issues;
(B)
directly related insurance regulatory and legislative updates; or
(C)
similar education about an insurance product sold by the licensee and how the insurance product interacts with tax law;
(f)
preparing or providing a form that is directly related to an insurance product purchased from, or offered by, the licensee;
(g)
preparing or providing documents directly related to a premium only cafeteria plan within the meaning of Section 125, Internal Revenue Code, or a flexible spending account, but not providing ongoing administration of a flexible spending account;
(h)
providing enrollment and billing assistance, including:
(i)
providing benefit statements or new hire insurance benefits packages; and
(ii)
providing technology services such as an electronic enrollment platform or application system;
(i)
communicating coverages in writing and in consultation with the insured and employees;
(j)
providing employee communication materials and notifications directly related to an insurance product purchased from a licensee;
(k)
providing claims management and resolution to the extent permitted under the licensee’s license;
(l)
providing underwriting or actuarial analysis or services;
(m)
negotiating with an insurer regarding the placement and pricing of an insurance product;
(n)
recommending placement and coverage options;
(o)
providing a health fair or providing assistance or advice on establishing or operating a wellness program, but not providing any payment for or direct operation of the wellness program;
(p)
providing COBRA and Utah mini-COBRA administration, consultations, and other services directly related to an insurance product purchased from the licensee;
(q)
assisting with a summary plan description, including providing a summary plan description wraparound;
(r)
providing information necessary for the preparation of documents directly related to the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1001, et seq., as amended;
(s)
providing information or services directly related to the Health Insurance Portability and Accountability Act of 1996, Pub. L. 104-191, 110 Stat. 1936, as amended, such as services directly related to health care access, portability, and renewability when offered in connection with accident and health insurance sold by a licensee;
(t)
sending proof of coverage to a third party with a legitimate interest in coverage;
(u)
providing information in a form approved by the commissioner and directly related to determining whether an insurance product sold by the licensee meets the requirements of a third party contract that requires or references insurance coverage;
(v)
facilitating risk management services directly related to property and casualty insurance products sold or offered for sale by the licensee, including:
(i)
risk management;
(ii)
claims and loss control services;
(iii)
risk assessment consulting, including analysis of:
(A)
employer’s job descriptions; or
(B)
employer’s safety procedures or manuals; and
(iv)
providing information and training on best practices;
(w)
otherwise providing services that are legitimately part of servicing an insurance product purchased from a licensee; and
(x)
providing other directly related services approved by the department.
(5)
An inducement prohibited under Subsection (1) includes a producer, consultant, or other licensee, or an officer or employee of a licensee:
(a)
(i)
except as permitted under Section 31A-22-647, providing a rebate, reward, or incentive;
(ii)
paying the salary of an employee of a person who purchases an insurance product from the licensee; or
(iii)
if the licensee is an insurer, or a third party administrator who contracts with an insurer, paying the salary for an onsite staff member to perform an act prohibited under Subsection (5)(b)(xii); or
(b)
except as provided in Subsection (10), engaging in one or more of the following, unless a fee is paid in accordance with Subsection (8):
(i)
performing background checks of prospective employees;
(ii)
providing legal services by a person licensed to practice law;
(iii)
performing drug testing that is directly related to an insurance product purchased from the licensee;
(iv)
preparing employer or employee handbooks, except that a licensee may:
(A)
provide information for a medical benefit section of an employee handbook;
(B)
provide information for the section of an employee handbook directly related to an employment practices liability insurance product purchased from the licensee; or
(C)
prepare or print an employee benefit enrollment guide;
(v)
providing job descriptions, postings, and applications for a person;
(vi)
providing payroll services;
(vii)
providing performance reviews or performance review training;
(viii)
providing union advice;
(ix)
providing accounting services;
(x)
providing data analysis information technology programs, except as provided in Subsection (4)(h)(ii);
(xi)
providing administration of health reimbursement accounts or health savings accounts; or
(xii)
if the licensee is an insurer, or a third party administrator who contracts with an insurer, the insurer issuing an insurance policy that lists in the insurance policy one or more of the following prohibited benefits:
(A)
performing background checks of prospective employees;
(B)
providing legal services by a person licensed to practice law;
(C)
performing drug testing that is directly related to an insurance product purchased from the insurer;
(D)
preparing employer or employee handbooks;
(E)
providing job descriptions postings, and applications;
(F)
providing payroll services;
(G)
providing performance reviews or performance review training;
(H)
providing union advice;
(I)
providing accounting services;
(J)
providing discrimination testing; or
(K)
providing data analysis information technology programs.
(6)
A producer, consultant, or other licensee or an officer or employee of a licensee shall itemize and bill separately from any other insurance product or service offered or provided under Subsection (5)(b).
(7)
(a)
A de minimis gift or meal not to exceed a fair market value of $100 for each individual receiving the gift or meal is presumed to be a social courtesy not conditioned on a quote or purchase of a particular insurance product for purposes of Subsection (4)(a).
(b)
Notwithstanding Subsection (4)(a), a de minimis gift or meal not to exceed $10 may be conditioned on receipt of a quote of a particular insurance product.
(8)
If as provided under Subsection (5)(b) a producer, consultant, or other licensee is paid a fee to provide an item listed in Subsection (5)(b), the fee paid for the item shall equal or exceed the fair market value of the item.
(9)
For purposes of this section, “fair market value” means what a knowledgeable, willing, and unpressured buyer would pay for a product or service to a knowledgeable, willing, and unpressured seller in the open market without any connection to other goods, services, including insurance services, or contracts, including insurance contracts, sold by the producer, consultant, or other licensee, or an officer or employee of the licensee.
(10)
Notwithstanding any other provision of this section, a producer, consultant, or other licensee, or an officer or employee of a licensee, may offer, make available, or provide goods or services, whether or not the goods or services are directly related to an insurance contract, for free or for less than fair market value if:
(a)
the goods or services are available on the same terms to the general public;
(b)
receipt of the goods or services is not contingent upon the immediate or future purchase, continuation, or termination of an insurance product or receipt of a quote for an insurance product; and
(c)
the producer, consultant, or other licensee, or an officer or an employee of a licensee, does not retroactively charge for the goods or services based on an event subsequent to receipt of the goods or services.
(11)
(a)
A producer, consultant, or other licensee, or an officer or employee of a licensee, that provides or offers goods or services that are not described in Subsection (3) or (4) for free or less than fair market value shall conspicuously disclose to the recipient before the purchase of insurance, receipt of a quote for insurance, or designation of an agent of record, that receipt of the goods or services is not contingent on the purchase, continuation, or termination of an insurance product or receiving a quote for an insurance product.
(b)
A producer, consultant, or other licensee, or an officer or employee of the licensee, may comply with this Subsection (11) by an oral or written disclosure.
