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
insurer: means a person who:
(a)
is doing, has done, purports to do, or is licensed to do the business of insurance;
(b)
is or has been subject to the authority of, or to rehabilitation, liquidation, reorganization, supervision, or conservation by an insurance commissioner; or
insurance pertaining to or connected with human life. See Utah Code 31A-1-301
Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
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
Policy: includes all clauses, riders, endorsements, and papers that are a part of a policy. See Utah Code 31A-27a-102
Reinsurance: means a transaction or contract under which an assuming insurer agrees to indemnify a ceding insurer against all, or a part, of a loss that the ceding insurer may sustain under the one or more policies that the ceding insurer issues or will issue. See Utah Code 31A-27a-102
Usury: Charging an illegally high interest rate on a loan. Source: OCC
(a)
With court approval, the rehabilitator may take an action the rehabilitator considers necessary or appropriate to reform and revitalize the insurer, including:
(i)
canceling:
(A)
a policy;
(B)
an insurance or reinsurancecontract, other than life insurance, health insurance, or an annuity;
(C)
a surety bond; or
(D)
a surety undertaking; or
(ii)
transferring to a solvent assuming insurer:
(A)
a policy;
(B)
an insurance or reinsurance contract;
(C)
a surety bond; or
(D)
a surety undertaking.
(b)
The rehabilitator has all the powers of the directors, officers, and managers of the insurer, whose authority is suspended, except as redelegated by the rehabilitator.
(c)
The rehabilitator has full power to:
(i)
direct and manage the insurer;
(ii)
hire and discharge employees; and
(iii)
deal with the property and business of the insurer.
(d)
The rehabilitator is not liable as the result of good faith issuance or renewal of a policy while in rehabilitation.
(2)
The rehabilitator may pursue all appropriate legal remedies on behalf of the insurer if it appears to the rehabilitator that there is or has been criminal or tortious conduct, or breach of a contractual or fiduciaryobligation detrimental to the insurer by an officer, a manager, an agent, a broker, an employee, an affiliate, or other person.
(3)
(a)
The rehabilitator may assert all defenses available to the insurer as against a third person, including statutes of limitations, statutes of frauds, and the defense of usury.
(b)
A waiver of a defense by the insurer after a petition pursuant to Section 31A-27a-201 or 31A-27a-207 is filed does not bind the rehabilitator.
(4)
The enumeration of the powers and authority of the rehabilitator in this section:
(a)
may not be construed as a limitation upon the rehabilitator; and
(b)
does not exclude in any manner the right to do other acts:
(i)
not specifically enumerated or otherwise provided for; and
(ii)
as may be necessary or appropriate for the accomplishment of or in aid of the purpose of rehabilitation.
