Utah Code 31A-28-102. Purpose

31A-28-102. Purpose.

(1)

The purpose of this part is to protect, subject to certain limitations, the persons specified in Subsections 31A-28-103(1) through (5) against failure in the performance of contractual obligations, under a life insurance, accident and health insurance, or annuity policy or contract specified in Subsections 31A-28-103(6) and (7), because of the impairment or insolvency of the member insurer that issued the policy or contract.

Terms Used In Utah Code 31A-28-102

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

Association: means the Utah Life and Health Insurance Guaranty Association continued under Section 31A-28-106. See Utah Code 31A-28-105

Contract: A legal written agreement that becomes binding when signed.

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

Life insurance: means :

(i)	insurance on a human life; and

(ii)

insurance pertaining to or connected with human life. See Utah Code 31A-1-301

Member: means a person having membership rights in an insurance corporation. 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

(2)

To provide the protection described in Subsection (1):

(a)	the Utah Life and Health Insurance Guaranty Association, which currently exists, is continued to pay benefits and to continue coverages as limited by this part; and

(b)	members of the association are subject to assessment to provide funds to carry out the purpose of this part.

Amended by Chapter 391, 2018 General Session

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