Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
Amendment: means an endorsement to an insurance policy or certificate. See Utah Code 31A-1-301
Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
Association: means the Utah Life and Health Insurance Guaranty Association continued under Section 31A-28-106. See Utah Code 31A-28-105
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
Corporation: means an insurance corporation, except when referring to:
Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
insolvent: means that:
(a)
an insurer is unable to pay the insurer's obligations as the obligations are due;
(b)
an insurer's total adjusted capital is less than the insurer's mandatory control level RBC under Subsection 31A-17-601(8)(c); or
(c)
an insurer's admitted assets are less than the insurer's liabilities. See Utah Code 31A-1-301
Member: means a person having membership rights in an insurance corporation. See Utah Code 31A-1-301
Member insurer: includes an insurer whose license or certificate of authority in this state may have been:
The association shall submit to the commissioner a plan of operation and any amendments to the plan necessary or suitable to assure the fair, reasonable, and equitable administration of the association.
(b)
The plan of operation and any amendments become effective:
(i)
upon the commissioner’s written approval; or
(ii)
after 30 days from the date the plan of operation or amendment is submitted to the commissioner if the commissioner has not disapproved the plan or amendment.
(c)
(i)
If the association fails to submit a suitable amendment to the plan, the commissioner, after notice and hearing, shall adopt reasonable rules that are necessary or advisable to effectuate the provisions of this part.
(ii)
The rules described in Subsection (1)(c)(i) continue in force until:
(A)
modified by the commissioner; or
(B)
superseded by an amendment to the plan:
(I)
submitted by the association; and
(II)
approved by the commissioner.
(2)
A member insurer shall comply with the plan of operation.
(3)
The plan of operation shall, in addition to any other requirement in this part:
(a)
establish procedures for handling the assets of the association;
(b)
establish the amount and method of reimbursing members of the board of directors under Section 31A-28-107;
(c)
establish regular places and times for meetings of the board of directors, including telephone conference calls;
(d)
establish procedures for records to be kept of the financial transactions of:
(i)
the association;
(ii)
the association’s agents; and
(iii)
the board of directors;
(e)
subject to Section 31A-28-107, establish the procedures to be followed for:
(i)
selecting members to the board of directors; and
(ii)
submitting the selected members to the commissioner for approval;
(f)
establish any additional procedures for assessments under Section 31A-28-109;
(g)
establish procedures under which a member insurer may be removed from the board of directors for cause, including when the member insurer becomes an impaired or insolvent insurer;
(h)
require the board of directors to establish policies and procedures that address conflicts of interests; and
(i)
contain additional provisions necessary or proper for the execution of the powers and duties of the association.
(4)
(a)
The plan of operation may provide that any or all powers and duties of the association, except those under Subsection 31A-28-108(14)(d) and Section 31A-28-109, are delegated to a corporation, association, or other organization that will perform functions similar to those of the association, or its equivalent, in two or more states.
(b)
A corporation, association, or organization described in Subsection (4)(a) shall be:
(i)
reimbursed for any payments made on behalf of the association; and
(ii)
paid for its performance of any function of the association.
(c)
A delegation under this Subsection (4):
(i)
takes effect only with the approval of:
(A)
the board of directors; and
(B)
the commissioner; and
(ii)
may be made only to a corporation, association, or organization that extends protection not substantially less favorable and effective than that provided by this part.
