Association account: means the Utah Property and Casualty Insurance Guaranty Association Account created by Section 31A-28-205. See Utah Code 31A-28-203
board of directors: means the group of persons with responsibility over, or management of, a corporation, however designated. See Utah Code 31A-1-301
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
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
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
Member insurer: means any person who:
(a)
writes any kind of insurance to which this part applies under Section 31A-28-202, including the exchange of reciprocal or inter-insurance contracts; and
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.
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
(a)
The Utah Property and Casualty Insurance Guaranty Association shall continue as a nonprofit legal entity.
(b)
All member insurers of the association are, and remain, members of the association as a condition of their authority to transact insurance business in this state.
(c)
The association shall:
(i)
perform its functions under the plan of operation established and approved under Section 31A-28-209; and
(ii)
exercise its powers through a board of directors established under Section 31A-28-206.
(d)
For the purposes of administration and assessment, the association shall maintain an account known as the Property and Casualty Insurance Guaranty Association Account.
(e)
(i)
If as of May 6, 2002, the association has more than one account, the association shall consolidate all accounts into the Property and Casualty Insurance Guaranty Association Account.
(ii)
The Property and Casualty Insurance Guaranty Association Account:
(A)
succeeds to all funds held by the association in an account existing on May 6, 2002; and
(B)
is subject to any liability or obligation attributable to an account of the association existing on May 6, 2002.
(2)
(a)
An insurer shall cease to be a member insurer on the day following the termination or expiration of the insurer’s license to transact the kinds of insurance to which this part applies.
(b)
Notwithstanding Subsection (2)(a), the insurer shall remain liable as a member insurer for all obligations, including assessments levied:
(i)
before the termination or expiration of the insurer’s license; and
(ii)
after the termination or expiration of the insurer’s license but that relate to an insurer that became an insolvent insurer before the termination or expiration of the insurer’s license.
(3)
Meetings or records of the association shall be open to the public upon a majority vote of the board of directors of the association.
