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 settlement: includes :
(i)
the transfer for compensation or value of ownership or beneficial interest in a trust or other entity that owns a policy if the trust or other entity is formed or operated for the principal purpose of acquiring one or more policies; or
(ii)
a premium finance loan made for a policy by a lender to an owner on, before, or after the date of issuance of the policy if the owner:
(A)
receives on the date of the premium finance loan a guarantee of a future life settlement value of the policy; or
(B)
agrees on the date of the premium finance loan to sell the policy or any portion of the policy's death benefit on a date following the issuance of the policy. See Utah Code 31A-36-102
Life settlement producer: means a person licensed in the state as a life insurance producer that on behalf of an owner and for consideration offers or attempts to negotiate a life settlement between the owner and one or more life settlement providers. See Utah Code 31A-36-102
Life settlement provider: means a person other than an owner that enters into or effectuates a life settlement. See Utah Code 31A-36-102
Policy: means :
(a)
an individual or group life insurance policy;
(b)
an individual or group annuity policy;
(c)
a group life insurance certificate;
(d)
a group annuity certificate; or
(e)
a life insurance policy or an annuity policy, whether or not delivered or issued for delivery in Utah:
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
Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
(2)
establish standards for evaluating the reasonableness of payments under life settlements;
(3)
establish appropriate licensing requirements, fees, and standards for continued licensure for:
(a)
a life settlement provider; and
(b)
a life settlementproducer;
(4)
(a)
determine the amount and conditions of a bond or other assurance of financial responsibility required under Section 31A-23a-117 for a life settlement provider; and
(b)
require, determine the amount, or determine the conditions of an assurance of financial responsibility for a life settlement producer, including a bond or an errors and omissions insurancepolicy;
(5)
govern the relationship of insurers with a life settlement provider or life settlement producer during the settlement of a policy;
(6)
determine the specific disclosures required under Section 31A-36-108;
(7)
determine whether advertising for life settlements violates Section 31A-36-112;
(8)
determine the information to be provided to the commissioner under Section 31A-36-114 and the manner of providing the information;
(9)
determine additional acts or practices that are prohibited under Section 31A-36-111;
(10)
establish payment requirements for the payments in Section 31A-36-110; and
(11)
establish the filing procedure for the forms listed in Subsection 31A-36-105(1).
