Utah Code 31A-40-304. Small operation license

(1)

A professional employer organization may obtain a small operation license under this chapter if the professional employer organization:

Terms Used In Utah Code 31A-40-304

Application: means a document:

(a)

(i)	completed by an applicant to provide information about the risk to be insured; and

(ii)

that contains information that is used by the insurer to evaluate risk and decide whether to:

(A)

insure the risk under:

(I)	the coverage as originally offered; or

(II)	a modification of the coverage as originally offered; or

(B)	decline to insure the risk; or

(b)

used by the insurer to gather information from the applicant before issuance of an annuity contract. See Utah Code 31A-1-301

Client: means a person who enters into a professional employer agreement with a professional employer organization. See Utah Code 31A-40-102

Filing: when used as a noun, means an item required to be filed with the department including:

(a)

a policy;

(b)

a rate;

(c)

a form;

(d)	a document;

(e)

a plan;

(f)

a manual;

(g)	an application;

(h)

a report;

(i)	a certificate;

(j)	an endorsement;

(k)	an actuarial certification;

(l)	a licensee annual statement;

(m)	a licensee renewal application;

(n)	an advertisement;

(o)	a binder; or

(p)

an outline of coverage. See Utah Code 31A-1-301

Form: means one of the following prepared for general use:

(i)

a policy;

(ii)	a certificate;

(iii)

an application;

(iv)	an outline of coverage; or

(v)

an endorsement. See Utah Code 31A-1-301

License: includes a certificate of authority issued to an insurer. See Utah Code 31A-1-301

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

professional employer organization: means a person engaged in the business of providing a professional employer service. See Utah Code 31A-40-102

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)

files an application for a small operation license with the commissioner:

(i)	on a form and in a manner the commissioner shall determine by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and

(ii)	that includes the information and documentation the commissioner determines is necessary to show that the professional employer organization qualifies for a small operation license;

(b)

pays a small operation license fee determined in accordance with Section 31A-3-103, that is not refunded if the application:

(i)	is denied; or

(ii)	if incomplete, is never completed by the person filing the application;

(c)	is domiciled outside of this state;

(d)	is licensed or registered as a professional employer organization in another state;

(e)

does not maintain an office in this state or directly solicit a client that:

(i)	is domiciled in this state; or

(ii)	maintains a location within this state;

(f)	does not have at any time more than 50 covered employees employed or domiciled in this state; and

(g)	is not owned or directed by another professional employer organization operating in the state.

(2)

(a)	A small operation license is valid for one year.

(b)	A professional employer organization may annually renew a small operation license.

(3)	A professional employer organization with a small operation license under this chapter is not subject to Section 31A-40-205.

Enacted by Chapter 318, 2008 General Session

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