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
Covered employee: means an individual who has a coemployment relationship with a client and a professional employer organization if the conditions of Section 31A-40-203 are met. See Utah Code 31A-40-102
Employee: means :
(a)
an individual employed by an employer; or
(b)
an individual who meets the requirements of Subsection (53)(b). See Utah Code 31A-1-301
Filing: when used as a noun, means an item required to be filed with the department including:
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
professional employer organization: means a person engaged in the business of providing a professional employer service. See Utah Code 31A-40-102
Professional employer service: means the service of entering into a coemployment relationship under this chapter under which all or a majority of the employees who provide a service to a client, or a division or work unit of a client, are covered employees. 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)
offer or provide a professional employer service if the person is not licensed under this chapter;
(b)
use one of the following names if the person is not licensed under this chapter:
(i)
“administrative employer”;
(ii)
“employee leasing”;
(iii)
“PEO”;
(iv)
“professional employer organization”;
(v)
“staff leasing”; or
(vi)
other name that represents the provision of a professional employer service;
(c)
knowingly provide false or fraudulent information to the commissioner:
(i)
in conjunction with an application to be licensed or to renew a license under this chapter; or
(ii)
in a report required under this chapter;
(d)
knowingly make a material misrepresentation to the commissioner or other governmental agency;
(e)
fail to make a filing with a state agency that is required by this chapter or the professional employer agreement within 30 days of the day on which the filing is due;
(f)
fail to make a payment to a state agency that is required by this chapter or the professional employer agreement within 30 days of the day on which the payment is due;
(g)
(i)
offer a covered employee a self-funded medical plan unless the self-funded medical plan is maintained for the sole benefit of covered employees;
(ii)
misrepresent that a self-funded medical plan it offers is other than self-funded; or
(iii)
offer to a covered employee a self-funded or partially self-funded medical plan without delivering to a plan participant a summary plan description that accurately describes the terms of the plan, including disclosure that the plan is self-funded or partially self-funded;
(h)
subject to Subsection (2), divert to another purpose or use other than as designated funds paid by a client to the professional employer organization and designated for:
(i)
compensation of a covered employee;
(ii)
a benefit of a covered employee;
(iii)
a payroll-related tax;
(iv)
an unemployment insurance contribution;
(v)
withholding of compensation for a covered employee;
(vi)
a workers’ compensation premium; or
(vii)
another assessment paid by a professional employer organization to or on behalf of a covered employee under a professional employer agreement;
(i)
provide a covered employee to a client under a provision, term, or condition that is not contained in a professional employer arrangement between the professional employer organization and client;
(j)
engage in a willful, fraudulent, or deceitful act that:
(i)
is by a professional employer organization, caused by a professional employer organization, or at a professional employer organization’s direction; and
(ii)
causes material injury to a client or covered employee;
(k)
fail to comply with a federal law or state law, to the extent state law is not preempted by federal law, regarding an employee benefit offered to an employee; or
(l)
willfully or recklessly violate this chapter or an order or rule issued by the commissioner under this chapter.
(2)
If a client defaults on a professional employer agreement or otherwise fails to pay a professional employer organization, the professional employer organization is not in violation of this section if the professional employer organization allocates the deficient payment to the portions of an invoice.
