Utah Code 31A-40-401. Prohibited acts
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(1) A person may not:
Terms Used In Utah Code 31A-40-401
- Agency: means :(6)(a) a person other than an individual, including a sole proprietorship by which an individual does business under an assumed name; and(6)(b) an insurance organization licensed or required to be licensed under Section
31A-23a-301 ,31A-25-207 , or31A-26-209 . See Utah Code 31A-1-301- Application: means a document:
(10)(a)(10)(a)(i) completed by an applicant to provide information about the risk to be insured; and(10)(a)(ii) that contains information that is used by the insurer to evaluate risk and decide whether to:(10)(a)(ii)(A) insure the risk under:(10)(a)(ii)(A)(I) the coverage as originally offered; or(10)(a)(ii)(A)(II) a modification of the coverage as originally offered; or(10)(a)(ii)(B) decline to insure the risk; or(10)(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 :
(57)(a) an individual employed by an employer; or(57)(b) an individual who meets the requirements of Subsection (55)(b). See Utah Code 31A-1-301- Filing: when used as a noun, means an item required to be filed with the department including:
(70)(a) a policy;(70)(b) a rate;(70)(c) a form;(70)(d) a document;(70)(e) a plan;(70)(f) a manual;(70)(g) an application;(70)(h) a report;(70)(i) a certificate;(70)(j) an endorsement;(70)(k) an actuarial certification;(70)(l) a licensee annual statement;(70)(m) a licensee renewal application;(70)(n) an advertisement;(70)(o) a binder; or(70)(p) an outline of coverage. See Utah Code 31A-1-301- Insurance: includes :
(96)(b)(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;(96)(b)(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(96)(b)(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
- Order: means an order of the commissioner. See Utah Code 31A-1-301
- Person: includes :
(146)(a) an individual;(146)(b) a partnership;(146)(c) a corporation;(146)(d) an incorporated or unincorporated association;(146)(e) a joint stock company;(146)(f) a trust;(146)(g) a limited liability company;(146)(h) a reciprocal;(146)(i) a syndicate; or(146)(j) another similar entity or combination of entities acting in concert. See Utah Code 31A-1-301- Premium: includes , however designated:
(156)(b)(i) an assessment;(156)(b)(ii) a membership fee;(156)(b)(iii) a required contribution; or(156)(b)(iv) monetary consideration. See Utah Code 31A-1-301- Professional employer agreement: means a written contract by and between a client and a professional employer organization that provides for:
(15)(a) the coemployment of a covered employee;(15)(b) with respect to a covered employee, the allocation of a right or obligation of an employer between:(15)(b)(i) the client; and(15)(b)(ii) the professional employer organization; and(15)(c) the assumption of the obligations imposed by this chapter by:(15)(c)(i) the client; or(15)(c)(ii) the professional employer organization. See Utah Code 31A-40-102- 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
(1)(a) offer or provide a professional employer service if the person is not licensed under this chapter;(1)(b) use one of the following names if the person is not licensed under this chapter:(1)(b)(i) “administrative employer”;(1)(b)(ii) “employee leasing”;(1)(b)(iii) “PEO”;(1)(b)(iv) “professional employer organization”;(1)(b)(v) “staff leasing”; or(1)(b)(vi) other name that represents the provision of a professional employer service;(1)(c) knowingly provide false or fraudulent information to the commissioner:(1)(c)(i) in conjunction with an application to be licensed or to renew a license under this chapter; or(1)(c)(ii) in a report required under this chapter;(1)(d) knowingly make a material misrepresentation to the commissioner or other governmental agency;(1)(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;(1)(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;(1)(g)(1)(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;(1)(g)(ii) misrepresent that a self-funded medical plan it offers is other than self-funded; or(1)(g)(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;(1)(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:(1)(h)(i) compensation of a covered employee;(1)(h)(ii) a benefit of a covered employee;(1)(h)(iii) a payroll-related tax;(1)(h)(iv) an unemployment insurance contribution;(1)(h)(v) withholding of compensation for a covered employee;(1)(h)(vi) a workers’ compensation premium; or(1)(h)(vii) another assessment paid by a professional employer organization to or on behalf of a covered employee under a professional employer agreement;(1)(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;(1)(j) engage in a willful, fraudulent, or deceitful act that:(1)(j)(i) is by a professional employer organization, caused by a professional employer organization, or at a professional employer organization’s direction; and(1)(j)(ii) causes material injury to a client or covered employee;(1)(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(1)(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. - Application: means a document: