A service contract or vehicle protection product warranty may not be issued, sold, or offered for sale in this state unless the service contract or vehicle protection product warranty is insured under a reimbursement insurance policy issued by:
Terms Used In Utah Code 31A-6a-103
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
Contract: A legal written agreement that becomes binding when signed.
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
Insured: means a person to whom or for whose benefit an insurer makes a promise in an insurance policy and includes:
Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5
Rate: means :
(i)
the cost of a given unit of insurance; or
(ii)
for property or casualty insurance, that cost of insurance per exposure unit either expressed as:
(A)
a single number; or
(B)
a pure premium rate, adjusted before the application of individual risk variations based on loss or expense considerations to account for the treatment of:
reimbursement insurance policy: means a policy of insurance providing coverage for all obligations and liabilities incurred by the service contract provider or warrantor under the terms of the service contract or vehicle protection product warranty issued by the provider or warrantor. See Utah Code 31A-6a-101
Service contract: includes any contract or agreement to perform or reimburse the service contract holder for any one or more of the following services:
(i)
the repair or replacement of tires, wheels, or both on a motor vehicle damaged as a result of coming into contact with a road hazard;
(ii)
the removal of dents, dings, or creases on a motor vehicle that can be repaired using the process of paintless dent removal without affecting the existing paint finish and without replacing vehicle body panels, sanding, bonding, or painting;
(iii)
the repair of chips or cracks in or the replacement of a motor vehicle windshield as a result of damage caused by a road hazard, that is primary to the coverage offered by the motor vehicle owner's motor vehicle insurance policy; or
(iv)
the replacement of a motor vehicle key or key-fob if the key or key-fob becomes inoperable, lost, or stolen, except that the replacement of lost or stolen property is limited to only the replacement of a lost or stolen motor vehicle key or key-fob. See Utah Code 31A-6a-101
Service contract provider: means a person who issues, makes, provides, administers, sells or offers to sell a service contract, or who is contractually obligated to provide service under a service contract. See Utah Code 31A-6a-101
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
Surplus: means the excess of assets over the sum of paid-in capital and liabilities. See Utah Code 31A-1-301
Vehicle protection product warranty: means a written agreement by a warrantor that provides that if the vehicle protection product fails to prevent the theft of the motor vehicle, or aid in the recovery of the motor vehicle within a time period specified in the warranty, not exceeding 30 days after the day on which the motor vehicle is reported stolen, the warrantor will reimburse the warranty holder for incidental costs specified in the warranty, not exceeding $5,000, or in a specified fixed amount not exceeding $5,000. See Utah Code 31A-6a-101
Warrantor: means a person who is contractually obligated to the warranty holder under the terms of a vehicle protection product warranty. See Utah Code 31A-6a-101
(a)
an insurer authorized to do business in this state; or
(b)
a recognized surplus lines carrier.
(2)
(a)
A service contract or vehicle protection product warranty may not be issued, sold, or offered for sale unless the service contract provider or warrantor completes the registration process described in this Subsection (2).
(b)
To register, a service contract provider or warrantor shall submit to the department the following:
(i)
an application for registration;
(ii)
a fee established in accordance with Section 31A-3-103;
(iii)
a copy of any service contract or vehicle protection product warranty that the service contract provider or warrantor offers in this state; and
(iv)
a copy of the service contract provider’s or warrantor’s reimbursement insurance policy.
(c)
A service provider or warrantor shall submit the information described in Subsection (2)(b) no less than 30 days before the day on which the service provider or warrantor issues, sells, offers for sale, or uses a service contract, vehicle protection product warranty, or reimbursement insurance policy in this state.
(d)
A service provider or warrantor shall file any modification of the terms of a service contract, vehicle protection product warranty, or reimbursement insurance policy 30 days before the day on which it is used in this state.
(e)
A person complying with this chapter is not required to comply with:
Each year before March 1, a service provider shall pay an annual registration fee established in accordance with Section 31A-3-103.
(ii)
If a service provider does not pay the annual registration fee described in this Subsection (2)(f) before March 1:
(A)
the service provider’s registration is expired; and
(B)
the service provider may apply for registration in accordance with this Subsection (2).
(3)
(a)
Premiums collected on a service contract are not subject to premium taxes.
(b)
Premiums collected by an issuer of a reimbursement insurance policy are subject to premium taxes.
(4)
A person marketing, selling, or offering to sell a service contract or vehicle protection product warranty for a service contract provider or warrantor that complies with this chapter is exempt from the licensing requirements of this title.
(5)
A service contract provider or warrantor complying with this chapter is not required to comply with:
