Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
Insurance: includes :
(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;
(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
Lien: A claim against real or personal property in satisfaction of a debt.
Member: means a person having membership rights in an insurance corporation. See Utah Code 31A-1-301
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:
Surplus: means the excess of assets over the sum of paid-in capital and liabilities. See Utah Code 31A-1-301
(a)
The requirements of Subsections 31A-5-211(1) through (4) apply to fraternals with respect to the amount of permanent surplus required of the fraternal.
(b)
For purposes of Subsection (1)(a):
(i)
wherever the word “mutual” appears in Subsections 31A-5-211(1) through (4), it means “fraternal;” and
Every fraternal shall include in its laws a provision that if the financial position of the fraternal becomes impaired, the board of directors or the supreme governing body may determine on an equitable basis the proportionate share of the deficiency of each member of the fraternal.
(b)
The member may then:
(i)
pay the member’s share of the deficiency;
(ii)
accept the imposition of a lien on the certificate of insurance, to bear interest at the rate charged on policy loans under the certificate, compounded annually until paid; or
(iii)
accept a proportionate reduction in benefits under the certificate.
(c)
The fraternal may specify the manner of the election and which alternative is to be presumed if no election is made.
(3)
Except as provided in Subsection (2), no fraternal may operate on an assessment basis.
Amended by Chapter 9, 1996 Special Session 2 Amended by Chapter 9, 1996 Special Session 2