Utah Code > Title 11 > Chapter 1 – Bonds and Warrants


§ 11-1-1	Auditor’s certificate to show obligation within debt limit
§ 11-1-2	Auditors may rely on certain facts
§ 11-1-3	False certificate — Class A misdemeanor
§ 11-1-4	Sinking fund — Investment
§ 11-1-5	Form, time, and place of payment — Held in trust
§ 11-1-6	Violation of act a misdemeanor

Terms Used In Utah Code > Title 11 > Chapter 1 - Bonds and Warrants

Accident and health insurance: means insurance to provide protection against economic losses resulting from:

(i)

a medical condition including:

(A)	a medical care expense; or

(B)	the risk of disability;

(ii)	accident; or

(iii)

sickness. See Utah Code 31A-1-301

Actuary: is a s defined by the commissioner by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act. See Utah Code 31A-1-301

Affected entity: means :

(i)	a county of the first or second class in whose unincorporated area the area proposed for annexation is located;

(ii)	a county of the third, fourth, fifth, or sixth class in whose unincorporated area the area proposed for annexation is located, if the area includes residents or commercial or industrial development;

(iii)

a special district under Title 17B, Limited Purpose Local Government Entities - Special Districts, or special service district under Title 17D, Chapter 1, Special Service District Act, whose boundary includes any part of an area proposed for annexation;

(iv)	a school district whose boundary includes any part of an area proposed for annexation, if the boundary is proposed to be adjusted as a result of the annexation; and

(v)

a municipality whose boundaries are within 1/2 mile of an area proposed for annexation. See Utah Code 10-2-401

Affiliate: means a person who controls, is controlled by, or is under common control with, another person. See Utah Code 31A-1-301

Agency: means :

(a)	a person other than an individual, including a sole proprietorship by which an individual does business under an assumed name; and

(b)

an insurance organization licensed or required to be licensed under Section 31A-23a-301, 31A-25-207, or 31A-26-209. See Utah Code 31A-1-301

Annexation petition: means a petition under Section 10-2-403 proposing the annexation to a municipality of a contiguous, unincorporated area that is contiguous to the municipality. See Utah Code 10-2-401

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

Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization

Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.

authorized insurer: means an insurer:

(i)	holding a valid certificate of authority to do an insurance business in this state; and

(ii)

transacting business as authorized by a valid certificate. See Utah Code 31A-1-301

business of insurance: includes :

(a)	providing health care insurance by an organization that is or is required to be licensed under this title;

(b)

providing a benefit to an employee in the event of a contingency not within the control of the employee, in which the employee is entitled to the benefit as a right, which benefit may be provided either:

(i)	by a single employer or by multiple employer groups; or

(ii)	through one or more trusts, associations, or other entities;

(c)

providing an annuity:

(i)	including an annuity issued in return for a gift; and

(ii)	except an annuity provided by a person specified in Subsections 31A-22-1305(2) and (3);

(d)	providing the characteristic services of a motor club;

(e)	providing another person with insurance;

(f)	making as insurer, guarantor, or surety, or proposing to make as insurer, guarantor, or surety, a contract or policy offering title insurance;

(g)

transacting or proposing to transact any phase of title insurance, including:

(i)	solicitation;

(ii)	negotiation preliminary to execution;

(iii)

execution of a contract of title insurance;

(iv)	insuring; and

(v)	transacting matters subsequent to the execution of the contract and arising out of the contract, including reinsurance;

(h)	transacting or proposing a life settlement; and

(i)

doing, or proposing to do, any business in substance equivalent to Subsections (95)(a) through (h) in a manner designed to evade this title. See Utah Code 31A-1-301

City: includes , depending on population, a metro township as defined in Section 10-3c-102. See Utah Code 68-3-12.5

classification: means the process of grouping risks with similar risk characteristics so that differences in anticipated costs may be recognized. See Utah Code 31A-19a-102

Commission: means a boundary commission established under Section 10-2-409 for the county in which the property that is proposed for annexation is located. See Utah Code 10-2-401

Company: means an entity that:

(i)	has written, issued, or reinsured a life insurance contract, accident and health insurance contract, or deposit-type contract in this state and has at least one such policy in force or on claim; or

(ii)

has written, issued, or reinsured a life insurance contract, accident and health insurance contract, or deposit-type contract in any state and is required to hold a certificate of authority to write life insurance, accident and health insurance, or deposit-type contracts in this state. See Utah Code 31A-17-501

Contract: A legal written agreement that becomes binding when signed.

control shares: means shares that except for this chapter would have voting power with respect to shares of an issuing public corporation that, when added to all other shares of the issuing public corporation owned by a person or in respect to which that person may exercise or direct the exercise of voting power, would entitle that person, immediately after acquisition of the shares (directly or indirectly, alone or as a part of a group), to exercise or direct the exercise of the voting power, including voting power pursuant to a revocable proxy, of the issuing public corporation in the election of directors within any of the following ranges of voting power:

(a)	1/5 or more but less than 1/3 of all voting power;

(b)	1/3 or more but less than a majority of all voting power; or

(c)

a majority or more of all voting power. See Utah Code 61-6-2

Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.

Corrective order: means an order issued by the commissioner specifying corrective action that the commissioner determines is required. See Utah Code 31A-17-601

County legislative body: means :Utah Code 68-3-12.5

Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.

Department: means the Insurance Department. See Utah Code 31A-1-301

depository institution: means a depository institution or a depository institution holding company as defined in Section 7-1-103. See Utah Code 61-6-5

Disability: means a physiological or psychological condition that partially or totally limits an individual's ability to:

(a)

perform the duties of:

(i)	that individual's occupation; or

(ii)	an occupation for which the individual is reasonably suited by education, training, or experience; or

(b)

perform two or more of the following basic activities of daily living:

(i)

eating;

(ii)	toileting;

(iii)

transferring;

(iv)	bathing; or

(v)

dressing. See Utah Code 31A-1-301

Domestic insurer: means an insurer organized under the laws of this state. See Utah Code 31A-1-301

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}

Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.

Expenses: means that portion of a rate attributable to:

(a)	acquisition;

(b)	field supervision;

(c)	collection expenses;

(d)	general expenses;

(e)

taxes;

(f)	licenses; and

(g)

fees. See Utah Code 31A-19a-102

Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.

Filed: means that a filing is:

(i)	submitted to the department as required by and in accordance with applicable statute, rule, or filing order;

(ii)	received by the department within the time period provided in applicable statute, rule, or filing order; and

(iii)

accompanied by the appropriate fee in accordance with:

(A)	Section 31A-3-103; or

(B)

rule. See Utah Code 31A-1-301

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

Foreign insurer: means an insurer domiciled outside of this state, including an alien insurer. 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

health insurance: means insurance providing:

(i)	a health care benefit; or

(ii)

payment of an incurred health care expense. See Utah Code 31A-1-301

Health organization: means :

(a)	an entity that is authorized under Chapter 7, Nonprofit Health Service Insurance Corporations, or Chapter 8, Health Maintenance Organizations and Limited Health Plans; and

(b)

that is:

(i)	a health maintenance organization;

(ii)	a limited health service organization;

(iii)

a dental or vision plan;

(iv)	a hospital, medical, and dental indemnity or service corporation; or

(v)

other managed care organization. See Utah Code 31A-17-601

Indemnity: means the payment of an amount to offset all or part of an insured loss. See Utah Code 31A-1-301

Individual: means a natural person. See Utah Code 31A-1-301

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

insurance company: means a person doing an insurance business as a principal including:

(i)	a fraternal benefit society;

(ii)	an issuer of a gift annuity other than an annuity specified in Subsections 31A-22-1305(2) and (3);

(iii)

a motor club;

(iv)	an employee welfare plan;

(v)	a person purporting or intending to do an insurance business as a principal on that person's own account; and

(vi)

a health maintenance organization. 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:

(i)	a policyholder;

(ii)	a subscriber;

(iii)

a member; and

(iv)

a beneficiary. See Utah Code 31A-1-301

Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. ^{Source: OCC}

interested shares: means the shares of an issuing public corporation in respect of which any of the following persons may exercise or direct the exercise of the voting power of the corporation, on or after the applicable record date, in the election of directors:

(a)	an acquiring person or member of a group with respect to a control share acquisition;

(b)	any officer of the issuing public corporation; or

(c)

any employee of the issuing public corporation who is also a director of the corporation. See Utah Code 61-6-4

issuing public corporation: means a corporation, other than a depository institution, that is organized under the laws of this state and that has:

(a)	100 or more shareholders;

(b)	its principal place of business, its principal office, or substantial assets within the state; and

(c)

(i)	more than 10% of its shareholders resident in the state;

(ii)	more than 10% of its shares owned by Utah residents; or

(iii)

10,000 shareholders resident in the state. See Utah Code 61-6-5

Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.

Land: includes :Utah Code 68-3-12.5

Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.

Life insurance: means :

(i)	insurance on a human life; and

(ii)

insurance pertaining to or connected with human life. See Utah Code 31A-1-301

Life or accident and health insurer: means :

(a)	an insurance company licensed to write life insurance, accident and health insurance, or both; or

(b)

a licensed property casualty insurer writing only disability insurance. See Utah Code 31A-17-601

Loss adjustment expense: means the expenses incurred by the insurer in the course of settling claims. See Utah Code 31A-19a-102

Managed care organization: means a person:

(a)	licensed as a health maintenance organization under Chapter 8, Health Maintenance Organizations and Limited Health Plans; or

(b)

(i)

licensed under:

(A)	Chapter 5, Domestic Stock and Mutual Insurance Corporations;

(B)	Chapter 7, Nonprofit Health Service Insurance Corporations; or

(C)	Chapter 14, Foreign Insurers; and

(ii)

that requires an enrollee to use, or offers incentives, including financial incentives, for an enrollee to use, network providers. See Utah Code 31A-1-301

Market: means the interaction between buyers and sellers consisting of a:

(i)	product component; and

(ii)

geographic component. See Utah Code 31A-19a-102

minimum required capital: means the capital that must be constantly maintained by a stock insurance corporation as required by statute. See Utah Code 31A-1-301

Mining protection area: means the same as that term is defined in Section 17-41-101. See Utah Code 10-2-401

Mortgage: The written agreement pledging property to a creditor as collateral for a loan.

Municipal: means of or relating to a municipality. See Utah Code 10-1-104

Municipality: means :

(a)	a city of the first class, city of the second class, city of the third class, city of the fourth class, city of the fifth class;

(b)	a town, as classified in Section 10-2-301; or

(c)

a metro township as that term is defined in Section 10-2a-403 unless the term is used in the context of authorizing, governing, or otherwise regulating the provision of municipal services. See Utah Code 10-1-104

Mutual: means a mutual insurance corporation. See Utah Code 31A-1-301

Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.

Order: means an order of the commissioner. See Utah Code 31A-1-301

Participating: means a plan of insurance under which the insured is entitled to receive a dividend representing a share of the surplus of the insurer. See Utah Code 31A-1-301

Person: means :Utah Code 68-3-12.5

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

Person: means an individual, corporation, partnership, organization, association, trust, governmental agency, or any other legal entity. See Utah Code 10-1-104

Planning advisory area: means the same as that term is defined in Section 17-27a-306. See Utah Code 10-2-401

Policy: includes a service contract issued by:

(i)	a motor club under Chapter 11, Motor Clubs;

(ii)	a service contract provided under Chapter 6a, Service Contracts; and

(iii)

a corporation licensed under:

(A)	Chapter 7, Nonprofit Health Service Insurance Corporations; or

(B)

Chapter 8, Health Maintenance Organizations and Limited Health Plans. See Utah Code 31A-1-301

Policyholder: means a person who controls a policy, binder, or oral contract by ownership, premium payment, or otherwise. See Utah Code 31A-1-301

Premium: includes , however designated:

(i)	an assessment;

(ii)	a membership fee;

(iii)

a required contribution; or

(iv)

monetary consideration. See Utah Code 31A-1-301

Principle-based valuation: means a reserve valuation that uses one or more methods or one or more assumptions determined by the insurer and is required to comply with Section 31A-17-515 as specified in the valuation manual. See Utah Code 31A-17-501

Proceeding: includes an action or special statutory proceeding. See Utah Code 31A-1-301

Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5

producer: means a person licensed or required to be licensed under the laws of this state to sell, solicit, or negotiate insurance. See Utah Code 31A-1-301

Property: includes both real and personal property. See Utah Code 68-3-12.5

Property and casualty insurer: means any insurance company licensed to write lines of insurance other than life but does not include a monoline mortgage guaranty insurer, financial guaranty insurer, or title insurer. See Utah Code 31A-17-601

Pure premium rate: means that portion of a rate that:

(a)	does not include provisions for profit or expenses, other than loss adjustment expenses; and

(b)

is based on historical aggregate losses and loss adjustment expenses that are:

(i)	adjusted through development to their ultimate value; and

(ii)

projected through trending to a future point in time. See Utah Code 31A-19a-102

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:

(I)

expenses;

(II)	profit; and

(III)

individual insurer variation in loss experience. See Utah Code 31A-1-301

Rate: means that cost of insurance per exposure unit either expressed as:

(i)	a single number; or

(ii)

as a pure premium rate, adjusted before any application of individual risk variations, based on loss or expense considerations to account for the treatment of:

(A)

expenses;

(B)	profit; and

(C)

individual insurer variation in loss experience. See Utah Code 31A-19a-102

Rate service organization: means a person who assists an insurer in rate making or filing by:

(i)	collecting, compiling, and furnishing loss or expense statistics;

(ii)	recommending, making, or filing rates or supplementary rate information; or

(iii)

advising about rate questions, except as an attorney giving legal advice. See Utah Code 31A-1-301

RBC: means risk-based capital. See Utah Code 31A-17-601

RBC instructions: means the RBC report including the National Association of Insurance Commissioner's risk-based capital instructions that govern the year for which an RBC report is prepared. See Utah Code 31A-17-601

RBC plan: means a comprehensive financial plan containing the elements specified in Subsection 31A-17-603(2). See Utah Code 31A-17-601

RBC report: means the report required in Section 31A-17-602. See Utah Code 31A-17-601

real property: includes :Utah Code 68-3-12.5

Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.

Reinsurance: means an insurance transaction where an insurer, for consideration, transfers any portion of the risk it has assumed to another insurer. See Utah Code 31A-1-301

Riskiness: means the variability of results around the average expected result. See Utah Code 31A-19a-102

Rural real property: includes any portion of private real property, if the private real property:

(A)	qualifies as rural real property under Subsection (1)(j)(i); and

(B)

consists of more than 1,500 total acres. See Utah Code 10-2-401

Signature: includes a name, mark, or sign written with the intent to authenticate an instrument or writing. See Utah Code 68-3-12.5

Specified county: means a county of the second, third, fourth, fifth, or sixth class. See Utah Code 10-2-401

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

Statute: A law passed by a legislature.

Subpoena: A command to a witness to appear and give testimony.

Supplementary rate information: includes one or more of the following needed to determine the applicable rate in effect or to be in effect:

(a)	a manual or plan of rates;

(b)	a statistical plan;

(c)	a classification;

(d)	a rating schedule;

(e)	a minimum premium;

(f)	a policy fee;

(g)	a rating rule;

(h)	a rate-related underwriting rule;

(i)	a rate modification plan; or

(j)

any other similar information prescribed by rule of the commissioner as supplementary rate information. See Utah Code 31A-19a-102

Supporting information: includes one or more of the following:

(a)	data demonstrating actuarial justification for the basic rate factors, classifications, expenses, and profit factors used by the filer;

(b)	the experience and judgment of the filer;

(c)	the experience or data of other insurers or rate service organizations relied upon by the filer;

(d)	the interpretation of any other data relied upon by the filer;

(e)	descriptions of methods used in making the rates; or

(f)

any other information defined by rule as supporting information that is required to be filed. See Utah Code 31A-19a-102

Surplus: means the excess of assets over the sum of paid-in capital and liabilities. See Utah Code 31A-1-301

Total adjusted capital: means the sum of an insurer's or health organization's statutory capital and surplus as determined in accordance with:

(a)	the statutory accounting applicable to the annual financial statements required to be filed under Section 31A-4-113; and

(b)

another item provided by the RBC instructions, as RBC instructions is defined in Section 31A-17-601. See Utah Code 31A-1-301

Town: means a municipality classified by population as a town under Section 10-2-301. See Utah Code 10-1-104

Trending: means any procedure for projecting, for the period during which the policies are to be effective:

(a)	losses to the average date of loss; or

(b)

premiums or exposures to the average date of writing. See Utah Code 31A-19a-102

Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. ^{Source: OCC}

Trustee: A person or institution holding and administering property in trust.

Unincorporated: means not within a municipality. See Utah Code 10-1-104

Valuation manual: means the manual of valuation instructions adopted in accordance with Section 31A-17-514. See Utah Code 31A-17-501

Writing: includes :Utah Code 68-3-12.5