§ 31A-6a-103. Requirements for doing business.

(1) A service contract may not be issued, sold, or offered for sale in this state unless the service contract is insured under a service contract reimbursement insurance policy issued by:

(a) an insurer authorized to do business in this state; or

(b) a recognized surplus lines carrier.

(2)

(a) A service contract may not be issued, sold, or offered for sale unless the service contract provider completes the registration process described in this Subsection (2).

(b) To register, a service contract provider 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 that the service contract provider offers in this state; and

(iv) a copy of the service contract provider's reimbursement insurance policy.

(c) A service provider shall submit the information described in Subsection (2)(b) no less than 30 days before the day on which the service provider issues, sells, offers for sale, or uses a service contract or reimbursement insurance policy in this state.

(d) A service provider shall file any modification of the terms of a service contract 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:

(i) Subsections 31A-21-201(1) and 31A-23a-402(3); or

(ii) Chapter 19a, Utah Rate Regulation Act.

(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 for a service contract provider that complies with this chapter is exempt from the licensing requirements of this title.

(5) A service contract provider complying with this chapter is not required to comply with:

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

(b) Chapter 7, Nonprofit Health Service Insurance Corporations;

(c) Chapter 8, Health Maintenance Organizations and Limited Health Plans;

(d) Chapter 9, Insurance Fraternals;

(e) Chapter 10, Annuities;

(f) Chapter 11, Motor Clubs;

(g) Chapter 12, State Risk Management Fund;

(h) Chapter 13, Employee Welfare Funds and Plans;

(i) Chapter 14, Foreign Insurers;

(j) Chapter 19a, Utah Rate Regulation Act;

(k) Chapter 25, Third Party Administrators; and

(l) Chapter 28, Guaranty Associations.

Amended by Chapter 345, 2008 General Session