Section 106 – Continuation of the association — Association duties — Allocation of assessments — Not agency of state.

• (1)
  • (a) There is continued under this part the nonprofit legal entity known as the Utah Life and Health Insurance Guaranty Association created under former provisions of this title.
  • (b) All member insurers shall be and remain members of the association as a condition of their authority to transact insurance in this state.
  • (c) The association shall:
    • (i) perform its functions under the plan of operation established and approved under Section 31A-28-110; and
    • (ii) exercise the association’s powers through the board of directors.
  • (d) The association shall allocate assessments among the following classes or subclasses:
    • (i) the life insurance and annuity class, which includes the following subclasses:
      • (A) the life insurance subclass;
      • (B) the annuity subclass:
        • (I) which includes annuity contracts owned by a governmental retirement plan, or its trustee, established under Section 401, 403(b), or 457, Internal Revenue Code; and
        • (II) otherwise excludes unallocated annuities; and
      • (C) the unallocated annuity subclass, which excludes contracts owned by a governmental retirement benefit plan, or its trustee, established under Sections 401, 403(b), or 457, Internal Revenue Code; and
    • (ii) the accident and health insurance class.

• (2)
  • (a) The association shall:
    • (i) come under the immediate supervision of the commissioner; and
    • (ii) be subject to the applicable provisions of the insurance laws of this state.
  • (b) Meetings or records of the association may be opened to the public upon majority vote of the board of directors.

• (3) The association is not an agency of the state.

Amended by Chapter 391, 2018 General Session