Utah Admin. Code 590-171-3

Current through Bulletin 2024-19, October 1, 2024

Section R590-171-3 - Definitions

Terms used in this rule are defined in Section 31A-1-301. Additional terms are defined as follows:

(1)

(a) "Exempt commercial purchaser" means a person purchasing commercial insurance from the surplus lines market that meets the following requirements:

(i) the person employs or retains a qualified risk manager to negotiate insurance coverage;

(ii) the person paid aggregate nationwide commercial property and casualty insurance premiums of more than $100,000 in the immediately preceding 12 months; and

(iii) the person meets one or more of the following criteria:

(A) the person possesses a net worth of more than $20,000,000 as adjusted under Subsection (1)(b);

(B) the person generates annual revenues of more than $50,000,000 as adjusted under Subsection (1)(b);

(C) the person employs more than 500 full-time or full-time equivalent employees per individual insured or is a member of an affiliated group employing more than 1,000 employees in the aggregate;

(D) the person is a not-for-profit organization or public entity generating annual budgeted expenditures of at least $30,000,000 as adjusted under Subsection (1)(b); or

(E) the person is a municipality with a population of more than 50,000 persons.

(b) The amounts in Subsections (1)(a)(iii)(A), (1)(a)(iii)(B), and (1)(a)(iii)(D) are adjusted each fifth January beginning January 1, 2015, to reflect the percentage change for such five-year period in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.

(2) "Export list" means a list, published and determined by the commissioner, of coverages and classes of insurance for which no general market exists with an admitted insurer.

(3) "Surplus lines insurer" means a non-admitted insurer that may place business in Utah with a surplus lines producer.

(4) "Surplus lines producer" means a licensee holding a license type described in Subsection 31A-23a-106(2)(b).

(5) "Surplus lines transaction" means:

(a) the solicitation, negotiation, procurement, or effectuation with a surplus lines insurer of an insurance contract or certificate of insurance; or

(b) a renewal, cancellation, endorsement, audit, or other adjustment to an insurance contract.

Utah Admin. Code R590-171-3

Amended by Utah State Bulletin Number 2024-03, effective 1/24/2024