Utah Code 31A-40-305. Financial statements required for licensing
Current as of: 2024 | Check for updates
|
Other versions
(1)
Terms Used In Utah Code 31A-40-305
- Application: means a document:(10)(a)(10)(a)(i) completed by an applicant to provide information about the risk to be insured; and(10)(a)(ii) that contains information that is used by the insurer to evaluate risk and decide whether to:(10)(a)(ii)(A) insure the risk under:(10)(a)(ii)(A)(I) the coverage as originally offered; or(10)(a)(ii)(A)(II) a modification of the coverage as originally offered; or(10)(a)(ii)(B) decline to insure the risk; or(10)(b) used by the insurer to gather information from the applicant before issuance of an annuity contract. See Utah Code 31A-1-301
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Filed: means that a filing is:
(69)(a)(i) submitted to the department as required by and in accordance with applicable statute, rule, or filing order;(69)(a)(ii) received by the department within the time period provided in applicable statute, rule, or filing order; and(69)(a)(iii) accompanied by the appropriate fee in accordance with:(69)(a)(iii)(A) Section31A-3-103 ; or(69)(a)(iii)(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:
(70)(a) a policy;(70)(b) a rate;(70)(c) a form;(70)(d) a document;(70)(e) a plan;(70)(f) a manual;(70)(g) an application;(70)(h) a report;(70)(i) a certificate;(70)(j) an endorsement;(70)(k) an actuarial certification;(70)(l) a licensee annual statement;(70)(m) a licensee renewal application;(70)(n) an advertisement;(70)(o) a binder; or(70)(p) an outline of coverage. See Utah Code 31A-1-301- 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.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- License: includes a certificate of authority issued to an insurer. See Utah Code 31A-1-301
- Person: includes :
(146)(a) an individual;(146)(b) a partnership;(146)(c) a corporation;(146)(d) an incorporated or unincorporated association;(146)(e) a joint stock company;(146)(f) a trust;(146)(g) a limited liability company;(146)(h) a reciprocal;(146)(i) a syndicate; or(146)(j) another similar entity or combination of entities acting in concert. See Utah Code 31A-1-301- professional employer organization: means a person engaged in the business of providing a professional employer service. See Utah Code 31A-40-102
- Working capital: means the current assets minus the current liabilities of a professional employer organization determined in accordance with generally accepted accounting principles. See Utah Code 31A-40-102
(1)(a) A person that files a financial statement with an application for an initial license under Section 31A-40-302 shall file the professional employer organization‘s most recent audit as of the day the application is filed, except that the financial statement may not be older than 10 months from the day on which the application is filed.(1)(b) A person that files a financial statement to renew a license shall file the most recent financial statement of the professional employer organization as of the day the application for renewal is filed with the commission.(1)(c)(1)(c)(i) The person filing an application may apply for an extension with the commissioner if the request for an extension is accompanied by a letter from the person conducting the audit for the financial statement stating:(1)(c)(i)(A) the reason for the delay; and(1)(c)(i)(B) the anticipated date on which the audit will be completed.(1)(c)(ii) If a person complies with Subsection (1)(c)(i), the commissioner may grant an extension up to 30 days from the day on which the financial statement is due under this section.(1)(d) A professional employer organization may file a combined or consolidated financial statement if:(1)(d)(i) the professional employer organization is owned by or in common control with another person; and(1)(d)(ii) the combined or consolidated financial statement clearly identifies the following of the professional employer organization:(1)(d)(ii)(A) its working capital;(1)(d)(ii)(B) its assets; and(1)(d)(ii)(C) its liabilities.(2) A financial statement required by this chapter shall be:(2)(a) prepared in accordance with generally accepted accounting principles;(2)(b) audited by an independent certified public accountant licensed to practice in the jurisdiction in which the person conducting the audit is located; and(2)(c) without qualification as to the going concern status of the professional employer organization.(3) Notwithstanding the other provisions of this section, the commissioner shall license a professional employer organization that does not have sufficient operating history to have an audited financial statement on the basis of at least 12 months if:(3)(a) the professional employer organization complies with the other requirements for licensure, including Section 31A-40-205; and(3)(b) the person filing the application for license files a financial statement that is reviewed by a certified public accountant.