Utah Code 31A-20-108. Single risk limitation
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(1) This section applies to all lines of insurance, including ocean marine and reinsurance, except:
Terms Used In Utah Code 31A-20-108
- Contract: A legal written agreement that becomes binding when signed.
- health insurance: means insurance providing:(84)(a)(i) a health care benefit; or(84)(a)(ii) payment of an incurred health care expense. See Utah Code 31A-1-301
- Insurance: includes :
(96)(b)(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;(96)(b)(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(96)(b)(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- Liability insurance: includes :
(112)(b)(i) vehicle liability insurance;(112)(b)(ii) residential dwelling liability insurance; and(112)(b)(iii) making inspection of, and issuing a certificate of inspection upon, an elevator, boiler, machinery, or apparatus of any kind when done in connection with insurance on the elevator, boiler, machinery, or apparatus. See Utah Code 31A-1-301- Mutual: means a mutual insurance corporation. See Utah Code 31A-1-301
- 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
- surety insurance: includes :
(185)(a) a guarantee against loss or damage resulting from the failure of a principal to pay or perform the principal's obligations to a creditor or other obligee;(185)(b) bail bond insurance; and(185)(c) fidelity insurance. See Utah Code 31A-1-301- Surplus: means the excess of assets over the sum of paid-in capital and liabilities. See Utah Code 31A-1-301
- Title insurance: means the insuring, guaranteeing, or indemnifying of an owner of real or personal property or the holder of liens or encumbrances on that property, or others interested in the property against loss or damage suffered by reason of liens or encumbrances upon, defects in, or the unmarketability of the title to the property, or invalidity or unenforceability of any liens or encumbrances on the property. See Utah Code 31A-1-301
(1)(a) title insurance;(1)(b) workers’ compensation insurance;(1)(c) occupational disease insurance;(1)(d) employers’ liability insurance; and(1)(e) health insurance.(2)(2)(a) Except as provided under Subsections (3) and (4) and under Section31A-20-109 , an insurer authorized to do an insurance business in Utah may not expose itself to loss on a single risk in an amount exceeding 10% of its capital and surplus.(2)(b) The commissioner may adopt rules to calculate surplus under this section.(2)(c) An insurer may deduct the portion of a risk reinsured by a reinsurance contract worthy of a reserve credit under Sections31A-17-404 through31A-17-404.4 in determining the limitation of risk under this section.(3)(3)(a) The commissioner may adopt rules, after hearings held with notice as required by law, to specify the maximum exposure to which an assessable mutual may subject itself.(3)(b) The rules described in Subsection (3)(a) may provide for classifications of insurance and insurers to preserve the solidity of insurers.(4) As used in this section, a “single risk” includes all losses reasonably expected as a result of the same event.(5) A company transacting fidelity or surety insurance may expose itself to a risk or hazard in excess of the amount prescribed in Subsection (2), if the commissioner, after considering all the facts and circumstances, approves the risk. - Insurance: includes :