(1) This part provides coverage for a policy or contract specified in Subsections (6) and (7) to a person who is:

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Terms Used In Utah Code 31A-28-103

  • Accident and health insurance: means insurance to provide protection against economic losses resulting from:
              (1)(a)(i) a medical condition including:
                   (1)(a)(i)(A) a medical care expense; or
                   (1)(a)(i)(B) the risk of disability;
              (1)(a)(ii) accident; or
              (1)(a)(iii) sickness. See Utah Code 31A-1-301
  • Affiliate: means a person who controls, is controlled by, or is under common control with, another person. See Utah Code 31A-1-301
  • Annuity: means an agreement to make periodical payments for a period certain or over the lifetime of one or more individuals if the making or continuance of all or some of the series of the payments, or the amount of the payment, is dependent upon the continuance of human life. See Utah Code 31A-1-301
  • Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
  • 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.
  • Association: means the Utah Life and Health Insurance Guaranty Association continued under Section 31A-28-106. See Utah Code 31A-28-105
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Benefit plan: means a specific benefit plan of:
         (3)(a) employees;
         (3)(b) a union; or
         (3)(c) an association of natural persons. See Utah Code 31A-28-105
  • Cash surrender value: means the cash surrender value without reduction for an outstanding policy loan or surrender charge. See Utah Code 31A-28-105
  • Certificate: means evidence of insurance given to:
         (23)(a) an insured under a group insurance policy; or
         (23)(b) a third party. See Utah Code 31A-1-301
  • Contract: A legal written agreement that becomes binding when signed.
  • contract owner: means a person who:
              (16)(a)(i) is identified as the legal owner under the terms of the policy or contract; or
              (16)(a)(ii) is otherwise vested with legal title to the policy or contract through a valid assignment:
                   (16)(a)(ii)(A) completed in accordance with the terms of the policy or contract; and
                   (16)(a)(ii)(B) properly recorded as the owner on the books of the insurer. See Utah Code 31A-28-105
  • Contractual obligation: means an obligation under any of the following for which coverage is provided under Section 31A-28-103:
         (7)(a) a policy or contract;
         (7)(b) a certificate under a group policy or contract; or
         (7)(c) a portion of a policy or contract. See Utah Code 31A-28-105
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Corporation: means an insurance corporation, except when referring to:
              (34)(a)(i) a corporation doing business:
                   (34)(a)(i)(A) as:
                        (34)(a)(i)(A)(I) an insurance producer;
                        (34)(a)(i)(A)(II) a surplus lines producer;
                        (34)(a)(i)(A)(III) a limited line producer;
                        (34)(a)(i)(A)(IV) a consultant;
                        (34)(a)(i)(A)(V) a managing general agent;
                        (34)(a)(i)(A)(VI) a reinsurance intermediary;
                        (34)(a)(i)(A)(VII) a third party administrator; or
                        (34)(a)(i)(A)(VIII) an adjuster; and
                   (34)(a)(i)(B) under:
                        (34)(a)(i)(B)(I) Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries;
                        (34)(a)(i)(B)(II) Chapter 25, Third Party Administrators; or
                        (34)(a)(i)(B)(III) Chapter 26, Insurance Adjusters; or
              (34)(a)(ii) a noninsurer that is part of a holding company system under Chapter 16, Insurance Holding Companies. See Utah Code 31A-1-301
  • Coverage date: means the date on which the association becomes responsible for the obligations of a member insurer. See Utah Code 31A-28-105
  • Covered portion: means :
              (10)(a)(i) for a covered policy that has a cash surrender value, a fraction calculated with:
                   (10)(a)(i)(A) the numerator being the lesser of:
                        (10)(a)(i)(A)(I)
                             (10)(a)(i)(A)(I)(Aa) $200,000 for a life insurance policy; or
                             (10)(a)(i)(A)(I)(Bb) $250,000 for a covered policy that is not a life insurance policy; or
                        (10)(a)(i)(A)(II) the cash surrender value of the policy; and
                   (10)(a)(i)(B) the denominator being the cash surrender value of the policy; and
              (10)(a)(ii) for a covered policy that does not have a cash surrender value, a fraction calculated with:
                   (10)(a)(ii)(A) the numerator being the lesser of:
                        (10)(a)(ii)(A)(I)
                             (10)(a)(ii)(A)(I)(Aa) $200,000 for a life insurance policy; and
                             (10)(a)(ii)(A)(I)(Bb) $250,000 for a covered policy that is not a life insurance policy; or
                        (10)(a)(ii)(A)(II) the policy's minimum statutory reserve; and
                   (10)(a)(ii)(B) the denominator being the policy's minimum statutory reserve. See Utah Code 31A-28-105
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Enrollee: includes an insured. See Utah Code 31A-1-301
  • Exclusion: means for the purposes of accident and health insurance that an insurer does not provide insurance coverage, for whatever reason, for one of the following:
         (67)(a) a specific physical condition;
         (67)(b) a specific medical procedure;
         (67)(c) a specific disease or disorder; or
         (67)(d) a specific prescription drug or class of prescription drugs. See Utah Code 31A-1-301
  • Extra-contractual claim: includes a claim relating to:
         (11)(a) bad faith in the payment of a claim;
         (11)(b) punitive or exemplary damages; or
         (11)(c) attorney fees and costs. See Utah Code 31A-28-105
  • 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
  • Form: means one of the following prepared for general use:
              (74)(a)(i) a policy;
              (74)(a)(ii) a certificate;
              (74)(a)(iii) an application;
              (74)(a)(iv) an outline of coverage; or
              (74)(a)(v) an endorsement. See Utah Code 31A-1-301
  • Health benefit plan: means a policy, contract, certificate, or agreement offered or issued by an insurer to provide, deliver, arrange for, pay for, or reimburse any of the costs of health care, including major medical expense coverage. See Utah Code 31A-1-301
  • Health care: means any of the following intended for use in the diagnosis, treatment, mitigation, or prevention of a human ailment or impairment:
         (83)(a) a professional service;
         (83)(b) a personal service;
         (83)(c) a facility;
         (83)(d) equipment;
         (83)(e) a device;
         (83)(f) supplies; or
         (83)(g) medicine. See Utah Code 31A-1-301
  • 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
  • Impaired insurer: means a member insurer that is not an insolvent insurer and:
         (12)(a) is considered by the commissioner to be hazardous pursuant to this title; or
         (12)(b) is placed under an order of rehabilitation or conservation by a court of competent jurisdiction. See Utah Code 31A-28-105
  • Individual: means a natural person. See Utah Code 31A-1-301
  • insolvent: means that:
         (95)(a) an insurer is unable to pay the insurer's obligations as the obligations are due;
         (95)(b) an insurer's total adjusted capital is less than the insurer's mandatory control level RBC under Subsection 31A-17-601(8)(c); or
         (95)(c) an insurer's admitted assets are less than the insurer's liabilities. See Utah Code 31A-1-301
  • Insolvent insurer: means a member insurer that is placed under an order of liquidation by a court of competent jurisdiction with a finding of insolvency. See Utah Code 31A-28-105
  • 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
  • Insured: means a person to whom or for whose benefit an insurer makes a promise in an insurance policy and includes:
              (103)(a)(i) a policyholder;
              (103)(a)(ii) a subscriber;
              (103)(a)(iii) a member; and
              (103)(a)(iv) a beneficiary. See Utah Code 31A-1-301
  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
  • Life insurance: means :
              (114)(a)(i) insurance on a human life; and
              (114)(a)(ii) insurance pertaining to or connected with human life. See Utah Code 31A-1-301
  • Member: means a person having membership rights in an insurance corporation. See Utah Code 31A-1-301
  • Member insurer: includes an insurer whose license or certificate of authority in this state may have been:
              (14)(b)(i) suspended;
              (14)(b)(ii) revoked;
              (14)(b)(iii) not renewed; or
              (14)(b)(iv) voluntarily withdrawn. See Utah Code 31A-28-105
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Participating: means a plan of insurance under which the insured is entitled to receive a dividend representing a share of the surplus of the 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
  • Plan sponsor: means the same as that term is defined in Utah Code 31A-1-301
  • Policy: includes a service contract issued by:
              (150)(b)(i) a motor club under Chapter 11, Motor Clubs;
              (150)(b)(ii) a service contract provided under Chapter 6a, Service Contracts; and
              (150)(b)(iii) a corporation licensed under:
                   (150)(b)(iii)(A) Chapter 7, Nonprofit Health Service Insurance Corporations; or
                   (150)(b)(iii)(B) Chapter 8, Health Maintenance Organizations and Limited Health Plans. See Utah Code 31A-1-301
  • Premium: includes , however designated:
              (156)(b)(i) an assessment;
              (156)(b)(ii) a membership fee;
              (156)(b)(iii) a required contribution; or
              (156)(b)(iv) monetary consideration. See Utah Code 31A-1-301
  • Rate: means :
              (163)(a)(i) the cost of a given unit of insurance; or
              (163)(a)(ii) for property or casualty insurance, that cost of insurance per exposure unit either expressed as:
                   (163)(a)(ii)(A) a single number; or
                   (163)(a)(ii)(B) a pure premium rate, adjusted before the application of individual risk variations based on loss or expense considerations to account for the treatment of:
                        (163)(a)(ii)(B)(I) expenses;
                        (163)(a)(ii)(B)(II) profit; and
                        (163)(a)(ii)(B)(III) individual insurer variation in loss experience. 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
  • Resident: means a person:
              (21)(a)(i) to whom a contractual obligation is owed; and
              (21)(a)(ii) who resides in this state on the earlier of the date a member insurer is an:
                   (21)(a)(ii)(A) impaired insurer; or
                   (21)(a)(ii)(B) insolvent insurer. See Utah Code 31A-28-105
  • Rider: means an endorsement to:
         (173)(a) an insurance policy; or
         (173)(b) an insurance certificate. See Utah Code 31A-1-301
  • Security: means a:
              (176)(a)(i) note;
              (176)(a)(ii) stock;
              (176)(a)(iii) bond;
              (176)(a)(iv) debenture;
              (176)(a)(v) evidence of indebtedness;
              (176)(a)(vi) certificate of interest or participation in a profit-sharing agreement;
              (176)(a)(vii) collateral-trust certificate;
              (176)(a)(viii) preorganization certificate or subscription;
              (176)(a)(ix) transferable share;
              (176)(a)(x) investment contract;
              (176)(a)(xi) voting trust certificate;
              (176)(a)(xii) certificate of deposit for a security;
              (176)(a)(xiii) certificate of interest of participation in an oil, gas, or mining title or lease or in payments out of production under such a title or lease;
              (176)(a)(xiv) commodity contract or commodity option;
              (176)(a)(xv) certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase any of the items listed in Subsections (176)(a)(i) through (xiv); or
              (176)(a)(xvi) another interest or instrument commonly known as a security. See Utah Code 31A-1-301
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
  • State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
  • Structured settlement annuity: means an annuity purchased to fund periodic payments for a plaintiff or other claimant in payment for personal injury suffered by the plaintiff or other claimant. See Utah Code 31A-28-105
  • Structured settlement factoring transaction: means the same as that term is defined in Utah Code 31A-28-105
  • Supplemental contract: means a written agreement entered into for the distribution of proceeds under a policy or contract for:
         (24)(a) life insurance;
         (24)(b) accident and health insurance; or
         (24)(c) annuity. See Utah Code 31A-28-105
  • Unallocated annuity contract: means an annuity contract or group annuity certificate that is not issued to and owned by an individual, except to the extent of any annuity benefits guaranteed to an individual by an insurer under the contract or certificate. See Utah Code 31A-28-105
     (1)(a) except for a nonresident certificate holder under a group policy or contract, a beneficiary, assignee, or payee of a person covered by Subsection (1)(b), including a health care provider rendering services covered under an accident and health insurance policy or certificate, regardless of where that person resides; or
     (1)(b) an owner of or a certificate holder or enrollee under a policy or contract, other than an unallocated annuity contract or structured settlement annuity, if the owner, enrollee, or certificate holder is:

          (1)(b)(i) a resident of Utah; or
          (1)(b)(ii) not a resident of Utah, but only if:

               (1)(b)(ii)(A) the member insurer that issued the policy or contract is domiciled in this state;
               (1)(b)(ii)(B) the state in which the person resides has an association similar to the association created by this part; and
               (1)(b)(ii)(C) the person is not eligible for coverage by an association in any other state because the insurer was not licensed in the other states at the time specified in the other states’ guaranty association’s laws.
(2) For an unallocated annuity contract specified in Subsections (6) and (7):

     (2)(a) Subsection (1) does not apply; and
     (2)(b) except as provided in Subsections (4) and (5), this part provides coverage for the unallocated annuity contract specified in Subsection (2) to a person who is:

          (2)(b)(i) the owner of the unallocated annuity contract if the contract is issued to or in connection with a specific benefit plan whose plan sponsor has its principal place of business in this state; or
          (2)(b)(ii) an owner of an unallocated annuity contract issued to or in connection with a government lottery if the owner is a resident.
(3) For a structured settlement annuity specified in Subsections (6) and (7):

     (3)(a) Subsection (1) does not apply; and
     (3)(b) except as provided in Subsections (4) and (5), this part provides coverage for the structured settlement annuity specified in Subsections (6) and (7) to a person who is a payee under a structured settlement annuity, or beneficiary of a payee if the payee is deceased, if the payee:

          (3)(b)(i) is a resident, regardless of where the contract owner resides;
          (3)(b)(ii) is not a resident, but only if one or more of the contract owners of the structured settlement annuity is a resident, and the payee, beneficiary, or contract owner is not eligible for coverage by the association of the state in which the payee or contract owner resides; or
          (3)(b)(iii) is not a resident, but only if:

               (3)(b)(iii)(A) no contract owner of the structured settlement annuity is a resident;
               (3)(b)(iii)(B) the insurer that issued the structured settlement annuity is domiciled in this state;
               (3)(b)(iii)(C) the state in which the contract owner resides has an association similar to the association created by this part; and
               (3)(b)(iii)(D) the payee, beneficiary, or the contract owner is not eligible for coverage by the association of the state in which the payee or contract owner resides.
(4) This part may not provide coverage for a policy or contract specified in Subsections (6) and (7) to a person who:

     (4)(a) is a payee or beneficiary of a contract owner resident of this state, if the payee or beneficiary is afforded any coverage by the association of another state;
     (4)(b) is covered under Subsection (2), if any coverage is provided to the person by the association of another state; or
     (4)(c) acquires rights to receive payments through a structured settlement factoring transaction, regardless of whether the transaction occurred before or after 26 U.S.C. § 5891(c)(3)(A) became effective.
(5)

     (5)(a) This part provides coverage for a policy or contract specified in Subsections (6) and (7) to a person who is a resident of this state and, in special circumstances, to a nonresident.
     (5)(b) To avoid duplicate coverage, if a person who would otherwise receive coverage under this part is provided coverage under the laws of any other state, the person may not be provided coverage under this part.
     (5)(c) In determining the application of this Subsection (5) when a person could be covered by the association of more than one state, whether as an owner, payee, enrollee, beneficiary, or assignee, this part shall be construed in conjunction with other state laws to result in coverage by only one association.
(6)

     (6)(a) Except as limited by this part, this part provides coverage to a person specified in Subsections (1) through (5) for:

          (6)(a)(i) a direct nongroup life insurance, direct accident and health insurance, or direct annuity policy or contract;
          (6)(a)(ii) a supplemental contract to a policy or contract described in Subsection (6)(a)(i);
          (6)(a)(iii) a certificate under a direct group policy or contract; and
          (6)(a)(iv) an unallocated annuity contract issued by a member insurer.
     (6)(b) For purposes of Subsection (6)(a), an annuity contract and a certificate under a group annuity contract includes:

          (6)(b)(i) a guaranteed investment contract;
          (6)(b)(ii) a deposit administration contract;
          (6)(b)(iii) an unallocated funding agreement;
          (6)(b)(iv) an allocated funding agreement;
          (6)(b)(v) a structured settlement annuity;
          (6)(b)(vi) an annuity issued to or in connection with a government lottery; and
          (6)(b)(vii) an immediate or deferred annuity contract.
(7) This part does not provide coverage for:

     (7)(a) a portion of a policy or contract:

          (7)(a)(i) not guaranteed by the member insurer; or
          (7)(a)(ii) under which the risk is borne by the policy or contract owner;
     (7)(b) a policy or contract of reinsurance, unless:

          (7)(b)(i) an assumption certificate is issued before the coverage date;
          (7)(b)(ii) the assumption certificate required by Subsection (7)(b)(i) is in effect pursuant to the reinsurance policy or contract; and
          (7)(b)(iii) the reinsurance contract is approved by the appropriate regulatory authorities;
     (7)(c) except as provided in Subsection (11)(e), a portion of a policy or contract to the extent that the rate of interest on which the policy or contract is based, or the interest rate, crediting rate, or similar factor determined by use of an index or other external reference stated in the policy or contract employed in calculating returns or changes in value exceeds:

          (7)(c)(i) a rate of interest determined by subtracting two percentage points from Moody’s Corporate Bond Yield Average averaged:

               (7)(c)(i)(A) over the period of four years before the coverage date with respect to the policy or contract; or
               (7)(c)(i)(B) for the corresponding lesser period if the policy or contract was issued less than four years before the association became obligated; or
          (7)(c)(ii) a rate of interest determined by subtracting three percentage points from Moody’s Corporate Bond Yield Average as most recently available as determined on or after the earlier of:

               (7)(c)(ii)(A) the day on which the member insurer becomes an impaired insurer; or
               (7)(c)(ii)(B) the day on which the member insurer becomes an insolvent insurer;
     (7)(d) a portion of a policy or contract issued to a plan or program of an employer, association, or other person to provide life, accident and health, or annuity benefits to its employees, members, or others, to the extent that the plan or program is self-funded or uninsured, including benefits payable by an employer, association, or other person under:

          (7)(d)(i) a multiple employer welfare arrangement, as that term is defined in 29 U.S.C. § 1002;
          (7)(d)(ii) a minimum premium group insurance plan;
          (7)(d)(iii) a stop-loss group insurance plan; or
          (7)(d)(iv) an administrative services only contract;
     (7)(e) a portion of a policy or contract to the extent that it provides:

          (7)(e)(i) a dividend;
          (7)(e)(ii) an experience rating credit;
          (7)(e)(iii) voting rights; or
          (7)(e)(iv) payment of a fee or allowance to any person, including the policy or contract owner, in connection with the service to or administration of the policy or contract;
     (7)(f) an unallocated annuity contract issued to or in connection with a benefit plan protected under the federal Pension Benefit Guaranty Corporation, regardless of whether the federal Pension Benefit Guaranty Corporation has yet become liable to make any payment with respect to the benefit plan;
     (7)(g) a portion of an unallocated annuity contract that is not issued to or in connection with:

          (7)(g)(i) a specific benefit plan of:

               (7)(g)(i)(A) employees;
               (7)(g)(i)(B) a union; or
               (7)(g)(i)(C) an association of natural persons; or
          (7)(g)(ii) a government lottery;
     (7)(h) a portion of a policy or contract to the extent that the assessment required by Section 31A-28-109 that applies to the policy or contract is preempted by federal or state law;
     (7)(i) an obligation that does not arise under the express written terms of the policy or contract issued by a member insurer to the enrollee, certificate holder, contract owner, or policy owner, including:

          (7)(i)(i) a claim based on marketing materials;
          (7)(i)(ii) a claim based on a side letter, rider, or other document that is issued by the member insurer without meeting applicable policy or contract form filing or approval requirements;
          (7)(i)(iii) a misrepresentation regarding a policy or contract benefit;
          (7)(i)(iv) an extra-contractual claim;
          (7)(i)(v) a claim for penalties; or
          (7)(i)(vi) a claim for consequential or incidental damages;
     (7)(j) a contract that establishes the member insurer’s obligations to provide a book value accounting guaranty for defined contribution benefit plan participants by reference to a portfolio of assets that is owned by a person that is:

          (7)(j)(i)

               (7)(j)(i)(A) the benefit plan; or
               (7)(j)(i)(B) the benefit plan’s trustee; and
          (7)(j)(ii) not an affiliate of the member insurer;
     (7)(k) a portion of a policy or contract to the extent it provides for interest or other changes in value:

          (7)(k)(i) to be determined by the use of an index or other external reference stated in the policy or contract; and
          (7)(k)(ii) as of the date the member insurer becomes an impaired or insolvent insurer, whichever occurs earlier:

               (7)(k)(ii)(A) that have not been credited to the policy or contract; or
               (7)(k)(ii)(B) as to which the policy or contract owner’s rights are subject to forfeiture;
     (7)(l) a policy or contract offering hospital, medical, prescription drug, or other health care benefit pursuant to:

          (7)(l)(i) Part C or D of Title XVIII of the Social Security Act, 42 U.S.C. § 1395 et seq.;
          (7)(l)(ii) Title XIX of the Social Security Act, 42 U.S.C. § 1396 et seq.; or
          (7)(l)(iii) Title XXI of the Social Security Act, 42 U.S.C. § 1397aa et seq.; or
     (7)(m) a structured settlement annuity benefit to which a payee or beneficiary has transferred the payee or beneficiary’s rights in a structured settlement factoring transaction, regardless of whether the transaction occurred before or after 26 U.S.C. § 5891(c)(3)(A) became effective.
(8) The benefits for which the association may become liable may not exceed the lesser of:

     (8)(a) the contractual obligations for which the member insurer is liable or would have been liable if it were not an impaired or insolvent insurer;
     (8)(b) with respect to one life, regardless of the number of policies or contracts:

          (8)(b)(i) for a life insurance policy:

               (8)(b)(i)(A) if the insured died before the coverage date, $500,000 of the death benefit;
               (8)(b)(i)(B) if the insurer received a valid request for cash surrender before the coverage date but has not paid the cash surrender value before the coverage date, $200,000 of cash surrender benefits; or
               (8)(b)(i)(C) if neither Subsection (8)(b)(i)(A) nor (B) applies, the covered portion of each benefit provided under the policy;
          (8)(b)(ii) for an annuity contract, the covered portion of each benefit provided under the contract; and
          (8)(b)(iii) for an accident and health insurance policy or contract:

               (8)(b)(iii)(A) classified as a health benefit plan, $500,000; or
               (8)(b)(iii)(B) not classified as a health benefit plan, the covered portion of each benefit provided under the policy;
     (8)(c) for an individual participating in a governmental retirement plan established under Section 401, 403(b), or 457, Internal Revenue Code, covered by an unallocated annuity contract, or a beneficiary of that individual if the individual is deceased, $250,000 in present value of annuity benefits, in the aggregate, including:

          (8)(c)(i) net cash surrender; and
          (8)(c)(ii) net cash withdrawal values; or
     (8)(d) for a payee of a structured settlement annuity or a beneficiary of the payee if the payee is deceased, the limits set forth in Subsection (8)(b).
(9) Notwithstanding Subsection (8), the association may not be obligated to cover more than:

     (9)(a) an aggregate of $500,000 in benefits for any one life under:

          (9)(a)(i) Subsection (8)(b)(i)(A);
          (9)(a)(ii) Subsection (8)(b)(i)(B);
          (9)(a)(iii) Subsection (8)(b)(ii); and
          (9)(a)(iv) Subsection (8)(b)(iii)(B);
     (9)(b) $5,000,000 in benefits for one owner of multiple nongroup policies of life insurance:

          (9)(b)(i) whether the policy or contract owner is an individual, firm, corporation, or other person;
          (9)(b)(ii) whether the persons insured are officers, managers, employees, or other persons; and
          (9)(b)(iii) regardless of the number of policies and contracts held by the owner; and
     (9)(c) $5,000,000 in benefits, regardless of the number of contracts held by the contract owner or plan sponsor, for:

          (9)(c)(i) one contract owner provided coverage under Subsection (2)(b)(ii); or
          (9)(c)(ii) one plan sponsor whose plans own, directly or in trust, one or more unallocated annuity contracts not included in Subsection (8)(b)(ii).
(10)

     (10)(a) Notwithstanding Subsection (9)(c) and except as provided in Subsection (10)(b), the association shall provide coverage if one or more unallocated annuity contracts are:

          (10)(a)(i) covered contracts under this part;
          (10)(a)(ii) owned by a trust or other entity for the benefit of two or more plan sponsors; and
          (10)(a)(iii) the largest interest in the trust or entity owning the contract or contracts is held by a plan sponsor whose principal place of business is in the state.
     (10)(b) The association may not be obligated to cover more than $5,000,000 in benefits with respect to the unallocated contracts described in Subsection (10)(a).
(11)

     (11)(a) The limitations set forth in Subsections (8) and (9) are limitations on the benefits for which the association is obligated before taking into account:

          (11)(a)(i) the association’s subrogation and assignment rights; or
          (11)(a)(ii) the extent to which those benefits could be provided out of the assets of the impaired or insolvent insurer attributable to covered policies.
     (11)(b) The costs of the association’s obligations under this part may be met by the use of assets:

          (11)(b)(i) attributable to covered policies, as described in Subsection 31A-28-114(3)(c); or
          (11)(b)(ii) reimbursed to the association pursuant to the association’s subrogation and assignment rights.
     (11)(c) Benefits provided by a long-term care rider to a life insurance policy or annuity contract shall be considered the same type of benefits as the base life insurance policy or annuity contract to which the long-term care rider relates.
     (11)(d) In performing the association’s obligations to provide coverage under Section 31A-28-108, the association may not be required to guarantee, assume, reinsure, reissue, perform, or cause to be guaranteed, assumed, reinsured, reissued, or performed a contractual obligation of the insolvent or impaired insurer under a covered policy or contract that does not materially affect the economic values or economic benefits of the covered policy or contract.
     (11)(e) The exclusion from coverage described in Subsection (7)(c) does not apply to any portion of a policy or contract, including a rider, that offers long-term care or any other accident and health insurance benefit.
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