Utah Code 31A-40-206. Professional employer service not insurance

(1)

A professional employer organization licensed under this chapter is not considered
engaged in the sale of insurance or as acting as a third party administrator when the professional employer organization engages in one or more of the following with respect to a professional employer service:

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Terms Used In Utah Code 31A-40-206

Administrator: means the same as that term is defined in Subsection (182). See Utah Code 31A-1-301
Covered employee: means an individual who has a coemployment relationship with a client and a professional employer organization if the conditions of Section 31A-40-203 are met. See Utah Code 31A-40-102
Employee: means :

(a)	an individual employed by an employer; or

(b)

an individual who meets the requirements of Subsection (53)(b). See Utah Code 31A-1-301

Insurance: includes :

(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;

(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

(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

professional employer organization: means a person engaged in the business of providing a professional employer service. See Utah Code 31A-40-102

Professional employer service: means the service of entering into a coemployment relationship under this chapter under which all or a majority of the employees who provide a service to a client, or a division or work unit of a client, are covered employees. See Utah Code 31A-40-102

(a)

offering;

(b)	marketing;

(c)

selling;

(d)	administering; or

(e)	providing.

(2)	Subsection (1) applies to a professional employer service that includes an employee benefit plan for a covered employee.

Enacted by Chapter 318, 2008 General Session

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