(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 (187). 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 :
         (57)(a) an individual employed by an employer; or
         (57)(b) an individual who meets the requirements of Subsection (55)(b). 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
  • 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
     (1)(a) offering;
     (1)(b) marketing;
     (1)(c) selling;
     (1)(d) administering; or
     (1)(e) providing.
(2) Subsection (1) applies to a professional employer service that includes an employee benefit plan for a covered employee.