Utah Code 31A-40-209. Workers’ compensation
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(1) In accordance with Section 34A-2-103, a client is responsible for securing workers’ compensation coverage for a covered employee.
Terms Used In Utah Code 31A-40-209
- Client: means a person who enters into a professional employer agreement with a professional employer organization. See Utah Code 31A-40-102
- 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
- Endorsement: means a written agreement attached to a policy or certificate to modify the policy or certificate coverage. See Utah Code 31A-1-301
- Individual: means a natural person. 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- 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- 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- Professional employer agreement: means a written contract by and between a client and a professional employer organization that provides for:
(15)(a) the coemployment of a covered employee;(15)(b) with respect to a covered employee, the allocation of a right or obligation of an employer between:(15)(b)(i) the client; and(15)(b)(ii) the professional employer organization; and(15)(c) the assumption of the obligations imposed by this chapter by:(15)(c)(i) the client; or(15)(c)(ii) the professional employer organization. See Utah Code 31A-40-102- professional employer organization: means a person engaged in the business of providing a professional employer service. See Utah Code 31A-40-102
(2) Subject to the requirements of Section 34A-2-103, if a professional employer organization obtains or assists a client in obtaining workers’ compensation insurance pursuant to a professional employer agreement:(2)(a) the professional employer organization shall ensure that the client maintains and provides workers’ compensation coverage for a covered employee in accordance with Subsection 34A-2-201(1) and rules of the Labor Commission, made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;(2)(b) the workers’ compensation coverage may show the professional employer organization as the named insured through a master policy, if:(2)(b)(i) the client is shown as an insured by means of an endorsement for each individual client;(2)(b)(ii) the experience modification of a client is used; and(2)(b)(iii) the insurer files the endorsement with the Division of Industrial Accidents as directed by a rule of the Labor Commission, made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;(2)(c) at the termination of the professional employer agreement, if requested by the client, the insurer shall provide the client records regarding the loss experience related to workers’ compensation insurance provided to a covered employee pursuant to the professional employer agreement; and(2)(d) the insurer shall notify a client if the workers’ compensation coverage for the client is terminated.(3) In accordance with Section 34A-2-105, the exclusive remedy provisions of Section 34A-2-105 apply to both the client and the professional employer organization under a professional employer agreement regulated under this chapter.(4) Notwithstanding the other provisions in this section, an insurer may choose whether to issue:(4)(a) a policy for a client; or(4)(b) a master policy with the client shown as an additional insured by means of an individual endorsement.