Terms Used In Utah Code > Title 63B > Chapter 17 - 2008 Bonding and Financing Authorizations

• 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
• Capital project: means any land, building, facility, highway, improvement, equipment, or other property, or combination of them, that the state of Utah or any of its agencies, divisions, institutions, or other administrative subunits are authorized by law to acquire or construct. See Utah Code 63B-1-101
• City: includes , depending on population, a metro township as defined in Section 10-3c-102. See Utah Code 68-3-12.5
• classification: means the process of grouping risks with similar risk characteristics so that differences in anticipated costs may be recognized. See Utah Code 31A-19a-102
• Commission: means the State Bonding Commission created in Section 63B-1-201. See Utah Code 63B-1-101
• Contract: A legal written agreement that becomes binding when signed.
• Division: means the Division of Facilities Construction and Management. See Utah Code 63B-1-101
• Expenses: means that portion of a rate attributable to:
       (4)(a) acquisition;
       (4)(b) field supervision;
       (4)(c) collection expenses;
       (4)(d) general expenses;
       (4)(e) taxes;
       (4)(f) licenses; and
       (4)(g) fees. See Utah Code 31A-19a-102
• Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
• Filed: means that a filing is:
            (69)(a)(i) submitted to the department as required by and in accordance with applicable statute, rule, or filing order;
            (69)(a)(ii) received by the department within the time period provided in applicable statute, rule, or filing order; and
            (69)(a)(iii) accompanied by the appropriate fee in accordance with:

                 (69)(a)(iii)(A) Section 31A-3-103; or

                 (69)(a)(iii)(B) rule. 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
• Land: includes :
       (18)(a) land;
       (18)(b) a tenement;
       (18)(c) a hereditament;
       (18)(d) a water right;
       (18)(e) a possessory right; and
       (18)(f) a claim. See Utah Code 68-3-12.5
• Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). ^{Source: OCC}
• Loss adjustment expense: means the expenses incurred by the insurer in the course of settling claims. See Utah Code 31A-19a-102
• Market: means the interaction between buyers and sellers consisting of a:
            (8)(a)(i) product component; and
            (8)(a)(ii) geographic component. See Utah Code 31A-19a-102
• Mass marketed plan: means a method of selling insurance when:
       (9)(a) the insurance is offered to:

            (9)(a)(i) employees of a particular employer;

            (9)(a)(ii) members of a particular association or organization; or

            (9)(a)(iii) persons grouped in a manner other than described in Subsection (8)(a)(i) or (ii), except groupings formed principally for the purpose of obtaining insurance; and
       (9)(b) the employer, association, or other organization, if any, has agreed to, or otherwise affiliated itself with, the sale of insurance to its employees or members. See Utah Code 31A-19a-102
• 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
• 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
• Policyholder: means a person who controls a policy, binder, or oral contract by ownership, premium payment, or otherwise. 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
• Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5
• Pure premium rate: means that portion of a rate that:
       (11)(a) does not include provisions for profit or expenses, other than loss adjustment expenses; and
       (11)(b) is based on historical aggregate losses and loss adjustment expenses that are:

            (11)(b)(i) adjusted through development to their ultimate value; and

            (11)(b)(ii) projected through trending to a future point in time. See Utah Code 31A-19a-102
• Rate: means that cost of insurance per exposure unit either expressed as:
            (12)(a)(i) a single number; or
            (12)(a)(ii) as a pure premium rate, adjusted before any application of individual risk variations, based on loss or expense considerations to account for the treatment of:

                 (12)(a)(ii)(A) expenses;

                 (12)(a)(ii)(B) profit; and

                 (12)(a)(ii)(C) individual insurer variation in loss experience. See Utah Code 31A-19a-102
• Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
• Riskiness: means the variability of results around the average expected result. See Utah Code 31A-19a-102
• 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
• Supplementary rate information: includes one or more of the following needed to determine the applicable rate in effect or to be in effect:
       (15)(a) a manual or plan of rates;
       (15)(b) a statistical plan;
       (15)(c) a classification;
       (15)(d) a rating schedule;
       (15)(e) a minimum premium;
       (15)(f) a policy fee;
       (15)(g) a rating rule;
       (15)(h) a rate-related underwriting rule;
       (15)(i) a rate modification plan; or
       (15)(j) any other similar information prescribed by rule of the commissioner as supplementary rate information. See Utah Code 31A-19a-102
• Supporting information: includes one or more of the following:
       (16)(a) data demonstrating actuarial justification for the basic rate factors, classifications, expenses, and profit factors used by the filer;
       (16)(b) the experience and judgment of the filer;
       (16)(c) the experience or data of other insurers or rate service organizations relied upon by the filer;
       (16)(d) the interpretation of any other data relied upon by the filer;
       (16)(e) descriptions of methods used in making the rates; or
       (16)(f) any other information defined by rule as supporting information that is required to be filed. See Utah Code 31A-19a-102
• Trending: means any procedure for projecting, for the period during which the policies are to be effective:
       (17)(a) losses to the average date of loss; or
       (17)(b) premiums or exposures to the average date of writing. See Utah Code 31A-19a-102
• Writing: includes :
       (48)(a) printing;
       (48)(b) handwriting; and
       (48)(c) information stored in an electronic or other medium if the information is retrievable in a perceivable format. See Utah Code 68-3-12.5