Conversion of Workers' Compensation Fund to mutual insurance corporation.
Checkout our iOS App for a better way to browser and research.
(1) As used in this section, "Workers' Compensation Fund" means the mutual corporation that is the successor to the quasi-public corporation created under Chapter 33, Workers' Compensation Fund, which is the chapter repealed by Laws of Utah 2017, Chapter 363.
(2) As a consequence of the repeal of Chapter 33, Workers' Compensation Fund, effective January 1, 2018:
(a) The Workers' Compensation Fund shall convert from a quasi-public corporation to a mutual insurance corporation subject to Chapter 5, Domestic Stock and Mutual Insurance Corporations.
(b) On or before December 31, 2017, the Workers' Compensation Fund shall file amended and restated articles of incorporation with the Department of Insurance and the Division of Corporations and Commercial Code that comply with Chapter 5, Domestic Stock and Mutual Insurance Corporations.
(c) Following the filing of the Workers' Compensation Fund's amended and restated articles of incorporation, if the commissioner determines that the Workers' Compensation Fund complies with Chapter 5, Domestic Stock and Mutual Insurance Corporations, the commissioner shall:
(i) reissue a certificate of authority effective January 1, 2018, for the Workers' Compensation Fund to write workers' compensation insurance in Utah as a mutual insurance corporation; and
(ii) reauthorize the Workers' Compensation Fund's existing filings, rates, forms, or other administrative matters on file with the department as a result of, or related to, Workers' Compensation Fund's existing insurance business in the state, so that the filings, rates, forms, or other administrative matters on file shall be effective January 1, 2018, with respect to the Workers' Compensation Fund's insurance business activities as a mutual insurance corporation.
(d) The Workers' Compensation Fund may adopt and conduct business under any name that complies with state law.
(3) Subject to Subsection (2), the commissioner may, because of the Workers' Compensation Fund's developed status, waive or otherwise not impose requirements imposed on mutual insurance corporations by Chapter 5, Domestic Stock and Mutual Insurance Corporations, to facilitate the conversion of the Workers' Compensation Fund to a mutual insurance corporation effective January 1, 2018, so long as the commissioner finds those requirements unnecessary to protect policyholders and the public.
(4)
(a) From and after the Workers' Compensation Fund's conversion to a mutual insurance corporation, the Workers' Compensation Fund shall retain title to all assets of, and remain responsible for all liabilities incurred by, the Workers' Compensation Fund as a quasi-public corporation before the Workers' Compensation Fund conversion described in this section.
(b) The state is not liable for the expenses, liabilities, or debts of:
(i) the mutual insurance company described in this section;
(ii) the nonprofit, quasi-public corporation that preceded the mutual insurance company; or
(iii) a subsidiary or joint enterprise involving the mutual insurance company or quasi-public corporation.