Creation of the association.

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  • (1)
    • (a) The Utah Property and Casualty Insurance Guaranty Association shall continue as a nonprofit legal entity.
    • (b) All member insurers of the association are, and remain, members of the association as a condition of their authority to transact insurance business in this state.
    • (c) The association shall:
      • (i) perform its functions under the plan of operation established and approved under Section 31A-28-209; and
      • (ii) exercise its powers through a board of directors established under Section 31A-28-206.
    • (d) For the purposes of administration and assessment, the association shall maintain an account known as the Property and Casualty Insurance Guaranty Association Account.
    • (e)
      • (i) If as of May 6, 2002, the association has more than one account, the association shall consolidate all accounts into the Property and Casualty Insurance Guaranty Association Account.
      • (ii) The Property and Casualty Insurance Guaranty Association Account:
        • (A) succeeds to all funds held by the association in an account existing on May 6, 2002; and
        • (B) is subject to any liability or obligation attributable to an account of the association existing on May 6, 2002.
  • (2)
    • (a) An insurer shall cease to be a member insurer on the day following the termination or expiration of the insurer's license to transact the kinds of insurance to which this part applies.
    • (b) Notwithstanding Subsection (2)(a), the insurer shall remain liable as a member insurer for all obligations, including assessments levied:
      • (i) before the termination or expiration of the insurer's license; and
      • (ii) after the termination or expiration of the insurer's license but that relate to an insurer that became an insolvent insurer before the termination or expiration of the insurer's license.
  • (3) Meetings or records of the association shall be open to the public upon a majority vote of the board of directors of the association.
  • (4) The association is not an agency of the state.




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