Utah § 13-64-202 - Liability insurance -- Security for payment -- Provider net worth value.
Full text of Utah Utah Code § 13-64-202 — Liability insurance -- Security for payment -- Provider net worth value., with citation guidance and answers to common questions.
§ 13-64-202. Liability insurance -- Security for payment -- Provider net worth value.
Effective 5/3/2023 13-64-202.
Liability insurance -- Security for payment -- Provider net worth value.
(1)
A provider under a vehicle value protection agreement shall:
(a)
insure all vehicle value protection agreements the provider enters into under a contractual liability insurance policy that:
(i)
(A)
is issued by an insurer authorized to do business in this state that has a surplus as to policyholders and paid-in capital of less than $10,000,000 and more than $5,000,000 and provides evidence to the division that the insurer maintains a ratio of net written premiums to surplus as to policyholders and paid-in capital of not greater than three to one; or
(B)
is issued by an insurer authorized to do business in this state that has as a surplus as to policyholders and paid-in capital of more than $10,000,000; and
(ii)
(A)
requires the insurer to reimburse the purchaser if the provider fails to perform the provider's obligations under a vehicle value protection agreement;
(B)
covers any amount the provider is required to pay for failure to perform under a vehicle value protection agreement; and
(C)
allows a purchaser to file with the insurer a claim for reimbursement under the vehicle value protection agreement if the provider does not pay the purchaser within 60 days after the day on which proof of damage, total loss, or unrecovered theft of the covered vehicle is provided to the provider in accordance with the terms of the vehicle value protection agreement;
(b)
(i)
maintain a funded reserve account to cover the provider's obligations under all vehicle value protection agreements the provider enters into that is equal to or greater than 40% of money received by, less claims paid to, the provider for the vehicle value protection agreements; and
(ii)
place in trust with the division a security that is equal to at least 5% of money received by, less claims paid to, the provider for all vehicle value protection agreements the provider enters into and more than $25,000; or
(c)
maintain, or together with the provider's parent company maintain, a net worth or stockholders' equity of $100,000,000.
(2)
(a)
An insurer described in Subsection (1)(a) shall annually file with the division:
(i)
a copy of the insurer's audited financial statements;
(ii)
the insurer's National Association of Insurance Commissioner annual statement; and
(iii)
the actuarial certification filed in the insurer's state of domicile.
(b)
The division may examine a reserve account described in Subsection (1)(b).
(c)
A provider shall, upon request, provide the division a copy of:
(i)
the provider's or the provider's parent company's most recent Form 10-K or Form 20-F filed with the Securities and Exchange Commission; or
(ii)
if the provider does not file with the Securities and Exchange Commission, a copy of the provider's audited financial statements that shows the net worth of the provider or the provider's parent company.
Section 13-64-202 ("Liability insurance -- Security for payment -- Provider net worth value.") is part of the Utah Code, the codified statutory law of Utah. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Utah § 13-64-202?
A common citation format is "Utah Code § 13-64-202" (Utah). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Utah law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Utah official source linked on this page or consult a licensed Utah attorney.
How does Utah § 13-64-202 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Utah can advise on how this section applies to you. Contact your state or local bar association for a referral.
