31A-22-509 - Commissioner's authority to approve other groups. - Utah Statutes

31A-22-509. Commissioner's authority to approve other groups.
A policy may be issued to a group other than those specified under Sections 31A-22-502through 31A-22-508, if specifically authorized by the commissioner and if granting thepermission is not contrary to public policy. The commissioner may not grant permission to issuethese types of policies unless the insurer demonstrates to the commissioner's satisfaction that theproposed group would be actuarially sound, would result in economies of acquisition andadministration which justify a group rate, and would not present hazards of adverse selection. The premiums for the policy shall be paid by the policyholder, either from the policyholder'sfunds or from funds contributed by the covered persons, or from both. Premiums for the policyand any contributions by or on behalf of the insured persons shall be reasonable in relation to thebenefits provided.

Enacted by Chapter 242, 1985 General Session