Skip to main content
Find a Lawyer

Utah Code Title 31A. Insurance Code § 31A-22-506. Creditor groups to insure debtors

Current as of May 05, 2022 | Updated by FindLaw Staff

(1) To insure debtors of a creditor, a group life insurance policy may be issued to a policyholder who is any of the following:

(a) the creditor;

(b) the creditor's parent holding company; or

(c) trustees or agents designated by two or more creditors.

(2) A policy described in Subsection (1) is subject to the requirements of this Subsection (2).

(a)(i) The persons eligible for insurance are:

(A) all of the debtors of the creditors; or

(B) all of any classes of debtors.

(ii) The policy may provide that “debtors” includes:

(A) borrowers of money, or purchasers or lessees of goods, services, property, rights, or privileges for which payment is arranged through a credit transaction; and

(B) the debtors of one or more affiliated corporations, proprietorships, or partnerships under common control with the policyholder.

(b)(i) The premiums shall be paid by the policyholder, from:

(A) the creditor's funds;

(B) charges collected from the insured debtors; or

(C) from both Subsections (2)(b)(i)(A) and (B).

(ii) Except as provided under Section 31A-22-512, a policy on which no part of the premium is contributed by insured debtors specifically for their insurance shall insure all eligible debtors.

(c)(i) To the extent of the creditor's interest, the insurance may be payable to the creditor or to any successor to the right, title, and interest of the creditor.

(ii) The payment shall reduce or extinguish the obligation of the debtor to the extent of the payment.

(iii) When the amount of insurance exceeds the debt, the excess is payable to a beneficiary other than the creditor named by the debtor, or to the debtor's estate.

(d) Group policies issued under this section are not subject to Sections 31A-22-516 through 31A-22-521.

Back to chapter list
Previous part of code Next part of code
Back to chapter list

Cite this article: FindLaw.com - Utah Code Title 31A. Insurance Code § 31A-22-506. Creditor groups to insure debtors - last updated May 05, 2022 | https://codes.findlaw.com/ut/title-31a-insurance-code/ut-code-sect-31a-22-506/

Read this complete Utah Code Title 31A. Insurance Code § 31A-22-506. Creditor groups to insure debtors on Westlaw. Westlaw subscription required.

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.

Was this helpful?

Search all Utah Codes

Welcome to FindLaw's Cases & Codes

A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.

Go to Learn About the Law

Latest Blog Posts

For Legal Professionals

Learn About the Law

Get help with your legal needs

FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.

Go to Learn About the Law

Need to find an attorney?

Search our directory by legal issue

Enter information in one or both fields (Required)

Copied to clipboard