31A-17-404.3. Rules.

508 words·~2 min read·/ut/title-31a/chapter-17/31a-17-404-3

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Effective 5/12/2020

(1)In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act , and this chapter, the commissioner may make rules prescribing:

(a)the form of a letter of credit required under this chapter;

(b)the requirements for a trust or trust instrument required by this chapter;

(c)the procedures for licensing and accrediting;

(d)minimum capital and surplus requirements;

(e)additional requirements relating to calculation of credit allowed a domestic ceding insurer against reserves for reinsurance under Section 31A-17-404 ; and

(f)additional requirements relating to calculation of asset reduction from liability for reinsurance ceded by a domestic insurer to other ceding insurers under Section 31A-17-404.1 .

(2)A rule made pursuant to Subsection (1)(e) or

(f)may apply to reinsurance relating to:

(a)a life insurance policy with guaranteed nonlevel gross premiums or guaranteed nonlevel benefits;

(b)a universal life insurance policy with provisions resulting in the ability of a policyholder to keep a policy in force over a secondary guarantee period;

(c)a variable annuity with guaranteed death or living benefits;

(d)a long-term care insurance policy; or

(e)such other life and health insurance or annuity product as to which the National Association of Insurance Commissioners adopts model regulatory requirements with respect for credit for reinsurance.

(3)A rule adopted pursuant to Subsection (1)(e) or

(f)may apply to a treaty containing:

(a)a policy issued on or after January 1, 2015; and

(b)a policy issued before January 1, 2015, if risk pertaining to the policy is ceded in connection with the treaty, either in whole or in part, on or after January 1, 2015.

(4)A rule adopted pursuant to Subsection (1)(e) or

(f)may require the ceding insurer, in calculating the amounts or forms of security required to be held under rules made under this section, to use the Valuation Manual adopted by the National Association of Insurance Commissioners under Section 11B(1) of the National Association of Insurance Commissioners Standard Valuation Law, including all amendments adopted by the National Association of Insurance Commissioners and in effect on the date as of which the calculation is made, to the extent applicable.

(5)A rule adopted pursuant to Subsection (1)(e) or

(f)may not apply to cessions to an assuming insurer that:

(a)meets the conditions established in Subsection 31A-17-404(8) ;

(b)is certified in this state; or

(c)maintains at least $250,000,000 in capital and surplus when determined in accordance with the National Association of Insurance Commissioners Accounting Practices and Procedures Manual, including all amendments thereto adopted by the National Association of Insurance Commissioners, excluding the impact of any permitted or prescribed practices and is:

(i)licensed in at least 26 states; or

(ii)licensed in at least 10 states, and licensed or accredited in a total of at least 35 states.

(6)The authority to adopt rules pursuant to Subsection (1)(e) or

(f)does not otherwise limit the commissioner's general authority to make rules pursuant to Subsection

(1).

Amended by Chapter 32 , 2020 General Session