31A-18-106. Insurer investment policy.

248 words·~1 min read·/ut/title-31a/chapter-18/31a-18-106

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 5/7/2025

(1)An insurer shall establish and follow a written investment policy for exchanging, holding, selling, or managing an investment.

(2)An insurer's board of directors shall review the written investment policy described in Subsection

(1)at least once annually.

(3)The insurer shall include, in the written investment policy described in Subsection

(1), at least the following:

(a)policies, procedures, and controls covering all aspects of the investing functions;

(b)quantified goals and objectives regarding the composition of classes of investments, including maximum internal limits;

(c)a method for periodic evaluation of the investment portfolio regarding the investment portfolio's risk and reward characteristics;

(d)professional standards for the individuals making day-to-day investment decisions to ensure that those individuals make those decisions in an ethical and capable manner;

(e)the types of investments an insurer will make and avoid, based on:

(i)the investments' risk and reward characteristics; and

(ii)the insurer's level of experience with the investments;

(f)the relationship of classes of investments to the insurer's insurance products and liabilities;

(g)the manner in which the insurer intends to implement the prudence evaluation criteria described in Section 31A-18-105 ; and

(h)the level of risk appropriate for the insurer given the level of capitalization and expertise available to the insurer.

(4)Nothing in this section precludes an insurer from the use of modern portfolio theory to manage the insurer's investments.

Repealed and Re-enacted by Chapter 368 , 2025 General Session