31A-37-106. Authority to make rules -- Authority to issue orders.

429 words·~2 min read·/ut/title-31a/chapter-37/31a-37-106

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

Effective 5/14/2019

(1)In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act , the commissioner may adopt rules to:

(a)determine circumstances under which a branch captive insurance company is not required to be a pure captive insurance company;

(b)require a statement, document, or information that a captive insurance company shall provide to the commissioner to obtain a certificate of authority;

(c)determine a factor a captive insurance company shall provide evidence of under Subsection 31A-37-201(4)(b) ;

(d)prescribe one or more capital requirements for a captive insurance company in addition to those required under Section 31A-37-204 based on the type, volume, and nature of insurance business transacted by the captive insurance company;

(e)waive or modify a requirement for public notice and hearing for the following by a captive insurance company:

(i)merger;

(ii)consolidation;

(iii)conversion;

(iv)mutualization;

(v)redomestication; or

(vi)acquisition;

(f)approve the use of one or more reliable methods of valuation and rating for:

(i)an association captive insurance company;

(ii)a sponsored captive insurance company; or

(iii)an industrial insured group;

(g)prohibit or limit an investment that threatens the solvency or liquidity of:

(i)a pure captive insurance company; or

(ii)an industrial insured captive insurance company;

(h)determine the financial reports a sponsored captive insurance company shall annually file with the commissioner;

(i)prescribe the required forms and reports under Section 31A-37-501 ;

(j)establish one or more standards to ensure that:

(i)one of the following is able to exercise control of the risk management function of a controlled unaffiliated business to be insured by a pure captive insurance company:

(A)a parent; or

(B)an affiliated company of a parent; or

(ii)one of the following is able to exercise control of the risk management function of a controlled unaffiliated business to be insured by an industrial insured captive insurance company:

(A)an industrial insured; or

(B)an affiliated company of the industrial insured; and

(k)establish requirements for obtaining, maintaining, and renewing a certificate of dormancy.

(2)Notwithstanding Subsection (1)(j) , until the commissioner adopts the rules authorized under Subsection (1)(j) , the commissioner may by temporary order grant authority to insure risks to:

(a)a pure captive insurance company; or

(b)an industrial insured captive insurance company.

(3)The commissioner may issue prohibitory, mandatory, and other orders relating to a captive insurance company as necessary to enable the commissioner to secure compliance with this chapter.

Amended by Chapter 193 , 2019 General Session