31A-37-303. Reinsurance.
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/ut/title-31a/chapter-37/31a-37-303A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Effective 5/7/2025
31A-37-303. Reinsurance.
(a)A captive insurance company may cede risks to any insurance company approved by the commissioner.
(b)Except as provided in Subsection (1)(c) , a captive insurance company may provide reinsurance on risks ceded by any other insurer with prior approval of the commissioner.
(c)A captive insurance company may not provide reinsurance on a punitive damages risk ceded by an insurer, unless the punitive damages risk is the risk of the captive insurance company's:
(i)parent;
(ii)affiliated company; or
(iii)controlled unaffiliated business.
(2)To facilitate the risk distribution of captive insurance companies participating in a pooling arrangement, a captive insurance company licensed to operate as a pooling captive insurance company may directly insure a risk that any pooling participant's captive insurance company could otherwise directly insure in accordance with Section 31A-37-202 .
(a)A captive insurance company may take credit for reserves on risks or portions of risks ceded to reinsurers if the captive insurance company complies with:
(i)Section 31A-17-404 , 31A-17-404.1 , 31A-17-404.3 , or 31A-17-404.4 ; or
(ii)other requirements as the commissioner may establish by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act .
(b)Unless the reinsurer is in compliance with Section 31A-17-404 , 31A-17-404.1 , 31A-17-404.3 , or 31A-17-404.4 or a rule adopted under Subsection (3)(a)(ii), a captive insurance company may not take credit for:
(i)reserves on risks ceded to a reinsurer; or
(ii)portions of risks ceded to a reinsurer.
Amended by Chapter 175 , 2025 General Session