31A-37-701. Certificate of dormancy.

332 words·~2 min read·/ut/title-31a/chapter-37/31a-37-701

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

Effective 5/6/2026

(1)In accordance with the provisions of this section, a captive insurance company, other than a risk retention group, may apply, without fee, to the commissioner for a certificate of dormancy.

(a)A captive insurance company, other than a risk retention group or a cell of a sponsored captive insurance company, is eligible for a certificate of dormancy if the company:

(i)has ceased transacting the business of insurance, including the issuance of insurance policies; and

(ii)has no remaining insurance liabilities or obligations associated with insurance business transactions or insurance policies.

(b)For purposes of Subsection (2)(a)(ii) , the commissioner may disregard liabilities or obligations for which the captive insurance company has withheld sufficient funds or that are otherwise sufficiently secured.

(3)Except as provided in Subsection

(4), a captive insurance company that holds a certificate of dormancy is subject to all requirements of this chapter.

(4)A captive insurance company that holds a certificate of dormancy:

(a)shall possess and maintain unimpaired paid-in capital and unimpaired paid-in surplus of at least 10% of the minimum capital required in Section 31A-37-204 ; and

(b)is not required to:

(i)subject to Subsection

(5), submit an annual audit or statement of actuarial opinion;

(ii)maintain an active agreement with an independent auditor or actuary; or

(iii)hold an annual meeting of the captive insurance company in the state.

(5)The commissioner may require a captive insurance company that holds a certificate of dormancy to submit an annual audit if the commissioner determines that there are concerns regarding the captive insurance company's solvency or liquidity.

(6)To maintain a certificate of dormancy and in lieu of a certificate of authority renewal fee, no later than July 1 of each year, a captive insurance company shall pay an annual dormancy renewal fee that is equal to 50% of the captive insurance's company's certificate of authority renewal fee.

Amended by Chapter 45 , 2026 General Session