63A-4-201. Risk Management Fund created -- Administration -- Use.

312 words·~1 min read·/ut/title-63a/chapter-4/63a-4-201

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

Effective 5/4/2022

(a)There is created the Risk Management Fund, which shall be administered by the risk manager.

(b)The fund shall cover property, liability, fidelity, and other risks as determined by the risk manager in consultation with the executive director.

(2)The risk manager may only use the Risk Management Fund to pay:

(a)insurance or reinsurance premiums;

(b)costs of administering the Risk Management Fund and any captive insurance companies created by the risk manager;

(c)loss adjustment expenses;

(d)risk control and related educational and training expenses; and

(e)loss costs which at the time of loss were eligible for payment under rules made by the risk manager in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act .

(3)In addition to any money appropriated to the Risk Management Fund by the Legislature, the risk manager shall deposit with the state treasurer for credit to the Risk Management Fund:

(a)any insured loss or loss expenses paid by insurance or reinsurance companies;

(b)the gross amount of all premiums and surcharges received under Section 63A-4-202 ;

(c)the net refunds from cancelled insurance policies necessary to self-insure previously insured risks, with the balance of the proceeds to be refunded to the previously insured entities;

(d)all refunds, returns, or dividends from insurance carriers not specifically covered in Subsections (3)(a) ,

(b), and

(c);

(e)savings from amounts otherwise appropriated for participation in the fund; and

(f)all net proceeds from sale of salvage and subrogation recoveries from adverse parties related to losses paid out of the fund.

(4)The state treasurer shall invest the Risk Management Fund in accordance with Section 63A-4-208 and deposit all interest or other income earned from investments into the Risk Management Fund.

Amended by Chapter 169 , 2022 General Session