State Codes and Statutes
Statutes > Utah > Title-31a > Chapter-37 > 31a-37-10631A-37-106. Authority to make rules -- Authority to issue orders.
(1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, thecommissioner may adopt rules to:
(a) determine circumstances under which a branch captive insurance company is notrequired to be a pure captive insurance company;
(b) require a statement, document, or information that a captive insurance company mustprovide to the commissioner to obtain a certificate of authority;
(c) determine a factor a captive insurance company shall provide evidence of underSubsection 31A-37-202(4)(c);
(d) prescribe one or more capital requirements for a captive insurance company inaddition to those required under Section 31A-37-204 based on the type, volume, and nature ofinsurance business transacted by the captive insurance company;
(e) establish:
(i) the amount of capital or surplus required to be retained under Subsection31A-37-205(4) at the payment of a dividend or other distribution by a captive insurancecompany; or
(ii) a formula to determine the amount described in Subsection 31A-37-205(4);
(f) waive or modify a requirement for public notice and hearing for the following by acaptive insurance company:
(i) merger;
(ii) consolidation;
(iii) conversion;
(iv) mutualization; or
(v) redomestication;
(g) 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;
(h) 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;
(i) determine the financial reports a sponsored captive insurance company shall annuallyfile with the commissioner;
(j) prescribe the required forms and reports under Section 31A-37-501; and
(k) establish one or more standards to ensure that:
(i) one of the following is able to exercise control of the risk management function of acontrolled 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 acontrolled 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.
(2) Notwithstanding Subsection (1)(k), until the commissioner adopts the rulesauthorized under Subsection (1)(k), 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 acaptive insurance company as necessary to enable the commissioner to secure compliance withthis chapter.
Amended by Chapter 302, 2008 General Session
Amended by Chapter 382, 2008 General Session
