State Codes and Statutes

Statutes > Utah > Title-31a > Chapter-37 > 31a-37-302

31A-37-302. Investment requirements.
(1) (a) Except as provided in Subsection (1)(b), an association captive insurancecompany, a sponsored captive insurance company, and an industrial insured group shall complywith the investment requirements contained in this title.
(b) Notwithstanding Subsection (1)(a) and any other provision of this title, thecommissioner may approve the use of alternative reliable methods of valuation and rating underSection 31A-37-106 for:
(i) an association captive insurance company;
(ii) a sponsored captive insurance company; or
(iii) an industrial insured group.
(2) (a) Except as provided in Subsection (2)(b), a pure captive insurance company orindustrial insured captive insurance company is not subject to any restrictions on allowableinvestments contained in this title.
(b) Notwithstanding Subsection (2)(a), the commissioner may, under Section31A-37-106, 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.
(3) (a) (i) Except as provided in Subsection (3)(a)(ii), a captive insurance company maynot make loans to:
(A) the parent company of the captive insurance company; or
(B) an affiliate of the captive insurance company.
(ii) Notwithstanding Subsection (3)(a)(i), a pure captive insurance company may makeloans to:
(A) the parent company of the pure captive insurance company; or
(B) an affiliate of the pure captive insurance company.
(b) A loan under Subsection (3)(a):
(i) may be made only on the prior written approval of the commissioner; and
(ii) must be evidenced by a note in a form approved by the commissioner.
(c) A pure captive insurance company may not make a loan from:
(i) the paid-in capital required under Subsection 31A-37-204(1); or
(ii) the free surplus required under Subsection 31A-37-205(1).

Enacted by Chapter 251, 2003 General Session