UT Code § 31A-37-402 (2021)
2021 Utah Code|Title 31A - Insurance Code|Chapter 37 - Captive Insurance Companies Act|Part 4 - Sponsored Captive Insurance Companies|Section 402 - Sponsored captive insurance companies -- Certificate of authority mandatory.

 Effective 5/12/2015  31A-37-402. Sponsored captive insurance companies -- Certificate of authority mandatory.    (1) A sponsor of a sponsored captive insurance company shall be:   (a) an insurer authorized or approved under the laws of a state;     (b) a reinsurer authorized or approved under the laws of a state;     (c) a captive insurance company holding a certificate of authority under this chapter;     (d) an insurance holding company that:   (i) controls an insurer licensed pursuant to the laws of a state; and     (ii) is subject to registration pursuant to the holding company system of laws of the state of domicile of the insurer described in Subsection (1)(d)(i);       (e) an approved captive management firm in Utah or its affiliates; or     (f) another person approved by the commissioner after finding that the approval of the person as a sponsor is not inconsistent with the purposes of this chapter.       (2)   (a) The business written by a sponsored captive insurance company with respect to a protected cell shall be fronted by the sponsor insurance company through a controlled unaffiliated contract or an insurer that is:   (i) authorized or approved:   (A) under the laws of a state; or     (B) under any jurisdiction if the insurance company is a wholly owned subsidiary of an insurance company licensed pursuant to the laws of a state;       (ii) reinsured by a reinsurer authorized or approved by this state; or     (iii) subject to Subsection (2)(b), secured by a trust fund:   (A) in the United States;     (B) for the benefit of policyholders and claimants;     (C) funded by an irrevocable letter of credit or other asset acceptable to the commissioner; and     (D) held by the sponsor as provided in Subsection 31A-17-404(1).         (b)   (i) The amount of security provided by the trust fund described in Subsection (2)(a)(iii) may not be less than the reserves associated with the liabilities of the trust fund, including:   (A) reserves for losses;     (B) allocated loss adjustment expenses;     (C) incurred but unreported losses; and     (D) unearned premiums for business written through the participant's protected cell.       (ii) The commissioner may require the sponsored captive insurance company to increase the funding of a trust established pursuant to this Subsection (2).     (iii) If the form of security in the trust described in Subsection (2)(a)(iii) is a letter of credit, the letter of credit shall be established, issued, or confirmed by a bank that is:   (A) chartered in this state;     (B) a member of the federal reserve system; or     (C) chartered by another state if that state-chartered bank is acceptable to the commissioner.       (iv) A trust and trust instrument maintained pursuant to this Subsection (2) shall be in a form and upon terms approved by the commissioner.         (3) A risk retention group may not be either a sponsor or a participant of a sponsored captive insurance company.    Amended by Chapter 244, 2015 General Session