reglab/statecodes huggingface dataset:
2023 Utah Code › Title 31A - Insurance Code › Chapter 16 - Insurance Holding Companies › Section 108.5 - Supervisory colleges.

Effective 10/1/2015
31A-16-108.5.
Supervisory colleges.
(1) For an insurer registered under Section 31A-16-105 and in accordance with Subsection (3), the commissioner may participate in a supervisory college for a domestic insurer that is part of an insurance holding company system with international operations to determine compliance by the insurer with this chapter. The powers of the commissioner with respect to supervisory colleges include the following:
(a) initiating the establishment of a supervisory college;
(b) clarifying the membership and participation of other supervisors in the supervisory college;
(c) clarifying the functions of the supervisory college and the role of other regulators, including the establishment of a group-wide supervisor;
(d) coordinating the ongoing activities of the supervisory college, including:
(i) planning meetings;
(ii) supervisory activities; and
(iii) processes for information sharing; and
(e) establishing a crisis management plan.
(2)
(a) A registered insurer subject to this section is liable for and shall pay the reasonable expenses of the commissioner's participation in a supervisory college in accordance with Subsection (3), including reasonable travel expenses.
(b) For purposes of this section, a supervisory college may be convened as either a temporary or permanent forum for communication and cooperation between the regulators charged with supervision of the insurer or its affiliates and the commissioner may establish a regular assessment to the insurer for the payment of these expenses.
(3)
(a) The commissioner may participate in a supervisory college with other regulators charged with supervision of the insurer or its affiliates, including:
(i) other state regulatory agencies;
(ii) federal regulatory agencies; or
(iii) international regulatory agencies.
(b) The commissioner may enter into agreements in accordance with Section 31A-16-109 providing the basis for cooperation between the commissioner and other regulatory agencies, and the activities of the supervisory college, in order to assess:
(i) the business strategy;
(ii) financial position;
(iii) legal and regulatory position;
(iv) risk exposure; and
(v) management and governance processes.
(c) Nothing in this section shall delegate to the supervisory college the authority of the commissioner to regulate or supervise the insurer or its affiliates within its jurisdiction.
Enacted by Chapter 244, 2015 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 16 - Insurance Holding Companies › Section 113 - Receivership.

Effective 10/1/2015
31A-16-113.
Receivership.
Whenever it appears to the commissioner that a person has committed a violation of this chapter that so impairs the financial condition of a domestic insurer as to threaten insolvency or make the further transaction of business by it hazardous to its policyholders, creditors, shareholders, or the public, then the commissioner may proceed as provided in Section 31A-16-114 to take possession of the property of the domestic insurer and to conduct its business.
Enacted by Chapter 244, 2015 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 16 - Insurance Holding Companies › Section 114 - Recovery.

Effective 10/1/2015
31A-16-114.
Recovery.
(1) If an order for liquidation or rehabilitation of a domestic insurer is entered, the receiver appointed under the order shall have a right to recover on behalf of the insurer:
(a) from any parent corporation, holding company, or person or affiliate who otherwise controlled the insurer, the amount of distributions other than distributions of shares of the same class of stock paid by the insurer on its capital stock; or
(b) any payment in the form of a bonus, termination settlement, or extraordinary lump sum salary adjustment made by the insurer or its subsidiary to a director, officer, or employee, when the distribution or payment pursuant to Subsection (1)(a) or this Subsection (1)(b) is made at any time during the one year preceding the petition for liquidation, conservation, or rehabilitation, as the case may be, subject to the limitations of Subsections (2), (3), and (4).
(2) A distribution may not be recovered if the parent or affiliate shows that when paid the distribution was lawful and reasonable and that the insurer did not know and could not reasonably have known that the distribution might adversely affect the ability of the insurer to fulfill its contractual obligations.
(3) A person who was a parent corporation or holding company or a person who otherwise controlled the insurer or affiliate at the time the distributions were paid shall be liable up to the amount of distributions or payments under Subsection (1) that the person received. A person who otherwise controlled the insurer at the time the distributions were declared is liable up to the amount of distributions that would have been received if they had been paid immediately. If two or more persons are liable with respect to the same distributions, they shall be jointly and severally liable.
(4) The maximum amount recoverable under this section shall be the amount needed in excess of all other available assets of the impaired or insolvent insurer to pay the contractual obligations of the impaired or insolvent insurer and to reimburse any guaranty funds.
(5) To the extent that any person liable under Subsection (3) is insolvent or otherwise fails to pay claims due from the person, its parent corporation, holding company, or person who otherwise controlled it at the time the distribution was paid, are jointly and severally liable for any resulting deficiency in the amount recovered from the parent corporation or holding company or person who otherwise controlled it.
Enacted by Chapter 244, 2015 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 16 - Insurance Holding Companies › Section 115 - Revocation, suspension, or nonrenewal of insurer's license.

Effective 10/1/2015
31A-16-115.
Revocation, suspension, or nonrenewal of insurer's license.
Whenever it appears to the commissioner that a person has committed a violation of this chapter that makes the continued operation of an insurer contrary to the interests of policyholders or the public, the commissioner may, after giving notice and an opportunity to be heard, suspend, revoke, or refuse to renew the insurer's license or authority to do business in this state for such period as the commissioner finds is required for the protection of policyholders or the public. Any such determination shall be accompanied by specific findings of fact and conclusions of law.
Enacted by Chapter 244, 2015 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 16 - Insurance Holding Companies › Section 116 - Rules and orders.

Effective 10/1/2015
31A-16-116.
Rules and orders.
The commissioner in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, may make rules necessary to carry out this chapter. The commissioner may issue orders as is necessary to carry out this chapter.
Enacted by Chapter 244, 2015 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 16 - Insurance Holding Companies › Section 117 - Judicial review -- Mandamus.

Effective 10/1/2015
Superseded 7/1/2024
31A-16-117.
Judicial review -- Mandamus.
(1) A person aggrieved by an act, determination, rule, or order or any other action of the commissioner pursuant to this chapter may seek judicial review in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
(2) The filing of an appeal pursuant to this section shall stay the application of any rule, order, or other action of the commissioner to the appealing party unless the court, after giving party notice and an opportunity to be heard, determines that a stay would be detrimental to the interest of policyholders, shareholders, creditors, or the public.
(3) A person aggrieved by a failure of the commissioner to act or make a determination required by this chapter may petition the Third District Court of Salt Lake County for writ in the nature of a mandamus or a peremptory mandamus directing the commissioner to act or make a determination.
Enacted by Chapter 244, 2015 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 16 - Insurance Holding Companies › Section 117 - Judicial review -- Mandamus.

Effective 7/1/2024
31A-16-117.
Judicial review -- Mandamus.
(1) A person aggrieved by an act, determination, rule, or order or any other action of the commissioner pursuant to this chapter may seek judicial review in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
(2) The filing of an appeal pursuant to this section shall stay the application of any rule, order, or other action of the commissioner to the appealing party unless the court, after giving party notice and an opportunity to be heard, determines that a stay would be detrimental to the interest of policyholders, shareholders, creditors, or the public.
(3) A person aggrieved by a failure of the commissioner to act or make a determination required by this chapter may petition the district court in Salt Lake County for writ in the nature of a mandamus or a peremptory mandamus directing the commissioner to act or make a determination.
Amended by Chapter 401, 2023 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 16 - Insurance Holding Companies › Section 119 - Severability.

Effective 10/1/2015
31A-16-119.
Severability.
If any chapter, section, or subsection of this chapter or the application of any chapter, section, or subsection to any person or circumstance is held invalid, the remainder of the provisions of this chapter shall be given effect without the invalid provision or application. The provisions of this chapter are severable.
Enacted by Chapter 244, 2015 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 16a - Risk Management and Own Risk and Solvency Assessment Act › Section 101 - Title -- Scope.

Effective 5/9/2017
31A-16a-101.
Title -- Scope.
(1) This chapter is known as the "Risk Management and Own Risk and Solvency Assessment Act."
(2) This chapter applies to an insurer domiciled in this state unless exempt pursuant to Section 31A-16a-106.
Enacted by Chapter 168, 2017 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 16a - Risk Management and Own Risk and Solvency Assessment Act › Section 103 - Risk management framework.

Effective 5/9/2017
31A-16a-103.
Risk management framework.
An insurer shall maintain a risk management framework to assist the insurer with identifying, assessing, monitoring, managing, and reporting on its material and relevant risks. This requirement may be satisfied if the insurance group of which the insurer is a member maintains a risk management framework applicable to the operations of the insurer.
Enacted by Chapter 168, 2017 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 16a - Risk Management and Own Risk and Solvency Assessment Act › Section 104 - Own risk and solvency assessment requirement.

Effective 5/9/2017
31A-16a-104.
Own risk and solvency assessment requirement.
Subject to Section 31A-16a-106, an insurer, or the insurance group of which the insurer is a member, shall regularly conduct an own risk and solvency assessment consistent with a process comparable to the ORSA guidance manual. The insurer or insurance group shall conduct the own risk and solvency assessment no less than annually but also at any time when there are significant changes to the risk profile of the insurer or the insurance group of which the insurer is a member.
Enacted by Chapter 168, 2017 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 16a - Risk Management and Own Risk and Solvency Assessment Act › Section 105 - ORSA summary report.

Effective 5/9/2017
31A-16a-105.
ORSA summary report.
(1)
(a) Upon the commissioner's request, and no more than once each year, an insurer shall submit to the commissioner an ORSA summary report or any combination of reports that together contain the information described in the ORSA guidance manual, applicable to the insurer, the insurance group of which it is a member, or both.
(b) Notwithstanding a request from the commissioner, if the insurer is a member of an insurance group, the insurer shall submit the one or more reports required by this Subsection (1) if the commissioner is the lead state commissioner of the insurance group as determined by the procedures within the Financial Analysis Handbook adopted by the National Association of Insurance Commissioners.
(2) The one or more reports required under Subsection (1) shall include a signature of the insurer's or insurance group's chief risk officer or other executive having responsibility for the oversight of the insurer's enterprise risk management process attesting to the best of the executive's belief and knowledge that:
(a) the insurer applies the enterprise risk management process described in the ORSA summary report; and
(b) a copy of the report has been provided to the insurer's board of directors or the appropriate committee of the board of directors.
(3) An insurer may comply with Subsection (1) by providing the most recent and substantially similar one or more reports provided by the insurer or another member of an insurance group of which the insurer is a member to the commissioner of another state or to a supervisor or regulator of a foreign jurisdiction, if that report provides information that is comparable to the information described in the ORSA guidance manual. A report that is in a language other than English must be accompanied by a translation of that report into the English language.
Enacted by Chapter 168, 2017 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 16a - Risk Management and Own Risk and Solvency Assessment Act › Section 107 - Contents of ORSA summary report.

Effective 5/9/2017
31A-16a-107.
Contents of ORSA summary report.
(1) The ORSA summary report shall be prepared consistent with the ORSA guidance manual, subject to the requirements of Subsection (2). Documentation supporting information shall be maintained and made available upon examination or upon request of the commissioner.
(2) The review of the ORSA summary report, and any additional requests for information, shall be made using similar procedures as used in the analysis and examination of multi-state or global insurers and insurance groups.
Enacted by Chapter 168, 2017 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 16a - Risk Management and Own Risk and Solvency Assessment Act › Section 109 - Sanctions.

Effective 5/9/2017
31A-16a-109.
Sanctions.
An insurer failing, without just cause, to timely file the ORSA summary report as required in this chapter is required, after notice and hearing, is subject to a penalty under Section 31A-2-308 for each day's delay, to be recovered by the commissioner and the penalty so recovered shall be paid into the General Fund. The maximum penalty under this section is a penalty permitted under Section 31A-2-308. The commissioner may reduce the penalty if the insurer demonstrates to the commissioner that the imposition of the penalty would constitute a financial hardship to the insurer.
Enacted by Chapter 168, 2017 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 16a - Risk Management and Own Risk and Solvency Assessment Act › Section 110 - Severability clause.

Effective 5/9/2017
31A-16a-110.
Severability clause.
If a provision of this chapter, or the application of this chapter to any person or circumstance, is held invalid, the invalidation does not affect the provisions or applications of this chapter that can be given effect without the invalid provision or application, and to that end the provisions of this chapter are severable.
Enacted by Chapter 168, 2017 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 16b - Corporate Governance Annual Disclosure Act › Section 102 - Administration and scope.

Effective 1/1/2020
31A-16b-102.
Administration and scope.
(1) The commissioner is solely responsible for the administration and enforcement of the provisions of this chapter.
(2) This chapter does not:
(a) prescribe or impose corporate governance standards or internal procedures beyond what is required under applicable state corporate law; or
(b) limit the commissioner's authority, or the rights or obligations of third parties, under Chapter 2, Administration of the Insurance Laws.
(3) The requirements of this chapter apply to each insurer domiciled in the state.
Enacted by Chapter 193, 2019 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 16b - Corporate Governance Annual Disclosure Act › Section 104 - Rulemaking.

Effective 1/1/2020
31A-16b-104.
Rulemaking.
(1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commissioner may make rules to implement and administer this chapter.
(2) The commissioner may issue orders as is necessary to carry out this chapter.
Enacted by Chapter 193, 2019 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 16b - Corporate Governance Annual Disclosure Act › Section 105 - Contents of corporate governance annual disclosure.

Effective 1/1/2020
31A-16b-105.
Contents of corporate governance annual disclosure.
(1)
(a) A corporate governance annual disclosure shall include information sufficient to provide the commissioner a clear understanding of the insurer's or insurance group's corporate governance structure, policies, and practices.
(b) An insurer or insurance group has discretion to determine the information the insurer or insurance group includes in a corporate governance annual disclosure, provided the information complies with Subsection (1)(a).
(2) The commissioner may request additional information that the commissioner determines material and necessary to provide the commissioner with a clear understanding of the insurer's or insurance group's:
(a) corporate governance policies;
(b) reporting and information systems; or
(c) controls implementing the items described in Subsection (2)(a) or (b).
(3) An insurer or insurance group shall maintain and make available upon request of the commissioner:
(a) documentation; and
(b) supporting information.
Enacted by Chapter 193, 2019 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 16b - Corporate Governance Annual Disclosure Act › Section 107 - Third-party consultants.

Effective 1/1/2020
31A-16b-107.
Third-party consultants.
(1) The commissioner may retain a third-party consultant, including an attorney, actuary, accountant, or other expert not otherwise a part of the commissioner's staff:
(a) at the insurer's or insurance group's expense; and
(b) as is reasonably necessary to assist the commissioner in reviewing the insurer's or insurance group's:
(i) corporate governance annual disclosure and related information; or
(ii) compliance with this chapter.
(2) A person the commissioner retains under Subsection (1):
(a) is under the direction and control of the commissioner; and
(b) shall act in a purely advisory capacity.
(3) As part of the retention process, a third-party consultant shall verify to the commissioner, with notice to the insurer or insurance group, that the third-party consultant:
(a) is free of a conflict of interest; and
(b) has internal procedures in place to:
(i) monitor compliance with Subsection (3)(a); and
(ii) comply with the confidentiality standards and requirements of this chapter.
Enacted by Chapter 193, 2019 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 16b - Corporate Governance Annual Disclosure Act › Section 108 - Penalties.

Effective 1/1/2020
31A-16b-108.
Penalties.
(1) An insurer or insurance group that, without just cause, fails to timely file a corporate governance annual disclosure as required in this chapter shall, after notice and hearing, pay a penalty of $10,000 for each day's delay, up to $300,000.
(2) Any penalty recovered by the commissioner under this section shall be deposited into the General Fund.
(3) The commissioner may reduce a penalty under this section if the insurer or insurance group demonstrates to the commissioner that the imposition of the penalty would constitute a financial hardship to the insurer.
Enacted by Chapter 193, 2019 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 1 - General Provisions › Section 101 - Scope.

31A-17-101.
Scope.
Except as otherwise provided under this code, this chapter and the rules adopted to implement it apply to all insurers, including reinsurers, authorized to do business in this state.
Enacted by Chapter 242, 1985 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 1 - General Provisions › Section 102 - Standards for accounting rules.

31A-17-102.
Standards for accounting rules.
When adopting accounting rules, the commissioner shall consider recommendations made by the National Association of Insurance Commissioners. Accounting rules shall follow generally accepted accounting principles, except as modified by statutory insurance accounting principles.
Enacted by Chapter 242, 1985 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 2 - Qualified Assets › Section 201 - Qualified assets.

31A-17-201.
Qualified assets.
(1) Except as provided under Subsections (3) and (4), only the qualified assets listed in Subsection (2) may be used in determining the financial condition of an insurer, except to the extent an insurer has shown to the commissioner that the insurer has excess surplus, as defined in Section 31A-1-301.
(2) For purposes of Subsection (1), "qualified assets" means:
(a) any of the following acquired or held in accordance with Sections 31A-18-105 and 31A-18-106:
(i) an investment;
(ii) a security;
(iii) property; or
(iv) a loan;
(b) the income due and accrued on an asset listed in Subsection (2)(a);
(c) assets other than an asset listed in Subsection (2)(a) that are determined to be admitted in the Accounting Practices and Procedures Manual, published by the National Association of Insurance Commissioners; and
(d) other assets authorized by the commissioner by rule.
(3)
(a) Subject to Subsection (5) and even if the assets could not otherwise be counted under this chapter, assets acquired in the bona fide enforcement of creditors' rights may be counted for the purposes of Subsection (1) and Sections 31A-18-105 and 31A-18-106:
(i) for five years after the acquisition of the assets if the assets are real property; and
(ii) for one year if the assets are not real property.
(b)
(i) The commissioner may allow reasonable extensions of the periods described in Subsection (3)(a), if disposal of the assets within the periods given is not possible without substantial loss.
(ii) Extensions under Subsection (3)(b)(i) may not, as to any particular asset, exceed a total of five years.
(4) Subject to Subsection (5), and even though under this chapter the assets could not otherwise be counted, assets acquired in connection with mergers, consolidations, or bulk reinsurance, or as a dividend or distribution of assets, may be counted for the same purposes, in the same manner, and for the same periods as assets acquired under Subsection (3).
(5) Assets described under Subsection (3) or (4) may not be counted for the purposes of Subsection (1), except to the extent they are counted as assets in determining insurer solvency under the laws of the state of domicile of the creditor or acquired insurer.
Amended by Chapter 252, 2003 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 2 - Qualified Assets › Section 202 - Status of assets that are not "qualified assets."

31A-17-202.
Status of assets that are not "qualified assets."
(1)
(a) Except as provided in Subsection (1)(b), if an insurer owns assets that are not qualified assets under Section 31A-17-201, the assets shall be disregarded in determining and reporting the financial condition of the insurer.
(b) An insurer may invest its funds in investments that are permitted under Section 31A-18-105 but in excess of the limits under Sections 31A-18-103 and 31A-18-106 or other assets approved by the commissioner and these assets may be recognized and reported in the financial condition of the insurer to the extent the insurer has excess surplus, as defined under Section 31A-1-301.
(2) Insurers bear the burden of establishing the extent to which they have excess surplus.
Amended by Chapter 131, 1999 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 2 - Qualified Assets › Section 203 - Encumbering of assets.

31A-17-203.
Encumbering of assets.
(1) No domestic insurer may pledge, hypothecate, or otherwise encumber its assets to secure the debt, guaranty, or obligation of any other person. This prohibition does not apply to obligations of the insurer under surety bonds or insurance contracts issued in the regular course of business.
(2) No domestic insurer may pledge, hypothecate, or otherwise encumber its assets in an amount in excess of the amount of its capital and surplus, without the prior written consent of the commissioner.
(3) The commissioner may grant a domestic insurer an exception to Subsection (2) for a reinsurance agreement which may cause assets of the domestic insurer to be held, deposited, pledged, hypothecated, or otherwise encumbered in an amount in excess of capital and surplus to secure, offset, protect, or meet reserves or liabilities of the insurer that are established, incurred, or required under the provisions of the reinsurance agreement. The domestic insurer shall first file with the commissioner a written request for this exception, accompanied by a copy of the proposed reinsurance agreement and specifically stating its purpose and the reasons the exception should be granted.
(4) Any person that accepts a pledge, hypothecation, or encumbrance of any asset of an insurer not in accordance with the terms and limitations of this section is considered to have accepted that asset subject to a superior, preferential, and perfected lien in favor of owners, beneficiaries, assignees, certificate holders, or third party claimants or beneficiaries of any insurance benefit or right arising out of and within the coverage of any insurance policy issued by the insurer. The commissioner may bring or participate in an action in any court of competent jurisdiction to protect the interests of insureds or claimants under this section.
Enacted by Chapter 204, 1986 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 4 - Valuation and Reserves › Section 404.1 - Asset or reduction from liability for reinsurance ceded by a domestic insurer to other assuming insurers.

Effective 5/10/2016
31A-17-404.1.
Asset or reduction from liability for reinsurance ceded by a domestic insurer to other assuming insurers.
(1)
(a) An asset or a reduction from liability for reinsurance ceded by a domestic insurer to an assuming insurer that does not meet the requirements of Section 31A-17-404 is allowed in an amount not exceeding the liabilities carried by the ceding insurer.
(b) A reduction described in Subsection (1)(a) shall be in the amount of funds held by or on behalf of the ceding insurer, including funds held in trust for the ceding insurer:
(i) that are held:
(A) under a reinsurance contract with the assuming insurer; and
(B) as security for the payment of obligations under the reinsurance contract; and
(ii) if the security is held:
(A) in the United States subject to withdrawal solely by, and under the exclusive control of, the ceding insurer; or
(B) in the case of a trust, in a qualified United States financial institution.
(2) Security described in Subsection (1) may be in the form of:
(a) cash;
(b) a security:
(i) listed by the Securities Valuation Office of the National Association of Insurance Commissioners, including those considered exempt from filing as defined by the Purposes and Procedures Manual of the Securities Valuation Office; and
(ii) qualifying as an admitted asset;
(c) subject to Subsection (3), a clean, irrevocable, unconditional letter of credit, issued or confirmed by a qualified United States financial institution:
(i) effective no later than December 31 of the year for which the filing is being made; and
(ii) in the possession of, or in trust for, the ceding insurer on or before the filing date of its annual statement; or
(d) another form of security acceptable to the commissioner.
(3) Notwithstanding an issuing or confirming institution's subsequent failure to meet an applicable standard of acceptability, a letter of credit described in Subsection (2) that meets the applicable standards of issuer acceptability as of the day on which it is issued or confirmed shall continue to be acceptable as security until the sooner of the day on which the letter of credit expires, is extended, is renewed, is modified, or is amended.
Amended by Chapter 138, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 4 - Valuation and Reserves › Section 404.4 - Transition -- Application to reinsurance agreement.

31A-17-404.4.
Transition -- Application to reinsurance agreement.
The amendments to this part made in Laws of Utah 2008, Chapter 257, apply to a cession made on or after July 1, 2008 under a reinsurance contract that has an inception, anniversary, or renewal date no sooner than January 1, 2009.
Enacted by Chapter 257, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 4 - Valuation and Reserves › Section 405 - Fraternal rates and reserves.

31A-17-405.
Fraternal rates and reserves.
(1) A fraternal may be organized for the transaction of business on a plan set forth in the contract which provides for sufficient contributions by each member each year to pay the member's share of the actual death claims of the year, through advance payments graded according to a mortality table approved by the commissioner, without any reserve, or with a reserve which may accumulate from overpayments of individual members. If this type of reserve does accumulate, each member shall be informed each year of the member's credit and of the cost of the member's insurance.
(2) Each fraternal shall collect regular premiums for each coverage it provides at adequate rates that are approved by the commissioner or conform to standards set by rules adopted by the commissioner.
(3) The reserves of a fraternal are subject to the same requirements as those of Chapter 5, Domestic Stock and Mutual Insurance Corporations, insurers writing the same coverages, except that the commissioner may authorize the use of suitable fraternal mortality tables or other appropriate tables instead of the tables used by Chapter 5, Domestic Stock and Mutual Insurance Corporations, insurers.
Enacted by Chapter 242, 1985 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 4 - Valuation and Reserves › Section 406 - Adjustment of reserves.

31A-17-406.
Adjustment of reserves.
The commissioner may order an insurer to adjust its reserves so the reserves bear a reasonable actuarial relationship to the insurer's obligations.
Enacted by Chapter 242, 1985 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 4 - Valuation and Reserves › Section 407 - Accounting for repurchased shares.

31A-17-407.
Accounting for repurchased shares.
When a corporation acquires its own shares under Section 31A-5-306 or in any other way, the acquired shares are accounted as a deduction from capital and not as assets.
Enacted by Chapter 242, 1985 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 4 - Valuation and Reserves › Section 408 - Title insurance reserves.

Effective 5/4/2022
31A-17-408.
Title insurance reserves.
(1) In addition to an adequate reserve for outstanding losses, a title insurance company shall either:
(a) maintain and segregate an unearned premium reserve fund of not less than 10 cents for each $1,000 face amount of retained liability under each title insurance contract or policy on a single insurance risk issued; or
(b) have the commissioner review and approve a contract of reinsurance applicable to the title insurance company's policies, which contract adequately covers the exposure or risk which the unearned premium reserve would serve.
(2) The fund shall be maintained for the protection of policyholders and is not subject to the claims of stockholders or creditors other than policyholders.
(3) The title insurance company may release the fund in accordance with the standards of the NAIC Accounting Practices and Procedures Manual.
Amended by Chapter 198, 2022 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 5 - Standard Valuation Law › Section 501 - Standard Valuation Law -- Definitions.

Effective 5/10/2016
31A-17-501.
Standard Valuation Law -- Definitions.
(1) This part is known as the "Standard Valuation Law."
(2) As used in this part, the following definitions apply on or after the operative date of the valuation manual:
(a) Notwithstanding Section 31A-1-301, "accident and health insurance" means a contract that incorporates morbidity risk and provides protection against economic loss resulting from accident, sickness, or medical conditions and as may be specified in the valuation manual.
(b) "Appointed actuary" means a qualified actuary who is appointed in accordance with the valuation manual to prepare the actuarial opinion required in Subsection 31A-17-503(2).
(c) "Company" means an entity that:
(i) has written, issued, or reinsured a life insurance contract, accident and health insurance contract, or deposit-type contract in this state and has at least one such policy in force or on claim; or
(ii) has written, issued, or reinsured a life insurance contract, accident and health insurance contract, or deposit-type contract in any state and is required to hold a certificate of authority to write life insurance, accident and health insurance, or deposit-type contracts in this state.
(d) "Deposit-type contract" means a contract that does not incorporate mortality or morbidity risks and as may be specified in the valuation manual.
(e) Notwithstanding Section 31A-1-301, "life insurance" means a contract that incorporates mortality risk, including annuity and pure endowment contracts, and as may be specified in the valuation manual.
(f) "Policyholder behavior" means an action that a policyholder, contract holder, or any other person with the right to elect options, such as a certificate holder, may take under a policy or contract subject to this part, including lapse, withdrawal, transfer, deposit, premium payment, loan, annuitization, or benefit elections prescribed by the policy or contract, but excluding events of mortality or morbidity that result in benefits prescribed in their essential aspects by the terms of the policy or contract.
(g) "Principle-based valuation" means a reserve valuation that uses one or more methods or one or more assumptions determined by the insurer and is required to comply with Section 31A-17-515 as specified in the valuation manual.
(h) "Qualified actuary" means an individual who is qualified to sign the applicable statement of actuarial opinion in accordance with the American Academy of Actuaries qualification standards for actuaries signing the statements and who meets the requirements specified in the valuation manual.
(i) "Tail risk" means a risk that occurs either when the frequency of low probability events is higher than expected under a normal probability distribution or when there are observed events of very significant size or magnitude.
(j) "Valuation manual" means the manual of valuation instructions adopted in accordance with Section 31A-17-514.
Amended by Chapter 163, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 5 - Standard Valuation Law › Section 502 - Reserve valuation.

Effective 5/10/2016
31A-17-502.
Reserve valuation.
(1) The following apply to a policy or contract issued before the operative date of the valuation manual:
(a) The commissioner shall annually value, or cause to be valued, the reserve liabilities, also called "reserves" in this part, for outstanding life insurance policies and annuity and pure endowment contracts, of every life insurance company doing business in this state, issued before the operative date of the valuation manual. In calculating the reserves, the commissioner may use group methods and approximate averages for fractions of a year or otherwise. In lieu of the valuation of the reserves required in this part of any foreign or alien company, the commissioner may accept any valuation made, or caused to be made, by the insurance supervisory official of any state or other jurisdiction when such valuation complies with the minimum standard provided in this part.
(b)
(i) Sections 31A-17-504, 31A-17-505, 31A-17-506, 31A-17-507, 31A-17-508, 31A-17-509, 31A-17-510, 31A-17-511, 31A-17-512, and 31A-17-513 apply to a policy or contract, as appropriate, subject to this part issued before the operative date of the valuation manual.
(ii) Sections 31A-17-514 and 31A-17-515 do not apply to a policy or contract described in Subsection (1)(b)(i).
(2) The following apply to a policy or contract issued on or after the operative date of the valuation manual:
(a) The commissioner shall annually value, or cause to be valued, the reserve liabilities, also called "reserves" in this part, for an outstanding life insurance contract, annuity and pure endowment contract, accident and health contract, and deposit-type contract of every company issued on or after the operative date of the valuation manual. In lieu of the valuation of the reserve liabilities required of a foreign or alien company, the commissioner may accept a valuation made, or caused to be made, by the insurance supervisory official of any state or other jurisdiction when the valuation complies with the minimum standard provided in this part.
(b) Sections 31A-17-514 and 31A-17-515 apply to a policy or contract issued on or after the operative date of the valuation manual.
Amended by Chapter 163, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 5 - Standard Valuation Law › Section 508 - Reserve valuation method -- Annuity and pure endowment benefits.

31A-17-508.
Reserve valuation method -- Annuity and pure endowment benefits.
(1) This section shall apply to all annuity and pure endowment contracts other than group annuity and pure endowment contracts purchased under a retirement plan or plan of deferred compensation, established or maintained by an employer, including a partnership or sole proprietorship, or by an employee organization, or by both, other than a plan providing individual retirement accounts or individual retirement annuities under Section 408, Internal Revenue Code.
(2) Reserves according to the commissioner's annuity reserve method for benefits under annuity or pure endowment contracts, excluding any accident and health and accidental death benefits in such contracts, shall be the greatest of the respective excesses of the present values, at the date of valuation, of the future guaranteed benefits, including guaranteed nonforfeiture benefits, provided for by such contracts at the end of each respective contract year, over the present value, at the date of valuation, of any future valuation considerations derived from future gross considerations, required by the terms of such contract, that become payable prior to the end of such respective contract year. The future guaranteed benefits shall be determined by using the mortality table, if any, and the interest rate, or rates, specified in such contracts for determining guaranteed benefits. The valuation considerations are the portions of the respective gross considerations applied under the terms of such contracts to determine nonforfeiture values.
Amended by Chapter 116, 2001 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 5 - Standard Valuation Law › Section 509 - Minimum reserves.

Effective 5/10/2016
31A-17-509.
Minimum reserves.
(1) In no event shall a company's aggregate reserves for life insurance policies, excluding accident and health and accidental death benefits, issued on or after January 1, 1994, be less than the aggregate reserves calculated in accordance with the methods set forth in Sections 31A-17-507, 31A-17-508, 31A-17-511, and 31A-17-512 and the mortality table or tables and rate or rates of interest used in calculating nonforfeiture benefits for such policies.
(2) In no event shall the aggregate reserves for policies, contracts, and benefits be less than the aggregate reserves determined by the appointed actuary to be necessary to render the opinion required by Section 31A-17-503.
Amended by Chapter 163, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 5 - Standard Valuation Law › Section 510 - Optional reserve calculation.

Effective 5/10/2016
31A-17-510.
Optional reserve calculation.
(1) Reserves for policies and contracts issued before January 1, 1994, may be calculated, at the option of the company, according to any standards which produce greater aggregate reserves for such policies and contracts than the minimum reserves required by the laws in effect immediately before that date. Reserves for any category of policies, contracts, or benefits as established by the commissioner, issued on or after January 1, 1994, may be calculated, at the option of the company, according to any standards which produce greater aggregate reserves for such category than those calculated according to the minimum standard provided in this part, but the rate or rates of interest used for policies and contracts, other than annuity and pure endowment contracts, may not be greater than the corresponding rate or rates of interest used in calculating any nonforfeiture benefits provided in the policy or contract.
(2) Any such company which at any time shall have adopted any standard of valuation producing greater aggregate reserves than those calculated according to the minimum standard provided in this part may, with the approval of the commissioner, adopt any lower standard of valuation, but not lower than the minimum provided in this part, except that, for the purposes of this section, the holding of additional reserves previously determined by the appointed actuary to be necessary to render the opinion required by Section 31A-17-503 may not be considered to be the adoption of a higher standard of valuation.
Amended by Chapter 163, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 5 - Standard Valuation Law › Section 511 - Reserve calculation -- Valuation net premium exceeding the gross premium charged.

Effective 5/10/2016
31A-17-511.
Reserve calculation -- Valuation net premium exceeding the gross premium charged.
(1) If in any contract year the gross premium charged by any company on any policy or contract is less than the valuation net premium for the policy or contract calculated by the method used in calculating the reserve thereon but using the minimum valuation standards of mortality and rate of interest, the minimum reserve required for such policy or contract shall be the greater of either the reserve calculated according to the mortality table, rate of interest, and method actually used for such policy or contract, or the reserve calculated by the method actually used for such policy or contract but using the minimum valuation standards of mortality and rate of interest and replacing the valuation net premium by the actual gross premium in each contract year for which the valuation net premium exceeds the actual gross premium. The minimum valuation standards of mortality and rate of interest referred to in this section are those standards stated in Sections 31A-17-504 and 31A-17-506.
(2) Provided that for any life insurance policy issued on or after January 1, 1997, for which the gross premium in the first policy year exceeds that of the second year and for which no comparable additional benefit is provided in the first year for such excess and which provides an endowment benefit or a cash surrender value or a combination of an endowment benefit and cash surrender value in an amount greater than such excess premium, this section shall be applied as if the method actually used in calculating the reserve for such policy were the method described in Section 31A-17-507, ignoring Subsection 31A-17-507(2). The minimum reserve at each policy anniversary of such a policy shall be the greater of the minimum reserve calculated in accordance with Section 31A-17-507, including Subsection 31A-17-507(2), and the minimum reserve calculated in accordance with this section.
Amended by Chapter 163, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 5 - Standard Valuation Law › Section 512 - Reserve calculation -- Indeterminate premium plans.

Effective 5/12/2015
31A-17-512.
Reserve calculation -- Indeterminate premium plans.
In the case of any plan of life insurance which provides for future premium determination, the amounts of which are to be determined by the insurance company based on then estimates of future experience, or in the case of any plan of life insurance or annuity which is of such a nature that the minimum reserves cannot be determined by the methods described in Sections 31A-17-507, 31A-17-508, and 31A-17-511, the reserves which are held under any such plan shall:
(1) be appropriate in relation to the benefits and the pattern of premiums for that plan; and
(2) be computed by a method which is consistent with the principles of this part, as determined by rules promulgated by the commissioner.
Amended by Chapter 258, 2015 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 5 - Standard Valuation Law › Section 513 - Minimum standards for accident and health insurance contracts.

Effective 5/10/2016
31A-17-513.
Minimum standards for accident and health insurance contracts.
(1) For an accident and health insurance contract issued before the operative date of the valuation manual, the minimum standard of valuation is the standard adopted by the commissioner by rule.
(2) For an accident and health insurance contract issued on or after the operative date of the valuation manual, the standard prescribed in the valuation manual is the minimum standard of valuation required under Subsection 31A-17-502(2).
Repealed and Re-enacted by Chapter 163, 2016 General Session