reglab/statecodes huggingface dataset:
2023 Utah Code › Title 31A - Insurance Code › Chapter 37 - Captive Insurance Companies Act › Part 1 - General Provisions › Section 103 - Chapter exclusivity.

Effective 5/14/2019
31A-37-103.
Chapter exclusivity.
(1) Except as provided in Subsections (2) and (3) or otherwise provided in this chapter, a provision of this title other than this chapter does not apply to a captive insurance company.
(2) To the extent that a provision of the following does not contradict this chapter, the provision applies to a captive insurance company that receives a certificate of authority under this chapter:
(a)Chapter 1, General Provisions;
(b)Chapter 2, Administration of the Insurance Laws;
(c)Chapter 4, Insurers in General;
(d)Chapter 5, Domestic Stock and Mutual Insurance Corporations;
(e)Chapter 14, Foreign Insurers;
(f)Chapter 16, Insurance Holding Companies;
(g)Chapter 17, Determination of Financial Condition;
(h)Chapter 18, Investments;
(i)Chapter 19a, Utah Rate Regulation Act;
(j)Chapter 27, Delinquency Administrative Action Provisions; and
(k)Chapter 27a, Insurer Receivership Act.
(3) In addition to this chapter, and subject to Section 31A-37a-103:
(a)Chapter 37a, Special Purpose Financial Captive Insurance Company Act, applies to a special purpose financial captive insurance company; and
(b) for purposes of a special purpose financial captive insurance company, a reference in this chapter to "this chapter" includes a reference to Chapter 37a, Special Purpose Financial Captive Insurance Company Act.
(4) In addition to this chapter, an industrial group captive insurance company formed as a risk retention group captive is subject to Chapter 15, Part 2, Risk Retention Groups Act, to the extent that this chapter is silent regarding regulation of risk retention groups conducting business in the state.
Amended by Chapter 193, 2019 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 37 - Captive Insurance Companies Act › Part 1 - General Provisions › Section 104 - Applicability of reorganization, receivership, and injunction authority.

31A-37-104.
Applicability of reorganization, receivership, and injunction authority.
(1) Except as provided in Chapter 37a, Special Purpose Financial Captive Insurance Company Act, and Subsection (2), Chapter 27a, Insurer Receivership Act, applies to a captive insurance company formed or holding a certificate of authority under this chapter.
(2) In the case of a sponsored captive insurance company:
(a) the assets of a protected cell may not be used to pay an expense or claim other than one attributable to the protected cell; and
(b) the capital and surplus of the sponsored captive insurance company:
(i) shall at all times be available to pay:
(A) an expense of the sponsored captive insurance company; or
(B) a claim against the sponsored captive insurance company; and
(ii) may not be used to pay an expense or claim attributable to a protected cell.
Amended by Chapter 302, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 37 - Captive Insurance Companies Act › Part 1 - General Provisions › Section 105 - Operation of a branch captive insurance company.

31A-37-105.
Operation of a branch captive insurance company.
Except as otherwise provided in this chapter, a branch captive insurance company shall be a pure captive insurance company with respect to operations in this state, unless otherwise permitted by the commissioner under Section 31A-37-106.
Amended by Chapter 297, 2011 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 37 - Captive Insurance Companies Act › Part 1 - General Provisions › Section 106 - Authority to make rules -- Authority to issue orders.

Effective 5/14/2019
31A-37-106.
Authority to make rules -- Authority to issue orders.
(1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commissioner may adopt rules to:
(a) determine circumstances under which a branch captive insurance company is not required to be a pure captive insurance company;
(b) require a statement, document, or information that a captive insurance company shall provide to the commissioner to obtain a certificate of authority;
(c) determine a factor a captive insurance company shall provide evidence of under Subsection 31A-37-201(4)(b);
(d) prescribe one or more capital requirements for a captive insurance company in addition to those required under Section 31A-37-204 based on the type, volume, and nature of insurance business transacted by the captive insurance company;
(e) waive or modify a requirement for public notice and hearing for the following by a captive insurance company:
(i) merger;
(ii) consolidation;
(iii) conversion;
(iv) mutualization;
(v) redomestication; or
(vi) acquisition;
(f) 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;
(g) 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;
(h) determine the financial reports a sponsored captive insurance company shall annually file with the commissioner;
(i) prescribe the required forms and reports under Section 31A-37-501;
(j) establish one or more standards to ensure that:
(i) one of the following is able to exercise control of the risk management function of a controlled 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 a controlled 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; and
(k) establish requirements for obtaining, maintaining, and renewing a certificate of dormancy.
(2) Notwithstanding Subsection (1)(j), until the commissioner adopts the rules authorized under Subsection (1)(j), 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 a captive insurance company as necessary to enable the commissioner to secure compliance with this chapter.
Amended by Chapter 193, 2019 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 37 - Captive Insurance Companies Act › Part 2 - Certificate of Authority › Section 202 - Permissive areas of insurance.

Effective 5/3/2023
31A-37-202.
Permissive areas of insurance.
(1) Except as provided in Subsections (2) and (3), a captive insurance company may not directly insure a risk other than the risk of the captive insurance company's parent or affiliated company.
(2) In addition to the risks described in Subsection (1), an association captive insurance company may insure the risk of:
(a) a member organization of the association captive insurance company's association; or
(b) an affiliate of a member organization of the association captive insurance company's association.
(3) The following may insure a risk of a controlled unaffiliated business:
(a) an industrial insured captive insurance company;
(b) a protected cell;
(c) a pure captive insurance company; or
(d) a sponsored captive insurance company.
(4) To the extent allowed by a captive insurance company's organizational charter, a captive insurance company may provide any type of insurance described in this title, except:
(a) workers' compensation insurance;
(b) personal motor vehicle insurance;
(c) homeowners' insurance; and
(d) any component of the types of insurance described in Subsections (4)(a) through (c).
(5) A captive insurance company may not provide coverage for:
(a) a wager or gaming risk;
(b) loss of an election; or
(c) the penal consequences of a crime.
(6) Unless the punitive damages award arises out of a criminal act of an insured, a captive insurance company may provide coverage for punitive damages awarded, including through adjudication or compromise, against the captive insurance company's:
(a) parent; or
(b) affiliated company.
(7) Notwithstanding Subsection (4), if approved by the commissioner, a captive insurance company may insure as a reimbursement a limited layer or deductible of workers' compensation coverage.
Amended by Chapter 194, 2023 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 37 - Captive Insurance Companies Act › Part 2 - Certificate of Authority › Section 203 - Deceptive name prohibited.

Effective 5/14/2019
31A-37-203.
Deceptive name prohibited.
(1) A captive insurance company may not adopt a name that is:
(a) the same as any other existing business name registered in this state;
(b) deceptively similar to any other existing business name registered in this state; or
(c) likely to be:
(i) confused with any other existing business name registered in this state; or
(ii) mistaken for any other existing business name registered in this state.
(2) An applicant captive insurance company that submits an application for a certificate of authority on or after May 14, 2019, or a captive insurance company that changes its name on or after May 14, 2019, shall include the word "insurance" or a term of equivalent meaning in its name.
Amended by Chapter 193, 2019 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 37 - Captive Insurance Companies Act › Part 3 - Requirements › Section 302 - Investment requirements.

Effective 5/12/2015
31A-37-302.
Investment requirements.
(1)
(a) Except as provided in Subsection (1)(b), an association captive insurance company, a sponsored captive insurance company, and an industrial insured group shall comply with the investment requirements contained in this title.
(b) Notwithstanding Subsection (1)(a) and any other provision of this title, the commissioner may approve the use of alternative reliable methods of valuation and rating under Section 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 or industrial insured captive insurance company is not subject to any restrictions on allowable investments contained in this title.
(b) Notwithstanding Subsection (2)(a), the commissioner may, under Section 31A-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 may not 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 make loans 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) shall be evidenced by a note in a form approved by the commissioner.
(c) A pure captive insurance company may not make a loan from the paid-in capital required under Subsection 31A-37-204(1).
Amended by Chapter 244, 2015 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 37 - Captive Insurance Companies Act › Part 3 - Requirements › Section 303 - Reinsurance.

Effective 5/5/2021
31A-37-303.
Reinsurance.
(1)
(a) A captive insurance company may cede risks to any insurance company approved by the commissioner.
(b) Except as provided in Subsection (1)(c), a captive insurance company may provide reinsurance on risks ceded by any other insurer with prior approval of the commissioner.
(c) A captive insurance company may not provide reinsurance on a punitive damages risk ceded by an insurer, unless the punitive damages risk is the risk of the captive insurance company's:
(i) parent;
(ii) affiliated company; or
(iii) controlled unaffiliated business.
(2)
(a) A captive insurance company may take credit for reserves on risks or portions of risks ceded to reinsurers if the captive insurance company complies with:
(i) Section 31A-17-404, 31A-17-404.1, 31A-17-404.3, or 31A-17-404.4; or
(ii) other requirements as the commissioner may establish by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(b) Unless the reinsurer is in compliance with Section 31A-17-404, 31A-17-404.1, 31A-17-404.3, or 31A-17-404.4 or a rule adopted under Subsection (2)(a)(ii), a captive insurance company may not take credit for:
(i) reserves on risks ceded to a reinsurer; or
(ii) portions of risks ceded to a reinsurer.
Amended by Chapter 252, 2021 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 37 - Captive Insurance Companies Act › Part 3 - Requirements › Section 305 - Contributions to guaranty or insolvency fund prohibited.

Effective 5/9/2017
31A-37-305.
Contributions to guaranty or insolvency fund prohibited.
(1) A captive insurance company may not join or contribute financially to any of the following in this state:
(a) a plan;
(b) a pool;
(c) an association;
(d) a guaranty fund; or
(e) an insolvency fund.
(2) A captive insurance company, the insured of a captive insurance company, the parent of a captive insurance company, an affiliate of a captive insurance company, or a member organization of an association captive insurance company may not receive a benefit from:
(a) a plan;
(b) a pool;
(c) an association;
(d) a guaranty fund for claims arising out of the operations of the captive insurance company; or
(e) an insolvency fund for claims arising out of the operations of the captive insurance company.
Amended by Chapter 168, 2017 General Session
2023 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
2023 Utah Code › Title 31A - Insurance Code › Chapter 37 - Captive Insurance Companies Act › Part 4 - Sponsored Captive Insurance Companies › Section 403 - Participants in sponsored captive insurance companies.

Effective 5/12/2015
31A-37-403.
Participants in sponsored captive insurance companies.
(1) Any of the following may be a participant in a sponsored captive insurance company holding a certificate of authority under this chapter:
(a) an association;
(b) a corporation that is for profit or nonprofit;
(c) a limited liability company;
(d) a partnership;
(e) a trust; or
(f) any other business entity.
(2) A sponsor may be a participant in a sponsored captive insurance company.
(3) A participant need not be:
(a) a shareholder of the sponsored captive insurance company; or
(b) an affiliate of the sponsored captive insurance company.
(4) A participant shall insure only the participant's own risks through a sponsored captive insurance company unless otherwise approved by the commissioner.
Amended by Chapter 244, 2015 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 37 - Captive Insurance Companies Act › Part 4 - Sponsored Captive Insurance Companies › Section 404 - Discounting of loss and loss adjustment expense reserves.

Effective 5/12/2015
31A-37-404.
Discounting of loss and loss adjustment expense reserves.
(1) A sponsored captive insurance company may discount its loss and loss adjustment expense reserves at treasury rates applied to the applicable payments projected through the use of the expected payment pattern associated with the reserves.
(2)
(a) A sponsored captive insurance company shall annually file with the department an actuarial opinion provided by an independent actuary on loss and loss adjustment expense reserves.
(b) The independent actuary described in Subsection (2)(a) may not be an employee of:
(i) the company filing the actuarial opinion; or
(ii) an affiliate of the company filing the actuarial opinion.
(3) The commissioner may disallow the discounting of reserves by a sponsored captive insurance company if the sponsored captive insurance company violates this title.
Amended by Chapter 244, 2015 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 37 - Captive Insurance Companies Act › Part 5 - Department Enforcement › Section 502 - Examination.

Effective 5/14/2019
31A-37-502.
Examination.
(1)
(a) As provided in this section, the commissioner, or a person appointed by the commissioner, shall examine each captive insurance company in each five-year period.
(b) The five-year period described in Subsection (1)(a) shall be determined on the basis of five full annual accounting periods of operation.
(c) The examination is to be made as of:
(i) December 31 of the full five-year period; or
(ii) the last day of the month of an annual accounting period authorized for a captive insurance company under this section.
(d) In addition to an examination required under this Subsection (1), the commissioner, or a person appointed by the commissioner may examine a captive insurance company whenever the commissioner determines it to be prudent.
(2) During an examination under this section the commissioner, or a person appointed by the commissioner, shall thoroughly inspect and examine the affairs of the captive insurance company to ascertain:
(a) the financial condition of the captive insurance company;
(b) the ability of the captive insurance company to fulfill the obligations of the captive insurance company; and
(c) whether the captive insurance company has complied with this chapter.
(3) The commissioner may accept a comprehensive annual independent audit in lieu of an examination:
(a) of a scope satisfactory to the commissioner; and
(b) performed by an independent auditor approved by the commissioner.
(4) A captive insurance company that is inspected and examined under this section shall pay, as provided in Subsection 31A-37-201(6)(b), the expenses and charges of an inspection and examination.
Amended by Chapter 193, 2019 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 37 - Captive Insurance Companies Act › Part 5 - Department Enforcement › Section 503 - Classification and use of records.

Effective 5/14/2019
31A-37-503.
Classification and use of records.
(1) The following shall be classified as a protected record under Title 63G, Chapter 2, Government Records Access and Management Act:
(a) examination, analysis, and licensing application reports under this chapter;
(b) preliminary examination, analysis, and licensing application reports or results under this chapter;
(c) working papers for an examination, analysis, or licensing application review conducted under this chapter;
(d) recorded information for an examination, analysis, or licensing application review conducted under this chapter; and
(e) documents and copies of documents produced by, obtained by, or disclosed to the commissioner or any other person in the course of an examination, analysis, or licensing application review conducted under this chapter.
(2) This section does not prevent the commissioner from using the information provided under this section in furtherance of the commissioner's regulatory authority under this title.
(3) Notwithstanding other provisions of this section, the commissioner may grant access to the information provided under this section to:
(a) public officers having jurisdiction over the regulation of insurance in any other state or country; or
(b) law enforcement officers of this state or any other state or agency of the federal government, if the officers receiving the information agree in writing to hold the information in a manner consistent with this section.
Amended by Chapter 193, 2019 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 37 - Captive Insurance Companies Act › Part 5 - Department Enforcement › Section 504 - Examinations for branch and alien captive insurance companies.

31A-37-504.
Examinations for branch and alien captive insurance companies.
(1) The examination for a branch captive insurance company shall be of branch business and branch operations only, if the branch captive insurance company:
(a) provides annually to the commissioner a certificate of compliance, or an equivalent, issued by or filed with the licensing authority of the jurisdiction in which the branch captive insurance company is formed; and
(b) demonstrates to the commissioner's satisfaction that the branch captive insurance company is operating in sound financial condition in accordance with the applicable laws and regulations of the jurisdiction in which the branch captive insurance company is formed.
(2) As a condition of obtaining a certificate of authority, an alien captive insurance company shall grant authority to the commissioner to examine the affairs of the alien captive insurance company in the jurisdiction in which the alien captive insurance company is formed.
Amended by Chapter 284, 2011 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 37 - Captive Insurance Companies Act › Part 5 - Department Enforcement › Section 505 - Suspension or revocation -- Grounds.

Effective 5/12/2015
31A-37-505.
Suspension or revocation -- Grounds.
(1) The commissioner may suspend or revoke the certificate of authority of a captive insurance company to conduct an insurance business in this state for:
(a) insolvency or impairment of capital or surplus;
(b) failure to meet the requirements of Section 31A-37-204;
(c) refusal or failure to submit:
(i) an annual report required by Section 31A-37-501; or
(ii) any other report or statement required by law or by lawful order of the commissioner;
(d) failure to comply with the charter, bylaws, or other organizational document of the captive insurance company;
(e) failure to submit to:
(i) an examination under Section 31A-37-502; or
(ii) any legal obligation relative to an examination under Section 31A-37-502;
(f) refusal or failure to pay the cost of examination under Section 31A-37-502;
(g) use of methods that, although not otherwise specifically prohibited by law, render:
(i) the operation of the captive insurance company detrimental to the public or the policyholders of the captive insurance company; or
(ii) the condition of the captive insurance company unsound with respect to the public or to the policyholders of the captive insurance company; or
(h) failure otherwise to comply with laws of this state.
(2) Notwithstanding any other provision of this title, if the commissioner finds, upon examination, hearing, or other evidence, that a captive insurance company has committed any of the acts specified in Subsection (1), the commissioner may suspend or revoke the certificate of authority of the captive insurance company if the commissioner considers it in the best interest of the public and the policyholders of the captive insurance company to revoke the certificate of authority.
Amended by Chapter 244, 2015 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 37 - Captive Insurance Companies Act › Part 7 - Dormancy › Section 701 - Certificate of dormancy.

Effective 5/5/2021
31A-37-701.
Certificate of dormancy.
(1) In accordance with the provisions of this section, a captive insurance company, other than a risk retention group, may apply, without fee, to the commissioner for a certificate of dormancy.
(2)
(a) A captive insurance company, other than a risk retention group, is eligible for a certificate of dormancy if the captive insurance company:
(i) has ceased transacting the business of insurance, including the issuance of insurance policies; and
(ii) has no remaining insurance liabilities or obligations associated with insurance business transactions or insurance policies.
(b) For purposes of Subsection (2)(a)(ii), the commissioner may disregard liabilities or obligations for which the captive insurance company has withheld sufficient funds or that are otherwise sufficiently secured.
(3) Except as provided in Subsection (4), a captive insurance company that holds a certificate of dormancy is subject to all requirements of this chapter.
(4) A captive insurance company that holds a certificate of dormancy:
(a) shall possess and maintain unimpaired paid-in capital and unimpaired paid-in surplus of:
(i) in the case of a pure captive insurance company or a special purpose captive insurance company, not less than $25,000;
(ii) in the case of an association captive insurance company, not less than $75,000; or
(iii) in the case of a sponsored captive insurance company, not less than $50,000, of which the sponsor provides at least $20,000; and
(b) is not required to:
(i) subject to Subsection (5), submit an annual audit or statement of actuarial opinion;
(ii) maintain an active agreement with an independent auditor or actuary; or
(iii) hold an annual meeting of the captive insurance company in the state.
(5) The commissioner may require a captive insurance company that holds a certificate of dormancy to submit an annual audit if the commissioner determines that there are concerns regarding the captive insurance company's solvency or liquidity.
(6) To maintain a certificate of dormancy and in lieu of a certificate of authority renewal fee, no later than July 1 of each year, a captive insurance company shall pay an annual dormancy renewal fee that is equal to 50% of the captive insurance's company's certificate of authority renewal fee.
(7) A captive insurance company may consecutively renew a certificate of dormancy no more than five times.
Amended by Chapter 252, 2021 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 37 - Captive Insurance Companies Act › Part 7 - Dormancy › Section 702 - Cancelling a certificate of dormancy.

Effective 5/14/2019
31A-37-702.
Cancelling a certificate of dormancy.
A captive insurance company may apply to cancel its certificate of dormancy by complying with the procedures established in rule made by the commissioner in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
Enacted by Chapter 193, 2019 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 37a - Special Purpose Financial Captive Insurance Company Act › Part 1 - General Provisions › Section 103 - Applicable law.

31A-37a-103.
Applicable law.
(1)
(a) A special purpose financial captive insurance company is subject to:
(i) this chapter; and
(ii)Chapter 37, Captive Insurance Companies Act.
(b) If there is a conflict between this chapter and Chapter 37, Captive Insurance Companies Act, this chapter controls.
(2) A special purpose financial captive insurance company is subject to a rule made under Section 31A-37-106 that is in effect on or after May 5, 2008.
(3) The commissioner may, by order, exempt a special purpose financial captive insurance company from a provision of Chapter 37, Captive Insurance Companies Act, or a rule made under Section 31A-37-106 if the commissioner determines that the application of the provision or rule is inappropriate on the basis of the special purpose financial captive insurance company's plan of operation.
Enacted by Chapter 302, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 37a - Special Purpose Financial Captive Insurance Company Act › Part 1 - General Provisions › Section 105 - Transition.

31A-37a-105.
Transition.
(1)
(a) Except as otherwise determined by the commissioner, a captive insurance company that on May 5, 2008 has a certificate of authority from the commissioner pursuant to Chapter 37, Captive Insurance Companies Act, and engages in insurance securitization:
(i) is subject to this chapter as a special purpose financial captive insurance company; and
(ii) is considered to have a certificate of authority issued under this chapter.
(b) The commissioner may require a captive insurance company described in Subsection (1)(a) to take an action that the commissioner determines is reasonably necessary to bring the captive insurance company into compliance with this chapter.
(2) The commissioner may issue an order described in Section 31A-37a-201 with respect to a captive insurance company described in Subsection (1)(a) if the captive insurance company is not in compliance with this chapter.
Enacted by Chapter 302, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 37a - Special Purpose Financial Captive Insurance Company Act › Part 2 - Certificate of Authority and Operations › Section 202 - Revocation, suspension, amendment, or modification of a certificate of authority.

31A-37a-202.
Revocation, suspension, amendment, or modification of a certificate of authority.
Except as provided in Sections 31A-37a-501 and 31A-37a-502, the commissioner may not revoke, suspend, amend, or modify a certificate of authority issued to a special purpose financial captive insurance company under this chapter or an order issued under Subsection 31A-37a-201(4) unless:
(1) the special purpose financial captive insurance company consents to the revocation, suspension, amendment, or modification; or
(2) the commissioner shows by clear and convincing evidence that the revocation, suspension, amendment, or modification is necessary to avoid irreparable harm to:
(a) a special purpose financial captive insurance company; or
(b) a ceding insurer.
Enacted by Chapter 302, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 37a - Special Purpose Financial Captive Insurance Company Act › Part 2 - Certificate of Authority and Operations › Section 203 - Reporting related to transactions.

31A-37a-203.
Reporting related to transactions.
(1) A special purpose financial captive insurance company shall provide the commissioner with a copy of a complete set of executed documentation of an insurance securitization no later than 30 days after the day on which the insurance securitization transaction closes.
(2) Section 31A-37-503 applies to:
(a) information submitted pursuant to Subsection (1);
(b) information submitted pursuant to Subsection 31A-37a-201(2); or
(c) an order issued to a special purpose financial captive insurance company pursuant to Subsection 31A-37a-201(4).
Enacted by Chapter 302, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 37a - Special Purpose Financial Captive Insurance Company Act › Part 2 - Certificate of Authority and Operations › Section 204 - Prior approval of a change in plan of operation and other transactions.

31A-37a-204.
Prior approval of a change in plan of operation and other transactions.
(1) A special purpose financial captive insurance company may not change its plan of operation without the prior approval of the commissioner.
(2)
(a) Subject to Subsection (2)(b), a special purpose financial captive insurance company may not engage in a transaction or series of transactions without the prior approval of the commissioner if the transaction or series of transactions:
(i) is undertaken to dissolve the special purpose financial captive insurance company; or
(ii) results in the termination of all or a part of a special purpose financial captive insurance company's business.
(b) A special purpose financial captive insurance company is not required to obtain the prior approval of the commissioner for a transaction or series of transactions described in Subsection (2)(a)(ii) if:
(i) the transaction or series of transactions is done in accordance with a document or agreement described in the special purpose financial captive insurance company's plan of operation; and
(ii) the special purpose financial captive insurance company notifies the commissioner prior to the transaction or series of transactions.
(3) A special purpose financial captive insurance company shall notify the commissioner before a change in the legal ownership of a security issued by the special purpose financial captive insurance company.
Enacted by Chapter 302, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 37a - Special Purpose Financial Captive Insurance Company Act › Part 3 - Formation and Assets › Section 301 - Formation.

31A-37a-301.
Formation.
(1) A special purpose financial captive insurance company may be:
(a) incorporated as a stock insurer with its capital divided into shares and held by its stockholders; or
(b) organized as a manager-managed limited liability company.
(2) A special purpose financial captive insurance company's organizational documents shall limit the special purpose financial captive insurance company's authority to transact the business of insurance or reinsurance to those activities that the special purpose financial captive insurance company conducts to accomplish its purposes as expressed in this chapter.
Enacted by Chapter 302, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 37a - Special Purpose Financial Captive Insurance Company Act › Part 3 - Formation and Assets › Section 302 - Minimum capital and surplus.

31A-37a-302.
Minimum capital and surplus.
(1) The commissioner may not issue a special purpose financial captive insurance company a certificate of authority under this chapter unless it possesses unimpaired paid-in capital and surplus of not less than $250,000 on the day on which the certificate of authority is issued.
(2) A special purpose financial captive insurance company shall maintain unimpaired paid-in capital and surplus of not less than $250,000 at all times when having a certificate of authority under this chapter.
Enacted by Chapter 302, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 37a - Special Purpose Financial Captive Insurance Company Act › Part 3 - Formation and Assets › Section 303 - Disposition of assets -- Investments.

31A-37a-303.
Disposition of assets -- Investments.
(1) A special purpose financial captive insurance company or a person on its behalf shall preserve and administer an asset of the special purpose financial captive insurance company to satisfy the liabilities and obligations of the special purpose financial captive insurance company incident to:
(a) the reinsurance contract;
(b) an insurance securitization; and
(c) an agreement related to Subsection (1)(a) or (b).
(2) In a special purpose financial captive insurance company insurance securitization, a security offering memorandum or other document issued to a prospective investor regarding the offer and sale of a surplus note or other security shall include a disclosure that all or part of the proceeds of the insurance securitization will be used to fund the special purpose financial captive insurance company's obligations to the ceding insurer.
(3) A special purpose financial captive insurance company is not subject to a restriction on investments other than the following:
(a) A special purpose financial captive insurance company may not make a loan to a person other than:
(i) as permitted under its plan of operation; or
(ii) as otherwise approved in advance of the loan by the commissioner.
(b) The commissioner may prohibit or limit an investment that threatens the solvency or liquidity of a special purpose financial captive insurance company unless the investment is otherwise approved in:
(i) the special purpose financial captive insurance company's plan of operation; or
(ii) an order issued to the special purpose financial captive insurance company pursuant to Section 31A-37a-201.
Enacted by Chapter 302, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 37a - Special Purpose Financial Captive Insurance Company Act › Part 4 - Reinsurance › Section 401 - Purchase of reinsurance.

31A-37a-401.
Purchase of reinsurance.
Subject to the prior approval of the commissioner, a special purpose financial captive insurance company may purchase reinsurance to cede the risks assumed under a reinsurance contract.
Enacted by Chapter 302, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 37a - Special Purpose Financial Captive Insurance Company Act › Part 5 - Enforcement and Delinquency › Section 501 - Suspension and revocation.

31A-37a-501.
Suspension and revocation.
(1)
(a) The commissioner shall notify a special purpose financial captive insurance company not less than 30 days before suspending or revoking the special purpose financial captive insurance company's certificate of authority pursuant to Section 31A-37-505.
(b) In the notice required by Subsection (1)(a) the commissioner shall state the basis for the suspension or revocation.
(c) The commissioner shall give a special purpose financial captive insurance company described in this Subsection (1) an opportunity for a hearing pursuant to Title 63G, Chapter 4, Administrative Procedures Act.
(2) Notwithstanding Subsection (1) and Title 63G, Chapter 4, Administrative Procedures Act, the commissioner is not required to provide prior notice or a hearing if the grounds for suspension or revocation of a special purpose financial captive insurance company's certificate of authority pursuant to Section 31A-37-505 relate primarily to:
(a) the financial condition or soundness of the special purpose financial captive insurance company; or
(b) a deficiency in the assets of the special purpose financial captive insurance company.
Enacted by Chapter 302, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 38 - Federal Health Care Tax Credit Program Act › Section 102 - Definitions.

31A-38-102.
Definitions.
As used in this chapter:
(1) "Bridge program" means the program established by the Department of Workforce Services on July 1, 2003:
(a) to implement the federal health coverage tax credit program;
(b) with federal funds; and
(c) for qualified participants.
(2) "Federal health coverage tax credit program" means the health care tax credit program authorized by the Trade Reform Act.
(3) "Qualified participant" means an individual:
(a) eligible for coverage under the state program in accordance with Section 31A-38-103; and
(b) qualified by the Internal Revenue Service and the Department of the United States Treasury to participate in the federal health coverage tax credit program.
(4) "State program" means the program established under this chapter:
(a) to implement the federal health coverage tax credit program; and
(b) for qualified participants.
(5) "Trade Reform Act" means the Trade Adjustment Assistance Reform Act of 2002, 107 P.L. 210.
Enacted by Chapter 2, 2004 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 38 - Federal Health Care Tax Credit Program Act › Section 104 - Authorization -- Money transferred for reserves.

31A-38-104.
Authorization -- Money transferred for reserves.
(1) The Department of Workforce Services may:
(a) convert the bridge program to the state program through any of the following, or combination of the following, that the Department of Workforce Services considers best serves the needs of qualified participants:
(i) a contract with a licensed insurance company authorized to do business in the state;
(ii) through any other arrangement acceptable under the Trade Reform Act; or
(iii) a self-insurance program through a third party administrator as provided in Subsection 31A-38-103(3)(b)(ii); and
(b) obligate up to $2,000,000 of the Special Administrative Expense Account created in Section 35A-4-506 as reserves for the state program.
(2) The money in Subsection (1)(b) may be used until the reserves in the state program become adequate.
Amended by Chapter 303, 2011 General Session
Amended by Chapter 342, 2011 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 40 - Professional Employer Organization Licensing Act › Part 1 - General Provisions › Section 103 - Duties of the commissioner.

31A-40-103.
Duties of the commissioner.
(1)
(a) The commissioner shall maintain a list of professional employer organizations that are licensed under this chapter.
(b) The commissioner shall make the list required by this Subsection (1) available to the public by electronic or other means.
(2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commissioner:
(a) shall make rules to prescribe the requirements for forms required under this chapter;
(b) may make rules to prescribe the requirements and process for correcting under Section 31A-40-205:
(i) a deficiency in working capital; or
(ii) negative working capital;
(c) may make rules to prescribe the requirements for the review and submission of a financial statement under Section 31A-40-305:
(i) that are consistent with generally accepted accounting principles; and
(ii) including the timeliness of a financial statement; and
(d) may make rules to prescribe the requirements and process for when a professional employer organization license is terminated by:
(i) voluntary surrender of the professional organization license; or
(ii) involuntary surrender of the professional organization license.
(3) A rule in effect on May 5, 2008 under the repealed Title 58, Chapter 59, Professional Employer Organization Registration Act, remains in effect until such time as the commissioner modifies or repeals the rule.
Amended by Chapter 10, 2010 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 40 - Professional Employer Organization Licensing Act › Part 1 - General Provisions › Section 104 - Confidentiality -- Cooperation with other agencies.

31A-40-104.
Confidentiality -- Cooperation with other agencies.
(1) Notwithstanding Title 63G, Chapter 2, Government Records Access and Management Act, and except as provided in Subsection (2), (3), or (4), the commissioner or department may not disclose information obtained from a professional employer organization under this chapter.
(2) The commissioner or department may disclose information on an aggregate basis that does not identify an individual professional employer organization or client.
(3) The commissioner or department may disclose information obtained from a professional employer organization under this chapter to a government entity if the government entity requires the information to perform the government entity's duties.
(4)
(a) The commissioner shall coordinate the commissioner's administration of this chapter and share information with:
(i) the Department of Workforce Services;
(ii) the Labor Commission; and
(iii) the State Tax Commission.
(b) An agency listed in Subsection (4)(a) shall treat the information obtained under this section as confidential unless disclosure of the information is required in accordance with:
(i) this title; or
(ii)Title 63G, Chapter 2, Government Records Access and Management Act.
Enacted by Chapter 318, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 40 - Professional Employer Organization Licensing Act › Part 2 - Coemployment Relationship and Professional Employer Services › Section 201 - Enforceable rights and obligations.

31A-40-201.
Enforceable rights and obligations.
(1) In a coemployment relationship under a professional employer agreement:
(a) a professional employer organization:
(i) may only enforce a right of an employer that is specifically allocated to the professional employer organization under the professional employer agreement or this chapter; and
(ii) is subject only to an obligation of an employer specifically allocated to the professional employer organization by the professional employer agreement or this chapter; and
(b) a client:
(i) may enforce a right of an employer:
(A) allocated to the client in the professional employer agreement or this chapter; or
(B) not specifically allocated to the professional employer organization under the professional employer agreement or this chapter; and
(ii) is subject to an obligation of an employer:
(A) allocated to the client by the professional employer agreement or this chapter; or
(B) not specifically allocated to a professional employer organization by the professional employer agreement or this chapter.
(2) A right or obligation of a professional employer organization as a coemployer of a covered employee is limited to a right or obligation arising pursuant to the professional employer agreement and this chapter during the term of coemployment of the covered employee by the professional employer organization.
Enacted by Chapter 318, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 40 - Professional Employer Organization Licensing Act › Part 2 - Coemployment Relationship and Professional Employer Services › Section 203 - Covered employee.

Effective 5/13/2014
31A-40-203.
Covered employee.
(1)
(a) An individual is a covered employee of a professional employer organization if the individual is coemployed pursuant to a professional employer agreement subject to this chapter.
(b) An individual who is a covered employee under a professional employer agreement is a covered employee, whether or not the professional employer organization provides the notice required by Subsection 31A-40-202(3), the earlier of the day on which:
(i) the employee is first compensated by the professional employer organization; or
(ii) the client notifies the professional employer organization of a new hire.
(2) An individual who is an officer, director, shareholder, partner, or manager of a client is a covered employee:
(a) to the extent that the client and the professional employer organization expressly agree in the professional employer agreement that the individual is a covered employee;
(b) if the conditions of Subsection (1) are met; and
(c) if the individual acts as an operational manager or performs day-to-day an operational service for the client.
Amended by Chapter 290, 2014 General Session
Amended by Chapter 300, 2014 General Session