reglab/statecodes huggingface dataset:
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 5 - Standard Valuation Law › Section 515 - Requirements of a principle-based valuation.

Effective 5/10/2016
31A-17-515.
Requirements of a principle-based valuation.
(1) A company shall establish reserves using a principle-based valuation that meets the following conditions for a policy or contract as specified in the valuation manual:
(a) A company shall quantify the benefits and guarantees, and the funding, associated with the policy or contract and the policy's or contract's risks at a level of conservatism that reflects:
(i) conditions that include unfavorable events that have a reasonable probability of occurring during the lifetime of the policies or contracts; and
(ii) for polices or contracts with significant tail risk, conditions appropriately adverse to quantify the tail risk.
(b) The company shall incorporate assumptions, risk analysis methods, and financial models and management techniques that are consistent with, but not necessarily identical to, those used within the company's overall risk assessment process, while recognizing potential differences in financial reporting structures and any prescribed assumptions or methods.
(c) The company shall incorporate assumptions that are derived in one of the following manners:
(i) the assumption is prescribed in the valuation manual; and
(ii) for assumptions that are not prescribed, the assumptions shall:
(A) be established using the company's available experience, to the extent it is relevant and statistically credible; or
(B) to the extent that company data is not available, relevant, or statistically credible, be established using other relevant, statistically credible experience.
(d) The company shall provide margins for uncertainty including adverse deviation and estimation error, such that the greater the uncertainty the larger the margin and resulting reserve.
(2) A company using a principle-based valuation for one or more policies or contracts subject to this section as specified in the valuation manual shall:
(a) establish procedures for corporate governance and oversight of the actuarial valuation function consistent with those described in the valuation manual;
(b) provide to the commissioner and the board of directors an annual certification of the effectiveness of the internal controls with respect to the principle-based valuation:
(i) which controls shall be designed to assure that all material risks inherent in the liabilities and associated assets subject to such valuation are included in the valuation, and that valuations are made in accordance with the valuation manual; and
(ii) the certification shall be based on the controls in place as of the end of the preceding calendar year; and
(c) develop, and file with the commissioner upon request, a principle-based valuation report that complies with standards prescribed in the valuation manual.
(3) A principle-based valuation may include a prescribed formulaic reserve component.
Enacted 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 516 - Experience reporting for policies in force on or after the operative date of the valuation manual.

Effective 5/10/2016
31A-17-516.
Experience reporting for policies in force on or after the operative date of the valuation manual.
A company shall submit mortality, morbidity, policyholder behavior, or expense experience and other data as prescribed in the valuation manual.
Enacted 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 518 - Single state exemption.

Effective 5/10/2016
31A-17-518.
Single state exemption.
(1) The commissioner may exempt specific product forms or product lines of a domestic company that is licensed and doing business only in Utah from the requirements of Section 31A-17-514 provided:
(a) the commissioner has issued an exemption in writing to the company and has not subsequently revoked the exemption in writing; and
(b) the company computes reserves using assumptions and methods used before the operative date of the valuation manual in addition to any requirements established by the commissioner and made by rule.
(2) For any company granted an exemption under this section, Sections 31A-17-503, 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 are applicable. With respect to any company applying this exemption, any reference to Section 31A-17-514 found in Sections 31A-17-503, 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 is not applicable.
Enacted by Chapter 163, 2016 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 6 - Risk-Based Capital › Section 601 - Definitions.

Effective 5/4/2022
31A-17-601.
Definitions.
As used in this part:
(1) "Adjusted RBC report" means an RBC report that has been adjusted by the commissioner in accordance with Subsection 31A-17-602(5).
(2) "Corrective order" means an order issued by the commissioner specifying corrective action that the commissioner determines is required.
(3) "Health organization" means:
(a) an entity that is authorized under Chapter 7, Nonprofit Health Service Insurance Corporations, or Chapter 8, Health Maintenance Organizations and Limited Health Plans; and
(b) that is:
(i) a health maintenance organization;
(ii) a limited health service organization;
(iii) a dental or vision plan;
(iv) a hospital, medical, and dental indemnity or service corporation; or
(v) other managed care organization.
(4) "Life or accident and health insurer" means:
(a) an insurance company licensed to write life insurance, accident and health insurance, or both; or
(b) a licensed property casualty insurer writing only disability insurance.
(5) "Property and casualty insurer" means any insurance company licensed to write lines of insurance other than life but does not include a monoline mortgage guaranty insurer, financial guaranty insurer, or title insurer.
(6) "RBC" means risk-based capital.
(7) "RBC instructions" means the RBC report including the National Association of Insurance Commissioner's risk-based capital instructions that govern the year for which an RBC report is prepared.
(8) "RBC level" means an insurer's or health organization's authorized control level RBC, company action level RBC, mandatory control level RBC, or regulatory action level RBC.
(a) "Authorized control level RBC" means the number determined under the risk-based capital formula in accordance with the RBC instructions;
(b) "Company action level RBC" means the product of 2.0 and its authorized control level RBC;
(c) "Mandatory control level RBC" means the product of .70 and the authorized control level RBC; and
(d) "Regulatory action level RBC" means the product of 1.5 and its authorized control level RBC.
(9)
(a) "RBC plan" means a comprehensive financial plan containing the elements specified in Subsection 31A-17-603(2).
(b) Notwithstanding Subsection (9)(a), the plan is a "revised RBC plan" if:
(i) the commissioner rejects the RBC plan; and
(ii) the plan is revised by the insurer or health organization, with or without the commissioner's recommendation.
(10) "RBC report" means the report required in Section 31A-17-602.
Amended by Chapter 198, 2022 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 6 - Risk-Based Capital › Section 602 - RBC reports -- RBC of life and accident and health insurers -- RBC of property and casualty insurers.

31A-17-602.
RBC reports -- RBC of life and accident and health insurers -- RBC of property and casualty insurers.
(1) Every domestic life or accident and health insurer, every domestic property and casualty insurer, and every domestic health organization shall:
(a) on or before March 1, prepare and submit to the commissioner a report of its RBC levels as of the end of the calendar year just ended, in a form and containing the information as is required by the RBC instructions;
(b) file its RBC report with the insurance commissioner in any state in which the insurer or health organization is authorized to do business, if the insurance commissioner of that state notifies the insurer or health organization of its request in writing, in which case the insurer or health organization may file its RBC report not later than the later of:
(i) 15 days from the receipt of notice to file its RBC report with that state; or
(ii) March 1; and
(c) file the documents described in Subsections (1)(a) and (b) with the National Association of Insurance Commissioners in accordance with RBC instructions.
(2) A life and accident and health insurer's RBC shall be determined in accordance with the formula set forth in the RBC instructions. The formula shall take into account and may adjust for the covariance between:
(a) the risk with respect to the insurer's assets;
(b) the risk of adverse insurance experience with respect to the insurer's liabilities and obligations;
(c) the interest rate risk with respect to the insurer's business; and
(d) all other business risks and other relevant risks as set forth in the RBC instructions.
(3) A property and casualty insurer's RBC shall be determined in accordance with the formula set forth in the RBC instructions. The formula shall take the following into account and may adjust for the covariance between:
(a) asset risk;
(b) credit risk;
(c) underwriting risk; and
(d) all other business risks and the other relevant risks as set forth in the RBC instructions.
(4) A health organization's RBC shall be determined in accordance with the formula set forth in the RBC instructions. The formula shall take the following into account and may adjust for the covariance between:
(a) asset risk;
(b) credit risk;
(c) underwriting risk; and
(d) all other business risks and such other relevant risks as are set forth in the RBC instructions.
(5)
(a) If a domestic insurer files an RBC report that the commissioner determines is inaccurate, the commissioner shall adjust the RBC report to correct the inaccuracy and shall notify the insurer of the adjustment.
(b) The notice under Subsection (5)(a) shall contain a statement of the reason for the adjustment.
(6) The commissioner may make rules to assist in applying the provisions of this part to health organizations.
Amended by Chapter 116, 2001 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 6 - Risk-Based Capital › Section 605 - Authorized control level event.

31A-17-605.
Authorized control level event.
(1) "Authorized control level event" means any of the following events:
(a) the filing of an RBC report by the insurer or health organization that indicates that the insurer's or health organization's total adjusted capital is greater than or equal to its mandatory control level RBC but less than its authorized control level RBC;
(b) the notification by the commissioner to the insurer or health organization of an adjusted RBC report that indicates the event in Subsection (1)(a), provided the insurer or health organization does not challenge the adjusted RBC report under Section 31A-17-607;
(c) if, pursuant to Section 31A-17-607, the insurer or health organization challenges an adjusted RBC report that indicates the event in Subsection (1)(a), notification by the commissioner to the insurer or health organization that after a hearing the commissioner rejects the insurer's or health organization's challenge;
(d) the failure of the insurer or health organization to respond, in a manner satisfactory to the commissioner, to a corrective order, provided the insurer or health organization has not challenged the corrective order under Section 31A-17-607; or
(e) if the insurer or health organization has challenged a corrective order under Section 31A-17-607 and the commissioner after a hearing rejects the challenge or modifies the corrective order, the failure of the insurer or health organization to respond, in a manner satisfactory to the commissioner, to the corrective order subsequent to rejection or modification by the commissioner.
(2)
(a) In the event of an authorized control level event with respect to an insurer or health organization, the commissioner shall:
(i) take any action required under Section 31A-17-604 regarding an insurer or health organization with respect to which a regulatory action level event has occurred; or
(ii) take any action as is necessary to cause the insurer or health organization to be placed under regulatory control under Chapter 27, Part 5, Administrative Actions, if the commissioner considers it to be in the best interests of:
(A) the policyholders or members;
(B) creditors of the insurer or health organization; and
(C) the public.
(b) If the commissioner takes an action described in Subsection (2)(a), the authorized control level event is sufficient grounds for the commissioner to take action under Chapter 27, Part 5, Administrative Actions, and the commissioner shall have the rights, powers, and duties with respect to the insurer or health organization set forth in Chapter 27, Part 5, Administrative Actions.
(c) If the commissioner takes an action under Subsection (2)(a) pursuant to an adjusted RBC report, the insurer or health organization is entitled to the protections afforded to an insurer or health organization under Section 31A-27-504 pertaining to an action by the commissioner.
Amended by Chapter 309, 2007 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 6 - Risk-Based Capital › Section 606 - Mandatory control level event.

31A-17-606.
Mandatory control level event.
(1) "Mandatory control level event" means any of the following events:
(a) the filing of an RBC report that indicates that the insurer's or health organization's total adjusted capital is less than its mandatory control level RBC;
(b) notification by the commissioner to the insurer or health organization of an adjusted RBC report that indicates the event in Subsection (1)(a), provided the insurer or health organization does not challenge the adjusted RBC report under Section 31A-17-607; or
(c) if, pursuant to Section 31A-17-607, the insurer or health organization challenges an adjusted RBC report that indicates the event in Subsection (1)(a), notification by the commissioner to the insurer or health organization that after a hearing the commissioner rejects the insurer's or health organization's challenge.
(2)
(a) In the event of a mandatory control level event with respect to an insurer or health organization, the commissioner shall take any actions necessary to place the insurer under regulatory control under Chapter 27, Part 5, Administrative Actions.
(b) The mandatory control level event is sufficient grounds for the commissioner to take action under Chapter 27, Part 5, Administrative Actions, and the commissioner shall have the rights, powers, and duties with respect to the insurer or health organization as are set forth in Chapter 27, Part 5, Administrative Actions.
(c) If the commissioner takes an action pursuant to an adjusted RBC report, the insurer or health organization is entitled to the protections of Section 31A-27-504 pertaining to summary proceedings.
(d) Notwithstanding the other provisions of Subsection (2), the commissioner may forego action for up to 90 days after the mandatory control level event if the commissioner finds there is a reasonable expectation that the mandatory control level event may be eliminated within the 90-day period.
Amended by Chapter 309, 2007 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 6 - Risk-Based Capital › Section 607 - Hearings.

Effective 5/13/2014
31A-17-607.
Hearings.
(1)
(a) Following receipt of a notice described in Subsection (2), the insurer or health organization shall have the right to a confidential departmental hearing at which the insurer or health organization may challenge a determination or action by the commissioner.
(b) The insurer or health organization shall notify the commissioner of its request for a hearing within five days after the notification by the commissioner under Subsection (2).
(c) Upon receipt of the insurer's or health organization's request for a hearing, the commissioner shall set a date for the hearing, which date shall be no less than 10 nor more than 30 days after the date of the insurer's or health organization's request.
(2) An insurer or health organization has the right to a hearing under Subsection (1) after:
(a) notification to an insurer or health organization by the commissioner of an adjusted RBC report;
(b) notification to an insurer or health organization by the commissioner that:
(i) the insurer's or health organization's RBC plan or revised RBC plan is unsatisfactory; and
(ii) the notification constitutes a regulatory action level event with respect to the insurer or health organization;
(c) notification to any insurer or health organization by the commissioner that the insurer or health organization has failed to adhere to its RBC plan or revised RBC plan and that the failure has substantial adverse effect on the ability of the insurer or health organization to eliminate the company action level event with respect to the insurer or health organization in accordance with its RBC plan or revised RBC plan; or
(d) notification to an insurer or health organization by the commissioner of a corrective order with respect to the insurer or health organization.
Amended by Chapter 290, 2014 General Session
Amended by Chapter 300, 2014 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 6 - Risk-Based Capital › Section 608 - Confidentiality -- Prohibition on announcements -- Prohibition on use in ratemaking.

31A-17-608.
Confidentiality -- Prohibition on announcements -- Prohibition on use in ratemaking.
(1)
(a) The commissioner shall keep confidential to the extent that information in a report or plan is not required to be included in a publicly available annual statement schedule, any detail in an RBC report or RBC plan including the results or report of any examination or analysis of an insurer or health organization performed pursuant to this part, that is filed by a domestic or foreign insurer or health organization with the commissioner or any corrective order issued by the commissioner pursuant to examination or analysis.
(b) Information kept confidential under Subsection (1)(a) may not be made public or be subject to subpoena, other than by the commissioner and then only for the purpose of enforcement actions taken by the commissioner pursuant to this part or any other provision of the insurance laws of this state.
(2)
(a) Except as otherwise required under this part, any insurer or health organization, producer, or other person engaged in any manner in the insurance business may not publish, disseminate, circulate or place before the public, or cause, directly or indirectly, the publishing, disseminating, circulating or placing before the public including, in a newspaper, magazine, other publication, a notice, circular, pamphlet, letter, or poster, or over any radio or television station, an advertisement, announcement, or statement containing an assertion, representation, or statement with regard to the RBC levels of any insurer or health organization, or of any component derived in the calculation.
(b) If any materially false statement with respect to the comparison regarding an insurer's or health organization's total adjusted capital to its RBC levels, or an inappropriate comparison of any other amount to the insurer's or health organization's RBC levels is published in any written publication and the insurer or health organization is able to demonstrate to the commissioner with substantial proof the falsity of the statement or the inappropriateness, the insurer or health organization may publish an announcement in a written publication if the sole purpose of the announcement is to rebut the materially false statement or inappropriate comparison.
(3) The commissioner may not use an RBC instruction, report, plan, or revised plan:
(a) for ratemaking;
(b) as evidence in any rate proceeding; or
(c) to calculate or derive any element of an appropriate premium level or rate of return for any line of insurance or coverage that an insurer or health organization or any affiliate is authorized to write or cover.
Amended by Chapter 298, 2003 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 6 - Risk-Based Capital › Section 609 - Alternate adjusted capital.

31A-17-609.
Alternate adjusted capital.
(1) Except as provided in Section 31A-17-602, an insurer or health organization licensed under Chapter 5, Domestic Stock and Mutual Insurance Corporations, Chapter 7, Nonprofit Health Service Insurance Corporations, Chapter 8, Health Maintenance Organizations and Limited Health Plans, Chapter 9, Insurance Fraternals, and Chapter 14, Foreign Insurers, shall maintain total adjusted capital as defined in Section 31A-1-301 in an amount equal to the greater of:
(a) 175% of the minimum required capital, or of the minimum permanent surplus in the case of nonassessable mutuals, required by Section 31A-5-211, 31A-7-201, 31A-8-209, 31A-9-209, or 31A-14-205; or
(b) the net total of:
(i) 10% of net insurance premiums earned during the year; plus
(ii) 5% of the admitted value of common stocks and real estate; plus
(iii) 2% of the admitted value of all other invested assets, exclusive of cash deposits, short-term investments, policy loans, and premium notes; less
(iv) the amount of any asset valuation reserve being maintained by the insurer or health organization, but not to exceed the sum of Subsections (1)(b)(ii) and (iii).
(2) As used in Subsection (1)(b), "premiums earned" means premiums and other consideration earned for insurance in the 12-month period ending on the date the calculation is made.
(3) The commissioner may consider an insurer or health organization to be financially hazardous under Subsection 31A-27a-207(1)(i), if the insurer or health organization does not have qualified assets in an aggregate value exceeding the sum of the insurer's or health organization's liabilities and the total adjusted capital required by Subsection (1).
(4) The commissioner shall consider an insurer or health organization to be financially hazardous under Subsection 31A-27a-207(1)(i) if the insurer or health organization does not have qualified assets in an aggregate value exceeding the sum of the insurer's or health organization's liabilities and 70% of the total adjusted capital required by Subsection (1).
Amended by Chapter 309, 2007 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 6 - Risk-Based Capital › Section 610 - Foreign insurers or health organizations.

Superseded 7/1/2024
31A-17-610.
Foreign insurers or health organizations.
(1)
(a) Any foreign insurer or health organization shall, upon the written request of the commissioner, submit to the commissioner an RBC report as of the end of the most recent calendar year by the later of:
(i) the date an RBC report would be required to be filed by a domestic insurer or health organization under this part; or
(ii) 15 days after the request is received by the foreign insurer or health organization.
(b) Any foreign insurer or health organization shall, at the written request of the commissioner, promptly submit to the commissioner a copy of any RBC plan that is filed with the insurance commissioner of any other state.
(2)
(a) The commissioner may require a foreign insurer or health organization to file an RBC plan with the commissioner if:
(i) there is a company action level event, regulatory action level event, or authorized control level event with respect to the foreign insurer or health organization as determined under:
(A) the RBC statute applicable in the state of domicile of the insurer or health organization; or
(B) if no RBC statute is in force in that state, under this part; and
(ii) the insurance commissioner of the state of domicile of the foreign insurer or health organization fails to require the foreign insurer or health organization to file an RBC plan in the manner specified under:
(A) that state's RBC statute; or
(B) if no RBC statute is in force in that state, under Section 31A-17-603.
(b) If the commissioner requires a foreign insurer or health organization to file an RBC plan, the failure of the foreign insurer or health organization to file the RBC plan with the commissioner is grounds to order the insurer or health organization to cease and desist from writing new insurance business in this state.
(3) The commissioner may make application to the Third District Court for Salt Lake County permitted under Section 31A-27a-901 with respect to the liquidation of property of a foreign insurer or health organization found in this state if:
(a) a mandatory control level event occurs with respect to any foreign insurer or health organization; and
(b) no domiciliary receiver has been appointed with respect to the foreign insurer or health organization under the rehabilitation and liquidation statute applicable in the state of domicile of the foreign insurer or health organization.
Amended by Chapter 309, 2007 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 6 - Risk-Based Capital › Section 610 - Foreign insurers or health organizations.

Effective 7/1/2024
31A-17-610.
Foreign insurers or health organizations.
(1)
(a) Any foreign insurer or health organization shall, upon the written request of the commissioner, submit to the commissioner an RBC report as of the end of the most recent calendar year by the later of:
(i) the date an RBC report would be required to be filed by a domestic insurer or health organization under this part; or
(ii) 15 days after the request is received by the foreign insurer or health organization.
(b) Any foreign insurer or health organization shall, at the written request of the commissioner, promptly submit to the commissioner a copy of any RBC plan that is filed with the insurance commissioner of any other state.
(2)
(a) The commissioner may require a foreign insurer or health organization to file an RBC plan with the commissioner if:
(i) there is a company action level event, regulatory action level event, or authorized control level event with respect to the foreign insurer or health organization as determined under:
(A) the RBC statute applicable in the state of domicile of the insurer or health organization; or
(B) if no RBC statute is in force in that state, under this part; and
(ii) the insurance commissioner of the state of domicile of the foreign insurer or health organization fails to require the foreign insurer or health organization to file an RBC plan in the manner specified under:
(A) that state's RBC statute; or
(B) if no RBC statute is in force in that state, under Section 31A-17-603.
(b) If the commissioner requires a foreign insurer or health organization to file an RBC plan, the failure of the foreign insurer or health organization to file the RBC plan with the commissioner is grounds to order the insurer or health organization to cease and desist from writing new insurance business in this state.
(3) The commissioner may petition a court as permitted under Section 31A-27a-901 with respect to the liquidation of property of a foreign insurer or health organization found in this state if:
(a) a mandatory control level event occurs with respect to any foreign insurer or health organization; and
(b) no domiciliary receiver has been appointed with respect to the foreign insurer or health organization under the rehabilitation and liquidation statute applicable in the state of domicile of the foreign insurer or health organization.
Amended by Chapter 401, 2023 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 6 - Risk-Based Capital › Section 611 - Immunity.

31A-17-611.
Immunity.
There may be no liability on the part of, and no cause of action may arise against, the commissioner or the insurance department or its employees or agents for any action taken by them in the performance of their powers and duties under this part.
Enacted by Chapter 9, 1996 Special Session 2
Enacted by Chapter 9, 1996 Special Session 2
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 6 - Risk-Based Capital › Section 612 - Severability clause.

31A-17-612.
Severability clause.
If any provision of this part, or the application of the part to any person or circumstance, is held invalid, the determination may not affect the provisions or applications of this part that can be given effect without the invalid provision or application, and to that end the provisions of this part are severable.
Enacted by Chapter 9, 1996 Special Session 2
Enacted by Chapter 9, 1996 Special Session 2
2023 Utah Code › Title 31A - Insurance Code › Chapter 17 - Determination of Financial Condition › Part 6 - Risk-Based Capital › Section 613 - Effective date of notice.

31A-17-613.
Effective date of notice.
A notice by the commissioner to an insurer or health organization that may result in regulatory action under this chapter is effective the sooner of:
(1) the date the insurer or health organization receives the notice; or
(2) three days after mailing the notice.
Amended by Chapter 116, 2001 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 18 - Investments › Section 101 - Scope -- Definitions.

31A-18-101.
Scope -- Definitions.
(1) Except as otherwise provided in this title, this chapter and the rules adopted to implement it apply to all insurers authorized to do business in this state, including a reinsurer.
(2) As used in this chapter, "cash" means a medium of exchange that a depository institution, as defined in Section 7-1-103, accepts for deposit and allows an immediate credit to an account in the depository institution, including the following in a depository institution:
(a) a savings account; or
(b) a certificate of deposit with a maturity date within one year or less from the day on which the certificate of deposit is acquired.
Amended by Chapter 257, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 18 - Investments › Section 102 - Separate account investments.

31A-18-102.
Separate account investments.
(1) Except as provided under Subsection (2), each separate account established under Section 31A-5-217 shall be evaluated as a separate insurer to determine whether the account complies with Chapters 17, Determination of Financial Condition, and Chapter 18, Investments.
(2) Except as provided under Subsection (3), the amounts allocated to each separate account, and accumulations thereon, may be invested and reinvested without regard to any requirements or limitations prescribed by Chapter 18, Investments.
(3) To the extent that the corporation's reserve liability, with regard to benefits guaranteed as to dollar amount and duration and funds guaranteed as to principal amount or stated rate of interest, is maintained in any separate account, a portion of the assets of the account at least equal to the reserve liability shall be invested in accordance with this chapter, or in accordance with such requirements as the commissioner prescribes by rule.
(4) Assets allocated to a separate account shall be valued at market value on the date of valuation, or, if there is no readily available market, then in accordance with the applicable contract. However, a portion of the assets of the account at least equal to the corporation's reserve liability with regard to the guaranteed benefits and funds referred to in Subsection (3), if any, shall be reported separately and valued in accordance with the rules otherwise applicable to the corporation's assets or in accordance with rules adopted under Subsection (3). No securities valuation reserve or other reserve for fluctuation in the value of securities is required for assets that do not have to comply with this chapter.
Enacted by Chapter 242, 1985 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 18 - Investments › Section 103 - Protection against currency fluctuations.

31A-18-103.
Protection against currency fluctuations.
Any insurer whose business requires it to make payment in different currencies may have investments in securities in each of those currencies in an amount that, independently of all other investments, meets the requirements of the Insurance Code as applied separately to the insurer's obligations in each currency. The commissioner may by order require an insurer, or by rule require a class of insurers, to maintain these separate currency investments if the obligations in other currencies are large enough to present a problem of financial stability if there are substantial fluctuations in relative currency values.
Enacted by Chapter 242, 1985 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 18 - Investments › Section 105 - Permitted classes of investments.

31A-18-105.
Permitted classes of investments.
The following classes of investment may be counted for the purposes specified under Chapter 17, Part 6, Risk-Based Capital:
(1) a bond or other evidence of indebtedness of:
(a) a governmental unit in the United States or Canada;
(b) an instrumentality of a governmental unit described in Subsection (1)(a); or
(c) a private corporation domiciled in the United States;
(2) an equipment trust obligation or certificate that is an adequately secured instrument:
(a) evidencing an interest in transportation equipment that is located wholly or in part within the United States; and
(b) with a right to receive determined portions of the rental, or to purchase other fixed obligatory payments for the use or purchase of the transportation equipment;
(3) a loan secured by:
(a) one or more mortgages;
(b) one or more trust deeds; or
(c) another statutorily authorized type of security interest in real estate located in the United States;
(4) a loan secured by a pledged security or evidence of debt eligible for investment under this section;
(5) a preferred stock of a United States corporation;
(6)
(a) a common stock of a United States corporation; or
(b) an American depository receipt if traded on one of the following exchanges:
(i) New York;
(ii) American; or
(iii) NASDAQ;
(7) real estate that is used as the home office or branch office of the insurer;
(8) real estate in the United States that produces substantial income;
(9) a loan upon the security of the insurer's own policies in an amount that:
(a) is adequately secured by the policies; and
(b) does not exceed the surrender value of the policies;
(10) a financial futures contract used for hedging and not for speculation, as approved under rules adopted by the commissioner;
(11) an investment in a foreign security of a class permitted under this section as required for compliance with Section 31A-18-103;
(12) an investment permitted under Subsection 31A-18-102(2);
(13) an American depository receipt not traded on one of the following exchanges:
(a) New York;
(b) American; or
(c) NASDAQ;
(14) an investment other than those listed in Subsections (1) through (13) that is determined to be admitted in the Accounting Practices and Procedures Manual, published by the National Association of Insurance Commissioners;
(15) cash; and
(16) another investment the commissioner authorizes by rule.
Amended by Chapter 257, 2008 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 18 - Investments › Section 107 - Disposal of nonqualified assets.

31A-18-107.
Disposal of nonqualified assets.
(1) The commissioner may allow a reasonable time, not longer than 10 years, for disposal of any investment which was a qualified asset when made, but which, because of changes in valuation or changes in the insurer's asset mix, is no longer a qualified asset under Section 31A-17-201.
(2) The commissioner may allow a reasonable time during which an investment which is not a qualified asset may be characterized as one, but only if the investment was made by mistake or if the forced sale of the asset would be contrary to the interests of insureds, creditors, or the Utah public.
Enacted by Chapter 242, 1985 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 18 - Investments › Section 108 - Investment of excess surplus.

31A-18-108.
Investment of excess surplus.
(1) If an insurer has excess surplus, as defined under Section 31A-1-301, then to the extent of its excess surplus, the insurer may invest in a manner inconsistent with the limitations of Section 31A-18-106 or in other assets approved by the commissioner.
(2) This section does not empower any insurer to make investments that are:
(a) illegal; or
(b) prohibited under Section 31A-4-107.
(3) Each insurer has the burden of establishing the extent of its excess surplus.
Amended by Chapter 131, 1999 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 18 - Investments › Section 110 - Investment valuation reserves.

31A-18-110.
Investment valuation reserves.
(1) The commissioner may by rule, applicable to all or any specified classes of insurers, provide for the establishment, in reasonable amounts, of investment valuation reserves that are necessary to lessen the impact on surplus of the fluctuation of the values of specific classes of assets. In formulating these rules, the commissioner shall consider:
(a) similar rules used in other states or recommended for use by the National Association of Insurance Commissioners;
(b) the propensities of the various types and classes of investments to fluctuate in value; and
(c) the present and anticipated investment climate, as measured by economic indicators such as interest rates, price-level changes, market volatility, and economic growth or decline.
(2) The commissioner may by order require an individual insurer to establish investment valuation reserves in addition to those required for other insurers of the class to which the insurer belongs, to the extent that the financial condition of the insurer and the nature of its assets and liabilities or business require that those reserves be established to adequately protect its insureds.
(3) Where reasonably possible, reserves required under Subsection (1) shall correspond with those generally required in other states.
Enacted by Chapter 242, 1985 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 19a - Utah Rate Regulation Act › Part 1 - General Provisions › Section 101 - Title -- Scope and purposes.

31A-19a-101.
Title -- Scope and purposes.
(1) This chapter is known as the "Utah Rate Regulation Act."
(2)
(a)
(i) Except as provided in Subsection (2)(a)(ii), this chapter applies to all kinds and lines of direct insurance written on risks or operations in this state by an insurer authorized to do business in this state.
(ii) This chapter does not apply to:
(A) life insurance;
(B) credit life insurance;
(C) variable and fixed annuities;
(D) health and accident and health insurance;
(E) credit accident and health insurance; and
(F) reinsurance.
(b) This chapter applies to all insurers authorized to do any line of business, except those specified in Subsection (2)(a)(ii).
(3) It is the purpose of this chapter to:
(a) protect policyholders and the public against the adverse effects of excessive, inadequate, or unfairly discriminatory rates;
(b) encourage independent action by and reasonable price competition among insurers so that rates are responsive to competitive market conditions;
(c) provide formal regulatory controls for use if independent action and price competition fail;
(d) provide regulatory procedures for the maintenance of appropriate data reporting systems;
(e) authorize cooperative action among insurers in the rate-making process, and regulate that cooperation to prevent practices that bring about a monopoly or lessen or destroy competition;
(f) encourage the most efficient and economic marketing practices; and
(g) regulate the business of insurance in a manner that, under the McCarran-Ferguson Act, 15 U.S.C. Secs. 1011 through 1015, will preclude application of federal antitrust laws.
(4) Rate filings made prior to July 1, 1986, under former Title 31, Chapter 18, are continued. Rate filings made after July 1, 1986, are subject to the requirements of this chapter.
Amended by Chapter 308, 2002 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 19a - Utah Rate Regulation Act › Part 1 - General Provisions › Section 103 - Exemptions.

31A-19a-103.
Exemptions.
(1) The commissioner may by rule exempt from any or all of the provisions of this chapter:
(a) any person;
(b) a class of persons; or
(c) a market segment.
(2) The exemption described in Subsection (1) shall be given only if and to the extent that the commissioner finds the application of the provisions of this chapter to that person or group is unnecessary to achieve the purposes of this chapter.
Renumbered and Amended by Chapter 130, 1999 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 19a - Utah Rate Regulation Act › Part 2 - General Rate Regulation › Section 201 - Rate standards.

31A-19a-201.
Rate standards.
(1) Rates may not be excessive, inadequate, or unfairly discriminatory.
(2)
(a) Rates are not excessive if a reasonable degree of price competition exists at the consumer level with respect to the class of business to which they apply. In determining whether a reasonable degree of price competition exists, the commissioner shall consider:
(i) relevant tests of workable competition pertaining to:
(A) market structure;
(B) market performance; and
(C) market conduct; and
(ii) the practical opportunities available to consumers in the market to:
(A) acquire pricing and other consumer information; and
(B) compare and obtain insurance from competing insurers.
(b) The tests described in Subsection (2)(a) include:
(i) the size and number of insurers actively engaged in the market and class of business;
(ii) the market shares of insurers actively engaged in the market and changes in market shares;
(iii) the existence of rate differentials in that class of business;
(iv) ease of entry and latent competition of insurers capable of easy entry;
(v) availability of consumer information concerning the product and sales outlets or other sales mechanisms; and
(vi) efforts of insurers to provide consumer information.
(c) If reasonable price competition does not exist, rates are excessive if:
(i) rates are likely to produce a long-term profit that is unreasonably high in relation to the riskiness of the class of business; or
(ii) expenses are unreasonably high in relation to the services rendered.
(3) Rates are inadequate if:
(a) they are clearly insufficient, when combined with the investment income attributable to them, to sustain the projected losses and expenses in the class of business to which they apply; and
(b) the use of such rates has or, if continued, will have:
(i) the effect of substantially lessening competition; or
(ii) the tendency to create a monopoly in any market.
(4)
(a) A rate is unfairly discriminatory if price differentials fail to equitably reflect the differences in expected losses and expenses after allowing for practical limitations.
(b) A rate is not unfairly discriminatory if it is averaged broadly among persons insured under a:
(i) group, franchise, or blanket policy; or
(ii) mass marketed plan.
Renumbered and Amended by Chapter 130, 1999 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 19a - Utah Rate Regulation Act › Part 2 - General Rate Regulation › Section 202 - Rating methods.

31A-19a-202.
Rating methods.
(1) To determine whether rates comply with the standards under Section 31A-19a-201, the commissioner shall consider the:
(a) criteria listed in Subsection (2);
(b) classifications, if any, permitted under Subsection (3);
(c) expenses described in Subsection (4); and
(d) profits described in Subsection (5).
(2) In determining rates the commissioner shall consider within and outside of Utah:
(a) past and prospective loss experience;
(b) catastrophe hazards;
(c) trends;
(d) loadings for leveling premium rates over time;
(e) reasonable margin for profit and contingencies;
(f) dividends, savings, or unabsorbed premium deposits allowed or returned by insurers to their policyholders; and
(g) other relevant factors.
(3)
(a) Risks may be grouped by classifications for the establishment of rates and minimum premiums.
(b)
(i) A classification rate may be modified to produce rates for individual risks in accordance with rating plans or schedules that establish reasonable standards for measuring probable variations in hazards or expense provisions.
(ii) The standards described in Subsection (3)(b)(i) may measure any differences among risks that can be demonstrated to have a probable effect upon losses or expenses.
(c) Notwithstanding Subsection (3)(b), risk classification may not be based upon race, color, creed, national origin, or the religion of the insured.
(4) The expense provisions included in the rates to be used by an insurer shall reflect:
(a) the operating methods of the insurer; and
(b) its anticipated expenses.
(5) The rates may contain provision for contingencies and an allowance permitting a profit that is not unreasonable in relation to the riskiness of the class of business. In determining the reasonableness of the profit, consideration may be given to investment income.
Renumbered and Amended by Chapter 130, 1999 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 19a - Utah Rate Regulation Act › Part 2 - General Rate Regulation › Section 204 - Rates open to inspection.

31A-19a-204.
Rates open to inspection.
(1) Rates and supplementary rate information filed under this chapter shall be open to public inspection at any reasonable time.
(2) The commissioner shall supply copies to any person on:
(a) request; and
(b) payment of a reasonable charge.
Renumbered and Amended by Chapter 130, 1999 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 19a - Utah Rate Regulation Act › Part 2 - General Rate Regulation › Section 205 - Delegation of rate making and rate filing obligation.

31A-19a-205.
Delegation of rate making and rate filing obligation.
(1) An insurer may:
(a) itself establish rates and supplementary rate information for any market segment based on the factors in Section 31A-19a-202; or
(b) use rates, pure premium rates, and supplementary rate information prepared by a rate service organization that the insurer selects, with:
(i) average expense factors determined by the rate service organization; or
(ii) any modification for its own expense and loss experience as the credibility of that experience allows.
(2) An insurer may discharge its obligation under Subsection 31A-19a-203(1) by filing with the commissioner:
(a) notification that the insurer uses pure premium rates and supplementary rate information prepared by a licensed rate service organization that the insurer selects; and
(b) any information about modifications the insurer has made to those rates or that information as is necessary fully to inform the commissioner.
(3) If an insurer has discharged its obligation in accordance with Subsection (2), the insurer's rates and supplementary rate information shall be those, including any amendments, filed at intervals by the rate service organization, subject to any modifications filed by the insurer.
Renumbered and Amended by Chapter 130, 1999 General Session