2006 Utah Code - 31A-37-106 — Authority to make rules -- Authority to issue orders.

     31A-37-106.   Authority to make rules -- Authority to issue orders.
     (1) In accordance with Title 63, Chapter 46a, 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) determine any statement, document, or information a captive insurance company must provide to the commissioner to obtain a certificate of authority;
     (c) determine any factors a captive insurance company shall provide evidence of under Subsection 31A-37-202(4)(c);
     (d) prescribe 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) establish:
     (i) the amount of capital or surplus required to be retained under Subsection 31A-37-205(4) at the payment of a dividend or other distribution by a captive insurance company; or
     (ii) a formula to determine the amount described in Subsection 31A-37-205(4);
     (f) waive or modify the requirements for public notice and hearing for any of the following by a captive insurance company:
     (i) merger;
     (ii) consolidation;
     (iii) conversion;
     (iv) mutualization; or
     (v) redomestication;
     (g) approve the use of alternative 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;
     (h) 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;
     (i) determine the financial reports a sponsored captive insurance company shall annually file with the commissioner;
     (j) determine the required forms and reports under Section 31A-37-501; and
     (k) establish standards to ensure that a parent or affiliate of a pure captive insurance company is able to exercise control of the risk management function of any controlled unaffiliated business to be insured by the pure captive insurance company.
     (2) Notwithstanding Subsection (1)(k), until the commissioner adopts the rules authorized under Subsection (1)(k), the commissioner may by temporary order grant authority to a pure captive insurance company to insure risks.
     (3) The commissioner may issue prohibitory, mandatory, and other orders relating to captive insurance companies as necessary to enable the commissioner to secure compliance with this chapter.

Amended by Chapter 312, 2004 General Session