DAR File No. 41569
This notice was published in the June 1, 2017, issue (Vol. 2017, No. 11) of the Utah State Bulletin.
Captive Insurance Companies
Five-Year Notice of Review and Statement of Continuation
DAR File No.: 41569
Filed: 05/02/2017 10:06:37 AM
NOTICE OF REVIEW AND STATEMENT OF CONTINUATION
Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:
Subsection 31A-2-20(3)(a) authorizes the commissioner to write rules to implement Title 31A, the Utah Insurance Code. Section 31A-37-106 authorizes the commissioner to write rules to determine circumstances under which a branch captive insurance company is not required to be a pure captive insurance company; to require statement, document, or information to be provided to the commissioner to obtain a certificate of authority; to prescribe one or more capital requirements for a captive, in addition to those required in Section 31A-37-204; to establish capital and surplus requirements or maintenance of free surplus requirements; to waive or modify requirements for public notice and hearing for a merger, consolidation, conversion, mutualization, or redomestication; to approve the use of one or more reliable methods of valuation and rating for different types of captives or industrial insured groups; to prohibit or limit investments that threaten solvency or liquidity; to determine the financial reports under Section 31A-37-507; and to establish standards to ensure that certain entities are able to exercise control of risk management functions of a controlled unaffiliated insurance business.
Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:
The department received one industry comment in 2015 regarding this rule. The comment suggested a number of changes regarding accounting services provided by captive insurance managers and where accountability lies.
Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:
This rule sets forth the financial, reporting, record-keeping, and other requirements necessary for the regulation of captive insurance companies as required under the Captive Insurance Companies Act, which is Title 31A, Chapter 37. Therefore, this rule should be continued.
The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:Insurance
Room 3110 STATE OFFICE BLDG
450 N MAIN ST
SALT LAKE CITY, UT 84114-1201
Direct questions regarding this rule to:
- Steve Gooch at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at email@example.com
Steve Gooch, Information Specialist
More information about a Five-Year Notice of Review and Statement of Continuation is available online.
The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at https://rules.utah.gov/publicat/bull_pdf/2017/b20170601.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version.
For questions regarding the content or application of this rule, please contact Steve Gooch at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at firstname.lastname@example.org. For questions about the rulemaking process, please contact the Office of Administrative Rules.