For an insurer registered under Section 31A-16-105 and in accordance with Subsection (3), the commissioner may participate in a supervisory college for a domestic insurer that is part of an insurance holding company system with international operations to determine compliance by the insurer with this chapter. The powers of the commissioner with respect to supervisory colleges include the following:
Terms Used In Utah Code 31A-16-108.5
Domestic insurer: means an insurer organized under the laws of this state. See Utah Code 31A-1-301
Group-wide supervisor: means the commissioner or other regulatory official designated as the group-wide supervisor for an internationally active insurance group under Section 31A-16-108. See Utah Code 31A-1-301
Insurance: includes :
(i)
a risk distributing arrangement providing for compensation or replacement for damages or loss through the provision of a service or a benefit in kind;
(ii)
a contract of guaranty or suretyship entered into by the guarantor or surety as a business and not as merely incidental to a business transaction; and
(iii)
a plan in which the risk does not rest upon the person who makes an arrangement, but with a class of persons who have agreed to share the risk. See Utah Code 31A-1-301
Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
(a)
initiating the establishment of a supervisory college;
(b)
clarifying the membership and participation of other supervisors in the supervisory college;
(c)
clarifying the functions of the supervisory college and the role of other regulators, including the establishment of a group-wide supervisor;
(d)
coordinating the ongoing activities of the supervisory college, including:
(i)
planning meetings;
(ii)
supervisory activities; and
(iii)
processes for information sharing; and
(e)
establishing a crisis management plan.
(2)
(a)
A registered insurer subject to this section is liable for and shall pay the reasonable expenses of the commissioner’s participation in a supervisory college in accordance with Subsection (3), including reasonable travel expenses.
(b)
For purposes of this section, a supervisory college may be convened as either a temporary or permanent forum for communication and cooperation between the regulators charged with supervision of the insurer or its affiliates and the commissioner may establish a regular assessment to the insurer for the payment of these expenses.
(3)
(a)
The commissioner may participate in a supervisory college with other regulators charged with supervision of the insurer or its affiliates, including:
(i)
other state regulatory agencies;
(ii)
federal regulatory agencies; or
(iii)
international regulatory agencies.
(b)
The commissioner may enter into agreements in accordance with Section 31A-16-109 providing the basis for cooperation between the commissioner and other regulatory agencies, and the activities of the supervisory college, in order to assess:
(i)
the business strategy;
(ii)
financial position;
(iii)
legal and regulatory position;
(iv)
risk exposure; and
(v)
management and governance processes.
(c)
Nothing in this section shall delegate to the supervisory college the authority of the commissioner to regulate or supervise the insurer or its affiliates within its jurisdiction.
