Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
business of insurance: includes :
(a)
providing health care insurance by an organization that is or is required to be licensed under this title;
(b)
providing a benefit to an employee in the event of a contingency not within the control of the employee, in which the employee is entitled to the benefit as a right, which benefit may be provided either:
(i)
by a single employer or by multiple employer groups; or
(ii)
through one or more trusts, associations, or other entities;
(c)
providing an annuity:
(i)
including an annuity issued in return for a gift; and
(ii)
except an annuity provided by a person specified in Subsections 31A-22-1305(2) and (3);
(d)
providing the characteristic services of a motor club;
(e)
providing another person with insurance;
(f)
making as insurer, guarantor, or surety, or proposing to make as insurer, guarantor, or surety, a contract or policy offering title insurance;
(g)
transacting or proposing to transact any phase of title insurance, including:
(i)
solicitation;
(ii)
negotiation preliminary to execution;
(iii)
execution of a contract of title insurance;
(iv)
insuring; and
(v)
transacting matters subsequent to the execution of the contract and arising out of the contract, including reinsurance;
(h)
transacting or proposing a life settlement; and
(i)
doing, or proposing to do, any business in substance equivalent to Subsections (95)(a) through (h) in a manner designed to evade this title. See Utah Code 31A-1-301
Enterprise risk: means an activity, circumstance, event, or series of events involving one or more affiliates of an insurer that, if not remedied promptly, is likely to have a material adverse effect upon the financial condition or liquidity of the insurer or its insurance holding company system as a whole, including anything that would cause:
(a)
the insurer's risk-based capital to fall into an action or control level as set forth in Sections 31A-17-601 through 31A-17-613; or
Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
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
insurance company: means a person doing an insurance business as a principal including:
(i)
a fraternal benefit society;
(ii)
an issuer of a gift annuity other than an annuity specified in Subsections 31A-22-1305(2) and (3);
(iii)
a motor club;
(iv)
an employee welfare plan;
(v)
a person purporting or intending to do an insurance business as a principal on that person's own account; and
Insurance group: means the persons that comprise an insurance holding company system. See Utah Code 31A-1-301
Insurance holding company system: means a group of two or more affiliated persons, at least one of whom is an insurer. See Utah Code 31A-1-301
Internationally active insurance group: means an insurance holding company system:
(a)
that includes an insurer registered under Section 31A-16-105;
(b)
that has premiums written in at least three countries;
(c)
whose percentage of gross premiums written outside the United States is at least 10% of its total gross written premiums; and
(d)
that, based on a three-year rolling average, has:
(i)
total assets of at least $50,000,000,000; or
(ii)
total gross written premiums of at least $10,000,000,000. 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.
Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
Member: means a person having membership rights in an insurance corporation. See Utah Code 31A-1-301
NAIC: means the National Association of Insurance Commissioners. See Utah Code 31A-1-301
Person: includes :
(a)
an individual;
(b)
a partnership;
(c)
a corporation;
(d)
an incorporated or unincorporated association;
(e)
a joint stock company;
(f)
a trust;
(g)
a limited liability company;
(h)
a reciprocal;
(i)
a syndicate; or
(j)
another similar entity or combination of entities acting in concert. See Utah Code 31A-1-301
Proceeding: includes an action or special statutory proceeding. See Utah Code 31A-1-301
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
United States: includes each state, district, and territory of the United States of America. See Utah Code 68-3-12.5
(a)
Except as otherwise provided in this section, the commissioner shall act as the group-wide supervisor for each internationally active insurance group.
(b)
In lieu of acting as the group-wide supervisor for an internationally active insurance company, the commissioner may acknowledge a regulatory official from another jurisdiction as the internationally active insurance group‘s group-wide supervisor, if the internationally active insurance group:
(i)
does not have substantial insurance operations in the United States;
(ii)
has substantial insurance operations in the United States, but does not have substantial insurance operations in the state; or
(iii)
has substantial insurance operations in the United States and in the state, but in accordance with the provisions of this section, the commissioner determines that a regulatory official from another jurisdiction is an appropriate group-wide supervisor.
(2)
In deciding whether to acknowledge another regulatory official as an internationally active insurance group’s group-wide supervisor in lieu of acting as the group-wide supervisor, the commissioner shall:
(a)
consult and cooperate with other state, federal, and international regulatory agencies; and
(b)
consider:
(i)
the domicile of the insurer or insurers within the internationally active insurance group that hold the largest share of the group’s written premiums, assets, or liabilities;
(ii)
the domicile of the top-tiered insurer or insurers in the insurance holding company system of the internationally active insurance group;
(iii)
the location of the executive office or largest operational office of the internationally active insurance group;
(iv)
whether another regulatory official acts or seeks to act as the group-wide supervisor under a regulatory system that the commissioner determines to be:
(A)
substantially similar to the system of regulation provided under the laws of this state; or
(B)
sufficient in terms of providing for group-wide supervision, enterprise risk analysis, and cooperation with other regulatory officials; and
(v)
whether another regulatory official acting or seeking to act as the group-wide supervisor provides the commissioner with reasonably reciprocal recognition and cooperation.
(3)
(a)
Before acting as the group-wide supervisor for an internationally active insurance group, the commissioner shall notify:
(i)
the insurer registered under Section 31A-16-105; and
(ii)
the ultimate controlling person within the internationally active insurance group.
(b)
Within 30 days after the day on which an internationally active insurance group receives a notification described in Subsection (3)(a), the internationally active insurance group may provide the commissioner additional information relevant to whether the commissioner should act as the internationally active insurance group’s group-wide supervisor.
(4)
If the commissioner acts as the group-wide supervisor for an internationally active insurance group, the commissioner may later acknowledge a regulatory official from another jurisdiction as the group-wide supervisor for the internationally active insurance group if the commissioner:
(a)
considers the factors described in Subsection (2)(b);
(b)
cooperates with other regulatory officials involved with the supervision of the members of the internationally active insurance group; and
(c)
consults with the internationally active insurance group.
(5)
Notwithstanding any other provision of law, when a regulatory official from another jurisdiction is acting as the group-wide supervisor for an internationally active insurance group, the commissioner shall:
(a)
acknowledge the regulatory official as the group-wide supervisor; and
(b)
in accordance with Subsection (2), reevaluate whether it is appropriate to acknowledge a regulatory official from another jurisdiction as the group-wide supervisor if a change in circumstances results in:
(i)
the insurer or insurers within the internationally active insurance group that hold the largest share of the group’s written premiums, assets, or liabilities being domiciled in the state; or
(ii)
the top-tiered insurer or insurers in the insurance holding company system of the internationally active insurance group being domiciled in the state.
(6)
In accordance with Section 31A-16-107.5, upon request from the commissioner, an insurer subject to this chapter shall provide the commissioner any information necessary to determine the appropriate group-wide supervisor for an internationally active insurance group.
(7)
The commissioner shall publish on the department‘s website the identity of each internationally active insurance group for which the commissioner acts as the group-wide supervisor.
(8)
If the commissioner is the group-wide supervisor of an internationally active insurance group, the commissioner may:
(a)
assess the enterprise risks within the internationally active insurance group to ensure that:
(i)
management of the internationally active insurance group identifies the material financial condition and liquidity risks to the members of the internationally active insurance group that are engaged in the business of insurance; and
(ii)
reasonable and effective mitigation measures are in place;
(b)
request, from any member of the internationally active insurance group, subject to the commissioner’s supervision, information necessary and appropriate to assess enterprise risk, including information about the members of the internationally active insurance group regarding:
(i)
governance, risk assessment, and management;
(ii)
capital adequacy; or
(iii)
material intercompany transactions;
(c)
coordinate and, through the authority of the regulatory officials of the jurisdictions where members of the internationally active insurance group are domiciled, compel development and implementation of reasonable measures designed to ensure that the internationally active insurance group is able to timely recognize and mitigate enterprise risks to members of the internationally active insurance group that are engaged in the business of insurance;
(d)
communicate with other state, federal, and international regulatory agencies for members within the internationally active insurance group;
(e)
subject to the confidentiality provisions of Section 31A-16-109, share relevant information:
(i)
through a supervisory college in accordance with Section 31A-16-108.5; or
(ii)
by entering into an agreement or obtaining documentation:
(A)
with or from an insurer registered under Section 31A-16-105, a member of the internationally active insurance group, or a state, federal, or international regulatory agency for members of the internationally active insurance group; and
(B)
that provides the basis for or otherwise clarifies the commissioner’s role as group-wide supervisor, including a provision for resolving disputes with another regulatory official; and
(f)
engage in any other group-wide supervision activity, consistent with an authority and purpose enumerated in this section, as the commissioner determines necessary.
(9)
An agreement or documentation described in Subsection (8)(e) may not serve as evidence in any proceeding that an insurer or person within an insurance holding company system not domiciled or incorporated in the state:
(a)
is doing business in the state; or
(b)
is subject to jurisdiction in the state.
(10)
(a)
If the commissioner acknowledges as a group-wide supervisor another regulatory official from a jurisdiction that the NAIC does not accredit as a group-wide supervisor, the commissioner may reasonably cooperate, through supervisory colleges or otherwise, with the group-wide supervision undertaken by the group-wide supervisor, provided that:
(i)
the commissioner’s cooperation is in compliance with the laws of this state; and
(ii)
the group-wide supervisor also recognizes and cooperates with the commissioner’s activities as the group-wide supervisor for other internationally active insurance groups where applicable.
(b)
Where the recognition and cooperation described in Subsection (10)(a)(ii) is not reasonably reciprocal, the commissioner may refuse recognition and cooperation.
An insurer subject to this section is liable for and shall pay the reasonable expenses of the commissioner’s participation in the administration of this section, including:
(a)
the engagement of an attorney, actuary, or other professional; and
