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
Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
minimum required capital: means the capital that must be constantly maintained by a stock insurance corporation as required by statute. See Utah Code 31A-1-301
Surplus: means the excess of assets over the sum of paid-in capital and liabilities. See Utah Code 31A-1-301
Total adjusted capital: means the sum of an insurer's or health organization's statutory capital and surplus as determined in accordance with:
(a)
the statutory accounting applicable to the annual financial statements required to be filed under Section 31A-4-113; and
(b)
another item provided by the RBC instructions, as RBC instructions is defined in Section 31A-17-601. See Utah Code 31A-1-301
(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).
