Utah Code 31A-37-103. Chapter exclusivity

31A-37-103. Chapter exclusivity.

(1)	Except as provided in Subsections (2) and (3) or otherwise provided in this chapter, a provision of this title other than this chapter does not apply to a captive insurance company.

Terms Used In Utah Code 31A-37-103

Captive insurance company: includes any of the following formed or holding a certificate of authority under this chapter:

(i)	a branch captive insurance company;

(ii)	a pure captive insurance company;

(iii)

an association captive insurance company;

(iv)	a sponsored captive insurance company;

(v)	an industrial insured captive insurance company, including an industrial insured captive insurance company formed as a risk retention group captive in this state pursuant to the provisions of the Federal Liability Risk Retention Act of 1986;

(vi)	a special purpose captive insurance company; or

(vii)

a special purpose financial captive insurance company. See Utah Code 31A-37-102

Certificate: means evidence of insurance given to:

(a)	an insured under a group insurance policy; or

(b)

a third party. 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

(vi)

a health maintenance organization. See Utah Code 31A-1-301

Mutual: means a mutual insurance corporation. See Utah Code 31A-1-301

Rate: means :

(i)	the cost of a given unit of insurance; or

(ii)

for property or casualty insurance, that cost of insurance per exposure unit either expressed as:

(A)	a single number; or

(B)

a pure premium rate, adjusted before the application of individual risk variations based on loss or expense considerations to account for the treatment of:

(I)

expenses;

(II)	profit; and

(III)

individual insurer variation in loss experience. See Utah Code 31A-1-301

Special purpose financial captive insurance company: means the same as that term is defined in Section 31A-37a-102. See Utah Code 31A-37-102

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

(2)

To the extent that a provision of the following does not contradict this chapter, the provision applies to a captive insurance company that receives a certificate of authority under this chapter:

(a)	Chapter 1, General Provisions;

(b)	Chapter 2, Administration of the Insurance Laws;

(c)	Chapter 4, Insurers in General;

(d)	Chapter 5, Domestic Stock and Mutual Insurance Corporations;

(e)	Chapter 14, Foreign Insurers;

(f)	Chapter 16, Insurance Holding Companies;

(g)	Chapter 17, Determination of Financial Condition;

(h)	Chapter 18, Investments;

(i)	Chapter 19a, Utah Rate Regulation Act;

(j)	Chapter 27, Delinquency Administrative Action Provisions; and

(k)	Chapter 27a, Insurer Receivership Act.

(3)

In addition to this chapter, and subject to Section 31A-37a-103:

(a)	Chapter 37a, Special Purpose Financial Captive Insurance Company Act, applies to a special purpose financial captive insurance company; and

(b)	for purposes of a special purpose financial captive insurance company, a reference in this chapter to “this chapter” includes a reference to Chapter 37a, Special Purpose Financial Captive Insurance Company Act.

(4)	In addition to this chapter, an industrial group captive insurance company formed as a risk retention group captive is subject to 2, to the extent that this chapter is silent regarding regulation of risk retention groups conducting business in the state.

Amended by Chapter 193, 2019 General Session

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