A captive insurance company, other than a branch captive insurance company, may be formed as a corporation or a limited liability company.
Terms Used In Utah Code 31A-37-301
Applicant captive insurance company: means an entity that has submitted an application for a certificate of authority for a captive insurance company, unless the application has been denied or withdrawn. See Utah Code 31A-37-102
Application: means a document:
(a)
(i)
completed by an applicant to provide information about the risk to be insured; and
(ii)
that contains information that is used by the insurer to evaluate risk and decide whether to:
(A)
insure the risk under:
(I)
the coverage as originally offered; or
(II)
a modification of the coverage as originally offered; or
(B)
decline to insure the risk; or
(b)
used by the insurer to gather information from the applicant before issuance of an annuity contract. See Utah Code 31A-1-301
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;
Commissioner: means Utah's Insurance Commissioner or the commissioner's designee. See Utah Code 31A-37-102
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
Corporation: means an insurance corporation, except when referring to:
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
Quorum: The number of legislators that must be present to do business.
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)
The capital of a captive insurance company shall be held by:
(a)
the interest holders of the captive insurance company; or
(b)
a governing body elected by:
(i)
the insureds;
(ii)
one or more affiliates; or
(iii)
a combination of the persons described in Subsections (2)(b)(i) and (ii).
(3)
A captive insurance company formed in this state shall have at least one establisher who is an individual and a resident of the state.
(4)
(a)
An applicant captive insurance company‘s establishers shall obtain a certificate of public good from the commissioner before filing its governing documents with the Division of Corporations and Commercial Code.
(b)
In considering a request for a certificate under Subsection (4)(a), the commissioner shall consider:
(i)
the character, reputation, financial standing, and purposes of the establishers;
(ii)
the character, reputation, financial responsibility, insurance experience, and business qualifications of the principal officers or members of the governing body;
(iii)
any information in:
(A)
the application for a certificate of authority; or
(B)
the department‘s files; and
(iv)
other aspects that the commissioner considers advisable.
(5)
(a)
Except as otherwise provided in this title, the governing body of a captive insurance company shall consist of at least three individuals as members, at least one of whom is a resident of the state.
(b)
One-third of the members of the governing body of a captive insurance company constitutes a quorum of the governing body.
(6)
A captive insurance company shall have at least three individuals as principal officers with duties comparable to those of president, treasurer, and secretary.
Except as provided in Subsection (7)(d), the provisions of this title that govern a merger, consolidation, conversion, mutualization, and redomestication apply to a captive insurance company in carrying out any of the transactions described in those provisions.
(d)
Notwithstanding Subsection (7)(c), the commissioner may waive or modify the requirements for public notice and hearing in accordance with rules adopted under Section 31A-37-106.
(e)
If a notice of public hearing is required, but no one requests a hearing, the commissioner may cancel the public hearing.
