The commissioner may suspend or revoke the certificate of authority of a captive insurance company to conduct an insurance business in this state for:
Terms Used In Utah Code 31A-37-505
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
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.
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
Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
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
Surplus: means the excess of assets over the sum of paid-in capital and liabilities. See Utah Code 31A-1-301
(a)
insolvency or impairment of capital or surplus;
(b)
failure to meet the requirements of Section 31A-37-204;
(c)
refusal or failure to submit:
(i)
an annual report required by Section 31A-37-501; or
(ii)
any other report or statement required by law or by lawful order of the commissioner;
(d)
failure to comply with the charter, bylaws, or other organizational document of the captive insurance company;
any legal obligation relative to an examination under Section 31A-37-502;
(f)
refusal or failure to pay the cost of examination under Section 31A-37-502;
(g)
use of methods that, although not otherwise specifically prohibited by law, render:
(i)
the operation of the captive insurance company detrimental to the public or the policyholders of the captive insurance company; or
(ii)
the condition of the captive insurance company unsound with respect to the public or to the policyholders of the captive insurance company; or
(h)
failure otherwise to comply with laws of this state.
(2)
Notwithstanding any other provision of this title, if the commissioner finds, upon examination, hearing, or other evidence, that a captive insurance company has committed any of the acts specified in Subsection (1), the commissioner may suspend or revoke the certificate of authority of the captive insurance company if the commissioner considers it in the best interest of the public and the policyholders of the captive insurance company to revoke the certificate of authority.
