Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
board of directors: means the group of persons with responsibility over, or management of, a corporation, however designated. See Utah Code 31A-1-301
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
Captive insurance company: means :
(a)
an insurer:
(i)
owned by a parent organization; and
(ii)
whose purpose is to insure risks of the parent organization and other risks as authorized under:
Contract: A legal written agreement that becomes binding when signed.
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.
another similar entity or combination of entities acting in concert. See Utah Code 31A-1-301
Reinsurance: means an insurance transaction where an insurer, for consideration, transfers any portion of the risk it has assumed to another insurer. See Utah Code 31A-1-301
Security: means a:
(i)
note;
(ii)
stock;
(iii)
bond;
(iv)
debenture;
(v)
evidence of indebtedness;
(vi)
certificate of interest or participation in a profit-sharing agreement;
(vii)
collateral-trust certificate;
(viii)
preorganization certificate or subscription;
(ix)
transferable share;
(x)
investment contract;
(xi)
voting trust certificate;
(xii)
certificate of deposit for a security;
(xiii)
certificate of interest of participation in an oil, gas, or mining title or lease or in payments out of production under such a title or lease;
(xiv)
commodity contract or commodity option;
(xv)
certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase any of the items listed in Subsections (171)(a)(i) through (xiv); or
(xvi)
another interest or instrument commonly known as a security. 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
Surplus: means the excess of assets over the sum of paid-in capital and liabilities. See Utah Code 31A-1-301
(a)
“Ceding insurer” means an insurer that:
(i)
is approved by the commissioner;
(ii)
is licensed or otherwise authorized to transact the business of insurance or reinsurance in the insurer’s state or country of domicile; and
(iii)
cedes risk to a special purpose financial captive insurance company pursuant to a reinsurance contract.
(b)
Notwithstanding Section 31A-27a-102, “insolvency” or “insolvent” for purposes of applying Chapter 27a, Insurer Receivership Act, to a special purpose financial captive insurance company, means that a special purpose financial captive insurance company:
(i)
is unable to pay an obligation when the obligation is due, unless the obligation is the subject of a bona fide dispute; or
(ii)
fails to meet the criteria and conditions for solvency of the special purpose financial captive insurance company established by the commissioner by rule or order.
(c)
(i)
“Insurance securitization” means a transaction or a group of related transactions:
(A)
that may include a capital market offering;
(B)
that is effected through one or more related risk transfer instruments and facilitating administrative agreements;
(C)
where all or part of the result of the transaction or group of related transactions is used to fund the special purpose financial captive insurance company’s obligations under a reinsurance contract with a ceding insurer;
(D)
by which:
(I)
proceeds are obtained by a special purpose financial captive insurance company, directly or indirectly, through the issuance of one or more securities by the special purpose financial captive insurance company or another person; or
(II)
a person provides one or more letters of credit or other assets for the benefit of the special purpose financial captive insurance company if the commissioner authorizes the special purpose financial captive insurance company to treat the letter of credit or asset as an admitted asset for purposes of the special purpose financial captive insurance company’s annual report; and
(E)
if all or a part of the proceeds, a letter of credit, or asset described in this Subsection (1)(c) is used to fund the special purpose financial captive insurance company’s obligations under a reinsurance contract with a ceding insurer.
(ii)
“Insurance securitization” does not include the issuance of a letter of credit for the benefit of the commissioner to satisfy all or part of the special purpose financial captive insurance company’s capital and surplus requirements under Section 31A-37a-302.
(d)
“Management” means:
(i)
a board of directors of a special purpose financial captive insurance company;
(ii)
a managing board of a special purpose financial captive insurance company; or
(iii)
one or more individuals with the overall responsibility for the management of the affairs of the special purpose financial captive insurance company, including:
(A)
an officer elected or appointed to act on behalf of the special purpose financial captive insurance company; or
(B)
an agent elected or appointed to act on behalf of the special purpose financial captive insurance company.
(e)
“Organizational document” means:
(i)
in the case of a special purpose financial captive insurance company formed as a stock corporation, the special purpose financial captive insurance company’s:
(A)
articles of incorporation; and
(B)
bylaws; and
(ii)
in the case of a special purpose financial captive insurance company formed as a limited liability company, the special purpose financial captive insurance company’s:
(A)
articles of organization or certificate of organization; and
(B)
operating agreement.
(f)
“Reinsurance contract” means a contract between a special purpose financial captive insurance company and a ceding insurer pursuant to which the special purpose financial captive insurance company agrees to provide reinsurance to the ceding insurer for risks associated with the ceding insurer’s insurance or reinsurance business.
one or more of the following that the commissioner designates, by rule or order, as a “security” for purposes of this chapter:
(A)
a debt obligation;
(B)
equity;
(C)
a surplus certificate;
(D)
a surplus note;
(E)
a funding agreement;
(F)
a derivative; or
(G)
another financial instrument.
(h)
“Special purpose financial captive insurance company” means a captive insurance company has a certificate of authority under this chapter from the commissioner to operate as a special purpose financial captive insurance company pursuant to this chapter.
(i)
“Special purpose financial captive insurance company security” means:
(i)
a security issued by a special purpose financial captive insurance company; or
(ii)
a security issued by a third party, the proceeds of which are obtained directly or indirectly by a special purpose financial captive insurance company.
(j)
“Surplus note” means an unsecured subordinated debt obligation that has one or more characteristics that are consistent with paragraph 3 of the National Association of Insurance Commissioners Statement of Statutory Accounting Principles No. 41, as amended from time to time and as modified or supplemented by rule or order of the commissioner.
(2)
The terms defined in Section 31A-37-102 shall have the same meaning for purposes of this chapter.
