Utah Code 31A-37a-204. Prior approval of a change in plan of operation and other transactions
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(1) A special purpose financial captive insurance company may not change its plan of operation without the prior approval of the commissioner.
Terms Used In Utah Code 31A-37a-204
- Captive insurance company: means :(21)(a) an insurer:(21)(a)(i) owned by a parent organization; and(21)(a)(ii) whose purpose is to insure risks of the parent organization and other risks as authorized under:(21)(a)(ii)(A) Chapter 37, Captive Insurance Companies Act; and(21)(a)(ii)(B) Chapter 37a, Special Purpose Financial Captive Insurance Company Act; or(21)(b) in the case of a group or association, an insurer:(21)(b)(i) owned by the insureds; and(21)(b)(ii) whose purpose is to insure risks of:(21)(b)(ii)(A) a member organization;(21)(b)(ii)(B) a group member; or(21)(b)(ii)(C) an affiliate of:(21)(b)(ii)(C)(I) a member organization; or(21)(b)(ii)(C)(II) a group member. See Utah Code 31A-1-301
- Insurance: includes :
(96)(b)(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;(96)(b)(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(96)(b)(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:
(104)(a)(i) a fraternal benefit society;(104)(a)(ii) an issuer of a gift annuity other than an annuity specified in Subsections31A-22-1305 (2) and (3);(104)(a)(iii) a motor club;(104)(a)(iv) an employee welfare plan;(104)(a)(v) a person purporting or intending to do an insurance business as a principal on that person's own account; and(104)(a)(vi) a health maintenance organization. See Utah Code 31A-1-301- Security: means a:
(176)(a)(i) note;(176)(a)(ii) stock;(176)(a)(iii) bond;(176)(a)(iv) debenture;(176)(a)(v) evidence of indebtedness;(176)(a)(vi) certificate of interest or participation in a profit-sharing agreement;(176)(a)(vii) collateral-trust certificate;(176)(a)(viii) preorganization certificate or subscription;(176)(a)(ix) transferable share;(176)(a)(x) investment contract;(176)(a)(xi) voting trust certificate;(176)(a)(xii) certificate of deposit for a security;(176)(a)(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;(176)(a)(xiv) commodity contract or commodity option;(176)(a)(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 (176)(a)(i) through (xiv); or(176)(a)(xvi) another interest or instrument commonly known as a security. See Utah Code 31A-1-301(2)(2)(a) Subject to Subsection (2)(b), a special purpose financial captive insurance company may not engage in a transaction or series of transactions without the prior approval of the commissioner if the transaction or series of transactions:(2)(a)(i) is undertaken to dissolve the special purpose financial captive insurance company; or(2)(a)(ii) results in the termination of all or a part of a special purpose financial captive insurance company’s business.(2)(b) A special purpose financial captive insurance company is not required to obtain the prior approval of the commissioner for a transaction or series of transactions described in Subsection (2)(a)(ii) if:(2)(b)(i) the transaction or series of transactions is done in accordance with a document or agreement described in the special purpose financial captive insurance company’s plan of operation; and(2)(b)(ii) the special purpose financial captive insurance company notifies the commissioner prior to the transaction or series of transactions.(3) A special purpose financial captive insurance company shall notify the commissioner before a change in the legal ownership of a security issued by the special purpose financial captive insurance company. - Insurance: includes :