Subject to the limitations under Subsection 31A-18-106(1)(k), an insurance corporation may form or acquire subsidiaries to do any lawful insurance business.
Terms Used In Utah Code 31A-5-218
Appraisal: A determination of property value.
Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
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
Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
producer: means a person licensed or required to be licensed under the laws of this state to sell, solicit, or negotiate insurance. See Utah Code 31A-1-301
Surplus: means the excess of assets over the sum of paid-in capital and liabilities. See Utah Code 31A-1-301
(2)
An insurance corporation may form or acquire subsidiaries to hold or manage any assets that it might hold or manage directly.
(3)
(a)
An insurance corporation may form or acquire subsidiaries to perform functions or provide services that are ancillary to its insurance operations.
(b)
A subsidiary is an ancillary subsidiary if it is engaged principally in one or more of the following:
(i)
acting as an insurance producer;
(ii)
investing, reinvesting, or trading in securities, or acting as a securities broker, dealer, or marketing representative;
(iii)
managing investment companies registered under the federal Investment Company Act of 1940, as amended, including related sales and services;
(iv)
providing investment advice and services;
(v)
acting as administrative agent for a government instrumentality performing an insurance, public assistance, or related function;
(vi)
providing services related to insurance operations, including accounting, actuarial, pension administration, appraisal, auditing, claims adjusting, collection, data processing, communications, loss prevention, premium financing, safety engineering, and underwriting services;
(vii)
holding or managing property used by the corporation, alone or with its affiliates for the convenient transaction of its business;
engaging in the business of any institution subject to the jurisdiction of the Department of Financial Institutions under Title 7, Financial Institutions Act;
(x)
providing similar services or performing similar activities which the commissioner declares ancillary by rule; and
(xi)
owning corporations that would be authorized as subsidiaries under Subsections (3)(b)(i) through (3)(b)(ix) and under Subsections (1) and (2).
(4)
An insurance corporation may form or acquire subsidiaries other than those under Subsections (1) through (3), but only to the extent the insurer has excess surplus as defined under Section 31A-1-301.
(5)
(a)
An insurance corporation shall notify the commissioner immediately following the formation or acquisition of a subsidiary under this section.
