63A-4-101.5.  Risk manager — Appointment — Duties.

(1) 

Terms Used In Utah Code 63A-4-101.5

(a)  There is created within the department the Division of Risk Management.

(b)  The executive director shall, with the approval of the governor, appoint a risk manager as the division director, who shall be qualified by education and experience in the management of general property and casualty insurance.

(2)  The risk manager shall:

(a)  except as provided in Subsection (4), acquire and administer the following purchased by the state or any captive insurance company created by the risk manager:

(i)  all property and casualty insurance;

(ii)  reinsurance of property and casualty insurance; and

(iii)  subject to Section 34A-2-203, workers’ compensation insurance;

(b)  make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:

(i)  prescribing reasonable and objective underwriting and risk control standards for:

(A)  all covered entities of the Risk Management Fund; and

(B)  any captive insurance company created by the risk manager;

(ii)  prescribing the risks to be covered by the Risk Management Fund and the extent to which these risks will be covered;

(iii)  prescribing the properties, risks, deductibles, and amount limits eligible for payment out of the Risk Management Fund;

(iv)  prescribing procedures for making claims and proof of loss; and

(v)  establishing procedures for the resolution of disputes relating to coverage or claims, which may include binding arbitration;

(c)  implement a risk management and loss prevention program for covered entities for the purpose of reducing risks, accidents, and losses to assist covered entities in fulfilling their responsibilities for risk control and safety;

(d)  coordinate and cooperate with any covered entity having responsibility to manage and protect state properties, including:

(i)  the state fire marshal;

(ii)  the director of the Division of Facilities Construction and Management;

(iii)  the Department of Public Safety;

(iv)  institutions of higher education;

(v)  school districts; and

(vi)  charter schools;

(e)  maintain records necessary to fulfill the requirements of this section;

(f)  manage the Risk Management Fund and any captive insurance company created by the risk manager in accordance with economically and actuarially sound principles to produce adequate reserves for the payment of contingencies, including unpaid and unreported claims, and may purchase any insurance or reinsurance considered necessary to accomplish this objective; and

(g)  inform the covered entity’s governing body and the governor when any covered entity fails or refuses to comply with reasonable risk control recommendations made by the risk manager.

(3)  Before the effective date of any rule, the risk manager shall provide a copy of the rule to each covered entity affected by it.

(4)  The risk manager may not use a captive insurance company created by the risk manager to purchase:

(a)  workers’ compensation insurance;

(b)  health insurance; or

(c)  life insurance.

Amended by Chapter 169, 2022 General Session

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