1. (1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commissioner may adopt rules to:

   1. (a) determine circumstances under which a branch captive insurance company is not required to be a pure captive insurance company;
   2. (b) require a statement, document, or information that a captive insurance company shall provide to the commissioner to obtain a certificate of authority;
   3. (c) determine a factor a captive insurance company shall provide evidence of under Subsection 31A-37-201(4)(b);
   4. (d) prescribe one or more capital requirements for a captive insurance company in addition to those required under Section 31A-37-204 based on the type, volume, and nature of insurance business transacted by the captive insurance company;

   5. (e) waive or modify a requirement for public notice and hearing for the following by a captive insurance company:

      1. (i) merger;
      2. (ii) consolidation;
      3. (iii) conversion;
      4. (iv) mutualization;
      5. (v) redomestication; or
      6. (vi) acquisition;

   6. (f) approve the use of one or more reliable methods of valuation and rating for:

      1. (i) an association captive insurance company;
      2. (ii) a sponsored captive insurance company; or
      3. (iii) an industrial insured group;

   7. (g) prohibit or limit an investment that threatens the solvency or liquidity of:

      1. (i) a pure captive insurance company; or
      2. (ii) an industrial insured captive insurance company;
   8. (h) determine the financial reports a sponsored captive insurance company shall annually file with the commissioner;
   9. (i) prescribe the required forms and reports under Section 31A-37-501;

   10. (j) establish one or more standards to ensure that:

       1. (i) one of the following is able to exercise control of the risk management function of a controlled unaffiliated business to be insured by a pure captive insurance company:

          1. (A) a parent; or
          2. (B) an affiliated company of a parent; or

       2. (ii) one of the following is able to exercise control of the risk management function of a controlled unaffiliated business to be insured by an industrial insured captive insurance company:

          1. (A) an industrial insured; or
          2. (B) an affiliated company of the industrial insured; and
   11. (k) establish requirements for obtaining, maintaining, and renewing a certificate of dormancy.

2. (2) Notwithstanding Subsection (1)(j), until the commissioner adopts the rules authorized under Subsection (1)(j), the commissioner may by temporary order grant authority to insure risks to:

   1. (a) a pure captive insurance company; or
   2. (b) an industrial insured captive insurance company.
3. (3) The commissioner may issue prohibitory, mandatory, and other orders relating to a captive insurance company as necessary to enable the commissioner to secure compliance with this chapter.

Amended by Chapter 193, 2019 General Session