(1)

1. (a) A captive insurance company may cede risks to any insurance company approved by the commissioner.
2. (b) A captive insurance company may provide reinsurance, as authorized in this title, on risks ceded by any other insurer with prior approval of the commissioner.

(2)

1. (a) A captive insurance company may take credit for reserves on risks or portions of risks ceded to reinsurers if the captive insurance company complies with Section 31A-17-404, 31A-17-404.1, 31A-17-404.3, or 31A-17-404.4 or if the captive insurance company complies with other requirements as the commissioner may establish by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

2. (b) Unless the reinsurer is in compliance with Section 31A-17-404, 31A-17-404.1, 31A-17-404.3, or 31A-17-404.4 or a rule adopted under Subsection (2)(a), a captive insurance company may not take credit for:

   1. (i) reserves on risks ceded to a reinsurer; or
   2. (ii) portions of risks ceded to a reinsurer.