Investment requirements.
Utah Code § 31A-37-302
in effect31A-37-302. Investment requirements.
(1)
(a) Except as provided in Subsection (1)(b), a captive insurance company and a risk retention group shall comply with the investment requirements contained in this title.
(b) Notwithstanding Subsection (1)(a) and any other provision of this title, the commissioner may approve the use of alternative reliable methods of valuation and rating under Section 31A-37-106 for a captive insurance company or a risk retention group.
(2)
(a) Except as provided in Subsection (2)(b), a captive insurance company, other than a risk retention group, is not subject to any restrictions on authorized classes of investments described in Section 31A-18-110.
(b) Under Section 31A-37-106, the commissioner may prohibit or limit an investment that threatens the solvency or liquidity of a captive insurance company or risk retention group.
(3)
(a)
(i) Except as provided in Subsection (3)(a)(ii), a captive insurance company may not make loans to:
(A) the parent company of the captive insurance company; or
(B) an affiliate of the captive insurance company.
(ii) A pure captive insurance company and an incorporated cell of a sponsored captive insurance company may make loans to:
(A) the parent company of the pure captive insurance company or incorporated cell of a sponsored captive insurance company; or
(B) an affiliate of the pure captive insurance company or incorporated cell of a sponsored captive insurance company.
(b) A loan under Subsection (3)(a):
(i) may be made only on the prior written approval of the commissioner and, when applicable, the sponsor for an incorporated cell; and
(ii) shall be evidenced by a note in a form approved by the commissioner and, when applicable, the sponsor for an incorporated cell.
(c) A pure captive insurance company may not make a loan from the paid-in capital required under Subsection 31A-37-204(2).
(4)
(a) For purposes of this chapter, the excess surplus of a captive insurance company, other than a risk retention group, is the amount of the company's assets that exceeds 120% of the company's minimum capital required by Section 31A-37-204 plus an actuarially determined reserve estimate.
(b) A captive insurer may only invest excess surplus in a manner inconsistent with the authorized classes of investments described in Section 31A-18-110 with prior written approval of the commissioner.
(5) Nothing in this section empowers a captive insurer to make an investment that is illegal or otherwise prohibited by this title.
Amended by Chapter 45, 2026 General Session
Source: Utah Office of Legislative Research and General Counsel (le.utah.gov)URL: https://le.utah.gov/xcode/Title31A/Chapter37/31A-37-S302.html?v=C31A-37-S302_2026050620260506Fetched: 10/26/2026