31A-17-609 - Alternate adjusted capital. - Utah Statutes

31A-17-609. Alternate adjusted capital.
(1) Except as provided in Section 31A-17-602, an insurer or health organization licensedunder Chapters 5, 7, 8, 9, and 14 shall maintain total adjusted capital as defined in Section31A-1-301 in an amount equal to the greater of:
(a) 175% of the minimum required capital, or of the minimum permanent surplus in thecase of nonassessable mutuals, required by Section 31A-5-211, 31A-7-201, 31A-8-209,31A-9-209, or 31A-14-205; or
(b) the net total of:
(i) 10% of net insurance premiums earned during the year; plus
(ii) 5% of the admitted value of common stocks and real estate; plus
(iii) 2% of the admitted value of all other invested assets, exclusive of cash deposits,short-term investments, policy loans, and premium notes; less
(iv) the amount of any asset valuation reserve being maintained by the insurer or healthorganization, but not to exceed the sum of Subsections (1)(b)(ii) and (iii).
(2) As used in Subsection (1)(b), "premiums earned" means premiums and otherconsideration earned for insurance in the 12-month period ending on the date the calculation ismade.
(3) The commissioner may consider an insurer or health organization to be financiallyhazardous under Subsection 31A-27a-207(1)(i), if the insurer or health organization does nothave qualified assets in an aggregate value exceeding the sum of the insurer's or healthorganization's liabilities and the total adjusted capital required by Subsection (1).
(4) The commissioner shall consider an insurer or health organization to be financiallyhazardous under Subsection 31A-27a-207(1)(i) if the insurer or health organization does not havequalified assets in an aggregate value exceeding the sum of the insurer's or health organization'sliabilities and 70% of the total adjusted capital required by Subsection (1).

Amended by Chapter 309, 2007 General Session