31A-18-110 - Investment valuation reserves. - Utah Statutes

31A-18-110. Investment valuation reserves.
(1) The commissioner may by rule, applicable to all or any specified classes of insurers,provide for the establishment, in reasonable amounts, of investment valuation reserves that arenecessary to lessen the impact on surplus of the fluctuation of the values of specific classes ofassets. In formulating these rules, the commissioner shall consider:
(a) similar rules used in other states or recommended for use by the National Associationof Insurance Commissioners;
(b) the propensities of the various types and classes of investments to fluctuate in value;and
(c) the present and anticipated investment climate, as measured by economic indicatorssuch as interest rates, price-level changes, market volatility, and economic growth or decline.
(2) The commissioner may by order require an individual insurer to establish investmentvaluation reserves in addition to those required for other insurers of the class to which the insurerbelongs, to the extent that the financial condition of the insurer and the nature of its assets andliabilities or business require that those reserves be established to adequately protect its insureds.
(3) Where reasonably possible, reserves required under Subsection (1) shall correspondwith those generally required in other states.

Enacted by Chapter 242, 1985 General Session