31A-37-404 - Discounting of loss and loss adjustment expense reserves. - Utah Statutes

31A-37-404. Discounting of loss and loss adjustment expense reserves.
(1) The following may discount its loss and loss adjustment expense reserves at treasuryrates applied to the applicable payments projected through the use of the expected paymentpattern associated with the reserves:
(a) a sponsored captive insurance company; and
(b) a captive reinsurance company.
(2) (a) The following shall annually file with the department an actuarial opinionprovided by an independent actuary on loss and loss adjustment expense reserves:
(i) a sponsored captive insurance company; and
(ii) a captive reinsurance company.
(b) The independent actuary described in Subsection (2)(a) may not be an employee of:
(i) the company filing the actuarial opinion; or
(ii) an affiliate of the company filing the actuarial opinion.
(3) The commissioner may disallow the discounting of reserves by the following if thecompany violates this title:
(a) a sponsored captive insurance company; or
(b) a captive reinsurance company.

Enacted by Chapter 312, 2004 General Session