31A-37-603 - Minimum capitalization or reserves for a captive reinsurance company. - Utah Statutes

31A-37-603. Minimum capitalization or reserves for a captive reinsurancecompany.
(1) (a) The commissioner may not issue a certificate of authority to a captive reinsurancecompany unless a captive reinsurance company possesses and maintains capital or free surplus ofnot less than the greater of:
(i) $300,000,000; or
(ii) 10% of the reserves of the captive reinsurance company.
(b) The surplus required by this Subsection (1) may be in the form of:
(i) cash; or
(ii) securities.
(2) The commissioner may prescribe additional capital or surplus based upon the type,volume, and nature of the insurance business transacted.
(3) (a) A captive reinsurance company may not pay a dividend out of, or otherdistribution with respect to capital or surplus without the prior approval of the commissioner.
(b) Approval of an ongoing plan for the payment of dividends or other distributions shallbe conditioned upon the retention at the time of each payment of capital or surplus in excess ofamounts specified by, or determined in accordance with formulas approved by, thecommissioner.

Amended by Chapter 302, 2008 General Session