Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 23 (2025GS)

Sponsor

Rep. Dunnigan, James A.

Final action

Governor Signed 3/25/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines terms;
• clarifies the circumstances under which a public agency insurance mutual or a reserve fund is exempt from the Insurance Code;
• amends provisions related to dual licensing;
• amends provisions relating to money appropriated from the Captive Insurance Restricted Account;
• clarifies that an insurer does not need to file a certification that a non-English policy is in compliance with relevant laws;
• aligns state law with federal rules relating to preexisting condition limitations;
• limits the scope by which the Insurance Department can issue a waiver for a license;
• clarifies that the commissioner may take an action against a licensee if the licensee fails to pay a final judgment within 60 days;
• adds additional reporting requirements for a licensee against whom a judgment has been entered;
• changes the reporting period for agency title insurance producers;
• amends provisions relating to captive insurance companies;
• reduces the minimum capital requirement for an association captive insurance company;
• allows a captive insurance company to be formed as a not-for-profit organization;

Every vote on this bill

Bill text

57
31A-1-103
31A-2-201
31A-2-402
31A-2-404
31A-2-405
31A-3-304
31A-21-112
31A-21-303
31A-22-407
31A-22-509
31A-22-511
31A-22-512
31A-22-514
31A-22-614
31A-22-701
31A-23a-105
31A-23a-109
31A-23a-111
31A-23a-119
31A-23a-415
31A-26-202
31A-37-102
31A-37-104
31A-37-201
31A-37-202
31A-37-204
31A-37-301
31A-37-302
31A-37-303
31A-37-401
31A-37-402
31A-37-403
31A-37-404
31A-37-501
31A-37-505
31A-37-701
31A-37a-205
31A-43-301
61-2g-502
31A-1-103
31A-2-201
31A-2-402
31A-2-404
31A-2-405
31A-3-304
31A-21-112
31A-21-303
31A-22-407
31A-22-509
31A-22-511
31A-22-512
31A-22-514
31A-22-614
31A-22-701
31A-23a-105
31A-23a-109
31A-23a-111
31A-23a-119
31A-23a-415
31A-26-202
31A-37-102
31A-37-104
31A-37-201
31A-37-202
31A-37-204
31A-37-301
31A-37-302
31A-37-303
31A-37-401
31A-37-402
31A-37-403
31A-37-404
31A-37-501
31A-37-505
31A-37-701
31A-37a-205
31A-43-301
61-2g-502
0
Insurance Modifications
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: James A. Dunnigan
Senate Sponsor: Evan J. Vickers
LONG TITLE
General Description:
This bill amends provisions relating to insurance.
Highlighted Provisions:
This bill:
defines terms;
clarifies the circumstances under which a public agency insurance mutual or a reserve 
fund is exempt from the Insurance Code;
amends provisions related to dual licensing;
amends provisions relating to money appropriated from the Captive Insurance Restricted 
Account;
clarifies that an insurer does not need to file a certification that a non-English policy is in 
compliance with relevant laws;
aligns state law with federal rules relating to preexisting condition limitations;
limits the scope by which the Insurance Department can issue a waiver for a license;
clarifies that the commissioner may take an action against a licensee if the licensee fails 
to pay a final judgment within 60 days;
adds additional reporting requirements for a licensee against whom a judgment has been 
entered;
changes the reporting period for agency title insurance producers;
amends provisions relating to captive insurance companies;
reduces the minimum capital requirement for an association captive insurance company;
allows a captive insurance company to be formed as a not-for-profit organization;
clarifies that officers of a captive insurance company must be separate individuals;
amends provisions relating to insurance investments;
amends requirements relating to a sponsored captive insurance company's business;
amends the grounds under which the commissioner may revoke the certificate of 
authority of a captive insurance company; 
modifies the requirements for a small employer stop-loss insurance contract;
regulates with which small employers a stop-loss insurer or reinsurer may enter stop-loss 
insurance contracts;
provides a transition period for existing small employer stop-loss insurance contracts; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
31A-1-103
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2024, Chapter 120
31A-2-201
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2018, Chapter 200
31A-2-402
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2015, Chapter 330
31A-2-404
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2016, Chapter 193
31A-3-304
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2023, Chapter 194
31A-21-112
, 
Effective 
05/07/25
 as enacted by Laws of Utah 2013, Chapter 443
31A-21-303
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2022, Chapter 198
31A-22-407
, 
Effective 
05/07/25
 as enacted by Laws of Utah 1985, Chapter 242
31A-22-509
, 
Effective 
05/07/25
 as enacted by Laws of Utah 1985, Chapter 242
31A-22-511
, 
Effective 
05/07/25
 as enacted by Laws of Utah 1985, Chapter 242
31A-22-512
, 
Effective 
05/07/25
 as enacted by Laws of Utah 1985, Chapter 242
31A-22-514
, 
Effective 
05/07/25
 as enacted by Laws of Utah 1985, Chapter 242
31A-22-614
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2024, Chapter 120
31A-22-701
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2021, Chapter 252
31A-23a-105
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2024, Chapter 120
31A-23a-109
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2018, Chapter 319
31A-23a-111
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2024, Chapter 120
31A-23a-119
, 
Effective 
05/07/25
 as enacted by Laws of Utah 2024, Chapter 120
31A-23a-415
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2023, Chapter 194
31A-26-202
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2018, Chapter 462
31A-37-102
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2023, Chapter 194
31A-37-104
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2008, Chapter 302
31A-37-201
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2019, Chapter 193
31A-37-202
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2024, Chapter 120
31A-37-204
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2024, Chapter 120
31A-37-301
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2019, Chapter 193
31A-37-302
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2015, Chapter 244
31A-37-303
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2021, Chapter 252
31A-37-401
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2019, Chapter 193
31A-37-402
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2015, Chapter 244
31A-37-403
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2015, Chapter 244
31A-37-404
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2015, Chapter 244
31A-37-501
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2019, Chapter 193
31A-37-505
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2015, Chapter 244
31A-37-701
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2021, Chapter 252
31A-37a-205
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2011, Chapter 297
31A-43-301
, 
Effective 
07/01/25
 as last amended by Laws of Utah 2015, Chapter 244
61-2g-502
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2020, Chapter 72
REPEALS AND REENACTS:
31A-2-405
, 
Effective 
05/07/25
 as enacted by Laws of Utah 2007, Chapter 325
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
31A-1-103
 is amended to read:
31A-1-103
Effective 
05/07/25
. Scope and applicability of title.
(1)
This title does not apply to:
(a)
a retainer contract made by an attorney-at-law:
(i)
with an individual client; and
(ii)
under which fees are based on estimates of the nature and amount of services to 
be provided to the specific client;
(b)
a contract similar to a contract described in Subsection (1)(a) made with a group of 
clients involved in the same or closely related legal matters;
(c)
an arrangement for providing benefits that do not exceed a limited amount of 
consultations, advice on simple legal matters, either alone or in combination with 
referral services, or the promise of fee discounts for handling other legal matters;
(d)
limited legal assistance on an informal basis involving neither an express contractual 
obligation nor reasonable expectations, in the context of an employment, 
membership, educational, or similar relationship;
(e)
legal assistance by employee organizations to their members in matters relating to 
employment;
(f)
death, accident, health, or disability benefits provided to 
a person
an individual
 by 
an organization or 
its
the organization's
 affiliate if:
(i)
the organization is tax exempt under Section 501(c)(3) of the Internal Revenue 
Code and has had 
its
the organization's
 principal place of business in Utah for at 
least five years;
(ii)
the 
person
individual
 is not an employee of the organization; and
(iii)
(A)
substantially all the 
person's
individual's
 time in the organization is spent 
providing voluntary services:
(I)
in furtherance of the organization's purposes;
(II)
for a designated period of time; and
(III)
for which no compensation, other than expenses, is paid; or
(B)
the time since the service under Subsection (1)(f)(iii)(A) was completed is no 
more than 18 months; or
(g)
a prepaid contract of limited duration that provides for scheduled maintenance only.
(2)
(a)
This title restricts otherwise legitimate business activity.
(b)
What this title does not prohibit is permitted unless contrary to other provisions of 
Utah law.
(3)
Except as otherwise expressly provided, this title does not apply to:
(a)
those activities of an insurer where state jurisdiction is preempted by Section 514 of 
the federal Employee Retirement Income Security Act of 1974, as amended;
(b)
ocean marine insurance;
(c)
death, accident, health, or disability benefits provided by an organization that:
(i)
has as the organization's principal purpose to achieve charitable, educational, 
social, or religious objectives rather than to provide death, accident, health, or 
disability benefits;
(ii)
does not incur a legal obligation to pay a specified amount;
(iii)
does not create reasonable expectations of receiving a specified amount on the 
part of an insured person; and
(iv)
is not a health care sharing ministry that provides that a participant make a 
contribution to pay another participant's qualified expenses with no assumption of 
risk or promise to pay.
(d)
other business specified in rules adopted by the commissioner on a finding that:
(i)
the transaction of the business in this state does not require regulation for the 
protection of the interests of the residents of this state; or
(ii)
it would be impracticable to require compliance with this title;
(e)
except as provided in Subsection (4), a transaction independently procured through 
negotiations under Section 
31A-15-104
;
(f)
self-insurance;
(g)
reinsurance;
(h)
subject to Subsection (5), an employee or labor union group insurance policy 
covering risks in this state or an employee or labor union blanket insurance policy 
covering risks in this state, if:
(i)
the policyholder exists primarily for purposes other than to procure insurance;
(ii)
the policyholder:
(A)
is not a resident of this state;
(B)
is not a domestic corporation; or
(C)
does not have the policyholder's principal office in this state;
(iii)
no more than 25% of the certificate holders or insureds are residents of this state;
(iv)
on request of the commissioner, the insurer files with the department a copy of 
the policy and a copy of each form or certificate; and
(v)
(A)
the insurer agrees to pay premium taxes on the Utah portion of the insurer's 
business, as if the insurer were authorized to do business in this state; and
(B)
the insurer provides the commissioner with the security the commissioner 
considers necessary for the payment of premium taxes under Title 59, Chapter 
9, Taxation of Admitted Insurers;
(i)
to the extent provided in Subsection (6):
(i)
a manufacturer's or seller's warranty; and
(ii)
a manufacturer's or seller's service contract;
(j)
except to the extent provided in Subsection (7), a public agency insurance mutual;
(k)
except as provided in Chapter 6b, Guaranteed Asset Protection Waiver Act, a 
guaranteed asset protection waiver; or
(l)
a health care sharing ministry, if the health care sharing ministry:
(i)
provides to each participant upon enrollment and annually thereafter a written 
statement of nationwide data from the preceding calendar year that lists the total 
dollar amount of contributions provided to participants toward qualified expenses; 
and
(ii)
includes a written disclaimer, titled "Notice", on or with each application and all 
guideline materials that states:
(A)
the health care sharing ministry is not an insurance company;
(B)
nothing the health care sharing ministry offers or provides is an insurance 
policy, including the health care sharing ministry's guidelines or plan of 
operations;
(C)
participation in the health care sharing ministry is entirely voluntary and no 
participant is compelled by law to contribute to another participant's expenses;
(D)
participation in the health care sharing ministry or subscription to any of the 
health care sharing ministry's services is not insurance; and
(E)
each participant is always personally responsible for the participant's expenses 
regardless of whether the participant receives payment for the expenses 
through the health care sharing ministry or whether this health care sharing 
ministry continues to operate.
(4)
A transaction described in Subsection (3)(e) is subject to taxation under Section 
31A-3-301
.
(5)
(a)
After a hearing, the commissioner may order an insurer of certain group insurance 
policies or blanket insurance policies to transfer the Utah portion of the business 
otherwise exempted under Subsection (3)(h) to an authorized insurer if the contracts 
have been written by an unauthorized insurer.
(b)
If the commissioner finds that the conditions required for the exemption of a group 
or blanket insurer are not satisfied or that adequate protection to residents of this state 
is not provided, the commissioner may require:
(i)
the insurer to be authorized to do business in this state; or
(ii)
that any of the insurer's transactions be subject to this title.
(c)
Subsection (3)(h) does not apply to a blanket insurance policy offering accident and 
health insurance.
(6)
(a)
As used in Subsection (3)(i) and this Subsection (6):
(i)
"manufacturer's
"Manufacturer's
 or seller's service contract" means a service 
contract:
(A)
made available by:
(I)
a manufacturer of a product;
(II)
a seller of a product; or
(III)
an affiliate of a manufacturer or seller of a product;
(B)
made available:
(I)
on one or more specific products; or
(II)
on products that are components of a system; and
(C)
under which the person described in Subsection (6)(a)(i)(A) is liable for 
services to be provided under the service contract including, if the 
manufacturer's or seller's service contract designates, providing parts and labor
;
.
(ii)
"manufacturer's
"Manufacturer's
 or seller's warranty" means the guaranty of:
(A)
(I)
the manufacturer of a product;
(II)
a seller of a product; or
(III)
an affiliate of a manufacturer or seller of a product;
(B)
(I)
on one or more specific products; or
(II)
on products that are components of a system; and
(C)
under which the person described in Subsection (6)(a)(ii)(A) is liable for 
services to be provided under the warranty, including, if the manufacturer's or 
seller's warranty designates, providing parts and labor
; and
.
(iii)
"service
"Service
 contract" means the same as that term is defined in Section 
31A-6a-101
.
(b)
A manufacturer's or seller's warranty may be designated as:
(i)
a warranty;
(ii)
a guaranty; or
(iii)
a term similar to a term described in Subsection (6)(b)(i) or (ii).
(c)
This title does not apply to:
(i)
a manufacturer's or seller's warranty;
(ii)
a manufacturer's or seller's service contract paid for with consideration that is in 
addition to the consideration paid for the product itself; and
(iii)
a service contract that is not a manufacturer's or seller's warranty or 
manufacturer's or seller's service contract if:
(A)
the service contract is paid for with consideration that is in addition to the 
consideration paid for the product itself;
(B)
the service contract is for the repair or maintenance of goods;
(C)
the purchase price of the product is $3,700 or less;
(D)
the product is not a motor vehicle; and
(E)
the product is not the subject of a home warranty service contract.
(d)
This title does not apply to a manufacturer's or seller's warranty or service contract 
paid for with consideration that is in addition to the consideration paid for the product 
itself regardless of whether the manufacturer's or seller's warranty or service contract 
is sold:
(i)
at the time of the purchase of the product; or
(ii)
at a time other than the time of the purchase of the product.
(7)
(a)
For purposes of this Subsection (7)
,
:
(i)
 "public
"Public
 agency insurance mutual" means an entity
:
(A)
formed by two or more political subdivisions or public agencies of the state
:
(i)
under Title 11, Chapter 13, Interlocal Cooperation Act; and
(ii)
for the purpose of providing for the political subdivisions or public agencies:
(A)
subject to Subsection (7)(b), insurance coverage; or
(B)
risk management.
(B)
that issues an insurance policy, subject to Subsection 
(7)(b)
, or provides risk 
management, to a political subdivision or public agency in the state under Title 
11, Chapter 13, Interlocal Cooperation Act.
(ii)
"Reserve fund" means a fund established:
(A)
to fund a loss to a political subdivision's assets; and
(B)
by one or more political subdivisions for a purpose identified in Section 
63G-7-703
.
(b)
Notwithstanding Subsection (7)(a)(ii)(A), a 
A 
public agency insurance mutual 
or 
reserve fund 
may not provide health insurance unless the public agency insurance 
mutual provides the health insurance using:
(i)
a third party administrator licensed under Chapter 25, Third Party Administrators;
(ii)
an admitted insurer; or
(iii)
a program authorized by Title 49, Chapter 20, Public Employees' Benefit and 
Insurance Program Act.
(c)
Except for this Subsection (7), a
A
 public agency insurance mutual 
or a reserve fund 
is exempt from this title
.
 except as provided in the provisions in Sections 
31A-3-301
and 
31A-3-303
 describing the surplus lines tax that are applicable to a policyholder.
(d)
A public agency insurance mutual 
or reserve fund 
is considered
 to be
 a 
governmental entity and political subdivision of the state with all of the rights, 
privileges, and immunities of a governmental entity or political subdivision of the 
state including all the rights and benefits of Title 63G, Chapter 7, Governmental 
Immunity Act of Utah.
Section 2, Section 
31A-2-201
 is amended to read:
31A-2-201
Effective 
05/07/25
. General duties and powers.
(1)
The commissioner shall administer and enforce this title.
(2)
The commissioner has all powers specifically granted, and all further powers that are 
reasonable and necessary to enable the commissioner to perform the duties imposed by 
this title.
(3)
(a)
The commissioner may make rules to implement the provisions of this title 
according to the procedures and requirements of 
Title 63G, Chapter 3, Utah 
Administrative Rulemaking Act
.
(b)
In addition to the notice requirements of Section 
63G-3-301
, the commissioner shall 
provide notice under Section 
31A-2-303
 of hearings concerning insurance 
department rules.
(4)
(a)
(i)
The commissioner shall issue prohibitory, mandatory, and other orders as 
necessary to secure compliance with this title. 
(ii)
An order by the commissioner is not effective unless the order:
(i)
(A)
is in writing; and
(ii)
(B)
is signed by the commissioner or under the commissioner's authority.
(b)
On request of any person 
who
that
 would be affected by an order under Subsection 
(4)(a)
, the commissioner may issue a declaratory order to clarify the person's rights or 
duties.
(5)
(a)
The commissioner may hold informal adjudicative proceedings and public 
meetings, for the purpose of:
(i)
investigation;
(ii)
ascertainment of public sentiment; or
(iii)
informing the public.
(b)
An effective rule or order may not result from informal hearings and meetings unless 
the requirement of a hearing under this section is satisfied.
(6)
The commissioner shall inquire into violations of this title and may conduct any 
examinations and investigations of insurance matters, in addition to examinations and 
investigations expressly authorized, that the commissioner considers proper to determine:
(a)
whether or not any person has violated any provision of this title; or
(b)
to secure information useful in the lawful administration of this title.
(7)
The commissioner shall ensure that any training or certification required of a public 
official or public employee, as those terms are defined in Section 
63G-22-102
, complies 
with 
Title 63G, Chapter 22, State Training and Certification Requirements
, if the 
training or certification is required:
(a)
under this title;
(b)
by the department; or
(c)
by an agency or division within the department.
Section 3, Section 
31A-2-402
 is amended to read:
31A-2-402
Effective 
05/07/25
. Definitions.
As used in this part:
(1)
"Commission" means the Title and Escrow Commission created in Section 
31A-2-403
.
(2)
"Concurrence" means the entities given a concurring role must jointly agree for the 
action to be taken.
(3)
"Dual licensed title licensee" means a title licensee who holds:
(a)
an individual title insurance producer license as a title licensee; and
(b)
a license or certificate under:
(i)
Title 61, Chapter 2c, Utah Residential Mortgage Practices and Licensing Act
;
(ii)
Title 61, Chapter 2f, Real Estate Licensing and Practices Act
; or
(iii)
Title 61, Chapter 2g, Real Estate Appraiser Licensing and Certification Act
.
(4)
(3)
"Real Estate Commission" means the Real Estate Commission created in Section 
61-2f-103
.
(5)
(4)
"Title insurance matter" means a matter related to:
(a)
title insurance;
(b)
an escrow conducted by an individual title insurance producer or agency title 
insurance producer;
(c)
licensing, examination, and continuing education of an applicant to be a title 
licensee; or
(d)
conduct of a title licensee.
(6)
(5)
"Title licensee" means a person licensed under this title as:
(a)
an agency title insurance producer with a title insurance line of authority;
(b)
an individual title insurance producer with:
(i)
a general title insurance line of authority; or
(ii)
a specific category of authority for title insurance; or
(c)
a title insurance adjuster.
Section 4, Section 
31A-2-404
 is amended to read:
31A-2-404
Effective 
05/07/25
. Duties of the commissioner and Title and Escrow 
Commission.
(1)
(a)
Notwithstanding the other provisions of this chapter, to the extent provided in this 
part, the commissioner shall administer and enforce the provisions in this title related 
to a title insurance matter.
(b)
(i)
The commissioner may impose a penalty:
(A)
under this title related to a title insurance matter;
(B)
after investigation by the commissioner in accordance with 
Part 3, Procedures 
and Enforcement
; and
(C)
that is enforced by the commissioner.
(ii)
The commissioner shall consult with and seek concurrence of the commission in 
a meeting subject to 
Title 52, Chapter 4, Open and Public Meetings Act
, regarding 
the imposition of a penalty, and if concurrence cannot be reached, the 
commissioner has final authority.
(c)
(i)
Unless a provision of this title grants specific authority to the commission, the 
commissioner has authority over the implementation of this title related to a title 
insurance matter. 
(ii)
When a provision requires concurrence between the commission and 
commissioner, and concurrence cannot be reached, the commissioner has final 
authority.
(d)
Except as provided in Subsection 
(1)(e)
, when this title requires concurrence 
between the commissioner and commission related to a title insurance matter:
(i)
the commissioner shall report to and update the commission on a regular basis 
related to that title insurance matter; and
(ii)
the commission shall review the report submitted by the commissioner under this 
Subsection 
(1)(d)
;
 and 
(A)
concur with the report
,
;
 or
:
(A)
(B)
provide a reason for not concurring with the report
;
 and
(B)
provide recommendations to the commissioner.
(e)
When this title requires concurrence between the commissioner and commission 
under Subsection 
(2)
, 
(3)
, or 
(4)
:
(i)
the commission shall report to and update the commissioner on a regular basis 
related to that title insurance matter; and
(ii)
the commissioner shall review a report submitted by the commission under this 
Subsection 
(1)(e)
 and concur with the report or:
(A)
provide a reason for not concurring with the report; and
(B)
provide recommendations to the commission.
(2)
The commission shall:
(a)
subject to Subsection 
(4)
, make rules for the administration of the provisions in this 
title related to title insurance matters including rules related to:
(i)
rating standards and rating methods for a title licensee, as provided in Section 
31A-19a-209
;
(ii)
the licensing for a title licensee, including the licensing requirements of Section 
31A-23a-204
;
(iii)
continuing education requirements of Section 
31A-23a-202
; and
(iv)
standards of conduct for a title licensee;
(b)
concur in the issuance and renewal of a license in accordance with Section 
31A-23a-105
 or 
31A-26-203
;
(c)
in accordance with Section 
31A-3-103
, establish, with the concurrence of the 
commissioner, the fees imposed by this title on a title licensee;
(d)
in accordance with Section 
31A-23a-415
 determine, after consulting with the 
commissioner, the assessment on a title insurer as defined in Section 
31A-23a-415
;
(e)
(c)
with the concurrence of the commissioner, approve a continuing education 
program required by Section 
31A-23a-202
;
(f)
(d)
on a regular basis advise the commissioner of the most critical matters affecting 
the title insurance industry and request the commissioner to direct the department's 
investigative resources to investigate and enforce those matters;
(g)
(e)
in accordance with Section 
31A-23a-204
, participate in the annual license 
testing evaluation conducted by the commissioner's test administrator;
(h)
(f)
advise the commissioner on matters affecting the commissioner's budget related 
to title insurance; and
(i)
(g)
perform other duties as provided in this title.
(3)
The commission may make rules establishing an examination for a license that will 
satisfy Section 
31A-23a-204
:
(a)
after consultation with the commissioner's test administrator; and
(b)
subject to Subsection 
(4)
.
(4)
(a)
The commission may make a rule under this title only:
(i)
in accordance with 
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
;
(ii)
with the concurrence of the commissioner, except that if concurrence cannot be 
reached, the commissioner has final authority; and
(iii)
if at the time the commission files 
its
the commission's
 proposed rule and rule 
analysis with the Office of Administrative Rules in accordance with Section 
63G-3-301
, the commission provides the Real Estate Commission that same 
information.
(b)
The commission may not make a rule regarding adjudicative procedures.
(c)
In accordance with Section 
31A-2-201
, the commissioner may make rules regarding 
adjudicative procedures.
(5)
(a)
The commissioner shall annually report the information described in Subsection 
(5)(b)
 in writing to the commission.
(b)
The information required to be reported under this Subsection 
(5)
:
(i)
may not identify a person; and
(ii)
shall include:
(A)
the number of complaints the commissioner receives with regard to 
transactions involving title insurance or a title licensee during the calendar year 
immediately proceeding the report;
(B)
the type of complaints described in Subsection 
(5)(b)(ii)(A)
; and
(C)
for each complaint described in Subsection 
(5)(b)(ii)(A)
:
(I)
any action taken by the commissioner with regard to the complaint; and
(II)
the time-period beginning the day on which a complaint is made and 
ending the day on which the commissioner determines it will take no further 
action with regard to the complaint.
Section 5, Section 
31A-2-405
 is repealed and re-enacted to read:
31A-2-405
Effective 
05/07/25
. Dual licensing.
An individual title licensee may not conduct the business of title insurance while 
conducting business as a holder of a license or certificate under:
(1)
Title 61, Chapter 2c, Utah Residential Mortgage Practices and Licensing Act;
(2)
Title 61, Chapter 2f, Real Estate Licensing and Practices Act; or
(3)
Title 61, Chapter 2g, Real Estate Appraiser Licensing and Certification Act.
Section 6, Section 
31A-3-304
 is amended to read:
31A-3-304
Effective 
05/07/25
. Annual fees -- Other taxes or fees prohibited -- 
Captive Insurance Restricted Account.
(1)
(a)
A captive insurance company shall pay an annual fee imposed under this section 
to obtain or renew a certificate of authority.
(b)
The commissioner shall:
(i)
determine the annual fee 
pursuant to
in accordance with
 Section 
31A-3-103
; and
(ii)
consider whether the annual fee is competitive with fees imposed by other states 
on captive insurance companies.
(2)
A captive insurance company that fails to pay the fee required by this section is subject 
to the relevant sanctions of this title.
(3)
(a)
A captive insurance company that pays one of the following fees is exempt from 
Title 59, Chapter 7, Corporate Franchise and Income Taxes
, and 
Title 59, Chapter 9, 
Taxation of Admitted Insurers
:
(i)
a fee under this section;
(ii)
a fee under 
Chapter 37, Captive Insurance Companies Act
; or
(iii)
a fee under 
Chapter 37a, Special Purpose Financial Captive Insurance Company 
Act
.
(b)
The state or a county, city, or town within the state may not levy or collect an 
occupation tax or other fee or charge not described in Subsections 
(3)(a)(i)
 through 
(iii)
 against a captive insurance company.
(c)
The state may not levy, assess, or collect a withdrawal fee under Section 
31A-4-115
against a captive insurance company.
(4)
A captive insurance company shall pay the fee imposed by this section to the 
commissioner by June 1 of each year.
(5)
(a)
Money received pursuant to
The commissioner shall deposit money received 
from
 a fee described in Subsection 
(3)(a)
shall be deposited 
into the Captive 
Insurance Restricted Account.
(b)
There is created in the General Fund a restricted account known as the "Captive 
Insurance Restricted Account."
(c)
The Captive Insurance Restricted Account shall consist of the fees described in 
Subsection 
(3)(a)
.
(d)
The commissioner shall administer the Captive Insurance Restricted Account. 
Subject to appropriations by the Legislature, the commissioner shall use the money 
deposited into the Captive Insurance Restricted Account to:
(i)
administer and enforce:
(A)
Chapter 37, Captive Insurance Companies Act
; and
(B)
Chapter 37a, Special Purpose Financial Captive Insurance Company Act
; and
(ii)
promote the captive insurance industry in Utah.
(e)
An appropriation from the Captive Insurance Restricted Account is nonlapsing, 
except that at the end of each fiscal year, money received by the commissioner in 
excess of 
the following
the legislative appropriation for the fiscal year that just ended
shall be treated as free revenue in the General Fund:
(i)
for fiscal year 2018-2019 and subsequent fiscal years, in excess of $1,600,000;
(ii)
for fiscal year 2019-2020 and subsequent fiscal years, in excess of $1,450,000; 
and
(iii)
(i)
for fiscal year 
2023-2024 and subsequent fiscal years,
2025,
 in excess of 
$1,650,000
.
; and
(ii)
for fiscal year 2026 and subsequent fiscal years, in excess of $1,668,500.
Section 7, Section 
31A-21-112
 is amended to read:
31A-21-112
Effective 
05/07/25
. Language other than English.
(1)
An insurer may conduct a transaction in a language other than English through an 
employee or agent acting as interpreter or through an interpreter provided by the 
customer.
(2)
(a)
An insurer may provide a customer an insurance policy, endorsement, rider, or 
explanatory or advertising material in a language other than English.
(b)
If there is a dispute or complaint regarding the insurance policy, endorsement, rider, 
or explanatory or advertising material, the English language version of the insurance 
coverage shall control the resolution of the dispute or complaint.
(3)
(a)
A non-English language policy delivered or issued for delivery in this state is 
considered to be 
in compliance with this title if the insurer certifies that the policy is 
translated from an English language policy that complies with this title.
(b)
An insurer is not required to file with the commissioner the certification described in 
Subsection 
(3)(a)
.
(4)
If an insurance policy, endorsement, or rider is provided in a language other than 
English, 
it
the insurance policy, endorsement, or rider
 shall be accompanied by:
(a)
the corresponding English language version; and
(b)
a disclaimer in both English and the other language that states that the foreign 
language version is provided only as an accommodation or courtesy to the customer 
and the English language version shall control the resolution of any dispute or 
complaint.
(5)
An insurer is not required to file with the commissioner a form in a language other than 
English.
Section 8, Section 
31A-21-303
 is amended to read:
31A-21-303
Effective 
05/07/25
. Cancellation, issuance, and renewal.
(1)
(a)
Except as otherwise provided in this section, other statutes, or by rule under 
Subsection 
(1)(c)
, this section applies to all policies of insurance:
(i)
except for:
(A)
life insurance;
(B)
accident and health insurance; and
(C)
annuities; and
(ii)
if the policies of insurance are issued on forms that are subject to filing under 
Subsection 
31A-21-201(1)
.
(b)
A policy may provide terms more favorable to insureds than this section requires.
(c)
The commissioner may by rule totally or partially exempt from this section classes of 
insurance policies in which the insureds do not need protection against arbitrary or 
unannounced termination.
(d)
The rights provided by this section are in addition to and do not prejudice any other 
rights the insureds may have at common law or under other statutes.
(2)
(a)
As used in this Subsection 
(2)
, "grounds" means:
(i)
material misrepresentation;
(ii)
substantial change in the risk assumed, unless the insurer should reasonably have 
foreseen the change or contemplated the risk when entering into the contract;
(iii)
substantial breaches of contractual duties, conditions, or warranties;
 or
(iv)
attainment of the age specified as the terminal age for coverage, in which case 
the insurer may cancel by notice under Subsection 
(2)(c)
, accompanied by a 
tender of proportional return of premium; or
(v)
(iv)
in the case of motor vehicle insurance, revocation or suspension of the 
driver's license of:
(A)
the named insured; or
(B)
any other 
person
individual
 who customarily drives the motor vehicle.
(b)
(i)
Except as provided in Subsection 
(2)(e)
 or unless the conditions of Subsection 
(2)(b)(ii)
 are met, 
an insurer may not cancel 
an insurance policy 
may not be 
canceled by the insurer 
before the earlier of:
(A)
the expiration of the agreed term; or
(B)
one year from the effective date of the policy or renewal.
(ii)
Notwithstanding Subsection 
(2)(b)(i)
, an 
insurer may cancel an 
insurance policy 
may be canceled by the insurer 
for:
(A)
nonpayment of a premium when due; or
(B)
on 
grounds
 defined in Subsection 
(2)(a)
.
(c)
(i)
The cancellation provided by Subsection 
(2)(b)
, except cancellation for 
nonpayment of premium, is effective no sooner than 30 days after the delivery or 
first-class mailing of a written notice to the policyholder.
(ii)
Cancellation for nonpayment of premium of a personal lines policy is effective no 
sooner than 10 days after delivery or first-class mailing of a written notice to the 
policyholder.
(iii)
Cancellation for nonpayment of premium of a commercial lines policy is 
effective no sooner than 10 days after delivery or first-class mailing of a written 
notice to:
(A)
the policyholder;
(B)
each assignee of the policyholder, if the assignee is named in the policy; and
(C)
each loss payee or mortgagee or lienholder under property insurance of the 
policyholder, if the loss payee, mortgagee, or lienholder is named in the policy.
(iv)
An insurer shall deliver or send by first-class mail a copy of the notice of 
cancellation for nonpayment of premium described in Subsection 
(2)(c)(iii)
 to an 
agent of record of the policyholder on or before the day on which the insurer 
provides the notice to the policyholder.
(d)
(i)
Notice of cancellation for nonpayment of premium shall include a statement of 
the reason for cancellation.
(ii)
Subsection 
(7)
 applies to the notice required for grounds of cancellation other 
than nonpayment of premium.
(e)
(i)
Subsections 
(2)(a)
 through 
(d)
 do not apply to any insurance contract that has 
not been previously renewed if the contract has been in effect less than 60 days on 
the day on which the written notice of cancellation is mailed or delivered.
(ii)
A cancellation under this Subsection 
(2)(e)
 may not be effective until at least 10 
days after the day on which a written notice of cancellation is delivered to the 
insured.
(iii)
If the notice required by this Subsection 
(2)(e)
 is sent by first-class mail, postage 
prepaid, to the insured at the insured's last-known address, delivery is considered 
accomplished after the passing, since the mailing date, of the mailing time 
specified in the Utah Rules of Civil Procedure.
(iv)
A policy cancellation subject to this Subsection 
(2)(e)
 is not subject to the 
procedures described in Subsection 
(7)
.
(3)
A policy may be issued for a term longer than one year or for an indefinite term if the 
policy includes a clause providing for cancellation by the insurer by giving notice as 
provided in Subsection 
(4)(b)(i)
 30 days before an anniversary date.
(4)
(a)
Subject to Subsections 
(2)
, 
(3)
, and 
(4)(b)
, a policyholder has a right to have the 
policy renewed:
(i)
on the terms then being applied by the insurer to similar risks; and
(ii)
(A)
for an additional period of time equivalent to the expiring term if the 
agreed term is one year or less; or
(B)
for one year if the agreed term is longer than one year.
(b)
Except as provided in Subsections 
(4)(c)
 and 
(5)
, the right to renewal under 
Subsection 
(4)(a)
 is extinguished if:
(i)
at least 30 days before the day on which the policy expires or completes an 
anniversary, the insurer delivers or sends by first-class mail a notice of intention 
not to renew the policy beyond the agreed expiration or anniversary date to the 
policyholder at the policyholder's last-known address;
(ii)
not
no
 more than 45 
nor
but no
 less than 14 days before the day on which the 
renewal premium is due, the insurer delivers or sends by first-class mail a notice 
to the policyholder at the policyholder's last-known address, clearly stating:
(A)
the renewal premium;
(B)
how the renewal premium may be paid, including the due date for payment of 
the renewal premium;
(C)
that failure to pay the renewal premium extinguishes the policyholder's right 
to renewal; and
(D)
subject to Subsection 
(4)(e)
, that the extinguishment of the right to renew for 
nonpayment of premium is effective no sooner than at least 10 days after 
delivery or first-class mailing of a written notice to the policyholder that the 
policyholder has failed to pay the premium when due;
(iii)
the policyholder has:
(A)
accepted replacement coverage; or
(B)
requested or agreed to nonrenewal; or
(iv)
the policy is expressly designated as nonrenewable.
(c)
Unless the conditions of Subsection 
(4)(b)(iii)
 or 
(iv)
 apply, an insurer may not fail to 
renew an insurance policy as a result of a telephone call or other inquiry that:
(i)
references a policy coverage; and
(ii)
does not result in the insured requesting payment of a claim.
(d)
Failure to renew under this Subsection 
(4)
 is subject to Subsection 
(5)
.
(e)
(i)
(A)
If the policy is a personal lines policy, during the period that begins 
when an insurer delivers or sends by first-class mail the notice described in 
Subsection 
(4)(b)(ii)(D)
 and ends when the premium is paid, coverage exists 
and premiums are due.
(B)
If the policy is a commercial lines policy, during the period that begins when 
an insurer delivers or sends by first-class mail the notice described in 
Subsection 
(2)(c)(iii)
 and ends when the premium is paid, coverage exists and 
premiums are due.
(ii)
(A)
If after receiving the notice required by Subsection 
(4)(b)(ii)(D)
 a personal 
lines policyholder fails to pay the renewal premium, the coverage is 
extinguished as of the date the renewal premium is originally due.
(B)
If after receiving the notice required under Subsection 
(2)(c)(iii)
, a 
commercial lines policyholder fails to pay the renewal premium within the 10 
days before the day on which cancellation for nonpayment is effective, the 
coverage is extinguished as of the day on which the renewal premium is 
originally due.
(iii)
Delivery of the notice required by Subsection 
(2)(c)(iii)
, 
(2)(c)(iv)
, or 
(4)(b)(ii)(D)
 includes electronic delivery in accordance with Section 
31A-21-316
.
(iv)
An insurer is not subject to Subsection 
(4)(b)(ii)(D)
 if:
(A)
the insurer provides notice of the extinguishment of the right to renew for 
failure to pay premium at least 15 days, but no longer than 45 days, before the 
day on which the renewal payment is due; and
(B)
the policy is a personal lines policy.
(v)
Subsection 
(4)(b)(ii)(D)
 does not apply to a policy that provides coverage for 30 
days or less.
(5)
Notwithstanding Subsection 
(4)
, an insurer may not fail to renew the following personal 
lines insurance policies solely on the basis of:
(a)
in the case of a motor vehicle insurance policy:
(i)
a claim from the insured that:
(A)
results from an accident in which:
(I)
the insured is not at fault; and
(II)
the driver of the motor vehicle that is covered by the motor vehicle 
insurance policy is 21 years 
of age
old
 or older; and
(B)
is the only claim meeting the condition of Subsection 
(5)(a)(i)(A)
 within a 
36-month period;
(ii)
a single traffic violation by an insured that:
(A)
is a violation of a speed limit under 
Title 41, Chapter 6a, Traffic Code
;
(B)
is not in excess of 10 miles per hour over the speed limit;
(C)
is not a traffic violation under
:
(I)
Section 
41-6a-601
, 
41-6a-604
, or 
41-6a-605
;
(II)
Section 
41-6a-604
; or
(III)
Section 
41-6a-605
;
(D)
is not a violation by an insured driver who is younger than 21 years 
of age
old
; 
and
(E)
is the only violation meeting the conditions of Subsections 
(5)(a)(ii)(A)
through 
(D)
 within a 36-month period; or
(iii)
a claim for damage that:
(A)
results solely from
:
 wind, hail, lightning, or an earthquake;
(I)
wind;
(II)
hail;
(III)
lightning; or
(IV)
an earthquake;
(B)
is not preventable by the exercise of reasonable care; and
(C)
is the only claim meeting the conditions of Subsections 
(5)(a)(iii)(A)
 and 
(B)
within a 36-month period; 
and
or
(b)
in the case of a homeowner's insurance policy, a claim by the insured that is for 
damage that:
(i)
results solely from
:
 wind, hail, or lightning;
(A)
wind;
(B)
hail; or
(C)
lightning;
(ii)
is not preventable by the exercise of reasonable care; and
(iii)
is the only claim meeting the conditions of Subsections 
(5)(b)(i)
 and 
(ii)
 within a 
36-month period.
(6)
(a)
(i)
Subject to Subsection 
(6)(b)
, if the insurer offers or purports to renew the 
policy, but on less favorable terms or at higher rates, the new terms or rates take 
effect on the renewal date if the insurer delivered or sent by first-class mail to the 
policyholder notice of the new terms or rates at least 30 days before the day on 
which the previous policy expires.
(ii)
If the insurer did not give the prior notification described in Subsection 
(6)(a)(i)
to the policyholder, the new terms or rates do not take effect until 30 days after the 
day on which the insurer delivers or sends by first-class mail the notice, in which 
case the policyholder may elect to cancel the renewal policy at any time during the 
30-day period.
(iii)
Return premiums or additional premium charges shall be calculated 
proportionately on the basis that the old rates apply.
(b)
Except as provided in Subsection 
(6)(c)
, Subsection 
(6)(a)
 does not apply if the only 
change in terms that is adverse to the policyholder is:
(i)
a rate increase generally applicable to the class of business to which the policy 
belongs;
(ii)
a rate increase resulting from a classification change based on the altered nature 
or extent of the risk insured against; or
(iii)
a policy form change made to make the form consistent with Utah law.
(c)
Subsections 
(6)(b)(i)
 and 
(ii)
 do not apply to a rate increase of 25% or more on a 
commercial policy.
(7)
(a)
If a notice of cancellation or nonrenewal under Subsection 
(2)(c)
 does not state 
with reasonable precision the facts on which the insurer's decision is based, the 
insurer shall send by first-class mail or deliver that information within 10 working 
days 
after receipt of
after the day on which the insurer receives
 a written request by 
the policyholder.
(b)
A notice under Subsection 
(2)(c)
 is not effective unless 
it
the notice
 contains 
information about the policyholder's right to make the request.
(8)
(a)
An insurer that gives a notice of nonrenewal or cancellation of insurance on a 
motor vehicle insurance policy issued in accordance with the requirements of 
Chapter 
22, Part 3, Motor Vehicle Insurance
, for nonpayment of a premium shall provide 
notice of nonrenewal or cancellation to a lienholder if the insurer has been provided 
the name and mailing address of the lienholder.
(b)
An insurer shall provide the notice described in Subsection 
(8)(a)
 to the lienholder by 
first-class mail or, if agreed by the parties, any electronic means of communication.
(c)
A lienholder shall provide a current physical address of notification or an electronic 
address of notification to an insurer that is required to make a notification under 
Subsection 
(8)(a)
.
(9)
If a risk-sharing plan under Section 
31A-2-214
 exists for the kind of coverage provided 
by the insurance being cancelled or nonrenewed, a notice of cancellation or nonrenewal 
required under Subsection 
(2)(c)
 or 
(4)(b)(i)
 may not be effective unless the notice 
contains instructions to the policyholder for applying for insurance through the available 
risk-sharing plan.
(10)
There is no liability on the part of, and no cause of action against, any insurer, 
its
the 
insurer's
 authorized representatives, agents, employees, or any other person furnishing to 
the insurer information relating to the reasons for cancellation or nonrenewal or for any 
statement made or information given 
by them
by an insurer, the insurer's authorized 
representative, agent, employee, or any other person
 in complying or enabling the 
insurer to comply with this section unless actual malice is proved by clear and 
convincing evidence.
(11)
This section does not alter any common law right of contract rescission for material 
misrepresentation.
(12)
If a person is required to pay a premium in accordance with this section:
(a)
the person may make the payment using:
(i)
the United States Postal Service;
(ii)
a delivery service the commissioner describes or designates by rule made in 
accordance with 
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
; or
(iii)
electronic means; and
(b)
the payment is 
considered to be 
made:
(i)
for a payment that is mailed using the method described in Subsection 
(12)(a)(i)
, 
on the date on which the payment is postmarked;
(ii)
for a payment that is delivered using the method described in Subsection 
(12)(a)(ii)
, on the date on which the delivery service records or marks the payment 
as having been received by the delivery service; or
(iii)
for a payment that is made using the method described in Subsection 
(12)(a)(iii)
, 
on the date on which the payment is made electronically.
Section 9, Section 
31A-22-407
 is amended to read:
31A-22-407
Effective 
05/07/25
. Reinstatement.
(1)
(a)
Except as provided under Subsection 
(2)
, 
life insurance policies, other than group 
policies,
an individual life insurance policy
 shall be reinstated upon written 
application made within three years, or within two years in the case of 
policies with 
face amounts
an individual life insurance policy with a face amount
 under $5,000, 
from the date of premium default. 
(b)
The
An
 applicant
 described in Subsection 
(1)
(a)
 shall 
(i)
produce evidence of insurability satisfactory to the insurer
,
;
(ii)
pay all premiums in arrears
,
;
 and 
(iii)
pay or reinstate any other indebtedness to the insurer upon the policy, all with 
interest
,
:
(A)
compounded annually, at a rate not exceeding the rate set by the policy for 
policy loans compounded annually
.
; or
(B)
If
if
 no rate is set in the policy, the commissioner shall adopt a rule 
which
that
 sets the rate the same as under Section 
31A-22-402
.
(2)
Subsection 
(1)
 does not apply if any of these conditions exist:
(a)
The
the
 policy has been surrendered for its cash surrender value
.
;
(b)
The
the
 policy's cash surrender value has been exhausted
.
; or
(c)
The
the
 paid-up term insurance, if any, has expired.
Section 10, Section 
31A-22-509
 is amended to read:
31A-22-509
Effective 
05/07/25
. Commissioner's authority to approve other 
groups.
(1)
A policy may be issued to a group other than those specified under Sections 
31A-22-502
31A-22-501
 through 
31A-22-508
, if specifically authorized by the 
commissioner and if granting the permission is not contrary to public policy.
(2)
(a)
The commissioner may not grant permission to issue these types of policies unless 
the insurer demonstrates to the commissioner's satisfaction that the proposed group 
would 
will:
(i)
be actuarially sound
,
;
(ii)
would 
result in economies of acquisition and administration 
which
that
 justify 
a group rate
,
;
 and
 would
(iii)
not present hazards of adverse selection. 
(b)
The 
policyholders shall pay the 
premiums for the policy 
shall be paid by the 
policyholder, either from the policyholder's funds or 
from funds contributed 
by:
(i)
the policyholder;
(ii)
by 
the covered 
persons, or from both. 
person; or
(iii)
both the policyholder and the covered person.
(c)
Premiums for the policy and any contributions by or on behalf of the insured persons 
shall be reasonable in relation to the benefits provided.
Section 11, Section 
31A-22-511
 is amended to read:
31A-22-511
Effective 
05/07/25
. Dependents' coverage.
(1)
Any
A
 group life policy issued under Sections 
31A-22-502
 through 
31A-22-505
or Section 
31A-22-509
 may insure 
the employees or members against loss due to the 
death of their spouses and dependent children, or any classes of the employees or 
members
any class of employee or member and the spouse and dependent children of an 
employee or member against loss due to death
. 
(2)
The
 policyholder shall pay the
 premiums for the insurance 
shall be paid by the 
policyholder 
from funds contributed by
 the person to whom the policy has been issued, 
from funds contributed by the covered persons, or from both.
:
(a)
the policyholder;
(b)
the covered person; or
(c)
both the policyholder and the covered person.
(3)
Except as provided under Section 
31A-22-512
, a policy on which no part of the 
premium for the 
dependent's
dependent
 coverage is contributed by the covered 
persons
person
 shall insure 
all insured persons
each eligible person
, including 
their spouses 
the covered person's spouse 
and dependent or minor children.
Section 12, Section 
31A-22-512
 is amended to read:
31A-22-512
Effective 
05/07/25
. Individual insurability.
(1)
An insurer may exclude or limit the coverage under a group life
 insurance
 policy on any 
person, including a group member's dependent, as to whom the evidence of individual 
insurability is not satisfactory to the insurer.
(2)
The group life insurance policy shall contain a provision setting forth the conditions, if 
any, under which the insurer reserves the right to require a person eligible for insurance 
to furnish satisfactory evidence to the insurer of the individual insurability as a condition 
to part or all of 
his
the person's
 coverage.
Section 13, Section 
31A-22-514
 is amended to read:
31A-22-514
Effective 
05/07/25
. Incontestability.
(1)
The
A
 group life insurance policy shall contain a provision that the validity of the 
policy may not be contested, except for nonpayment of premiums, after 
it
the policy
has been in force for two years from its date of issue. 
(2)
This
The
 provision 
described in Subsection 
(1)
shall 
also 
state that no statement made 
by 
any
a
 person insured under the policy relating to 
his
the person's
 insurability may 
be used
:
(a)
in contesting the validity of the insurance with respect to which the statement was 
made after the insurance has been in force, prior to the contest, for a period of two 
years during the person's lifetime
, nor may the statement be used
; or
(b)
unless 
it
the statement
 is 
contained in a written instrument signed by him.
in 
writing and signed by the person.
(3)
This type of provision does not preclude
Nothing in this section precludes
 the assertion 
of defenses based upon provisions in the policy which relate to eligibility for coverage.
Section 14, Section 
31A-22-614
 is amended to read:
31A-22-614
Effective 
05/07/25
. Claims under accident and health policies.
(1)
Section 
31A-21-312
 applies generally to claims under accident and health policies.
(2)
(a)
Subject to Subsection (1), an accident and health insurance policy may not contain 
a claim notice requirement less favorable to the insured, or an insured's network 
provider, than one which requires written notice of the claim within 20 days after the 
occurrence or commencement of any loss covered by the policy. The policy shall 
specify to whom claim notices may be given.
(b)
If a loss of time benefit under a policy may be paid for a period of at least two years, 
an insurer may require periodic notices that the insured continues to have a disability, 
unless the insured is legally incapacitated. The insured's, or the insured's network 
provider's, delay in giving that notice does not impair the insured's, the insured's 
network provider's, or beneficiary's right to any indemnity which would otherwise 
have accrued during the six months preceding the date on which that notice is 
actually given.
(3)
An accident and health insurance policy may not contain a time limit on proof of loss 
which is more restrictive to the insured, or the insured's network provider, than a 
provision requiring written proof of loss, delivered to the insurer, within the following 
time:
(a)
for a claim where periodic payments are contingent upon continuing loss, within 
120
180
 days after the termination of the period for which the insurer is liable; or
(b)
for any other claim, within 
120
180
 days after the date of the loss.
(4)
(a)
(i)
Section 
31A-26-301
 applies generally to the payment of claims.
(ii)
Indemnity for loss of life is paid in accordance with the beneficiary designation 
effective at the time of payment. If no valid beneficiary designation exists, the 
indemnity is paid to the insured's estate. Any other accrued indemnities unpaid at 
the insured's death are paid to the insured's estate.
(b)
Reasonable facility of payment clauses, specified by the commissioner by rule or in 
approving the policy form, are permitted. Payment made in good faith and in 
accordance with those clauses discharges the insurer's obligation to pay those claims.
(c)
All or a portion of any indemnities provided under an accident and health policy on 
account of hospital, nursing, medical, or surgical services may, at the insurer's option, 
be paid directly to the hospital or person rendering the services.
Section 15, Section 
31A-22-701
 is amended to read:
31A-22-701
Effective 
05/07/25
. Groups eligible for group or blanket insurance.
(1)
A group insurance policy offering accident and health insurance may be issued to:
(a)
a group:
(i)
to which a group life insurance policy may be issued under Section 
31A-22-502
, 
31A-22-503
, 
31A-22-504
, 
31A-22-505
, 
31A-22-506
, 
or 
31A-22-507
, 
31A-22-508
, or 
31A-22-509
; and
(ii)
that is formed and maintained in good faith for a purpose other than obtaining 
insurance;
(b)
a group specifically authorized by the commissioner, upon a finding that:
(i)
authorization is not contrary to the public interest;
(ii)
the group is actuarially sound;
(iii)
formation of the proposed group may result in economies of scale in acquisition, 
administrative, marketing, and brokerage costs;
(iv)
the insurance policy, insurance certificate, or other indicia of coverage that will 
be offered to the proposed group is substantially equivalent to insurance policies 
that are otherwise available to similar groups;
(v)
the group would not present hazards of adverse selection;
(vi)
the premiums for the insurance policy and any contributions by or on behalf of 
the insured persons are reasonable in relation to the benefits provided; and
(vii)
the group is formed and maintained in good faith for a purpose other than 
obtaining insurance; or
(c)
a postsecondary educational institution covering students, upon a finding that:
(i)
the policy provides standards for financial soundness;
(ii)
the policy protects the students covered;
(iii)
the policy provides for the establishment of a financially viable alternative to 
traditional health care plans;
(iv)
authorization is not contrary to the public interest;
(v)
the policy would not present hazards of adverse selection; and
(vi)
the premiums for the policy and any contributions by or on behalf of the insured 
persons are reasonable in relation to the benefits provided.
(2)
A blanket insurance policy offering accident and health insurance:
(a)
covers a defined class of persons;
(b)
may not be offered or underwritten on an individual basis;
(c)
shall cover only a group that is:
(i)
actuarially sound; and
(ii)
formed and maintained in good faith for a purpose other than obtaining insurance; 
and
(d)
may be issued only to:
(i)
a common carrier or an operator, owner, or lessee of a means of transportation, as 
policyholder, covering persons who may become passengers as defined by 
reference to the person's travel status;
(ii)
an employer, as policyholder, covering any group of employees, dependents, or 
guests, as defined by reference to specified hazards incident to any activities of the 
policyholder;
(iii)
an institution of learning, including a school district, a school jurisdictional unit, 
or the head, principal, or governing board of a school jurisdictional unit, as 
policyholder, covering students, teachers, or employees;
(iv)
a religious, charitable, recreational, educational, or civic organization, or branch 
of one of those organizations, as policyholder, covering a group of members or 
participants as defined by reference to specified hazards incident to the activities 
sponsored or supervised by the policyholder;
(v)
a sports team, camp, or sponsor of a sports team or camp, as policyholder, 
covering members, campers, employees, officials, or supervisors;
(vi)
a volunteer fire department, first aid, civil defense, or other similar volunteer 
organization, as policyholder, covering a group of members or participants as 
defined by reference to specified hazards incident to activities sponsored, 
supervised, or participated in by the policyholder;
(vii)
a newspaper or other publisher, as policyholder, covering 
its
a newspaper's or 
publisher's
 carriers;
(viii)
a labor union, as a policyholder, covering a group of members or participants as 
defined by reference to specified hazards incident to the activities or operations 
sponsored or supervised by the policyholder;
(ix)
an association that has a constitution and bylaws covering a group of members or 
participants as defined by reference to specified hazards incident to the activities 
or operations sponsored or supervised by the policyholder; or
(x)
any other class of risks that, in the judgment of the commissioner, may be 
properly eligible for a blanket insurance policy offering accident and health 
insurance.
(3)
The judgment of the commissioner may be exercised on the basis of:
(a)
individual risks;
(b)
a class of risks; or
(c)
both 
risks described in 
Subsections
(3)(a)
 and 
(b)
.
(4)
A group insurance policy offering accident and health insurance issued to a group 
authorized under Subsection 
31A-22-504(1)(b)(ii)
 is subject to the provisions of Section 
31A-22-602
.
Section 16, Section 
31A-23a-105
 is amended to read:
31A-23a-105
Effective 
05/07/25
. General requirements for individual and 
agency license issuance and renewal.
(1)
(a)
The commissioner shall issue or renew a license to a person described in 
Subsection (1)(b) to act as:
(i)
a producer;
(ii)
a surplus lines producer;
(iii)
a limited line producer;
(iv)
a consultant;
(v)
a managing general agent; or
(vi)
a reinsurance intermediary.
(b)
The commissioner shall issue or renew a license 
under
described in
 Subsection 
(1)(a) to a person who, as to the license type and line of authority classification 
applied for under Section 
31A-23a-106
:
(i)
satisfies the application requirements under Section 
31A-23a-104
;
(ii)
satisfies the character requirements under Section 
31A-23a-107
;
(iii)
satisfies applicable continuing education requirements under Section 
31A-23a-202
;
(iv)
satisfies applicable examination requirements under Section 
31A-23a-108
;
(v)
satisfies applicable training period requirements under Section 
31A-23a-203
;
(vi)
if an applicant for a resident individual producer license, certifies that, to the 
extent applicable, the applicant:
(A)
is in compliance with Section 
31A-23a-203.5
; and
(B)
will maintain compliance with Section 
31A-23a-203.5
 during the period for 
which the license is issued or renewed;
(vii)
has not committed an act that is a ground for denial, suspension, or revocation as 
provided in Section 
31A-23a-111
;
(viii)
if a nonresident:
(A)
complies with Section 
31A-23a-109
; and
(B)
holds an active similar license in that person's home state;
(ix)
if an applicant for an individual title insurance producer or agency title insurance 
producer license, satisfies the requirements of Section 
31A-23a-204
;
(x)
if an applicant for a license to act as a life settlement provider or life settlement 
producer, satisfies the requirements of Section 
31A-23a-117
; and
(xi)
pays the applicable fees under Section 
31A-3-103
.
(2)
(a)
This Subsection (2) applies to the following persons:
(i)
an applicant for a pending:
(A)
individual or agency producer license;
(B)
surplus lines producer license;
(C)
limited line producer license;
(D)
consultant license;
(E)
managing general agent license; or
(F)
reinsurance intermediary license; or
(ii)
a licensed:
(A)
individual or agency producer;
(B)
surplus lines producer;
(C)
limited line producer;
(D)
consultant;
(E)
managing general agent; or
(F)
reinsurance intermediary.
(b)
A person described in Subsection (2)(a) shall report to the commissioner:
(i)
an administrative action taken against the person, including a denial of a new or 
renewal license application:
(A)
in another jurisdiction; or
(B)
by another regulatory agency in this state;
(ii)
a criminal prosecution taken against the person in any jurisdiction; and
(iii)
a civil action filed against the person in any jurisdiction if the action involves 
conduct related to a professional or occupational license, certification, 
authorization, or registration, regardless of whether the person held the license, 
certification, authorization, or registration.
(c)
The report required by Subsection (2)(b) shall:
(i)
be filed:
(A)
at the time the person files the application for an individual or agency license; 
and
(B)
for an action or prosecution that occurs on or after the day on which the 
person files the application:
(I)
for an administrative action, within 30 days of the final disposition of the 
administrative action; or
(II)
for a criminal prosecution or civil action, within 30 days of the initial 
appearance before a court; and
(ii)
include a copy of the complaint or other relevant legal documents related to the 
action or prosecution described in Subsection (2)(b).
(3)
(a)
The department may require 
a person
an individual
 applying for a license or for 
consent to engage in the business of insurance to submit to a criminal background 
check as a condition of receiving a license or consent.
(b)
A person, if required to submit to a criminal background check under Subsection 
(3)(a), shall:
(i)
submit a fingerprint card in a form acceptable to the department; and
(ii)
consent to a fingerprint background check by:
(A)
the Utah Bureau of Criminal Identification; and
(B)
the Federal Bureau of Investigation.
(c)
For 
a person
an individual
 who submits a fingerprint card and consents to a 
fingerprint background check under Subsection (3)(b), the department may request:
(i)
criminal background information maintained pursuant to Title 53, Chapter 10, Part 
2, Bureau of Criminal Identification, from the Bureau of Criminal Identification; 
and
(ii)
complete Federal Bureau of Investigation criminal background checks through 
the national criminal history system.
(d)
Information
The department shall use information
 obtained by the department from 
the review of criminal history records received under this Subsection (3) 
shall be 
used by the department 
for the purposes of:
(i)
determining if 
a person
an individual
 satisfies the character requirements under 
Section 
31A-23a-107
 for issuance or renewal of a license;
(ii)
determining if 
a person
an individual
 has failed to maintain the character 
requirements under Section 
31A-23a-107
; and
(iii)
preventing 
a person
an individual
 who violates the federal Violent Crime 
Control and Law Enforcement Act of 1994, 18 U.S.C. Sec. 1033, from engaging 
in the business of insurance in the state.
(e)
If the department requests the criminal background information, the department shall:
(i)
pay to the Department of Public Safety the costs incurred by the Department of 
Public Safety in providing the department criminal background information under 
Subsection (3)(c)(i);
(ii)
pay to the Federal Bureau of Investigation the costs incurred by the Federal 
Bureau of Investigation in providing the department criminal background 
information under Subsection (3)(c)(ii); and
(iii)
charge the 
person
individual
 applying for a license or for consent to engage in 
the business of insurance a fee equal to the aggregate of Subsections (3)(e)(i) and 
(ii).
(4)
To become a resident licensee in accordance with Section 
31A-23a-104
 and this section, 
a person licensed as one of the following in another state who moves to this state shall 
apply within 90 days of establishing legal residence in this state:
(a)
insurance producer;
(b)
surplus lines producer;
(c)
limited line producer;
(d)
consultant;
(e)
managing general agent; or
(f)
reinsurance intermediary.
(5)
(a)
The commissioner may deny a license application for a license listed in 
Subsection (5)(b) if the person applying for the license, as to the license type and line 
of authority classification applied for under Section 
31A-23a-106
:
(i)
fails to satisfy the requirements as set forth in this section; or
(ii)
commits an act that is grounds for denial, suspension, or revocation as set forth in 
Section 
31A-23a-111
.
(b)
This Subsection (5) applies to the following licenses:
(i)
producer;
(ii)
surplus lines producer;
(iii)
limited line producer;
(iv)
consultant;
(v)
managing general agent; or
(vi)
reinsurance intermediary.
(6)
Notwithstanding the other provisions of this section, the commissioner may:
(a)
issue a license to an applicant for a license for a title insurance line of authority only 
with the concurrence of the Title and Escrow Commission; and
(b)
renew a license for a title insurance line of authority only with the concurrence of 
the Title and Escrow Commission.
Section 17, Section 
31A-23a-109
 is amended to read:
31A-23a-109
Effective 
05/07/25
. Nonresident jurisdictional agreement.
(1)
(a)
If a nonresident license applicant has a valid producer, surplus lines producer, 
limited line producer, consultant, managing general agent, or reinsurance 
intermediary license from the nonresident license applicant's home state or 
designated home state and the conditions of Subsection 
(1)(b)
 are met, the 
commissioner shall:
(i)
waive the license requirements for a license under this 
chapter
section
; and
(ii)
issue the nonresident license applicant a nonresident license.
(b)
Subsection 
(1)(a)
 applies if:
(i)
the nonresident license applicant:
(A)
is licensed in the nonresident license applicant's home state or designated 
home state at the time the nonresident license applicant applies for a 
nonresident producer, surplus lines producer, limited line producer, consultant, 
managing general agent, or reinsurance intermediary license;
(B)
has submitted the proper request for licensure;
(C)
has submitted to the commissioner:
(I)
the application for licensure that the nonresident license applicant submitted 
to the applicant's home state or designated home state; or
(II)
a completed uniform application; and
(D)
has paid the applicable fees under Section 
31A-3-103
; and
(ii)
the nonresident license applicant's license in the applicant's home state or 
designated home state is in good standing.
(2)
A nonresident applicant applying under Subsection 
(1)
 shall in addition to complying 
with all license requirements for a license under this chapter execute, in a form 
acceptable to the commissioner, an agreement to be subject to the jurisdiction of the 
Utah commissioner and courts on any matter related to the applicant's insurance 
activities in this state, on the basis of:
(a)
service of process under Sections 
31A-2-309
 and 
31A-2-310
; or
(b)
service authorized:
(i)
in the Utah Rules of Civil Procedure; or
(ii)
under Section 
78B-3-206
.
(3)
The commissioner may verify a producer's licensing status through the producer 
database maintained by:
(a)
the National Association of Insurance Commissioners; or
(b)
an affiliate or subsidiary of the National Association of Insurance Commissioners.
(4)
The commissioner may not assess a greater fee for an insurance license or related 
service to a person not residing in this state solely on the fact that the person does not 
reside in this state.
Section 18, Section 
31A-23a-111
 is amended to read:
31A-23a-111
Effective 
05/07/25
. Revoking, suspending, surrendering, lapsing, 
limiting, or otherwise terminating a license -- Forfeiture -- Rulemaking for renewal or 
reinstatement.
(1)
A license type issued under this chapter remains in force until:
(a)
revoked or suspended under Subsection (5);
(b)
surrendered to the commissioner and accepted by the commissioner in lieu of 
administrative action;
(c)
the licensee dies or is adjudicated incompetent as defined under:
(i)
Title 75, Chapter 5, Part 3, Guardians of Incapacitated Persons; or
(ii)
Title 75, Chapter 5, Part 4, Protection of Property of Persons Under Disability and 
Minors;
(d)
lapsed under Section 
31A-23a-113
; or
(e)
voluntarily surrendered.
(2)
The following may be reinstated within one year after the day on which the license is no 
longer in force:
(a)
a lapsed license; or
(b)
a voluntarily surrendered license, except that a voluntarily surrendered license may 
not be reinstated after the license period in which the license is voluntarily 
surrendered.
(3)
Unless otherwise stated in a written agreement for the voluntary surrender of a license, 
submission and acceptance of a voluntary surrender of a license does not prevent the 
department from pursuing additional disciplinary or other action authorized under:
(a)
this title; or
(b)
rules made under this title in accordance with Title 63G, Chapter 3, Utah 
Administrative Rulemaking Act.
(4)
A line of authority issued under this chapter remains in force until:
(a)
the qualifications pertaining to a line of authority are no longer met by the licensee; 
(b)
the supporting license type:
(i)
is revoked or suspended under Subsection (5);
(ii)
is surrendered to the commissioner and accepted by the commissioner in lieu of 
administrative action;
(iii)
lapses under Section 
31A-23a-113
; or
(iv)
is voluntarily surrendered; or
(c)
the licensee dies or is adjudicated incompetent as defined under:
(i)
Title 75, Chapter 5, Part 3, Guardians of Incapacitated Persons; or
(ii)
Title 75, Chapter 5, Part 4, Protection of Property of Persons Under Disability and 
Minors.
(5)
(a)
If the commissioner makes a finding under Subsection (5)(b), as part of an 
adjudicative proceeding under Title 63G, Chapter 4, Administrative Procedures Act, 
the commissioner may:
(i)
revoke:
(A)
a license; or
(B)
a line of authority;
(ii)
suspend for a specified period of 12 months or less:
(A)
a license; or
(B)
a line of authority;
(iii)
limit in whole or in part:
(A)
a license; or
(B)
a line of authority;
(iv)
deny a license application;
(v)
assess a forfeiture under Subsection 
31A-2-308
(1)(b)(i) or (1)(c)(i); or
(vi)
take a combination of actions under Subsections (5)(a)(i) through (iv) and 
Subsection (5)(a)(v).
(b)
The commissioner may take an action described in Subsection (5)(a) if the 
commissioner finds that the licensee or license applicant:
(i)
is unqualified for a license or line of authority under Section 
31A-23a-104
, 
31A-23a-105
, or 
31A-23a-107
;
(ii)
violates:
(A)
an insurance statute;
(B)
a rule that is valid under Subsection 
31A-2-201
(3); or
(C)
an order that is valid under Subsection 
31A-2-201
(4);
(iii)
is insolvent or the subject of receivership, conservatorship, rehabilitation, or 
other delinquency proceedings in any state;
(iv)
is more than 60 days past due on 
an enforceable
a
 final judgment;
(v)
fails to meet the same good faith obligations in claims settlement that is required 
of admitted insurers;
(vi)
is affiliated with and under the same general management or interlocking 
directorate or ownership as another insurance producer that transacts business in 
this state without a license;
(vii)
refuses:
(A)
to be examined; or
(B)
to produce 
its
the licensee's or license applicant's
 accounts, records, and files 
for examination;
(viii)
has an officer who refuses to:
(A)
give information with respect to the insurance producer's affairs; or
(B)
perform any other legal obligation as to an examination;
(ix)
provides information in the license application that is:
(A)
incorrect;
(B)
misleading;
(C)
incomplete; or
(D)
materially untrue;
(x)
violates an insurance law, valid rule, or valid order of another regulatory agency 
in any jurisdiction;
(xi)
obtains or attempts to obtain a license through misrepresentation or fraud;
(xii)
improperly withholds, misappropriates, or converts money or properties 
received in the course of doing insurance business;
(xiii)
intentionally misrepresents the terms of an actual or proposed:
(A)
insurance contract;
(B)
application for insurance; or
(C)
life settlement;
(xiv)
has been convicted of, or has entered a plea in abeyance as defined in Section 
77-2a-1
 to:
(A)
a felony; or
(B)
a misdemeanor involving fraud, misrepresentation, theft, or dishonesty;
(xv)
admits or is found to have committed an 
insurance 
unfair trade practice or 
fraud;
(xvi)
in the conduct of business in this state or elsewhere:
(A)
uses fraudulent, coercive, or dishonest practices; or
(B)
demonstrates incompetence, untrustworthiness, or financial irresponsibility;
(xvii)
has had an insurance license or other professional or occupational license, or an 
equivalent to an insurance license or registration, or other professional or 
occupational license or registration:
(A)
denied;
(B)
suspended;
(C)
revoked; or
(D)
surrendered to resolve an administrative action;
(xviii)
forges another's name to:
(A)
an application for insurance; or
(B)
a document related to an insurance transaction;
(xix)
improperly uses notes or another reference material to complete an examination 
for an insurance license;
(xx)
knowingly accepts insurance business from an individual who is not licensed;
(xxi)
fails to comply with an administrative or court order imposing a child support 
obligation;
(xxii)
fails to
:
(A)
pay state income tax; or
(B)
comply with an administrative or court order directing payment of state 
income tax;
(xxiii)
has been convicted of violating the federal Violent Crime Control and Law 
Enforcement Act of 1994, 18 U.S.C. Sec. 1033 and has not obtained written 
consent to engage in the business of insurance or participate in such business as 
required by 18 U.S.C. Sec. 1033;
(xxiv)
engages in a method or practice in the conduct of business that endangers the 
legitimate interests of customers and the public; or
(xxv)
has been convicted of any criminal felony involving dishonesty or breach of 
trust and has not obtained written consent to engage in the business of insurance 
or participate in such business as required by 18 U.S.C. Sec. 1033.
(c)
For purposes of this section, if a license is held by an agency, both the agency itself 
and any individual designated under the license are considered to be the holders of 
the license.
(d)
If an individual designated under the agency license commits an act or fails to 
perform a duty that is a ground for suspending, revoking, or limiting the individual's 
license, the commissioner may suspend, revoke, or limit the license of:
(i)
the individual;
(ii)
the agency, if the agency:
(A)
is reckless or negligent in its supervision of the individual; or
(B)
knowingly participates in the act or failure to act that is the ground for 
suspending, revoking, or limiting the license; or
(iii)
(A)
the individual; and
(B)
the agency if the agency meets the requirements of Subsection (5)(d)(ii).
(6)
A licensee under this chapter is subject to the penalties for acting as a licensee without a 
license if:
(a)
the licensee's license is:
(i)
revoked;
(ii)
suspended;
(iii)
limited;
(iv)
surrendered in lieu of administrative action;
(v)
lapsed; or
(vi)
voluntarily surrendered; and
(b)
the licensee:
(i)
continues to act as a licensee; or
(ii)
violates the terms of the license limitation.
(7)
A licensee under this chapter shall immediately report to the commissioner:
(a)
a revocation, suspension, or limitation of the person's license in another state, the 
District of Columbia, or a territory of the United States;
(b)
the imposition of a disciplinary sanction imposed on that person by another state, the 
District of Columbia, or a territory of the United States; or
(c)
a judgment or injunction entered against that person on the basis of conduct 
involving:
(i)
fraud;
(ii)
deceit;
(iii)
misrepresentation;
or
(iv)
a violation of an insurance law or rule
.
; or
(v)
payment of money.
(8)
(a)
An order revoking a license under Subsection (5) or an agreement to surrender a 
license in lieu of administrative action may specify a time, not to exceed five years, 
within which the former licensee may not apply for a new license.
(b)
If no time is specified in an order or agreement described in Subsection (8)(a), the 
former licensee may not apply for a new license for five years from the day on which 
the order or agreement is made without the express approval by the commissioner.
(9)
The commissioner shall promptly withhold, suspend, restrict, or reinstate the use of a 
license issued under this part if
 so
 ordered by a court.
(10)
The commissioner shall 
by rule prescribe
provide
 the license renewal and 
reinstatement procedures
 by rule made
 in accordance with Title 63G, Chapter 3, Utah 
Administrative Rulemaking Act.
Section 19, Section 
31A-23a-119
 is amended to read:
31A-23a-119
Effective 
05/07/25
. Special requirements for agency title 
insurance producers.
(1)
As used in this section:
(a)
"Applicable percentage" means:
(i)
on 
February
January
 1, 2024, through 
January
December
 31, 
2025
2024
, 2.5%;
(ii)
on 
February
January
 1, 2025, through 
January
December
 31, 
2026
2025
, 3%;
(iii)
on 
February
January
 1, 2026, through 
January
December
 31, 
2027
2026
, 
3.5%;
(iv)
on 
February
January
 1, 2027, through 
January
December
 31, 
2028
2027
, 4%; 
and
(v)
on 
February
January
 1, 2028, through 
January
December
 31, 
2029
2028
, 4.5%.
(b)
"Sufficient capital and net worth" means:
(i)
for a new title entity:
(A)
$100,000 for the first five years after becoming a new agency title insurance 
producer; or
(B)
after the first five years after becoming a new agency title insurance producer, 
the greater of $50,000, or on 
February
January
 1 of each year, an amount 
equal to 5% of the title entity's average annual gross revenue over the 
preceding two calendar years, up to $150,000; or
(ii)
for a title entity licensed before May 14, 2019:
(A)
for the time period beginning on 
February
January
 1, 2020, and ending on 
January
December
 31, 2029, the lesser of an amount equal to the applicable 
percentage of the title entity's average annual gross revenue over the two 
calendar years immediately preceding the 
February
January
 1 on which the 
applicable percentage applies or $150,000; and
(B)
beginning on 
February
January
 1, 2029, the greater of $50,000 or an amount 
equal to 5% of the title entity's average annual gross revenue over the 
preceding two calendar years, up to $150,000.
(2)
Before May 1 of each year, each agency title insurance producer shall submit a report to 
the commissioner containing proof satisfactory to the commissioner that the agency title 
insurance producer had sufficient capital and net worth for the preceding calendar year.
Section 20, Section 
31A-23a-415
 is amended to read:
31A-23a-415
Effective 
05/07/25
. Assessment on agency title insurance 
producers or title insurers -- Account created.
(1)
For purposes of this section:
(a)
"Premium" is as described in Subsection 
59-9-101(3)
.
(b)
"Title insurer" means a person:
(i)
making any contract or policy of title insurance as:
(A)
insurer;
(B)
guarantor; or
(C)
surety;
(ii)
proposing to make any contract or policy of title insurance as:
(A)
insurer;
(B)
guarantor; or
(C)
surety; or
(iii)
transacting or proposing to transact any phase of title insurance, including:
(A)
soliciting;
(B)
negotiating preliminary to execution;
(C)
executing of a contract of title insurance;
(D)
insuring; and
(E)
transacting matters subsequent to the execution of the contract and arising out 
of the contract.
(c)
"Utah risks" means insuring, guaranteeing, or indemnifying with regard to real or 
personal property located in Utah, an owner of real or personal property, the holders 
of liens or encumbrances on that property, or others interested in the property against 
loss or damage suffered by reason of:
(i)
liens or encumbrances upon, defects in, or the unmarketability of the title to the 
property; or
(ii)
invalidity or unenforceability of any liens or encumbrances on the property.
(2)
(a)
The commissioner may assess each title insurer, each individual title insurance 
producer who is not an employee of a title insurer or who is not designated by an 
agency title insurance producer, and each agency title insurance producer an annual 
assessment:
(i)
determined by the Title and Escrow Commission:
(A)
after consultation with the commissioner; and
(B)
(i)
in accordance with this Subsection 
(2)
; and
(ii)
to be used for the purposes described in Subsection 
(3)
.
(b)
An agency title insurance producer and individual title insurance producer who is not 
an employee of a title insurer or who is not designated by an agency title insurance 
producer shall be assessed up to:
(i)
$250 for the first office in each county in which the agency title insurance 
producer or individual title insurance producer maintains an office; and
(ii)
$150 for each additional office the agency title insurance producer or individual 
title insurance producer maintains in the county described in Subsection 
(2)(b)(i)
.
(c)
A title insurer shall be assessed up to:
(i)
$250 for the first office in each county in which the title insurer maintains an 
office;
(ii)
$150 for each additional office the title insurer maintains in the county described 
in Subsection 
(2)(c)(i)
; and
(iii)
an amount calculated by:
(A)
aggregating the assessments imposed on:
(I)
agency title insurance producers and individual title insurance producers 
under Subsection 
(2)(b)
; and
(II)
title insurers under Subsections 
(2)(c)(i)
 and 
(2)(c)(ii)
;
(B)
subtracting the amount determined under Subsection 
(2)(c)(iii)(A)
 from the 
total costs and expenses determined under Subsection 
(2)(d)
; and
(C)
multiplying:
(I)
the amount calculated under Subsection 
(2)(c)(iii)(B)
; and
(II)
the percentage of total premiums for title insurance on Utah risk that are 
premiums of the title insurer.
(d)
Notwithstanding Section 
31A-3-103
 and subject to Section 
31A-2-404
, during the 
first quarter of each fiscal year the Title and Escrow Commission shall approve the 
amount of costs and expenses described under Subsection 
(3)
 for the prior fiscal year 
that will be covered by the assessment.
(e)
(i)
An individual licensed to practice law in Utah is exempt from the requirements 
of this Subsection 
(2)
 if that person issues 12 or less policies during a 12-month 
period.
(ii)
In determining the number of policies issued by an individual licensed to practice 
law in Utah for purposes of Subsection 
(2)(e)(i)
, if the individual issues a policy to 
more than one party to the same closing, the individual is considered to have 
issued only one policy.
(3)
(a)
Money received by the state under this section shall be deposited into the Title 
Licensee Enforcement Restricted Account.
(b)
There is created in the General Fund a restricted account known as the "Title 
Licensee Enforcement Restricted Account."
(c)
The Title Licensee Enforcement Restricted Account shall consist of the money 
received by the state under this section.
(d)
The commissioner shall administer the Title Licensee Enforcement Restricted 
Account. Subject to appropriations by the Legislature, the commissioner shall use 
the money deposited into the Title Licensee Enforcement Restricted Account only to 
pay for a cost or expense incurred by the department in the administration, 
investigation, and enforcement of laws governing individual title insurance 
producers, agency title insurance producers, or title insurers.
(e)
An appropriation from the Title Licensee Enforcement Restricted Account is 
nonlapsing.
(4)
The assessment imposed by this section shall be in addition to any premium assessment 
imposed under Subsection 
59-9-101(3)
.
Section 21, Section 
31A-26-202
 is amended to read:
31A-26-202
Effective 
05/07/25
. Application for license.
(1)
(a)
The application for a license as an independent adjuster or public adjuster shall be:
(i)
made to the commissioner on forms and in a manner the commissioner 
prescribes
requires
; and
(ii)
except as provided in Subsection 
(4)
, accompanied by the applicable fee, which is 
not refunded if the application is denied.
(b)
The application shall provide:
(i)
information about the applicant's identity, including:
(A)
the applicant's:
(I)
Social Security number; or
(II)
federal employer identification number;
(B)
the applicant's personal history, experience, education, and business record;
(C)
if the applicant is a natural person, whether the applicant is 18 years 
of age
old
 or older; and
(D)
whether the applicant has committed an act that is a ground for denial, 
suspension, or revocation as set forth in Section 
31A-25-208
31A-26-213
; and
(ii)
any other information as the commissioner reasonably requires.
(2)
The commissioner may require documents reasonably necessary to verify the 
information contained in the application.
(3)
An applicant's Social Security number contained in an application filed under this 
section is a private record under Section 
63G-2-302
.
(4)
The following individuals are exempt from paying a license fee:
(a)
an individual serving in the armed forces of the United States while the individual is 
stationed within this state, if:
(i)
the individual holds a valid license to practice the regulated occupation or 
profession issued by any other state or jurisdiction recognized by the department; 
and
(ii)
the license is current and the individual is in good standing in the state or 
jurisdiction of licensure; and
(b)
the spouse of an individual serving in the armed forces of the United States while the 
individual is stationed within this state, if:
(i)
the spouse holds a valid license to practice the regulated occupation or profession 
issued by any other state or jurisdiction recognized by the department; and
(ii)
the license is current and the spouse is in good standing in the state or jurisdiction 
of licensure.
Section 22, Section 
31A-37-102
 is amended to read:
31A-37-102
Effective 
05/07/25
. Definitions.
As used in this chapter:
(1)
(a)
"Affiliated company" means a business entity that because of common ownership, 
control, operation, or management is in the same corporate or limited liability 
company system as:
(i)
a parent;
(ii)
an industrial insured; or
(iii)
a member organization.
(b)
"Affiliated company" does not include a business entity for which the commissioner 
issues an order finding that the business entity is not an affiliated company.
(2)
"Agency captive" means a captive insurer that:
(a)
is owned by one or more business entities that are licensed in any state as insurance 
producers or managing general agents; and
(b)
only insures risks on policies placed through the captive insurer's owners.
(2)
(3)
"Alien captive insurance company" means an insurer:
(a)
formed to write insurance business for a parent or affiliate of the insurer; and
(b)
licensed pursuant to the laws of an alien or foreign jurisdiction that imposes statutory 
or regulatory standards:
(i)
on a business entity transacting the business of insurance in the alien or foreign 
jurisdiction; and
(ii)
in a form acceptable to the commissioner.
(3)
(4)
"Applicant captive insurance company" means an entity that has submitted an 
application for a certificate of authority for a captive insurance company, unless the 
application has been denied or withdrawn.
(4)
(5)
"Association" means a legal association of two or more persons that meets the 
following requirements:
(a)
the persons are exposed to similar or related liability because of related, similar, or 
common business trade, products, services, premises, or operations; and
(b)
(i)
the association or the association's member organizations:
(A)
own, control, or hold 
with 
power to vote all of the outstanding voting 
securities of an association captive insurance company incorporated as a stock 
insurer;
(B)
have complete voting control over an association captive insurance company 
incorporated as a mutual insurer; or
(C)
have complete voting control over an association captive insurance company 
formed as a limited liability company; or
(ii)
the association's member organizations collectively constitute all of the 
subscribers of an association captive insurance company formed as a reciprocal 
insurer.
(5)
(6)
"Association captive insurance company" means a business entity that insures risks 
of:
(a)
a member organization of the association;
(b)
an affiliate of a member organization of the association; and
(c)
the association.
(6)
(7)
"Branch business" means an insurance business transacted by a branch captive 
insurance company in this state.
(7)
(8)
"Branch captive insurance company" means an alien captive insurance company 
that has a certificate of authority from the commissioner to transact the business of 
insurance in this state through a captive insurance company that is domiciled outside of 
this state.
(8)
(9)
"Branch operation" means a business operation of a branch captive insurance 
company in this state.
(9)
(10)
(a)
"Captive insurance company" means the same as that term is defined in 
Section 
31A-1-301
.
(b)
"Captive insurance company" includes any of the following formed or holding a 
certificate of authority under this chapter:
(i)
an agency captive insurance company;
(i)
(ii)
a branch captive insurance company;
(iii)
a pooling captive insurance company;
(ii)
(iv)
a pure captive insurance company;
(iii)
(v)
an association captive insurance company;
(iv)
(vi)
a sponsored captive insurance company;
(v)
(vii)
an industrial insured captive insurance company, including an industrial 
insured captive insurance company formed as a risk retention group captive in this 
state pursuant to the provisions of the Federal Liability Risk Retention Act of 
1986;
(vi)
(viii)
a special purpose captive insurance company; or
(vii)
(ix)
a special purpose financial captive insurance company.
(11)
(a)
"Cell" means a separate account for one or more participants formed and 
operating under the authority of a sponsored captive insurance company to write 
insurance coverage as described in this title.
(b)
"Cell" includes an account formed as either:
(i)
an incorporated cell; or
(ii)
a protected cell.
(10)
(12)
"Commissioner" means Utah's Insurance Commissioner or the commissioner's 
designee.
(11)
(13)
"Common ownership and control" means that two or more captive insurance 
companies are owned or controlled by the same person or group of persons as follows:
(a)
in the case of a captive insurance company that is a stock corporation, the direct or 
indirect ownership of 80% or more of the outstanding voting stock of the stock 
corporation;
(b)
in the case of a captive insurance company that is a mutual corporation, the direct or 
indirect ownership of 80% or more of the surplus and the voting power of the mutual 
corporation;
(c)
in the case of a captive insurance company that is a limited liability company, the 
direct or indirect ownership by the same member or members of 80% or more of the 
membership interests in the limited liability company; or
(d)
in the case of a sponsored captive insurance company, a 
protected 
cell is a separate 
captive insurance company owned and controlled by the 
protected 
cell's participant, 
only if:
(i)
the participant is the only participant with respect to the 
protected 
cell; and
(ii)
the participant is the sponsor or is affiliated with the sponsor of the sponsored 
captive insurance company through common ownership and control.
(12)
(14)
"Consolidated debt to total capital ratio" means the ratio of Subsection 
(12)(a)
(14)(a)
 to 
(b)
.
(a)
This Subsection 
(12)(a)
(14)(a)
 is an amount equal to the sum of all debts and 
hybrid capital instruments including:
(i)
all borrowings from depository institutions;
(ii)
all senior debt;
(iii)
all subordinated debts;
(iv)
all trust preferred shares; and
(v)
all other hybrid capital instruments that are not included in the determination of 
consolidated GAAP net worth issued and outstanding.
(b)
This Subsection 
(12)(b)
(14)(b)
 is an amount equal to the sum of:
(i)
total capital consisting of all debts and hybrid capital instruments as described in 
Subsection 
(12)(a)
(14)(a)
; and
(ii)
shareholders' equity determined in accordance with generally accepted accounting 
principles for reporting to the United States Securities and Exchange Commission.
(13)
(15)
"Consolidated GAAP net worth" means the consolidated shareholders' or 
members' equity determined in accordance with generally accepted accounting 
principles for reporting to the United States Securities and Exchange Commission.
(14)
(16)
"Controlled unaffiliated business" means a business entity:
(a)
(i)
in the case of a pure captive insurance company, that is not in the corporate or 
limited liability company system of a parent or the parent's affiliate; or
(ii)
in the case of an industrial insured captive insurance company, that is not in the 
corporate or limited liability company system of an industrial insured or an 
affiliated company of the industrial insured;
(b)
(i)
in the case of a pure captive insurance company, that has a contractual 
relationship with a parent or affiliate; or
(ii)
in the case of an industrial insured captive insurance company, that has a 
contractual relationship with an industrial insured or an affiliated company of the 
industrial insured; and
(c)
whose risks that are or will be insured by a pure captive insurance company, an 
industrial insured captive insurance company, or both, are managed in accordance 
with Subsection 
31A-37-106(1)(j)
 by:
(i)
(A)
a pure captive insurance company; or
(B)
an industrial insured captive insurance company; or
(ii)
a parent or affiliate of:
(A)
a pure captive insurance company; or
(B)
an industrial insured captive insurance company.
(15)
(17)
"Criminal act" means an act for which a person receives a verdict or finding of 
guilt after a criminal trial or a plea of guilty or nolo contendere to a criminal charge.
(16)
(18)
"Establisher" means a person who establishes a business entity or a trust.
(17)
(19)
"Governing body" means the persons who hold the ultimate authority to direct 
and manage the affairs of an entity.
(20)
"Incorporated cell" means a separate account:
(a)
established and maintained by a sponsored captive insurance company for a 
participant; and
(b)
that has been organized as a corporation, a limited liability company, or a 
not-for-profit organization.
(18)
(21)
"Industrial insured" means an insured:
(a)
that produces insurance:
(i)
by the services of a full-time employee acting as a risk manager or insurance 
manager; or
(ii)
using the services of a regularly and continuously qualified insurance consultant;
(b)
whose aggregate annual premiums for insurance on all risks total at least $25,000; 
and
(c)
that has at least 25 full-time employees.
(19)
(22)
"Industrial insured captive insurance company" means a business entity that:
(a)
insures risks of the industrial insureds that comprise the industrial insured group; and
(b)
may insure the risks of:
(i)
an affiliated company of an industrial insured; or
(ii)
a controlled unaffiliated business of:
(A)
an industrial insured; or
(B)
an affiliated company of an industrial insured.
(20)
(23)
"Industrial insured group" means:
(a)
a group of industrial insureds that collectively:
(i)
own, control, or hold with power to vote all of the outstanding voting securities of 
an industrial insured captive insurance company incorporated or organized as a 
limited liability company as a stock insurer; or
(ii)
have complete voting control over an industrial insured captive insurance 
company incorporated or organized as a limited liability company as a mutual 
insurer;
(b)
a group that is:
(i)
created under the Product Liability Risk Retention Act of 1981, 15 U.S.C. Sec. 
3901 et seq., as amended, as a corporation or other limited liability association; 
and
(ii)
taxable under this title as a:
(A)
stock corporation; or
(B)
mutual insurer; or
(c)
a group that has complete voting control over an industrial captive insurance 
company formed as a limited liability company.
(21)
(24)
"Member organization" means a person that belongs to an association.
(22)
(25)
"Parent" means a person that directly or indirectly owns, controls, or holds with 
power to vote more than 50% of the outstanding securities of an organization.
(23)
(26)
"Participant" means an entity that is insured by a sponsored captive insurance 
company:
(a)
if the losses of the participant are limited through a participant contract to the assets 
of a protected cell; and
(b)
(i)
the entity is permitted to be a participant under Section 
31A-37-403
; or
(ii)
the entity is an affiliate of an entity permitted to be a participant under Section 
31A-37-403
.
(24)
(27)
"Participant contract" means a contract by which a sponsored captive insurance 
company:
(a)
insures the risks of a participant; and
(b)
limits the losses of the participant to the assets of a protected cell.
(28)
"Pooling captive" means a captive insurer organized for the purpose of establishing a 
risk-sharing arrangement between other captive insurers.
(25)
(29)
"Protected cell" means a separate account
:
(a)
established and maintained by a sponsored captive insurance company for 
one
a
participant
.
; and
(b)
that has not been organized as an entity including a corporation, a limited liability 
company, or a not-for-profit organization.
(26)
(30)
"Pure captive insurance company" means a business entity that insures risks of a 
parent
 or affiliate
, affiliate, or controlled unaffiliated business
 of the business entity.
(27)
(31)
"Special purpose financial captive insurance company" means the same as that 
term is defined in Section 
31A-37a-102
.
(28)
(32)
"Sponsor" means an entity that:
(a)
meets the requirements of Section 
31A-37-402
; and
(b)
is approved by the commissioner to:
(i)
provide all or part of the capital and surplus 
in an amount:
(A)
required by 
applicable law in an amount of not less than $350,000, which 
amount the commissioner may increase by order if the commissioner considers 
it necessary
Section 
31A-37-204
; or
(B)
greater than the amount required by Section 
31A-37-204
, if, by order, the 
commissioner deems the increase necessary
; and
(ii)
organize and operate a sponsored captive insurance company.
(29)
(33)
"Sponsored captive insurance company" means a captive insurance company:
(a)
in which the minimum capital and surplus required by applicable law is provided by 
one or more sponsors
 or participants
;
(b)
that is formed or holding a certificate of authority under this chapter;
(c)
that insures the risks of a separate participant through the contract; and
(d)
that segregates each participant's liability through one or more
 protected
 cells.
(30)
(34)
"Treasury rates" means the United States Treasury strip asked yield as published 
in the Wall Street Journal as of a balance sheet date.
Section 23, Section 
31A-37-104
 is amended to read:
31A-37-104
Effective 
05/07/25
. Applicability of reorganization, receivership, 
and injunction authority.
(1)
Except as provided in 
Chapter 37a, Special Purpose Financial Captive Insurance 
Company Act
, and Subsection 
(2)
, 
Chapter 27a, Insurer Receivership Act
, applies to a 
captive insurance company formed or holding a certificate of authority under this 
chapter.
(2)
In the case of a sponsored captive insurance company:
(a)
the assets of a 
protected 
cell may not be used to pay an expense or claim other than 
one attributable to the 
protected 
cell; and
(b)
the capital and surplus of the sponsored captive insurance company:
(i)
shall at all times be available to pay:
(A)
an expense of the sponsored captive insurance company; or
(B)
a claim against the sponsored captive insurance company; and
(ii)
may not be used to pay an expense or claim attributable to a
 protected
 cell.
Section 24, Section 
31A-37-201
 is amended to read:
31A-37-201
Effective 
05/07/25
. Certificate of authority.
(1)
The commissioner may issue a certificate of authority to act as an insurer in this state to 
a captive insurance company that meets the requirements of this chapter.
(2)
To conduct insurance business in this state, a captive insurance company shall:
(a)
obtain from the commissioner a certificate of authority authorizing 
it
the captive 
insurance company
 to conduct insurance business in this state;
(b)
hold at least once each year in the state a meeting of the governing body;
(b)
(i)
hold a meeting of the governing body:
(A)
at least once each year;
(B)
at which a quorum is present;
(C)
in the state; and
(D)
at which at least one out-of-state individual is physically present; or
(ii)
become a member of the Utah Captive Insurance Association at the highest level 
of membership;
(c)
maintain in this state:
(i)
the principal place of business of the captive insurance company; or
(ii)
in the case of a branch captive insurance company, the principal place of business 
for the branch operations of the branch captive insurance company; and
(d)
except as provided in Subsection 
(3)
, appoint a resident registered agent to accept 
service of process and to otherwise act on behalf of the captive insurance company in 
the state.
(3)
In the case of a captive insurance company formed as a corporation, if the registered 
agent cannot with reasonable diligence be found at the registered office of the captive 
insurance company, the commissioner is the agent of the captive insurance company 
upon whom process, notice, or demand may be served.
(4)
(a)
Before receiving a certificate of authority, an applicant captive insurance company 
shall file with the commissioner:
(i)
a certified copy of the captive insurance company's organizational charter;
(ii)
a statement under oath of the captive insurance company's president and secretary 
or their equivalents showing the captive insurance company's financial condition; 
and
(iii)
any other statement or document required by the commissioner under Section 
31A-37-106
.
(b)
In addition to the information required under Subsection 
(4)(a)
, an applicant captive 
insurance company shall file with the commissioner evidence of:
(i)
the amount and liquidity of the assets of the applicant captive insurance company 
relative to the risks to be assumed by the applicant captive insurance company;
(ii)
the adequacy of the expertise, experience, and character of the person who will 
manage the applicant captive insurance company;
(iii)
the overall soundness of the plan of operation of the applicant captive insurance 
company;
(iv)
the adequacy of the loss prevention programs for the prospective insureds of the 
applicant captive insurance company as the commissioner deems necessary; and
(v)
any other factor the commissioner:
(A)
adopts by rule under Section 
31A-37-106
; and
(B)
considers relevant in ascertaining whether the applicant captive insurance 
company will be able to meet the policy obligations of the applicant captive 
insurance company.
(c)
In addition to the information required by Subsections 
(4)(a)
 and 
(b)
, an applicant 
sponsored captive insurance company shall file with the commissioner:
(i)
a business plan at the level of detail required by the commissioner under Section 
31A-37-106
 demonstrating:
(A)
the manner in which the applicant sponsored captive insurance company will 
account for the losses and expenses of each 
protected 
cell; and
(B)
the manner in which the applicant sponsored captive insurance company will 
report to the commissioner the financial history, including losses and expenses, 
of each 
protected 
cell;
(ii)
a statement acknowledging that the applicant sponsored captive insurance 
company will make all financial records of the applicant sponsored captive 
insurance company, including records pertaining to a 
protected 
cell, available for 
inspection or examination by the commissioner;
(iii)
a contract or sample contract between the applicant sponsored captive insurance 
company and a participant; and
(iv)
evidence that expenses will be allocated to each 
protected 
cell in an equitable 
manner.
(5)
(a)
Information submitted 
pursuant to
in accordance with
 this section is classified as 
a protected record under 
Title 63G, Chapter 2, Government Records Access and 
Management Act
.
(b)
Notwithstanding 
Title 63G, Chapter 2, Government Records Access and 
Management Act
, the commissioner may disclose information submitted 
pursuant to
in accordance with
 this section to a public official having jurisdiction over the 
regulation of insurance in another state if:
(i)
the public official receiving the information agrees in writing to maintain the 
confidentiality of the information; and
(ii)
the laws of the state in which the public official serves require the information to 
be confidential.
(c)
This Subsection 
(5)
 does not apply to information provided by an industrial insured 
captive insurance company insuring the risks of an industrial insured group.
(6)
(a)
A captive insurance company shall pay to the department the following 
nonrefundable fees established by the department under Sections 
31A-3-103
, 
31A-3-304
, and 
63J-1-504
:
(i)
a fee for examining, investigating, and processing, by a department employee, of 
an application for a certificate of authority made by an applicant captive insurance 
company;
(ii)
a fee for obtaining a certificate of authority for the year the captive insurance 
company is issued a certificate of authority by the department; and
(iii)
a certificate of authority renewal fee, assessed annually.
(b)
The commissioner may:
(i)
assign a department employee or retain legal, financial, or examination services 
from outside the department to perform the services described in:
(A)
Subsection 
(6)(a)
; and
(B)
Section 
31A-37-502
; and
(ii)
charge the reasonable cost of services described in Subsection 
(6)(b)(i)
 to the 
applicant captive insurance company.
(7)
If the commissioner is satisfied that the documents and statements filed by the applicant 
captive insurance company comply with this chapter, the commissioner may grant a 
certificate of authority authorizing the company to do insurance business in this state.
(8)
A certificate of authority granted under this section expires annually and shall be 
renewed by July 1 of each year.
Section 25, Section 
31A-37-202
 is amended to read:
31A-37-202
Effective 
05/07/25
. Permissive areas of insurance.
(1)
Except as provided in Subsections (2) and (3), a captive insurance company may not 
directly insure a risk other than the risk of the captive insurance company's parent or 
affiliated company.
(2)
In addition to the risks described in Subsection (1), an association captive insurance 
company may insure the risk of:
(a)
a member organization of the association captive insurance company's association; or
(b)
an affiliate of a member organization of the association captive insurance company's 
association.
(3)
The following may insure a risk of a controlled unaffiliated business:
(a)
an industrial insured captive insurance company;
(b)
a protected cell
an association captive insurance company
;
(c)
a pure captive insurance company; or
(d)
a sponsored captive insurance company
 and the sponsored captive insurance 
company's cells
.
(4)
To the extent allowed by a captive insurance company's organizational charter, a captive 
insurance company may provide any type of insurance described in this title, except:
(a)
workers' compensation insurance;
(b)
personal motor vehicle insurance;
(c)
homeowners' insurance; and
(d)
any component of the types of insurance described in Subsections (4)(a) through (c).
(5)
A captive insurance company may not provide coverage for:
(a)
a wager or gaming risk;
(b)
loss of an election; or
(c)
the 
penal
punitive
 consequences of a crime.
(6)
Unless the punitive damages award arises out of a criminal act of an insured, a captive 
insurance company may provide coverage for punitive damages awarded, including 
through adjudication or compromise, against the captive insurance company's:
(a)
parent; or
(b)
affiliated company.
(7)
Notwithstanding Subsection (4), if approved by the commissioner:
(a)
a captive insurance company may insure as a reimbursement a limited layer or 
deductible of workers' compensation coverage; and
(b)
an association captive insurance company that satisfies the requirements of this 
chapter may provide homeowners' insurance.
Section 26, Section 
31A-37-204
 is amended to read:
31A-37-204
Effective 
05/07/25
. Paid-in capital -- Other capital.
(1)
For purposes of this section, "marketable securities" means:
(a)
a bond or other evidence of indebtedness of a governmental unit in the United States 
or Canada or any instrumentality of the United States or Canada; or
(b)
securities:
(i)
traded on one or more of the following exchanges in the United States:
(A)
New York;
(B)
American; or
(C)
NASDAQ;
(ii)
when no particular security, or a substantially related security, applied toward the 
required minimum capital and surplus requirement of Subsection (2) represents 
more than 50% of the minimum capital and surplus requirement; and
(iii)
when no group of up to four particular securities, consolidating substantially 
related securities, applied toward the required minimum capital and surplus 
requirement of Subsection (2) represents more than 90% of the minimum capital 
and surplus requirement.
(1)
(2)
(a)
The commissioner may not issue a certificate of authority to a company 
described in Subsection 
(1)(c)
(2)(c)
 unless the company possesses and 
thereafter 
maintains unimpaired paid-in capital and unimpaired paid-in surplus of:
(i)
in the case of a pure captive insurance company:
(A)
except as provided in Subsection 
(1)(a)(i)(B)
(2)(a)(i)(B)
, not less than 
$250,000; or
(B)
if the pure captive insurance company is not acting as a pool that facilitates 
risk distribution for other captive insurers, an amount that is the greater of:
(I)
not less than 20% of the company's total aggregate risk; or
(II)
$50,000;
(ii)
in the case of an association captive insurance company, not less than 
$750,000
$500,000
;
(iii)
in the case of an industrial insured captive insurance company incorporated as a 
stock insurer, not less than $700,000;
(iv)
in the case of a sponsored captive insurance company, not less than $250,000 of 
which a minimum of $50,000 is provided by the sponsor; or
(v)
in the case of a special purpose captive insurance company, an amount 
determined by the commissioner after giving due consideration to the company's 
business plan, feasibility study, and pro-formas, including the nature of the risks 
to be insured.
(b)
The paid-in capital and surplus required under this Subsection 
(1)
(2)
 may be in the 
form of:
(i)
(A)
cash; or
(B)
cash equivalent;
(ii)
an irrevocable letter of credit:
(A)
issued by:
(I)
a bank chartered by this state;
(II)
a member bank of the Federal Reserve System; or
(III)
a member bank of the Federal Deposit Insurance Corporation;
(B)
approved by the commissioner;
(iii)
marketable securities as determined by Subsection 
(5)
(1)
; or
(iv)
some other thing of value approved by the commissioner, for a period not to 
exceed 45 days, to facilitate the formation of a captive insurance company in this 
state pursuant to an approved plan of liquidation and reorganization of another 
captive insurance company or alien captive insurance company in another 
jurisdiction.
(c)
This Subsection 
(1)
(2)
 applies to:
(i)
a pure captive insurance company;
(ii)
a sponsored captive insurance company;
(iii)
a special purpose captive insurance company;
(iv)
an association captive insurance company; or
(v)
an industrial insured captive insurance company.
(2)
(3)
(a)
The commissioner may, under Section 
31A-37-106
, prescribe additional 
capital based on the type, volume, and nature of insurance business transacted.
(b)
The capital prescribed by the commissioner under this Subsection 
(2)
(3)
 may be in 
the form of:
(i)
cash;
(ii)
an irrevocable letter of credit issued by:
(A)
a bank chartered by this state; or
(B)
a member bank of the Federal Reserve System; or
(iii)
marketable securities as determined by Subsection 
(5)
(1)
.
(3)
(4)
(a)
Except as provided in Subsection 
(3)(c)
(4)(c)
, a branch captive insurance 
company, as security for the payment of liabilities attributable to branch operations, 
shall, through 
its
the branch captive insurance company's
 branch operations, 
establish and maintain a trust fund:
(i)
funded by an irrevocable letter of credit or other acceptable asset; and
(ii)
in the United States for the benefit of:
(A)
United States policyholders; and
(B)
United States ceding insurers under:
(I)
insurance policies issued; or
(II)
reinsurance contracts issued or assumed.
(b)
The amount of the security required under this Subsection 
(3)
(4)
 shall be no less 
than:
(i)
the capital and surplus required by this chapter; and
(ii)
the reserves on the insurance policies or reinsurance contracts, including:
(A)
reserves for losses;
(B)
allocated loss adjustment expenses;
(C)
incurred but not reported losses; and
(D)
unearned premiums with regard to business written through branch operations.
(c)
Notwithstanding the other provisions of this Subsection 
(3)
(4)
:
(i)
the commissioner may permit a branch captive insurance company that is required 
to post security for loss reserves on branch business by 
its
the branch captive 
insurance company's
 reinsurer to reduce the funds in the trust account required by 
this section by the same amount as the security posted if the security remains 
posted with the reinsurer; and
(ii)
a branch captive insurance company that is the result of the licensure of an alien 
captive insurance company that is not formed in an alien jurisdiction is not subject 
to the requirements of this Subsection 
(3)
(4)
.
(4)
(5)
(a)
A captive insurance company may not pay the following without the prior 
approval of the commissioner:
(i)
a dividend out of capital or surplus
 in excess of the limits under Section 
16-10a-640
; or
(ii)
a distribution with respect to capital or surplus
 in excess of the limits under 
Section 
16-10a-640
.
(b)
The commissioner shall condition approval of an ongoing plan for the payment of 
dividends or other distributions on the retention, at the time of each payment, of 
capital or surplus
 in excess of:
.
(i)
amounts specified by the commissioner under Section 
31A-37-106
; or
(ii)
determined in accordance with formulas approved by the commissioner under 
Section 
31A-37-106
.
(5)
For purposes of this section, marketable securities means:
(a)
a bond or other evidence of indebtedness of a governmental unit in the United States 
or Canada or any instrumentality of the United States or Canada; or
(b)
securities:
(i)
traded on one or more of the following exchanges in the United States:
(A)
New York;
(B)
American; or
(C)
NASDAQ;
(ii)
when no particular security, or a substantially related security, applied toward 
the required minimum capital and surplus requirement of Subsection (1) 
represents more than 50% of the minimum capital and surplus requirement; and
(iii)
when no group of up to four particular securities, consolidating substantially 
related securities, applied toward the required minimum capital and surplus 
requirement of Subsection (1) represents more than 90% of the minimum capital 
and surplus requirement.
(6)
Notwithstanding Subsection 
(5)
(1)
, to protect the solvency and liquidity of a captive 
insurance company, the commissioner may reject the application of specific assets or 
amounts of specific assets to satisfying the requirement of Subsection 
(1)
(2)
.
Section 27, Section 
31A-37-301
 is amended to read:
31A-37-301
Effective 
05/07/25
. Formation.
(1)
A captive insurance company, other than a branch captive insurance company, may 
be 
formed
form
 as a corporation
 or
,
 a limited liability company
.
, or a not-for-profit 
organization.
(2)
The capital of a captive insurance company shall be held by:
(a)
the interest holders of the captive insurance company; or
(b)
a governing body elected by:
(i)
the insureds;
(ii)
one or more affiliates; or
(iii)
a combination of the persons described in Subsections 
(2)(b)(i)
 and 
(ii)
.
(3)
A captive insurance company formed in this state shall have at least one establisher who 
is an individual and a resident of the state.
(4)
(a)
An applicant captive insurance company's establishers shall obtain a certificate of 
public good from the commissioner before filing 
its
the applicant captive insurance 
company's
 governing documents with the Division of Corporations and Commercial 
Code.
(b)
In considering a request for a certificate under Subsection 
(4)(a)
, the commissioner 
shall consider:
(i)
the character, reputation, financial standing, and purposes of the establishers;
(ii)
the character, reputation, financial responsibility, insurance experience, and 
business qualifications of the principal officers or members of the governing body;
(iii)
any information in:
(A)
the application for a certificate of authority; or
(B)
the department's files; and
(iv)
other aspects that the commissioner considers advisable.
(5)
(a)
Except as otherwise provided in this title, the governing body of a captive 
insurance company shall consist of at least three individuals as members, at least one 
of whom is a resident of the state.
(b)
One-third of the members of the governing body of a captive insurance company 
constitutes a quorum of the governing body.
(6)
A captive insurance company shall have at least three
 separate
 individuals as principal 
officers with duties comparable to those of president, treasurer, and secretary.
(7)
(a)
(i)
A captive insurance company formed as a corporation is subject to the 
provisions of 
Title 16, Chapter 10a, Utah Revised Business Corporation Act
, and 
this chapter. 
(ii)
If a conflict exists between a provision of 
Title 16, Chapter 10a, Utah Revised 
Business Corporation Act
, and a provision of this chapter, this chapter controls.
(b)
A captive insurance company formed as a limited liability company is subject to the 
provisions of 
Title 48, Chapter 3a, Utah Revised Uniform Limited Liability Company 
Act
, and this chapter. If a conflict exists between a provision of 
Title 48, Chapter 3a, 
Utah Revised Uniform Limited Liability Company Act
, and a provision of this 
chapter, this chapter controls.
(c)
Except as provided in Subsection 
(7)(d)
, the provisions of this title that govern a 
merger, consolidation, conversion, mutualization, and redomestication apply to a 
captive insurance company in carrying out any of the transactions described in those 
provisions.
(d)
Notwithstanding Subsection 
(7)(c)
, the commissioner may waive or modify the 
requirements for public notice and hearing in accordance with rules adopted under 
Section 
31A-37-106
.
(e)
If a notice of public hearing is required, but no one requests a hearing, the 
commissioner may cancel the public hearing.
Section 28, Section 
31A-37-302
 is amended to read:
31A-37-302
Effective 
05/07/25
. Investment requirements.
(1)
(a)
Except as provided in Subsection 
(1)(b)
, 
an association
a
 captive insurance 
company
, a sponsored captive insurance company,
 and an industrial insured 
group
captive insurance company
 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
:
(i)
an association captive insurance company;
(ii)
a sponsored captive insurance company; or
(iii)
an industrial insured group
 a captive insurance company or an industrial 
insured captive insurance company
.
(2)
(a)
Except as provided in Subsection 
(2)(b)
, a pure captive insurance company or 
industrial insured captive insurance company is not subject to any restrictions on 
allowable investments 
contained in this title
described in Section 
31A-18-108
.
(b)
Notwithstanding Subsection 
(2)(a)
, the commissioner may, under Section 
31A-37-106
, 
Under Section 
31A-37-106
, the commissioner may 
prohibit or limit an 
investment that threatens the solvency or liquidity of
:
(i)
a pure captive insurance company; or
(ii)
an industrial insured captive insurance company
 a captive insurance company or 
industrial insured captive insurance company
.
(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)
Notwithstanding Subsection 
(3)(a)(i)
, a
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(1)
31A-37-204(2)
.
(4)
If a captive insurer has excess surplus above the minimum capital required by Section 
31A-37-204
, the captive insurer may invest the captive insurer's excess surplus in a 
manner inconsistent with the authorized classes of investments described in Section 
31A-18-110
.
(5)
Nothing in this section empowers a captive insurer to make an investment that is illegal 
or otherwise prohibited by this title.
Section 29, Section 
31A-37-303
 is amended to read:
31A-37-303
Effective 
05/07/25
. Reinsurance.
(1)
(a)
A captive insurance company may cede risks to any insurance company approved 
by the commissioner.
(b)
Except as provided in Subsection 
(1)(c)
, a captive insurance company may provide 
reinsurance on risks ceded by any other insurer with prior approval of the 
commissioner.
(c)
A captive insurance company may not provide reinsurance on a punitive damages 
risk ceded by an insurer, unless the punitive damages risk is the risk of the captive 
insurance company's:
(i)
parent;
(ii)
affiliated company; or
(iii)
controlled unaffiliated business.
(2)
To facilitate the risk distribution of captive insurance companies participating in a 
pooling arrangement, a captive insurance company licensed to operate as a pooling 
captive insurance company may directly insure a risk that any pooling participant's 
captive insurance company could otherwise directly insure in accordance with Section 
31A-37-202
.
(2)
(3)
(a)
A captive insurance company may take credit for reserves on risks or portions 
of risks ceded to reinsurers if the captive insurance company complies with:
(i)
Section 
31A-17-404
, 
31A-17-404.1
, 
31A-17-404.3
, or 
31A-17-404.4
; or
(ii)
other requirements as the commissioner may establish by rule made in 
accordance with 
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
.
(b)
Unless the reinsurer is in compliance with Section 
31A-17-404
, 
31A-17-404.1
, 
31A-17-404.3
, or 
31A-17-404.4
 or a rule adopted under Subsection 
(2)(a)
(ii)
(3)(a)(ii)
, a captive insurance company may not take credit for:
(i)
reserves on risks ceded to a reinsurer; or
(ii)
portions of risks ceded to a reinsurer.
Section 30, Section 
31A-37-401
 is amended to read:
31A-37-401
Effective 
05/07/25
. Sponsored captive insurance companies -- 
Formation.
(1)
One or more sponsors may form a sponsored captive insurance company under this 
chapter.
(2)
A sponsored captive insurance company formed under this chapter may establish and 
maintain
 a protected cell
, with prior approval of the commissioner, a combination of 
incorporated cells and protected cells
 to insure risks of a participant if:
(a)
the interest holders of a sponsored captive insurance company are limited to:
(i)
the participants of the sponsored captive insurance company; and
(ii)
the sponsors of the sponsored captive insurance company;
(b)
each 
protected 
cell is accounted for separately on the books and records of the 
sponsored cell captive insurance company to reflect:
(i)
the financial condition of each 
individual protected 
cell;
(ii)
the results of operations of each 
individual protected 
cell;
(iii)
the net income or loss of each 
individual protected 
cell;
(iv)
the dividends or other distributions to participants of each 
individual protected 
cell; and
(v)
other factors that may be:
(A)
provided in the participant contract; or
(B)
required by the commissioner;
(c)
the assets of a 
protected 
cell are not chargeable with liabilities arising out of any 
other insurance business the sponsored captive insurance company may conduct;
(d)
a sale, exchange, or other transfer of assets is not made by the sponsored captive 
insurance company between or among any of the 
protected 
cells of the sponsored 
captive insurance company without the consent of the 
protected 
cells;
(e)
a sale, exchange, transfer of assets, dividend, or distribution is not made from a 
protected 
cell to a sponsor or participant without the commissioner's approval, which 
may not be given if the sale, exchange, transfer, dividend, or distribution would result 
in insolvency or impairment with respect to a 
protected 
cell;
(f)
a sponsored captive insurance company annually files with the commissioner 
financial reports the commissioner requires under Section 
31A-37-106
, including 
accounting statements detailing the financial experience of each 
protected 
cell;
(g)
a sponsored captive insurance company notifies the commissioner in writing within 
10 business days of a 
protected 
cell that is insolvent or otherwise unable to meet the 
claim or expense obligations of the 
protected 
cell;
(h)
a participant contract does not take effect without the commissioner's prior written 
approval;
 and
(i)
the addition of each new 
protected 
cell and withdrawal of a participant of any 
existing 
protected 
cell does not take effect without the commissioner's prior written 
approval
; and
.
(j)
(3)
(i)
a protected
A
 cell
 of a sponsored
 captive insurance company shall pay to 
the department the following nonrefundable fees established by the department 
under Sections 
31A-3-103
, 
31A-3-304
, and 
63J-1-504
:
(A)
(a)
a fee for examining, investigating, and processing 
by a department employee of 
an application 
for a certificate of authority 
made by a 
protected 
cell 
to insure risks 
under the certificate of authority of a sponsored 
captive insurance company;
(B)
(b)
a fee for obtaining a
 certificate to insure risks under the
 certificate of authority
of a sponsored captive insurance company
 for the year the 
protected 
cell
 of the 
sponsored
 captive insurance company is issued a certificate
 of authority
 by the 
department; and
(C)
(c)
a certificate of authority renewal fee
; and
.
(ii)
(4)
a protected
A sponsor may create a
 cell 
may be created by the sponsor 
or 
the 
sponsor may create 
a pooling insurance arrangement 
for the sponsor's cell participants 
to provide for pooling of risks to allow for risk distribution upon written approval from 
every
 protected
 cell under the sponsor and written approval of the commissioner.
Section 31, Section 
31A-37-402
 is amended to read:
31A-37-402
Effective 
05/07/25
. Sponsored captive insurance companies -- 
Certificate of authority mandatory.
(1)
A sponsor of a sponsored captive insurance company shall be:
(a)
an insurer authorized or approved under the laws of a state;
(b)
a reinsurer authorized or approved under the laws of a state;
(c)
a captive insurance company holding a certificate of authority under this chapter;
(d)
an insurance holding company that:
(i)
controls an insurer licensed pursuant to the laws of a state; and
(ii)
is subject to registration pursuant to the holding company system of laws of the 
state of domicile of the insurer described in Subsection 
(1)(d)(i)
;
(e)
an approved captive management firm in Utah or its affiliates; or
(f)
another person approved by the commissioner after finding that the approval of the 
person as a sponsor is not inconsistent with the purposes of this chapter.
(2)
(a)
The business written by a sponsored captive insurance company with respect to a 
protected cell shall be fronted by the 
sponsor
sponsored captive
 insurance company 
through a controlled unaffiliated contract or an insurer that is:
(i)
authorized or approved:
(A)
under the laws of a state; or
(B)
under any jurisdiction if the insurance company is a wholly owned subsidiary 
of an insurance company licensed pursuant to the laws of a state;
(ii)
reinsured by a reinsurer authorized or approved by this state; or
(iii)
subject to Subsection 
(2)(b)
, secured by a trust fund:
(A)
in the United States;
(B)
for the benefit of policyholders and claimants;
(C)
funded by an irrevocable letter of credit or other asset acceptable to the 
commissioner; and
(D)
held by the sponsor as provided in Subsection 
31A-17-404(1)
.
(b)
(i)
The amount of security provided by the trust fund described in Subsection 
(2)(a)(iii)
 may not be less than the reserves associated with the liabilities of the 
trust fund, including:
(A)
reserves for losses;
(B)
allocated loss adjustment expenses;
(C)
incurred but unreported losses; and
(D)
unearned premiums for business written through the participant's protected 
cell.
(ii)
The commissioner may require the sponsored captive insurance company to 
increase the funding of a trust established pursuant to this Subsection 
(2)
.
(iii)
If the form of security in the trust described in Subsection 
(2)(a)(iii)
 is a letter of 
credit, the letter of credit shall be established, issued, or confirmed by a bank that 
is:
(A)
chartered in this state;
(B)
a member of the federal reserve system; or
(C)
chartered by another state if that state-chartered bank is acceptable to the 
commissioner.
(iv)
A trust and trust instrument maintained pursuant to this Subsection 
(2)
 shall be in 
a form and upon terms approved by the commissioner.
(3)
The business written by a sponsored captive insurance company with respect to an 
incorporated cell may be:
(a)
fronted by the sponsored captive insurance company in accordance with Subsection 
(2)(a)
; or
(b)
with prior approval of the sponsored captive insurance company, written directly by 
the incorporated cell.
(3)
(4)
A risk retention group may not be either a sponsor or a participant of a sponsored 
captive insurance company.
Section 32, Section 
31A-37-403
 is amended to read:
31A-37-403
Effective 
05/07/25
. Participants in sponsored captive insurance 
companies.
(1)
Any of the following may be a participant in a sponsored captive insurance company 
holding a certificate of authority under this chapter:
(a)
an association;
(b)
a corporation that is for profit or nonprofit;
(c)
a limited liability company;
(d)
a partnership;
(e)
a trust; or
(f)
any other business entity.
(2)
A sponsor may be a participant in a sponsored captive insurance company.
(3)
A participant need not be:
(a)
a shareholder of the sponsored captive insurance company; or
(b)
an affiliate of the sponsored captive insurance company.
(4)
A participant shall insure only the participant's own risks through a sponsored captive 
insurance company unless otherwise approved by the commissioner.
Section 33, Section 
31A-37-404
 is amended to read:
31A-37-404
Effective 
05/07/25
. Sponsored captive insurance companies -- 
Reserves opinion and discounting.
(1)
A sponsored captive insurance company may discount 
its
the sponsored captive 
insurance company's
 loss and loss adjustment expense reserves at treasury rates applied 
to the applicable payments projected through the use of the expected payment pattern 
associated with the reserves.
(2)
(a)
A sponsored captive insurance company shall annually file with the department an 
actuarial opinion provided by an independent actuary on loss and loss adjustment 
expense reserves.
(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 a sponsored captive 
insurance company if the sponsored captive insurance company violates this title.
Section 34, Section 
31A-37-501
 is amended to read:
31A-37-501
Effective 
05/07/25
. Reports to commissioner.
(1)
A captive insurance company is not required to make a report except those provided in 
this chapter.
(2)
(a)
Before March 1 of each year, a captive insurance company shall submit to the 
commissioner a report of the financial condition of the captive insurance company, 
verified by oath of at least two individuals who are executive officers of the captive 
insurance company.
(b)
Except as provided in Section 
31A-37-204
, a captive insurance company shall report:
(i)
using generally accepted accounting principles, except to the extent that the 
commissioner requires, approves, or accepts the use of a statutory accounting 
principle;
(ii)
using a useful or necessary modification or adaptation to an accounting principle 
that is required, approved, or accepted by the commissioner for the type of 
insurance and kind of insurer to be reported upon; and
(iii)
supplemental or additional information required by the commissioner.
(c)
Except as otherwise provided:
(i)
a licensed captive insurance company shall file the report required by Section 
31A-4-113
; and
(ii)
an industrial insured group shall comply with Section 
31A-4-113.5
.
(3)
(a)
A pure captive insurance company may make written application to file the 
required report on a fiscal year end that is consistent with the fiscal year of the parent 
company of the pure captive insurance company.
(b)
If the commissioner grants an alternative reporting date for a pure captive insurance 
company requested under Subsection 
(3)(a)
, the annual report is due 60 days after the 
fiscal year end.
(4)
(a)
Sixty days after the fiscal year end, a branch captive insurance company shall file 
with the commissioner a copy of the reports and statements required to be filed under 
the laws of the jurisdiction in which the alien captive insurance company is formed, 
verified by oath by two of the alien captive insurance company's executive officers.
(b)
If the commissioner is satisfied that the annual report filed by the alien captive 
insurance company in the jurisdiction in which the alien captive insurance company 
is formed provides adequate information concerning the financial condition of the 
alien captive insurance company, the commissioner may waive the requirement for 
completion of the annual statement required for a captive insurance company under 
this section with respect to business written in the alien or foreign jurisdiction.
(c)
A waiver by the commissioner under Subsection 
(4)(b)
:
(i)
shall be in writing; and
(ii)
is subject to public inspection.
(5)
Before March 1 of each year, a sponsored 
cell 
captive insurance company shall submit 
to the commissioner a consolidated report of the financial condition of each 
individual 
protected 
cell, including a financial statement for each
 protected
 cell.
(6)
(a)
A captive insurance company shall notify the commissioner in writing if there is:
(i)
a material change to the captive insurance company's most recently filed report of 
financial condition; or
(ii)
an adverse material change in the financial condition of a captive insurance 
company since the captive insurance company's most recently filed report of 
financial condition.
(b)
A captive insurance company shall submit a notification described in this subsection 
within 20 days after the day on which the captive insurance company learns of the 
material change.
Section 35, Section 
31A-37-505
 is amended to read:
31A-37-505
Effective 
05/07/25
. Suspension or revocation -- Grounds.
(1)
The commissioner may suspend or revoke the certificate of authority of a captive 
insurance company to conduct an insurance business in this state for:
(a)
insolvency or impairment of capital or surplus;
(b)
failure to meet the requirements of Section 
31A-37-204
;
(c)
refusal or failure to submit:
(i)
an annual report required by Section 
31A-37-501
; or
(ii)
any other report or statement required by law or by lawful order of the 
commissioner;
(d)
failure to comply with the charter, bylaws, or other organizational document of the 
captive insurance company;
(e)
failure to submit to:
(i)
an examination under Section 
31A-37-502
; or
(ii)
any legal obligation relative to an examination under Section 
31A-37-502
;
(f)
refusal or failure to pay
 the cost of examination under Section 
31A-37-502
;
:
(i)
an annual fee described in Section 
31A-3-304
;
(ii)
the cost of examination described in Section 
31A-37-502
; or
(iii)
any other fee prescribed by this title;
(g)
use of methods that, although not otherwise specifically prohibited by law, render:
(i)
the operation of the captive insurance company detrimental to the public or the 
policyholders of the captive insurance company; or
(ii)
the condition of the captive insurance company unsound with respect to the 
public or to the policyholders of the captive insurance company; or
(h)
failure otherwise to comply with laws of this state.
(2)
Notwithstanding any other provision of this title, if the commissioner finds, upon 
examination, hearing, or other evidence, that a captive insurance company has 
committed any of the acts specified in Subsection 
(1)
, the commissioner may suspend or 
revoke the certificate of authority of the captive insurance company if the commissioner 
considers it in the best interest of the public and the policyholders of the captive 
insurance company to revoke the certificate of authority.
Section 36, Section 
31A-37-701
 is amended to read:
31A-37-701
Effective 
05/07/25
. Certificate of dormancy.
(1)
In accordance with the provisions of this section, a captive insurance company, other 
than a risk retention group, may apply, without fee, to the commissioner for a certificate 
of dormancy.
(2)
(a)
A captive insurance company, other than 
a risk retention group
an industrial 
insured captive insurance company or a cell of a sponsored captive insurance 
company
, is eligible for a certificate of dormancy if the
 captive insurance
 company:
(i)
has ceased transacting the business of insurance, including the issuance of 
insurance policies; and
(ii)
has no remaining insurance liabilities or obligations associated with insurance 
business transactions or insurance policies.
(b)
For purposes of Subsection 
(2)(a)(ii)
, the commissioner may disregard liabilities or 
obligations for which the captive insurance company has withheld sufficient funds or 
that are otherwise sufficiently secured.
(3)
Except as provided in Subsection 
(4)
, a captive insurance company that holds a 
certificate of dormancy is subject to all requirements of this chapter.
(4)
A captive insurance company that holds a certificate of dormancy:
(a)
shall possess and maintain unimpaired paid-in capital and unimpaired paid-in surplus 
of:
(i)
in the case of a pure captive insurance company or a special purpose captive 
insurance company, not less than $25,000;
(ii)
in the case of an association captive insurance company, not less than $75,000; or
(iii)
in the case of a sponsored captive insurance company, not less than $50,000, of 
which the sponsor provides at least $20,000; and
(b)
is not required to:
(i)
subject to Subsection 
(5)
, submit an annual audit or statement of actuarial opinion;
(ii)
maintain an active agreement with an independent auditor or actuary; or
(iii)
hold an annual meeting of the captive insurance company in the state.
(5)
The commissioner may require a captive insurance company that holds a certificate of 
dormancy to submit an annual audit if the commissioner determines that there are 
concerns regarding the captive insurance company's solvency or liquidity.
(6)
To maintain a certificate of dormancy and in lieu of a certificate of authority renewal 
fee, no later than July 1 of each year, a captive insurance company shall pay an annual 
dormancy renewal fee that is equal to 50% of the captive insurance's company's 
certificate of authority renewal fee.
(7)
A captive insurance company may consecutively renew a certificate of dormancy no 
more than five times.
Section 37, Section 
31A-37a-205
 is amended to read:
31A-37a-205
Effective 
05/07/25
. Sponsored captives.
(1)
In addition to the other provisions of this chapter, this section applies to a 
sponsored captive insurance company under 
Chapter 37, Captive Insurance Companies 
Act
, that has a certificate of authority as a special purpose financial captive insurance 
company 
pursuant to
in accordance with
 this chapter.
(1)
(2)
A sponsored captive insurance company may have a certificate of authority as a 
special purpose financial captive insurance company under this chapter.
(2)
(3)
(a)
For purposes of a sponsored captive insurance company having a certificate 
of authority as a special purpose financial captive insurance company, "general 
account" means the assets and liabilities of the sponsored captive insurance company 
not attributable to a 
protected 
cell.
(b)
For purposes of applying 
Chapter 27a, Insurer Receivership Act
, to a sponsored 
captive insurance company having a certificate of authority as a special purpose 
financial captive insurance company, the definition of "insolvency" and "insolvent" 
in Section 
31A-37a-102
 shall be applied separately to:
(i)
each 
protected 
cell; and
(ii)
the special purpose financial captive insurance company's general account.
(3)
(4)
(a)
A participant in a sponsored captive insurance company having a certificate 
of authority as a special purpose financial captive insurance company shall be a 
ceding insurer, unless approved by the commissioner before a person becomes a 
participant.
(b)
A change in a participant in a sponsored captive insurance company having a 
certificate of authority as a special purpose financial captive insurance company is 
subject to prior approval by the commissioner.
(4)
(5)
Notwithstanding Section 
31A-37-401
, a special purpose financial captive insurance 
company that is a sponsored captive insurance company may issue a security to a person 
not described in Section 
31A-37-401
 if the issuance to that person is approved by the 
commissioner before the issuance of the security.
(5)
(6)
Notwithstanding Section 
31A-37a-302
, a sponsored captive insurance company 
having a certificate of authority as a special purpose financial captive insurance 
company shall:
(a)
at the time of initial application for a certificate of authority as a special purpose 
financial captive insurance company, possess unimpaired paid-in capital and surplus 
of not less than $500,000; and
(b)
maintain at least $500,000 of unimpaired paid-in capital and surplus of not less than 
$500,000 during the time that it holds a certificate of authority under this chapter.
(6)
(7)
(a)
For purposes of a sponsored captive insurance company having a certificate 
of authority as a special purpose financial captive insurance company, this 
Subsection 
(6)
(7)
 applies to:
(i)
a security issued by the special purpose financial captive insurance company with 
respect to a 
protected 
cell; or
(ii)
a contract or obligation of the special purpose financial captive insurance 
company with respect to a 
protected 
cell.
(b)
A sponsored captive insurance company having a certificate of authority as a special 
purpose financial captive insurance company shall include with a security, contract, 
or obligation described in Subsection 
(6)(a)
(7)(a)
:
(i)
the designation of the 
protected 
cell; and
(ii)
a disclosure in a form and content satisfactory to the commissioner to the effect 
that the holder of the security or a counterparty to the contract or obligation has no 
right or recourse against the special purpose financial captive insurance company 
and its assets other than against an asset properly attributable to the 
protected 
cell.
(c)
Notwithstanding the requirements of this Subsection 
(6)
(7)
 and subject to other 
statutes or rules including this chapter and 
Chapter 37, Captive Insurance Companies 
Act
, a creditor, ceding insurer, or another person may not use a failure to include a 
disclosure described in Subsection 
(6)(b)
(7)(b)
, in whole or part, as the sole basis to 
have recourse against:
(i)
the general account of the special purpose financial captive insurance company; or
(ii)
the assets of another 
protected 
cell of the special financial captive insurance 
company.
(7)
(8)
In addition to Section 
31A-37-401
, a sponsored captive insurance company having 
a certificate of authority as a special purpose financial captive insurance company is 
subject to the following with respect to a 
protected 
cell:
(a)
(i)
A sponsored captive insurance company having a certificate of authority as a 
special purpose financial captive insurance company shall establish a 
protected 
cell only for the purpose of insuring or reinsuring risks of one or more reinsurance 
contracts with a ceding insurer with the intent of facilitating an insurance 
securitization.
(ii)
Subject to Subsection 
(7)(a)(iii)
(8)(a)(iii)
, a sponsored captive insurance 
company having a certificate of authority as a special purpose financial captive 
insurance company shall establish a separate 
protected 
cell with respect to a 
ceding insurer described in Subsection 
(7)(a)(i)
(8)(a)
.
(iii)
A sponsored captive insurance company having a certificate of authority as a 
special purpose financial captive insurance company shall establish a separate 
protected 
cell with respect to each reinsurance contract that is funded in whole or 
in part by a separate insurance securitization transaction.
(b)
A sponsored captive insurance company having a certificate of authority as a special 
purpose financial captive insurance company may not sale, exchange, or transfer an 
asset by, between, or among any of 
its protected
the sponsored captive insurance 
company's
 cells without the prior approval of the commissioner.
(8)
(9)
(a)
A sponsored captive insurance company having a certificate of authority as a 
special purpose financial captive insurance company shall attribute an asset or 
liability to a 
protected 
cell and to the general account in accordance with the plan of 
operation approved by the commissioner.
(b)
Except as provided by Subsection 
(8)(a)
(9)(a)
, a sponsored captive insurance 
company having a certificate of authority as a special purpose financial captive 
insurance company may not attribute an asset or liability between:
(i)
its
the sponsored captive insurance company's
 general account and a 
protected 
cell; or
(ii)
its protected
the sponsored captive insurance company's
 cells.
(c)
A sponsored captive insurance company having a certificate of authority as a special 
purpose financial captive insurance company shall attribute:
(i)
an insurance obligation, asset, or liability relating to a reinsurance contract entered 
into with respect to a 
protected 
cell; and
(ii)
an insurance securitization transaction related to the obligation, asset, or liability 
described in Subsection 
(8)(c)(i)
(9)(c)(i)
, including a security issued by the 
special purpose financial captive insurance company as part of the insurance 
securitization, to the 
protected 
cell.
(d)
The following shall reflect an insurance obligation, asset, or liability relating to a 
reinsurance contract and the insurance securitization transaction that are attributed to 
a 
protected 
cell:
(i)
a right, benefit, obligation, or a liability of a security attributable to a 
protected 
cell described in Subsection 
(8)(c)
(9)(c)
;
(ii)
the performance under a reinsurance contract and the related insurance 
securitization transaction; and
(iii)
a tax benefit, loss, refund, or credit allocated pursuant to a tax allocation 
agreement to which the special purpose financial captive insurance company is a 
party, including a payment made by or due to be made to the special purpose 
financial captive insurance company pursuant to the terms of the tax allocation 
agreement.
(9)
(10)
In addition to Section 
31A-37a-502
:
(a)
Chapter 27a, Insurer Receivership Act
, applies to each 
protected 
cell of a sponsored 
captive insurance company having a certificate of authority as a special purpose 
financial captive insurance company.
(b)
A proceeding or action taken by the commissioner pursuant to 
Chapter 27a, Insurer 
Receivership Act
, with respect to a 
protected 
cell of a sponsored captive insurance 
company having a certificate of authority as a special purpose financial captive 
insurance company may not be the sole basis for a proceeding pursuant to 
Chapter 
27a, Insurer Receivership Act
, with respect to:
(i)
another 
protected 
cell of the special purpose financial captive insurance 
company; or
(ii)
the special purpose financial captive insurance company's general account.
(c)
(i)
Except as provided in Subsection 
(9)(c)(ii)
(10)(c)(ii)
, the receiver of a special 
purpose financial captive insurance company shall ensure that the assets 
attributable to one 
protected 
cell are not applied to the liabilities attributable to:
(A)
another 
protected 
cell; or
(B)
the special purpose financial captive insurance company's general account.
(ii)
Notwithstanding Subsection 
(9)(c)(i)
(10)(c)(i)
, if an asset or liability is 
attributable to more than one 
protected 
cell, the receiver shall deal with the asset 
or liability in accordance with the terms of a relevant governing instrument or 
contract.
(d)
The insolvency of a 
protected 
cell of a sponsored captive insurance company 
having a certificate of authority as a special purpose financial captive insurance 
company may not be the sole basis for the commissioner to prohibit:
(i)
a payment by the special purpose financial captive insurance company made 
pursuant to a special purpose financial captive insurance company security or 
reinsurance contract with respect to another 
protected 
cell; or
(ii)
an action required to make a payment described in Subsection 
(9)(d)(i)
(10)(d)(i)
.
Section 38, Section 
31A-43-301
 is amended to read:
31A-43-301
Effective 
07/01/25
. Stop-loss insurance standards.
(1)
A small employer stop-loss insurance contract shall:
(a)
be issued to the small employer to provide insurance to the group health benefit plan, 
not the employees of the small employer;
(b)
have a contract term with guaranteed rates for at least 12 months, without 
adjustment, unless there is a change in the benefits provided under the small 
employer's health plan during the contract period;
(c)
include both a specific attachment point and an aggregate attachment point in a 
contract;
(d)
align stop-loss plan benefit limitations and exclusions with a small employer's health 
plan benefit limitations and exclusions, including any annual or lifetime limits in the 
employer's health plan;
(e)
subject to Subsection 
(4)
:
(i)
have an annual specific attachment point that is at least 
$10,000
$25,000
;
 and
(f)
(ii)
have an annual aggregate attachment point that may not be less than 
85%
90%
 of expected claims;
(g)
(f)
pay stop-loss claims:
(i)
incurred during the contract period; and
(ii)
paid within 12 months after the expiration date of the contract; and
(h)
(g)
include provisions to cover incurred and unpaid stop-loss claims when the small 
employer's stop-loss plan terminates.
(2)
A small employer stop-loss 
insurance 
contract 
shall
may
 not:
(a)
include lasering; and
(b)
pay claims directly to an individual employee, member, or participant.
(3)
A stop-loss insurer or reinsurer:
(a)
may enter into a small employer stop-loss insurance contract with a small employer 
with 10 or more enrolled employees; and
(b)
may not enter into a small employer stop-loss insurance contract with a small 
employer with less than 10 enrolled employees.
(4)
The provisions of this section do not apply to a small employer stop-loss insurance 
contract entered into before July 1, 2025, unless the insurance provider changes under 
the small employer's health plan during the contract period.
Section 39, Section 
61-2g-502
 is amended to read:
61-2g-502
Effective 
05/07/25
. Disciplinary action -- Grounds.
(1)
(a)
The board may order disciplinary action, with the concurrence of the division, 
against a person:
(i)
registered, licensed, or certified under this chapter; or
(ii)
required to be registered, licensed, or certified under this chapter.
(b)
On the basis of a ground listed in Subsection 
(2)
 for disciplinary action, board action 
may include:
(i)
revoking, suspending, or placing a person's registration, license, or certification on 
probation;
(ii)
denying a person's original registration, license, or certification;
(iii)
denying a person's renewal license, certification, or registration;
(iv)
in the case of denial or revocation of a registration, license, or certification, 
setting a waiting period for an applicant to apply for a registration, license, or 
certification under this chapter;
(v)
ordering remedial education;
(vi)
imposing a civil penalty upon a person not to exceed the greater of:
(A)
$5,000 for each violation; or
(B)
the amount of any gain or economic benefit from a violation;
(vii)
issuing a cease and desist order;
(viii)
modifying an action described in Subsections 
(1)(b)(i)
 through 
(vii)
 if the 
board, with the concurrence of the division, finds that the person complies with 
court ordered restitution; or
(ix)
doing any combination of Subsections 
(1)(b)(i)
 through 
(viii)
.
(c)
(i)
If the board or division issues an order that orders a fine or educational 
requirements as part of the disciplinary action against a person, including a 
stipulation and order, the board or division shall state in the order the deadline by 
which the person shall comply with the fine or educational requirements.
(ii)
If a person fails to comply with a stated deadline:
(A)
the person's license, certificate, or registration is automatically suspended:
(I)
beginning on the day specified in the order as the deadline for compliance; 
and
(II)
ending the day on which the person complies in full with the order; and
(B)
if the person fails to pay a fine required by an order, the division may begin a 
collection process:
(I)
established by the division by rule made in accordance with 
Title 63G, 
Chapter 3, Utah Administrative Rulemaking Act
; and
(II)
subject to 
Title 63A, Chapter 3, Part 5, Office of State Debt Collection
.
(2)
The following are grounds for disciplinary action under this section:
(a)
procuring or attempting to procure a registration, license, or certification under this 
chapter:
(i)
by fraud; or
(ii)
by making a false statement, submitting false information, or making a material 
misrepresentation in an application filed with the division;
(b)
paying money or attempting to pay money other than a fee provided for by this 
chapter to a member or employee of the division to procure a registration, license, or 
certification under this chapter;
(c)
an act or omission in the practice of real estate appraising that constitutes dishonesty, 
fraud, or misrepresentation;
(d)
entry of a judgment against a registrant, licensee, or certificate holder on grounds of 
fraud, misrepresentation, or deceit in the making of an appraisal of real estate;
(e)
regardless of whether the crime is related to the appraisal business, to:
(i)
be convicted of a felony;
(ii)
be convicted of any of the following involving fraud, misrepresentation, theft, or 
dishonesty:
(A)
a class A misdemeanor:
(B)
a class B misdemeanor; or
(C)
a criminal offense comparable to a class A or class B misdemeanor;
(iii)
plead guilty or nolo contendere to a felony;
(iv)
plead guilty or nolo contendere to any of the following involving fraud, 
misrepresentation, theft, or dishonesty:
(A)
a class A misdemeanor:
(B)
a class B misdemeanor; or
(C)
a criminal offense comparable to a class A or class B misdemeanor;
(v)
enter into a plea in abeyance agreement involving a felony; or
(vi)
enter into a plea in abeyance agreement involving any of the following involving 
fraud, misrepresentation, theft, or dishonesty:
(A)
a class A misdemeanor:
(B)
a class B misdemeanor; or
(C)
a criminal offense comparable to a class A or class B misdemeanor;
(f)
engaging in the business of real estate appraising under an assumed or fictitious name 
not properly registered in this state;
(g)
paying a finder's fee or a referral fee to a person not licensed or certified under this 
chapter in connection with an appraisal of real estate or real property in this state;
(h)
making a false or misleading statement in:
(i)
that portion of a written appraisal report that deals with professional 
qualifications; or
(ii)
testimony concerning professional qualifications;
(i)
violating or disregarding:
(i)
this chapter;
(ii)
an order of:
(A)
the board; or
(B)
the division, in a case when the board delegates to the division the authority to 
make a decision on behalf of the board; or
(iii)
a rule issued under this chapter;
(j)
violating the confidential nature of governmental records to which a person 
registered, licensed, or certified under this chapter gained access through 
employment or engagement as an appraiser by a governmental agency;
(k)
accepting a contingent fee for performing an appraisal if in fact the fee is or was 
contingent upon:
(i)
the appraiser reporting a predetermined analysis, opinion, or conclusion;
(ii)
the analysis, opinion, conclusion, or valuation reached; or
(iii)
the consequences resulting from the appraisal assignment;
(l)
unprofessional conduct as defined by statute or rule;
 or
(m)
in the case of a dual licensed title licensee as defined in Section 
31A-2-402
:
(i)
providing a title insurance product or service without the approval required by 
Section 
31A-2-405
; or
(ii)
knowingly providing false or misleading information in the statement required 
by Subsection 
31A-2-405(2)
; or
(n)
(m)
other conduct that constitutes dishonest dealing.
(3)
A person previously licensed, certified, or registered under this chapter remains 
responsible for, and is subject to disciplinary action for, an act that the person 
committed, while the person was licensed, certified, or registered, in violation of this 
chapter or an administrative rule in effect at the time that the person committed the act, 
regardless of whether the person is currently licensed, certified, or registered.
Section 40. 
Effective Date.
(1)
Except as provided in Subsection (2), this bill takes effect 
May 7, 2025
.
(2)
The actions affecting Section 
31A-43-301
Effective 
07/01/25
 take effect on 
July 1, 
2025
.
3-6-25 1:31 PM