Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 49 (2025GS)

Sponsor

Sen. Ipson, Don L.

Final action

Governor Signed 3/26/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• repeals the existing chapter dealing with insurance investments;
• defines terms;
• establishes a minimum financial security benchmark for insurers;
• describes the authorized investments an insurer may make;
• establishes prudence evaluation criteria;
• requires that an insurer establish and follow a written investment policy;
• describes the authorized classes of investments an insurer may make;
• establishes the limitation of classes of investments;
• requires that an insurer doing business in different currencies have securities in each currency that meet the requirements of this chapter;
• prohibits an insurer from making certain types of investments;
• establishes the effect of investment restrictions on insurers;
• provides insurers guidelines for the required reports and replies under this chapter;
• authorizes the commissioner to retain experts when analyzing an insurer's investments;

Every vote on this bill

Bill text

22
31A-18-101
31A-18-102
31A-18-103
31A-18-105
31A-18-106
31A-18-107
31A-18-108
31A-18-109
31A-18-110
31A-18-111
31A-18-112
31A-18-113
31A-18-114
31A-18-115
31A-18-116
31A-18-117
31A-18-118
63G-2-103
31A-18-101
31A-18-102
31A-18-103
31A-18-105
31A-18-106
31A-18-107
31A-18-108
31A-18-109
31A-18-110
31A-18-111
31A-18-112
31A-18-113
31A-18-114
31A-18-115
31A-18-116
31A-18-117
31A-18-118
63G-2-103
Insurance Investment Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Don L. Ipson
House Sponsor: R. Neil Walter
LONG TITLE
General Description:
This bill repeals and reenacts provisions relating to insurance investments.
Highlighted Provisions:
This bill:
repeals the existing chapter dealing with insurance investments;
defines terms;
establishes a minimum financial security benchmark for insurers;
describes the authorized investments an insurer may make;
establishes prudence evaluation criteria;
requires that an insurer establish and follow a written investment policy;
describes the authorized classes of investments an insurer may make;
establishes the limitation of classes of investments;
requires that an insurer doing business in different currencies have securities in each 
currency that meet the requirements of this chapter;
prohibits an insurer from making certain types of investments;
establishes the effect of investment restrictions on insurers;
provides insurers guidelines for the required reports and replies under this chapter;
authorizes the commissioner to retain experts when analyzing an insurer's investments;
authorizes the commissioner to issue orders regarding an insurer's investment practices;
describes how a commissioner should conduct an administrative hearing under this 
chapter;
exempts an investment policy subject to this chapter from the definition of "record" under 
the Government Records Access and Management Act;
provides the circumstances under which this chapter prevails over any conflicting statute 
that relates to insurance investments; and
grants the commissioner rulemaking authority regarding insurance investments.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
63G-2-103
, as last amended by Laws of Utah 2024, Chapters 18, 465, 509, and 522
ENACTS:
31A-18-109
, Utah Code Annotated 1953
31A-18-111
, Utah Code Annotated 1953
31A-18-112
, Utah Code Annotated 1953
31A-18-113
, Utah Code Annotated 1953
31A-18-114
, Utah Code Annotated 1953
31A-18-115
, Utah Code Annotated 1953
31A-18-116
, Utah Code Annotated 1953
31A-18-117
, Utah Code Annotated 1953
31A-18-118
, Utah Code Annotated 1953
REPEALS AND REENACTS:
31A-18-101
, as last amended by Laws of Utah 2008, Chapter 257
31A-18-102
, as enacted by Laws of Utah 1985, Chapter 242
31A-18-103
, as enacted by Laws of Utah 1985, Chapter 242
31A-18-105
, as last amended by Laws of Utah 2008, Chapter 257
31A-18-106
, as last amended by Laws of Utah 2011, Chapter 297
31A-18-107
, as enacted by Laws of Utah 1985, Chapter 242
31A-18-108
, as last amended by Laws of Utah 1999, Chapter 131
31A-18-110
, as enacted by Laws of Utah 1985, Chapter 242
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
31A-18-101
 is repealed and re-enacted to read:
1. Investments
31A-18-101. Definitions.
As used in this chapter:
(1)
"Derivative instrument" means an asset appropriately reported in Schedule DB or a 
Schedule DC of an insurer's statutory financial statement or successor schedules, in 
accordance with applicable annual statement instructions or statutory accounting 
guidelines.
(2)
"Derivative transaction" means a transaction involving the use of one or more derivative 
instruments.
(3)
"Income generation" means a derivative transaction involving the writing of covered 
options, caps, or floors that is intended to generate income or enhance return.
(4)
"Lower grade investment" means a rated credit instrument or debt-like preferred stock 
rated 4, 5, or 6 by the Securities Valuation Office of the NAIC or any successor office.
(5)
"Medium grade investment" means a rated credit instrument or debt-like preferred stock 
rated 3 by the Securities Valuation Office of the NAIC or any successor office.
(6)
"Minimum asset requirement" means the sum of an insurer's liabilities and the insurer's 
minimum financial security benchmark.
(7)
"Minimum financial security benchmark" means the amount of financial security an 
insurer is required to have under Section 
31A-18-102
.
(8)
"Modern Portfolio Theory" means a mathematical framework for assembling a portfolio 
of assets to maximize the expected return for a given level of risk, taking into 
consideration a portfolio's overall risk and return.
(9)
"NAIC" means the National Association of Insurance Commissioners.
(10)
"Replication" means a derivative transaction in which at least one derivative 
instrument is used to modify the cash flow characteristics of one or more investments 
held by an insurer so that the aggregate cash flow of the derivative instruments and 
investments reproduce the cash flow of another investment that has a higher risk-based 
capital charge than the risk-based capital charge of the original investment or 
investments.
(11)
"Securities valuation office listed mutual fund" means a money market mutual fund or 
short-term bond fund that:
(a)
is registered with the United States Securities and Exchange Commission under the 
Investment Company Act of 1940; and
(b)
the NAIC's Securities Valuation Office deems eligible for special reserve and 
reporting treatment other than as common stock.
Section 2, Section 
31A-18-102
 is repealed and re-enacted to read:
31A-18-102. Minimum financial security benchmark.
(1)
Except as provided in Subsections 
(2)
 and (3), the commissioner shall set a minimum 
financial security benchmark for an insurer that is the greater of:
(a)
the authorized control level risk-based capital applicable to the insurer as set forth in 
Sections 
31A-17-601
 through 
31A-17-613
; or
(b)
the minimum capital or minimum surplus required by statute or regulation for 
maintenance of an insurer's certificate of authority.
(2)
If an insurer falls below three and one-half times the authorized control level risk capital 
applicable to the insurer, the commissioner may issue an order, in accordance with the 
factors described in Subsection (5)(b), specifying a minimum financial security 
benchmark to apply to the insurer provided the financial security benchmark is at least 
the applicable amount described in Subsection 
(1)
.
(3)
The commissioner may establish by rule a minimum financial security benchmark that 
is a multiple of authorized control level risk-based capital to apply to any class of 
insurers provided the amount established by the regulation is at least the greater of the 
applicable amount described in Subsection 
(1)
.
(4)
The commissioner, when setting an insurer's minimum financial security benchmark as 
described in Subsection (1), shall set the minimum financial security benchmark at an 
amount that will provide reasonable security against contingencies affecting the insurer's 
financial position that are not fully covered by reserves or by reinsurance.
(5)
In setting an insurer's minimum financial security benchmark as described in Subsection 
(1)
, the commissioner shall consider:
(a)
the risks of:
(i)
increases in the frequency or severity of losses beyond the levels contemplated by 
the rates charged;
(ii)
increases in expenses beyond those contemplated by the rates charged;
(iii)
decreases in the value of or the return on invested assets below the expected 
values or returns in the insurer's investment plan;
(iv)
changes in economic conditions that would modify the insurer's assessment of 
the need for liquidity and force untimely sale of assets or prevent timely 
investments;
(v)
currency devaluation to which the insurer may be subject; and
(vi)
any other contingencies the commissioner identifies that may affect the insurer's 
operations; and
(b)
the following factors:
(i)
the most reliable information available regarding the magnitude of the risks 
described in Subsection 
(5)(a)
;
(ii)
the extent to which the risks in Subsection 
(5)(a)
 are related and whether any 
dependency is direct or inverse;
(iii)
the insurer's recent history of profits or losses;
(iv)
the extent of the insurer's protections against the contingencies in other ways than 
the establishment of surplus, including:
(A)
redundancy of premiums;
(B)
adjustability of contracts under the insurer's terms;
(C)
investment valuation reserves, whether voluntary or mandatory;
(D)
appropriate reinsurance;
(E)
the use of conservative actuarial assumptions to provide a margin of security;
(F)
reserve adjustments in recognition of previous rate inadequacies;
(G)
contingency or catastrophe reserves;
(H)
diversification of assets; and
(I)
underwriting risks;
(v)
independent judgment of the soundness of the insurer's operations, as evidenced 
by the ratings of reliable professional financial reporting services; and
(vi)
any other factors the commissioner deems relevant.
Section 3, Section 
31A-18-103
 is repealed and re-enacted to read:
31A-18-103. Authorized investments.
(1)
Subject to the provisions of this chapter, an insurer may, to the same extent as any other 
person under the laws of this state and the United States:
(a)
loan or invest the insurer's funds; and 
(b)
buy, sell, hold title to, possess, occupy, pledge, convey, manage, protect, insure, and 
deal with the insurer's investments, property, and other assets.
(2)
The board of directors, in handling an insurer's investments, shall:
(a)
exercise the judgment and care of a reasonable person in the management of a similar 
enterprise, not in the context of speculating, but in the context of the permanent 
disposition of the insurer's funds;
(b)
consider the probable income of an investment as well as the probable security of the 
insurer's capital;
(c)
ensure the insurer's investments are of sufficient value, liquidity, and diversity for the 
insurer to meet the insurer's outstanding obligations based on reasonable assumptions 
regarding new business production for the insurer's current lines of business; and
(d)
consider the prudence evaluation criteria described in Section 
31A-18-105
.
(3)
An insurer shall establish and implement internal controls and procedures that ensure:
(a)
compliance with the insurer's investment policies;
(b)
the insurer's investment staff and any consultant the insurer uses are reputable and 
capable;
(c)
a periodic evaluation and monitoring process occurs for assessing the effectiveness 
of investment policy and strategies;
(d)
the insurer's management's performance is assessed based on the stated objectives 
within the investment policy;
(e)
the insurer undertakes appropriate analyses of the degree to which asset cash flows 
adequately meet liability cash flows under different economic environments; and
(f)
the insurer conducts the analyses described in Subsection 
(3)(e)
 at least annually and 
makes specific reference to economic conditions.
Section 4, Section 
31A-18-105
 is repealed and re-enacted to read:
31A-18-105. Prudence evaluation criteria.
(1)
An insurer shall consider the following factors to determine whether an investment 
portfolio or investment policy is prudent:
(a)
general economic conditions;
(b)
the possible effect of inflation or deflation;
(c)
the expected tax consequences of investment decisions or strategies;
(d)
the fairness or reasonableness of the terms of an investment considering the 
investment's:
(i)
probable risk and reward characteristics; and
(ii)
relationship to the investment portfolio as a whole;
(e)
the extent of the diversification of the insurer's investments among:
(i)
individual investments;
(ii)
classes of investments;
(iii)
industry concentrations;
(iv)
dates of maturity; and
(v)
geographic areas;
(f)
the quality and liquidity of investments in the insurer's affiliates;
(g)
the investment exposure to:
(i)
liquidity risk;
(ii)
credit and default risk;
(iii)
systemic risk;
(iv)
interest rate risk;
(v)
call, prepayment, and extension risk;
(vi)
exchange rate risk; and
(vii)
foreign sovereign risk;
(h)
the amount of the insurer's:
(i)
assets;
(ii)
capital and surplus;
(iii)
premium writings;
(iv)
insurance in force; and
(v)
other appropriate characteristics;
(i)
the insurer's reported liabilities;
(j)
the matching of the expected cash flows of the insurer's assets and liabilities;
(k)
the risk of adverse changes in the insurer's assets and liabilities; and
(l)
the adequacy of the insurer's capital and surplus to secure the risks and liabilities of 
the insurer.
(2)
The commissioner shall consider the factors described in Subsection 
(1)
 before making 
a determination that an insurer's investment portfolio or investment policy is not prudent.
Section 5, Section 
31A-18-106
 is repealed and re-enacted to read:
31A-18-106. Insurer investment policy.
(1)
An insurer shall establish and follow a written investment policy for exchanging, 
holding, selling, or managing an investment.
(2)
An insurer's board of directors shall review the written investment policy described in 
Subsection 
(1)
 at least once annually.
(3)
The insurer shall include, in the written investment policy described in Subsection 
(1)
, 
at least the following:
(a)
policies, procedures, and controls covering all aspects of the investing functions;
(b)
quantified goals and objectives regarding the composition of classes of investments, 
including maximum internal limits;
(c)
a method for periodic evaluation of the investment portfolio regarding the investment 
portfolio's risk and reward characteristics;
(d)
professional standards for the individuals making day-to-day investment decisions to 
ensure that those individuals make those decisions in an ethical and capable manner;
(e)
the types of investments an insurer will make and avoid, based on:
(i)
the investments' risk and reward characteristics; and
(ii)
the insurer's level of experience with the investments;
(f)
the relationship of classes of investments to the insurer's insurance products and 
liabilities;
(g)
the manner in which the insurer intends to implement the prudence evaluation 
criteria described in Section 
31A-18-105
; and
(h)
the level of risk appropriate for the insurer given the level of capitalization and 
expertise available to the insurer.
(4)
Nothing in this section precludes an insurer from the use of modern portfolio theory to 
manage the insurer's investments.
Section 6, Section 
31A-18-107
 is repealed and re-enacted to read:
31A-18-107. Protection against currency fluctuations.
(1)
An insurer that, in the ordinary course of business, makes payments in more than one 
currency shall have an investment in securities:
(a)
in each of the currencies with which the insurer makes payments; and
(b)
in an amount that, independent of all other investments, meets the requirements of 
this chapter as applied separately to the insurer's obligation in each currency.
(2)
The commissioner may exempt an insurer, or a class of insurers, from the requirement 
described in Subsection (1), if the commissioner determines the obligations an insurer or 
class of insurers maintains in other currencies are small enough that there is not a 
significant risk to the financial security of the insurer or the class of insurers from 
substantial fluctuation in relative currency values.
Section 7, Section 
31A-18-108
 is repealed and re-enacted to read:
31A-18-108. Prohibited investments.
(1)
As used in this section, "government insurer" means a governmental entity that is 
authorized by statute or rule to provide an arrangement, contract, or plan:
(a)
for the transfer of a risk or risks from one or more persons to one or more other 
persons; or
(b)
for the distribution of a risk or risks among a group of persons that includes the 
person seeking to distribute that person's risk.
(2)
An insurer may not:
(a)
invest in:
(i)
an investment prohibited by a department rule or statute of this state;
(ii)
securities issued by a corporation if one or more of the insurer's officers or 
directors owns, directly or indirectly, a majority of the corporation's stock with 
voting power;
(iii)
securities issued by an insolvent corporation; or
(iv)
any instrument or security that the commissioner finds is designed to evade a 
limitation or prohibition in this chapter; or
(b)
use a derivative instrument for:
(i)
replication; or
(ii)
any purpose other than hedging or income generation.
(3)
A government insurer may not invest public funds in an investment where the sole 
purpose of the investment is a purpose other than maximizing the risk-adjusted return on 
the investment.
(4)
The commissioner shall allow an insurer a reasonable time, not to exceed five years, to 
divest of prohibited investments if:
(a)
the insurer demonstrates the investment was not prohibited at the time the insurer 
made the investment;
(b)
the insurer made a good faith mistake in making the investment; or
(c)
the commissioner determines that the sale of the investment is contrary to the 
interests of insureds, creditors, or the general public.
Section 8, Section 
31A-18-109
 is enacted to read:
31A-18-109. Effect of investment restrictions.
(1)
(a)
An insurer may count an invested asset towards the satisfaction of the minimum 
asset requirement only to the extent that the insurer invests the invested asset in 
compliance with this chapter, applicable department rules, and orders issued by the 
commissioner in compliance with this chapter.
(b)
An insurer may count assets other than invested assets towards the satisfaction of the 
minimum asset requirement at admitted annual statement value.
(2)
An investment held as an admitted asset by an insurer and that qualified under this 
chapter as an admitted asset on May 7, 2025, remains an admitted asset under this 
chapter.
(3)
For purposes of Subsection (1), an insurer may count assets that would not otherwise 
qualify under this chapter if an insurer acquires the assets in the bona fide enforcement 
of creditors' rights or in a bona fide workout or settlement of disputed claims for five 
years after acquisition of the asset.
Section 9, Section 
31A-18-110
 is repealed and re-enacted to read:
31A-18-110. Authorized classes of investments.
An insurer may count the following classes of investments for the purposes stated in 
Section 
31A-18-109
, whether the insurer makes these investments directly or as a participant 
in a partnership, joint venture, or limited liability company:
(1)
cash in the direct possession of the insurer or on deposit with a financial institution 
regulated by a federal or state agency;
(2)
a bond, debt-like preferred stock, and other evidence of indebtedness to:
(a)
a government unit in the United States or Canada;
(b)
an instrumentality of a government unit in the United States or Canada; or
(c)
a private business entity domiciled in the United States or Canada, including 
asset-backed securities and mutual funds listed by the Securities Valuation Office of 
the NAIC;
(3)
a loan secured by:
(a)
a mortgage, trust deed, or other security interest in real property located in the United 
States or Canada; or
(b)
insurance against default issued by:
(i)
a government insurance corporation of the United States or Canada; or
(ii)
an insurer authorized to do business in this state;
(4)
(a)
common stock, equity-like preferred stock, or equity interests in any United States 
or Canadian business entity; or
(b)
a share of mutual funds registered with the Securities and Exchange Commission of 
the United States under the Investment Company Act of 1940, 15 U.S.C. Sec. 80a-1 
et seq., other than any mutual fund listed by the Securities Valuation Office of the 
NAIC;
(5)
real property necessary for the convenient transaction of the insurer's business;
(6)
real property, including the fixtures, furniture, furnishings, and equipment pertaining to 
the real property that:
(a)
is located in the United States or Canada; and
(b)
produces, or after suitable improvement can reasonably be expected to produce 
substantial income;
(7)
a loan, security, or other investment described in Subsections (1) through (6) in a 
country other than the United States or Canada;
(8)
a bond or other evidence of indebtedness to an international development organization 
of which the United States is a member;
(9)
a loan upon the security of the insurer's own policies:
(a)
in an amount that is adequately secured by the policies; and
(b)
that does not exceed the surrender values of the policies;
(10)
tangible personal property under contract of sale or lease with a contractual payment 
that may be reasonably expected to return the principal of, and provide earnings on, the 
investments within the tangible personal property's anticipated useful life;
(11)
a loan secured by a pledged security or evidence of debt eligible for investment under 
this section;
(12)
other investments the commissioner authorizes by rule; and
(13)
for an investment not otherwise permitted by this section, and not specifically 
prohibited by statute, the lesser of:
(a)
excess surplus as that term is defined in Section 
31A-1-301
; or
(b)
5% of the first $500,000,000 of the insurer's admitted assets plus 10% of the insurer's 
admitted assets exceeding $500,000,000.
Section 10, Section 
31A-18-111
 is enacted to read:
31A-18-111. Limitations generally applicable.
(1)
For purposes of determining compliance with Section 
31A-18-109
:
(a)
securities of a single issuer and the single issuer's affiliates, other than the 
government of the United States and subsidiaries authorized under Section 
31A-16-102.5
, may not exceed:
(i)
5% of admitted assets; or
(ii)
10% of admitted assets, if the securities are secured by real property and the 
insurer demonstrates a prudent investment policy regarding the investments 
described in Section 
31A-18-105
; and
(b)
investments in the voting securities of a depository institution, or any company that 
controls a depository institution, may not exceed 5% of the insurer's admitted assets.
(2)
For purposes of Section 
31A-18-109
, the following limitations on classes of investments 
apply:
(a)
for an investment authorized under Subsection 
31A-18-110(2)
, and an investment 
authorized by Subsection 
31A-18-110(7)
 that is a type of investment described in 
Subsection 
31A-18-110(2)
, the aggregate amount of:
(i)
medium and lower grade investments may not exceed 20% of the insurer's 
admitted assets;
(ii)
lower grade investments may not exceed 10% of the insurer's admitted assets;
(iii)
investments rated 5 or 6 by the Securities Valuation Office of the NAIC, may not 
exceed 5% of the insurer's admitted assets;
(iv)
investments rated 6 by the Securities Valuation Office of the NAIC, may not 
exceed 1% of the insurer's admitted assets; or
(v)
medium and lower grade investments that receive, as cash income, less than the 
equivalent yield for Treasury issues with a comparative average life, may not 
exceed 1% of the insurer's admitted assets;
(b)
for an investment authorized under Subsection 
31A-18-110(3)
:
(i)
50% of admitted assets, if the insurer is a life insurer; and
(ii)
25% of admitted assets if the insurer is a non-life insurer;
(c)
for an investment authorized under Subsection 
31A-18-110(4)
, other than 
subsidiaries of the type authorized in Section 
31A-16-102.5
:
(i)
20% of admitted assets, if the insurer is a life insurer; and
(ii)
35% of admitted assets, if the insurer is a non-life insurer;
(d)
for an investment authorized under Subsection 
31A-18-110(5)
, 10% of admitted 
assets;
(e)
for an investment authorized under Subsection 
31A-18-110(6)
:
(i)
20% of admitted assets, if the insurer is a life insurer; and
(ii)
10% of admitted assets, if the insurer is a non-life insurer;
(f)
for an investment authorized under Subsection 
31A-18-110(7)
, 20% of admitted 
assets;
(g)
for an investment authorized under Subsection 
31A-18-110(8)
, 2% of admitted 
assets;
(h)
for an investment authorized under Subsection 
31A-18-110(10)
, 2% of admitted 
assets; and
(i)
for an investment authorized under Subsection 
31A-18-110(11)
, that is considered an 
investment in a kind of security or evidence of debt pledged, the investment is subject 
to the class limitations applicable to the pledged security or evidence of debt.
(3)
For purposes of determining compliance with the limitations of this section, the 
admitted portion of assets of subsidiaries under Section 
31A-15-102.5
 are deemed to be 
owned directly by the insurer and any other investors in proportion to the market value, 
or, if there is no market, the reasonable value of the investors' interest in the subsidiaries.
(4)
To the extent an investment exceeds the limitations described in Subsections (1) and (2), 
the insurer may assign the excess to the investment class authorized in Subsection 
31A-18-110(13)
, until that limit is exhausted.
(5)
If the commissioner determines necessary to get a proper evaluation of an insurer's 
investment portfolio, the commissioner may require that an investment in a mutual fund, 
pooled investment vehicle, or other investment company be treated, for purposes of this 
chapter, as if the investor directly owned the investor's proportional share of the assets 
owned by the mutual fund, pooled investment vehicle, or investment company.
(6)
Unless otherwise specified, an investment limitation computed on the basis of an 
insurer's admitted assets or capital and surplus is the amount the insurer stated on the 
insurer's statutory balance sheet that the insurer most recently filed with the 
commissioner.
Section 11, Section 
31A-18-112
 is enacted to read:
31A-18-112. Reports and replies.
(1)
The commissioner may require:
(a)
any of the following from a person subject to regulation under this chapter:
(i)
statements, reports, and responses to or other information gathered from 
questionnaires issued by the commissioner;
(ii)
evidence corroborating any statement, report, or response provided in accordance 
with Subsection (1)(a)(i), in a form that the commissioner designates and at 
reasonable intervals that the commissioner chooses; and
(iii)
a full explanation of the programming of any data storage or communication 
system that the person subject to regulation uses; and
(b)
that a person subject to regulation under this chapter make information from any 
book, record, electronic data processing system, computer, or any other information 
storage system the person subject to regulation uses available to the commissioner at 
a reasonable time and in a reasonable manner.
(2)
(a)
The commissioner may provide forms for a statement, report, or response 
described in Subsection (1) and specify how to execute or certify the statement, 
report, or response.
(b)
The commissioner shall ensure that forms for a statement, report, or response 
required by Subsection (1) are consistent, to the extent practicable, with forms 
required by other jurisdictions.
(3)
The commissioner may provide reasonable minimum standards and techniques of 
accounting and data handling to ensure:
(a)
timely and reliable information exist; and 
(b)
the commissioner's access to the information described in Subsection (3)(a).
(4)
The following shall reply promptly, in writing or in another reasonable manner, to a 
written inquiry from the commissioner in which the commissioner requests a reply:
(a)
an officer of an insurer;
(b)
a manager or general agent of an insurer subject to this chapter;
(c)
an individual controlling or having a contract under which the person has a right to 
control the insurer, whether exclusively or otherwise; or
(d)
an individual with executive authority over or in charge of any segment of the 
insurer's affairs.
(5)
The commissioner may require that any communication made to the commissioner 
under this section be verified.
(6)
A person making a communication to the commissioner, or to an expert or consultant 
retained by the commissioner, required by this chapter is not subject to damages for the 
communication in the absence of actual malice.
(7)
Notwithstanding Subsection (6), the commissioner may bring an action against any 
person that provides information required under this chapter that is not truthful or 
accurate.
Section 12, Section 
31A-18-113
 is enacted to read:
31A-18-113. Retention of experts.
(1)
The commissioner may retain, if the commissioner deems necessary to assist in 
reviewing the insurer's investments, experts including:
(a)
attorneys;
(b)
actuaries;
(c)
accountants; and
(d)
investment specialists.
(2)
The commissioner shall:
(a)
direct and maintain control of the individuals retained under Subsection (1); and
(b)
ensure that the individuals described in Subsection (1) operate in solely an advisory 
capacity for the commissioner.
Section 13, Section 
31A-18-114
 is enacted to read:
31A-18-114. Commissioner's orders.
(1)
If the commissioner determines that an insurer's practices do not meet the provisions of 
this chapter, the commissioner may order, after notification to the insurer of the 
commissioner's findings, the insurer to make changes necessary to comply with the 
provisions in this chapter.
(2)
If the commissioner determines that due to the financial condition, current investment 
practice, or current investment plan of an insurer, the interests of insureds, creditors, or 
the general public are or may be endangered, the commissioner may:
(a)
impose reasonable additional restrictions on the admissibility or valuation of 
investments; or
(b)
impose restrictions on the investment practices of an insurer, including prohibition or 
divestment.
(3)
If an insurer demonstrates that a law of a country other than the United States requires 
the insurer to invest in an asset as a condition for doing business in that country, the 
commissioner may count that asset towards the insurer's compliance with the minimum 
asset requirement if the commissioner finds that counting the asset does not endanger 
the interests of the insureds, creditors, or the general public.
(4)
(a)
If an insurer demonstrates the financial security of an insurer and the competence 
of the insurer's management and advisor in a way that satisfies the commissioner, the 
commissioner may issue an order, after a hearing, adjusting the limitations of classes 
of investment described in Section 
31A-18-111
 for that insurer if the commissioner is 
satisfied that the interests of the insureds, creditors, and the public are sufficiently 
protected in other ways.
(b)
The increase authorized by the commissioner to the amount an insurer may invest in 
any or all asset classes may not exceed, in value, 10% of the insurer's liabilities.
Section 14, Section 
31A-18-115
 is enacted to read:
31A-18-115. Administrative hearings.
An insurer may request a hearing if the insurer is directly aggrieved by the 
commissioner issuing an order or rule or failing to comply with the provisions of this chapter.
Section 15, Section 
31A-18-116
 is enacted to read:
31A-18-116. Confidentiality of information.
The investment policy, or information related to the investment policy provided to the 
commissioner for review, is not a record under Title 63G, Chapter 2, Government Records 
Access and Management Act, except as provided in Sections 
31A-16-105
 and 
31A-16-107.5
, 
Chapter 27a, Part 3, Rehabilitation, and Chapter 27a, Part 4, Liquidation.
Section 16, Section 
31A-18-117
 is enacted to read:
31A-18-117. Conflicts of laws and other standards.
(1)
Except as provided in Subsection (2), the provisions of this chapter apply if there is a 
conflict between this chapter and another provision of state statute.
(2)
Chapter 16, Insurance Holding Companies, purporting to authorize an insurer to make a 
particular investment, supersedes this chapter.
(3)
An insurer shall value the insurer's assets in accordance with the valuation standards of 
the NAIC to the extent those standards remain consistent with the statutes of this state or 
the rules or orders of the commissioner.
Section 17, Section 
31A-18-118
 is enacted to read:
31A-18-118. Rules.
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the 
commissioner may make rules interpreting and implementing the provisions of this chapter.
Section 18, Section 
63G-2-103
 is amended to read:
63G-2-103. Definitions.
As used in this chapter:
(1)
"Audit" means:
(a)
a systematic examination of financial, management, program, and related records for 
the purpose of determining the fair presentation of financial statements, adequacy of 
internal controls, or compliance with laws and regulations; or
(b)
a systematic examination of program procedures and operations for the purpose of 
determining their effectiveness, economy, efficiency, and compliance with statutes 
and regulations.
(2)
"Chronological logs" mean the regular and customary summary records of law 
enforcement agencies and other public safety agencies that show:
(a)
the time and general nature of police, fire, and paramedic calls made to the agency; 
and
(b)
any arrests or jail bookings made by the agency.
(3)
"Classification," "classify," and their derivative forms mean determining whether a 
record series, record, or information within a record is public, private, controlled, 
protected, or exempt from disclosure under Subsection 
63G-2-201
(3)(b).
(4)
(a)
"Computer program" means:
(i)
a series of instructions or statements that permit the functioning of a computer 
system in a manner designed to provide storage, retrieval, and manipulation of 
data from the computer system; and
(ii)
any associated documentation and source material that explain how to operate the 
computer program.
(b)
"Computer program" does not mean:
(i)
the original data, including numbers, text, voice, graphics, and images;
(ii)
analysis, compilation, and other manipulated forms of the original data produced 
by use of the program; or
(iii)
the mathematical or statistical formulas, excluding the underlying mathematical 
algorithms contained in the program, that would be used if the manipulated forms 
of the original data were to be produced manually.
(5)
(a)
"Contractor" means:
(i)
any person who contracts with a governmental entity to provide goods or services 
directly to a governmental entity; or
(ii)
any private, nonprofit organization that receives funds from a governmental entity.
(b)
"Contractor" does not mean a private provider.
(6)
"Controlled record" means a record containing data on individuals that is controlled as 
provided by Section 
63G-2-304
.
(7)
"Designation," "designate," and their derivative forms mean indicating, based on a 
governmental entity's familiarity with a record series or based on a governmental entity's 
review of a reasonable sample of a record series, the primary classification that a 
majority of records in a record series would be given if classified and the classification 
that other records typically present in the record series would be given if classified.
(8)
"Elected official" means each person elected to a state office, county office, municipal 
office, school board or school district office, special district office, or special service 
district office, but does not include judges.
(9)
"Explosive" means a chemical compound, device, or mixture:
(a)
commonly used or intended for the purpose of producing an explosion; and
(b)
that contains oxidizing or combustive units or other ingredients in proportions, 
quantities, or packing so that:
(i)
an ignition by fire, friction, concussion, percussion, or detonator of any part of the 
compound or mixture may cause a sudden generation of highly heated gases; and
(ii)
the resultant gaseous pressures are capable of:
(A)
producing destructive effects on contiguous objects; or
(B)
causing death or serious bodily injury.
(10)
"Government audit agency" means any governmental entity that conducts an audit.
(11)
(a)
"Governmental entity" means:
(i)
executive department agencies of the state, the offices of the governor, lieutenant 
governor, state auditor, attorney general, and state treasurer, the Board of Pardons 
and Parole, the Board of Examiners, the National Guard, the Career Service 
Review Office, the State Board of Education, the Utah Board of Higher 
Education, and the State Archives;
(ii)
the Office of the Legislative Auditor General, Office of the Legislative Fiscal 
Analyst, Office of Legislative Research and General Counsel, the Legislature, and 
legislative committees, except any political party, group, caucus, or rules or sifting 
committee of the Legislature;
(iii)
courts, the Judicial Council, the Administrative Office of the Courts, and similar 
administrative units in the judicial branch;
(iv)
any state-funded institution of higher education or public education; or
(v)
any political subdivision of the state, but, if a political subdivision has adopted an 
ordinance or a policy relating to information practices pursuant to Section 
63G-2-701
, this chapter shall apply to the political subdivision to the extent 
specified in Section 
63G-2-701
 or as specified in any other section of this chapter 
that specifically refers to political subdivisions.
(b)
"Governmental entity" also means:
(i)
every office, agency, board, bureau, committee, department, advisory board, or 
commission of an entity listed in Subsection (11)(a) that is funded or established 
by the government to carry out the public's business;
(ii)
as defined in Section 
11-13-103
, an interlocal entity or joint or cooperative 
undertaking, except for the Water District Water Development Council created 
pursuant to Section 
11-13-228
;
(iii)
as defined in Section 
11-13a-102
, a governmental nonprofit corporation;
(iv)
an association as defined in Section 
53G-7-1101
;
(v)
the Utah Independent Redistricting Commission; and
(vi)
a law enforcement agency, as defined in Section 
53-1-102
, that employs one or 
more law enforcement officers, as defined in Section 
53-13-103
.
(c)
"Governmental entity" does not include the Utah Educational Savings Plan created in 
Section 
53B-8a-103
.
(12)
"Gross compensation" means every form of remuneration payable for a given period to 
an individual for services provided including salaries, commissions, vacation pay, 
severance pay, bonuses, and any board, rent, housing, lodging, payments in kind, and 
any similar benefit received from the individual's employer.
(13)
"Individual" means a human being.
(14)
(a)
"Initial contact report" means an initial written or recorded report, however 
titled, prepared by peace officers engaged in public patrol or response duties 
describing official actions initially taken in response to either a public complaint 
about or the discovery of an apparent violation of law, which report may describe:
(i)
the date, time, location, and nature of the complaint, the incident, or offense;
(ii)
names of victims;
(iii)
the nature or general scope of the agency's initial actions taken in response to the 
incident;
(iv)
the general nature of any injuries or estimate of damages sustained in the incident;
(v)
the name, address, and other identifying information about any person arrested or 
charged in connection with the incident; or
(vi)
the identity of the public safety personnel, except undercover personnel, or 
prosecuting attorney involved in responding to the initial incident.
(b)
Initial contact reports do not include follow-up or investigative reports prepared after 
the initial contact report. However, if the information specified in Subsection (14)(a) 
appears in follow-up or investigative reports, it may only be treated confidentially if 
it is private, controlled, protected, or exempt from disclosure under Subsection 
63G-2-201
(3)(b).
(c)
Initial contact reports do not include accident reports, as that term is described in 
Title 41, Chapter 6a, Part 4, Accident Responsibilities.
(15)
"Legislative body" means the Legislature.
(16)
"Notice of compliance" means a statement confirming that a governmental entity has 
complied with an order of the State Records Committee.
(17)
"Person" means:
(a)
an individual;
(b)
a nonprofit or profit corporation;
(c)
a partnership;
(d)
a sole proprietorship;
(e)
other type of business organization; or
(f)
any combination acting in concert with one another.
(18)
"Personal identifying information" means the same as that term is defined in Section 
63A-12-100.5
.
(19)
"Privacy annotation" means the same as that term is defined in Section 
63A-12-100.5
.
(20)
"Private provider" means any person who contracts with a governmental entity to 
provide services directly to the public.
(21)
"Private record" means a record containing data on individuals that is private as 
provided by Section 
63G-2-302
.
(22)
"Protected record" means a record that is classified protected as provided by Section 
63G-2-305
.
(23)
"Public record" means a record that is not private, controlled, or protected and that is 
not exempt from disclosure as provided in Subsection 
63G-2-201
(3)(b).
(24)
"Reasonable search" means a search that is:
(a)
reasonable in scope and intensity; and
(b)
not unreasonably burdensome for the government entity.
(25)
(a)
"Record" means a book, letter, document, paper, map, plan, photograph, film, 
card, tape, recording, electronic data, or other documentary material regardless of 
physical form or characteristics:
(i)
that is prepared, owned, received, or retained by a governmental entity or political 
subdivision; and
(ii)
where all of the information in the original is reproducible by photocopy or other 
mechanical or electronic means.
(b)
"Record" does not include:
(i)
a personal note or personal communication prepared or received by an employee 
or officer of a governmental entity:
(A)
in a capacity other than the employee's or officer's governmental capacity; or
(B)
that is unrelated to the conduct of the public's business;
(ii)
a temporary draft or similar material prepared for the originator's personal use or 
prepared by the originator for the personal use of an individual for whom the 
originator is working;
(iii)
material that is legally owned by an individual in the individual's private capacity;
(iv)
material to which access is limited by the laws of copyright or patent unless the 
copyright or patent is owned by a governmental entity or political subdivision;
(v)
proprietary software;
(vi)
junk mail or a commercial publication received by a governmental entity or an 
official or employee of a governmental entity;
(vii)
a book that is cataloged, indexed, or inventoried and contained in the collections 
of a library open to the public;
(viii)
material that is cataloged, indexed, or inventoried and contained in the 
collections of a library open to the public, regardless of physical form or 
characteristics of the material;
(ix)
a daily calendar ;
(x)
a note prepared by the originator for the originator's own use or for the sole use of 
an individual for whom the originator is working;
(xi)
a computer program that is developed or purchased by or for any governmental 
entity for its own use;
(xii)
a note or internal memorandum prepared as part of the deliberative process by:
(A)
a member of the judiciary;
(B)
an administrative law judge;
(C)
a member of the Board of Pardons and Parole; or
(D)
a member of any other body, other than an association or appeals panel as 
defined in Section 
53G-7-1101
, charged by law with performing a 
quasi-judicial function;
(xiii)
a telephone number or similar code used to access a mobile communication 
device that is used by an employee or officer of a governmental entity, provided 
that the employee or officer of the governmental entity has designated at least one 
business telephone number that is a public record as provided in Section 
63G-2-301
;
(xiv)
information provided by the Public Employees' Benefit and Insurance Program, 
created in Section 
49-20-103
, to a county to enable the county to calculate the 
amount to be paid to a health care provider under Subsection 
17-50-319
(2)(e)(ii);
(xv)
information that an owner of unimproved property provides to a local entity as 
provided in Section 
11-42-205
;
(xvi)
a video or audio recording of an interview, or a transcript of the video or audio 
recording, that is conducted at a Children's Justice Center established under 
Section 
67-5b-102
;
(xvii)
child sexual abuse material, as defined by Section 
76-5b-103
;
(xviii)
before final disposition of an ethics complaint occurs, a video or audio 
recording of the closed portion of a meeting or hearing of:
(A)
a Senate or House Ethics Committee;
(B)
the Independent Legislative Ethics Commission;
(C)
the Independent Executive Branch Ethics Commission, created in Section 
63A-14-202
; or
(D)
the Political Subdivisions Ethics Review Commission established in Section 
63A-15-201
; 
(xix)
confidential communication described in Section 
58-60-102
, 
58-61-102
, or 
58-61-702
;
(xx)
any item described in Subsection (25)(a) that is:
(A)
described in Subsection 
63G-2-305
(17), (18), or (23)(b); and
(B)
shared between any of the following entities:
(I)
the Division of Risk Management;
(II)
the Office of the Attorney General;
(III)
the governor's office; or
(IV)
the Legislature;
 or
(xxi)
the email address that a candidate for elective office provides to a filing officer 
under Subsection 
20A-9-201
(5)(c)(ii) or 
20A-9-203
(4)(c)(iv)
.
; or
(xxii)
except as provided in Sections 
31A-16-105
, 
31A-16-107.5
, and 
27a-3-303
, an 
investment policy, or information related to an investment policy, provided to the 
insurance commissioner as described in Title 31A, Chapter 18, Investments.
(26)
"Record series" means a group of records that may be treated as a unit for purposes of 
designation, description, management, or disposition.
(27)
"Records officer" means the individual appointed by the chief administrative officer of 
each governmental entity, or the political subdivision to work with state archives in the 
care, maintenance, scheduling, designation, classification, disposal, and preservation of 
records.
(28)
"Schedule," "scheduling," and their derivative forms mean the process of specifying 
the length of time each record series should be retained by a governmental entity for 
administrative, legal, fiscal, or historical purposes and when each record series should be 
transferred to the state archives or destroyed.
(29)
"Sponsored research" means research, training, and other sponsored activities as 
defined by the federal Executive Office of the President, Office of Management and 
Budget:
(a)
conducted:
(i)
by an institution within the state system of higher education defined in Section 
53B-1-102
; and
(ii)
through an office responsible for sponsored projects or programs; and
(b)
funded or otherwise supported by an external:
(i)
person that is not created or controlled by the institution within the state system of 
higher education; or
(ii)
federal, state, or local governmental entity.
(30)
"State archives" means the Division of Archives and Records Service created in 
Section 
63A-12-101
.
(31)
"State archivist" means the director of the state archives.
(32)
"State Records Committee" means the State Records Committee created in Section 
63G-2-501
.
(33)
"Summary data" means statistical records and compilations that contain data derived 
from private, controlled, or protected information but that do not disclose private, 
controlled, or protected information.
Section 19. 
Effective date.
This bill takes effect on 
May 7, 2025
.
2-14-25 3:38 PM