Utah Code 31A-17-402. Valuation of liabilities
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(1) Subject to this section, the commissioner shall make rules:
Terms Used In Utah Code 31A-17-402
- Accident and health insurance: means insurance to provide protection against economic losses resulting from:(1)(a)(i) a medical condition including:(1)(a)(i)(A) a medical care expense; or(1)(a)(i)(B) the risk of disability;(1)(a)(ii) accident; or(1)(a)(iii) sickness. See Utah Code 31A-1-301
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Annuity: means an agreement to make periodical payments for a period certain or over the lifetime of one or more individuals if the making or continuance of all or some of the series of the payments, or the amount of the payment, is dependent upon the continuance of human life. See Utah Code 31A-1-301
- Equal: means , with respect to biological sex, of the same value. See Utah Code 68-3-12.5
- Insurance: includes :
(96)(b)(i) a risk distributing arrangement providing for compensation or replacement for damages or loss through the provision of a service or a benefit in kind;(96)(b)(ii) a contract of guaranty or suretyship entered into by the guarantor or surety as a business and not as merely incidental to a business transaction; and(96)(b)(iii) a plan in which the risk does not rest upon the person who makes an arrangement, but with a class of persons who have agreed to share the risk. See Utah Code 31A-1-301- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Life insurance: means :
(114)(a)(i) insurance on a human life; and(114)(a)(ii) insurance pertaining to or connected with human life. See Utah Code 31A-1-301- Premium: includes , however designated:
(156)(b)(i) an assessment;(156)(b)(ii) a membership fee;(156)(b)(iii) a required contribution; or(156)(b)(iv) monetary consideration. See Utah Code 31A-1-301- Reinsurance: means an insurance transaction where an insurer, for consideration, transfers any portion of the risk it has assumed to another insurer. See Utah Code 31A-1-301
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- Title insurance: means the insuring, guaranteeing, or indemnifying of an owner of real or personal property or the holder of liens or encumbrances on that property, or others interested in the property against loss or damage suffered by reason of liens or encumbrances upon, defects in, or the unmarketability of the title to the property, or invalidity or unenforceability of any liens or encumbrances on the property. See Utah Code 31A-1-301
(1)(a) specifying the liabilities required to be reported by an insurer in a financial statement submitted under Section 31A-2-202; and(1)(b) the methods of valuing the liabilities described in Subsection (1)(a).(2) For life insurance, the methods of valuing specified pursuant to Subsection (1)(b) shall be consistent with Part 5, Standard Valuation Law.(3) Title insurance reserves are provided for under Section 31A-17-408.(4) In determining the financial condition of an insurer, liabilities include:(4)(a) the estimated amount necessary to pay:(4)(a)(i) all the insurer’s unpaid losses and claims incurred on or before the date of statement, whether reported or unreported; and(4)(a)(ii) the expense of adjustment or settlement of a loss or claim described in this Subsection (4)(a);(4)(b) for life, accident and health insurance, and annuity contracts:(4)(b)(i) the reserves on life insurance policies and annuity contracts in force, valued according to appropriate tables of mortality and the applicable rates of interest;(4)(b)(ii) the reserves for accident and health benefits, for both active and disabled lives;(4)(b)(iii) the reserves for accidental death benefits; and(4)(b)(iv) any additional reserves:(4)(b)(iv)(A) that may be required by the commissioner by rule; or(4)(b)(iv)(B) if no rule is applicable under Subsection (4)(b)(iv)(A), in a manner consistent with the practice formulated or approved by the National Association of Insurance Commissioners with respect to those types of insurance;(4)(c) subject to Subsection (6), for insurance other than life, accident and health, and title insurance, the amount of reserves equal to the unearned portions of the gross premiums charged on policies in force, computed:(4)(c)(i) on a daily or monthly pro rata basis; or(4)(c)(ii) other basis approved by the commissioner;(4)(d) for ocean marine and other transportation insurance, reserves:(4)(d)(i) equal to 50% of the amount of premiums upon risks covering not more than one trip or passage not terminated; and(4)(d)(ii) computed:(4)(d)(ii)(A) upon a pro rata basis; or(4)(d)(ii)(B) with the commissioner’s consent, in accordance with a method provided under Subsection (4)(c); and(4)(e) the insurer’s other liabilities due or accrued at the date of statement including:(4)(e)(i) taxes;(4)(e)(ii) expenses; and(4)(e)(iii) other obligations.(5)(5)(a) Except to the extent provided in Subsection (5)(b), in determining the financial condition of an insurer of workers’ compensation insurance, the insurer’s liabilities do not include any liability based on the liability of the Employer’s Reinsurance Fund under Section 34A-2-702 for industrial accidents or occupational diseases occurring on or before June 30, 1994.(5)(b) Notwithstanding Subsection (5)(a), the liability of an insurer of workers’ compensation insurance includes any premium assessment:(5)(b)(i) imposed under Section 59-9-101; and(5)(b)(ii) due at the date of statement.(6) After adopting a method for computing the reserves described in Subsection (4)(c), an insurer may not change the method without the commissioner’s written consent.