Utah Code 31A-37-305. Contributions to guaranty or insolvency fund prohibited
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(1) A captive insurance company may not join or contribute financially to any of the following in this state:
Terms Used In Utah Code 31A-37-305
- Affiliate: means a person who controls, is controlled by, or is under common control with, another person. See Utah Code 31A-1-301
- Association: means a legal association of two or more persons that meets the following requirements:(4)(a) the persons are exposed to similar or related liability because of related, similar, or common business trade, products, services, premises, or operations; and(4)(b)(4)(b)(i) the association or the association's member organizations:(4)(b)(i)(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;(4)(b)(i)(B) have complete voting control over an association captive insurance company incorporated as a mutual insurer; or(4)(b)(i)(C) have complete voting control over an association captive insurance company formed as a limited liability company; or(4)(b)(ii) the association's member organizations collectively constitute all of the subscribers of an association captive insurance company formed as a reciprocal insurer. See Utah Code 31A-37-102
- Association captive insurance company: means a business entity that insures risks of:(5)(a) a member organization of the association;(5)(b) an affiliate of a member organization of the association; and(5)(c) the association. See Utah Code 31A-37-102
- Captive insurance company: includes any of the following formed or holding a certificate of authority under this chapter:(9)(b)(i) a branch captive insurance company;(9)(b)(ii) a pure captive insurance company;(9)(b)(iii) an association captive insurance company;(9)(b)(iv) a sponsored captive insurance company;(9)(b)(v) 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;(9)(b)(vi) a special purpose captive insurance company; or(9)(b)(vii) a special purpose financial captive insurance company. See Utah Code 31A-37-102
- 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
- insurance company: means a person doing an insurance business as a principal including:(104)(a)(i) a fraternal benefit society;(104)(a)(ii) an issuer of a gift annuity other than an annuity specified in Subsections
31A-22-1305 (2) and (3);(104)(a)(iii) a motor club;(104)(a)(iv) an employee welfare plan;(104)(a)(v) a person purporting or intending to do an insurance business as a principal on that person's own account; and(104)(a)(vi) a health maintenance organization. See Utah Code 31A-1-301 - Insured: means a person to whom or for whose benefit an insurer makes a promise in an insurance policy and includes:(103)(a)(i) a policyholder;(103)(a)(ii) a subscriber;(103)(a)(iii) a member; and(103)(a)(iv) a beneficiary. See Utah Code 31A-1-301
- Member: means a person having membership rights in an insurance corporation. See Utah Code 31A-1-301
- 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. See Utah Code 31A-37-102
- State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
(1)(a) a plan;
(1)(b) a pool;
(1)(c) an association;
(1)(d) a guaranty fund; or
(1)(e) an insolvency fund.
(2) A captive insurance company, the insured of a captive insurance company, the parent of a captive insurance company, an affiliate of a captive insurance company, or a member organization of an association captive insurance company may not receive a benefit from:
(2)(a) a plan;
(2)(b) a pool;
(2)(c) an association;
(2)(d) a guaranty fund for claims arising out of the operations of the captive insurance company; or
(2)(e) an insolvency fund for claims arising out of the operations of the captive insurance company.