Terms Used In Utah Code > Title 31A > Chapter 37 > Part 2 - Certificate of Authority

• Affiliate: means a person who controls, is controlled by, or is under common control with, another person. See Utah Code 31A-1-301
• 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:
            (1)(a)(i) a parent;
            (1)(a)(ii) an industrial insured; or
            (1)(a)(iii) a member organization. See Utah Code 31A-37-102
• Alien captive insurance company: means an insurer:
       (2)(a) formed to write insurance business for a parent or affiliate of the insurer; and
       (2)(b) licensed pursuant to the laws of an alien or foreign jurisdiction that imposes statutory or regulatory standards:

            (2)(b)(i) on a business entity transacting the business of insurance in the alien or foreign jurisdiction; and

            (2)(b)(ii) in a form acceptable to the commissioner. See Utah Code 31A-37-102
• 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application for a certificate of authority for a captive insurance company, unless the application has been denied or withdrawn. See Utah Code 31A-37-102
• Application: means a document:
       (10)(a)

            (10)(a)(i) completed by an applicant to provide information about the risk to be insured; and

            (10)(a)(ii) that contains information that is used by the insurer to evaluate risk and decide whether to:

                 (10)(a)(ii)(A) insure the risk under:

                      (10)(a)(ii)(A)(I) the coverage as originally offered; or

                      (10)(a)(ii)(A)(II) a modification of the coverage as originally offered; or

                 (10)(a)(ii)(B) decline to insure the risk; or
       (10)(b) used by the insurer to gather information from the applicant before issuance of an annuity contract. See Utah Code 31A-1-301
• Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
• 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
• Branch business: means an insurance business transacted by a branch captive insurance company in this state. See Utah Code 31A-37-102
• 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. See Utah Code 31A-37-102
• Business plan: means the information required to be supplied to the commissioner under Subsections 31A-5-204(2)(i) and (j), including the information required when these subsections apply by reference under:
       (19)(a) Section 31A-8-205; or
       (19)(b) Subsection 31A-9-205(2). See Utah Code 31A-1-301
• 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
• Certificate: means evidence of insurance given to:
       (23)(a) an insured under a group insurance policy; or
       (23)(b) a third party. See Utah Code 31A-1-301
• Commissioner: means Utah's Insurance Commissioner or the commissioner's designee. See Utah Code 31A-37-102
• Contract: A legal written agreement that becomes binding when signed.
• Controlled unaffiliated business: means a business entity:
       (14)(a)

            (14)(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

            (14)(a)(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;
       (14)(b)

            (14)(b)(i) in the case of a pure captive insurance company, that has a contractual relationship with a parent or affiliate; or

            (14)(b)(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
       (14)(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:

            (14)(c)(i)

                 (14)(c)(i)(A) a pure captive insurance company; or

                 (14)(c)(i)(B) an industrial insured captive insurance company; or

            (14)(c)(ii) a parent or affiliate of:

                 (14)(c)(ii)(A) a pure captive insurance company; or

                 (14)(c)(ii)(B) an industrial insured captive insurance company. See Utah Code 31A-37-102
• 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. See Utah Code 31A-37-102
• Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
• Department: means the Insurance Department. See Utah Code 31A-1-301
• Employee: means :
       (57)(a) an individual employed by an employer; or
       (57)(b) an individual who meets the requirements of Subsection (55)(b). See Utah Code 31A-1-301
• Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. ^{Source: U.S. Courts}
• Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
• Federal funds: means cash received from the United States government or from other individuals or entities for or on behalf of the United States and deposited with the state treasurer or any agency of the state. See Utah Code 67-4-2
• Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. ^{Source: OCC}
• Filed: means that a filing is:
            (69)(a)(i) submitted to the department as required by and in accordance with applicable statute, rule, or filing order;
            (69)(a)(ii) received by the department within the time period provided in applicable statute, rule, or filing order; and
            (69)(a)(iii) accompanied by the appropriate fee in accordance with:

                 (69)(a)(iii)(A) Section 31A-3-103; or

                 (69)(a)(iii)(B) rule. See Utah Code 31A-1-301
• Form: means one of the following prepared for general use:
            (74)(a)(i) a policy;
            (74)(a)(ii) a certificate;
            (74)(a)(iii) an application;
            (74)(a)(iv) an outline of coverage; or
            (74)(a)(v) an endorsement. See Utah Code 31A-1-301
• General Fund: means money received into the treasury and not specially appropriated to any other fund. See Utah Code 67-4-2
• Governing body: means the persons who hold the ultimate authority to direct and manage the affairs of an entity. See Utah Code 31A-37-102
• Industrial insured: means an insured:
       (18)(a) that produces insurance:

            (18)(a)(i) by the services of a full-time employee acting as a risk manager or insurance manager; or

            (18)(a)(ii) using the services of a regularly and continuously qualified insurance consultant;
       (18)(b) whose aggregate annual premiums for insurance on all risks total at least $25,000; and
       (18)(c) that has at least 25 full-time employees. 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
• Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
• Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
• Member: means a person having membership rights in an insurance corporation. See Utah Code 31A-1-301
• Member organization: means a person that belongs to an association. See Utah Code 31A-37-102
• 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
• Participant: means an entity that is insured by a sponsored captive insurance company:
       (23)(a) if the losses of the participant are limited through a participant contract to the assets of a protected cell; and
       (23)(b)

            (23)(b)(i) the entity is permitted to be a participant under Section 31A-37-403; or

            (23)(b)(ii) the entity is an affiliate of an entity permitted to be a participant under Section 31A-37-403. See Utah Code 31A-37-102
• Person: includes :
       (146)(a) an individual;
       (146)(b) a partnership;
       (146)(c) a corporation;
       (146)(d) an incorporated or unincorporated association;
       (146)(e) a joint stock company;
       (146)(f) a trust;
       (146)(g) a limited liability company;
       (146)(h) a reciprocal;
       (146)(i) a syndicate; or
       (146)(j) another similar entity or combination of entities acting in concert. See Utah Code 31A-1-301
• Policy: includes a service contract issued by:
            (150)(b)(i) a motor club under Chapter 11, Motor Clubs;
            (150)(b)(ii) a service contract provided under Chapter 6a, Service Contracts; and
            (150)(b)(iii) a corporation licensed under:

                 (150)(b)(iii)(A) Chapter 7, Nonprofit Health Service Insurance Corporations; or

                 (150)(b)(iii)(B) Chapter 8, Health Maintenance Organizations and Limited Health Plans. See Utah Code 31A-1-301
• Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5
• Protected cell: means a separate account established and maintained by a sponsored captive insurance company for one participant. See Utah Code 31A-37-102
• Public debt: Cumulative amounts borrowed by the Treasury Department or the Federal Financing Bank from the public or from another fund or account. The public debt does not include agency debt (amounts borrowed by other agencies of the Federal Government). The total public debt is subject to a statutory limit.
• Pure captive insurance company: means a business entity that insures risks of a parent or affiliate of the business entity. See Utah Code 31A-37-102
• 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
• Reinsurer: means a person licensed in this state as an insurer with the authority to assume reinsurance. See Utah Code 31A-1-301
• Security: means a:
            (176)(a)(i) note;
            (176)(a)(ii) stock;
            (176)(a)(iii) bond;
            (176)(a)(iv) debenture;
            (176)(a)(v) evidence of indebtedness;
            (176)(a)(vi) certificate of interest or participation in a profit-sharing agreement;
            (176)(a)(vii) collateral-trust certificate;
            (176)(a)(viii) preorganization certificate or subscription;
            (176)(a)(ix) transferable share;
            (176)(a)(x) investment contract;
            (176)(a)(xi) voting trust certificate;
            (176)(a)(xii) certificate of deposit for a security;
            (176)(a)(xiii) certificate of interest of participation in an oil, gas, or mining title or lease or in payments out of production under such a title or lease;
            (176)(a)(xiv) commodity contract or commodity option;
            (176)(a)(xv) certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase any of the items listed in Subsections (176)(a)(i) through (xiv); or
            (176)(a)(xvi) another interest or instrument commonly known as a security. See Utah Code 31A-1-301
• Service of process: The service of writs or summonses to the appropriate party.
• Sponsor: means an entity that:
       (28)(a) meets the requirements of Section 31A-37-402; and
       (28)(b) is approved by the commissioner to:

            (28)(b)(i) provide all or part of the capital and surplus 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; and

            (28)(b)(ii) organize and operate a sponsored captive insurance company. See Utah Code 31A-37-102
• Sponsored captive insurance company: means a captive insurance company:
       (29)(a) in which the minimum capital and surplus required by applicable law is provided by one or more sponsors;
       (29)(b) that is formed or holding a certificate of authority under this chapter;
       (29)(c) that insures the risks of a separate participant through the contract; and
       (29)(d) that segregates each participant's liability through one or more protected cells. 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
• State funds: includes funds of independent state agencies or public corporations, regardless of the source of funds. See Utah Code 67-4-2
• Surplus: means the excess of assets over the sum of paid-in capital and liabilities. See Utah Code 31A-1-301
• Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. ^{Source: OCC}
• United States: includes each state, district, and territory of the United States of America. See Utah Code 68-3-12.5
• Writing: includes :
       (48)(a) printing;
       (48)(b) handwriting; and
       (48)(c) information stored in an electronic or other medium if the information is retrievable in a perceivable format. See Utah Code 68-3-12.5