§ 11-13-533 — Public agency insurance mutuals and reserve funds -- Investment standard for public agency insurance mutuals.

Utah § 11-13-533

• Jurisdiction: Utah
• Title 11: Cities, Counties, and Local Taxing Units
• Ch. 11-13: Interlocal Cooperation Act
• Part 11-13-5: Fiscal Procedures for Interlocal Entities

Text

(1) A public agency insurance mutual or reserve fund may form one or more captive insurance companies in accordance with Title 31A, Chapter 37, Captive Insurance Companies Act.
(2) The state treasurer shall invest the public agency insurance mutual's assets with the primary goal of providing for the stability, income, and growth of the principal.
(3) Nothing in this section requires a specific outcome from investing.
(4) The state treasurer may employ professional asset managers to assist in the investment of the public agency insurance mutual's assets.
(5) (5)(a) To accomplish the primary goal described in Subsection (2), the state treasurer shall invest and manage the public agency insurance mutual's assets as a prudent investor would by:
(5)(a)(i) considering the purposes, terms, distribution requirements, and other circumstances of the investments; and
(5)(a)(ii) exercising reasonable care, skill, and caution to meet the standard of care of a prudent investor.
(5)(b) In determining whether the state treasurer has met the standard of care of a prudent investor, a court shall:
(5)(b)(i) consider the state treasurer's actions in light of the facts and circumstances existing at the time of the investment decision or action; and
(5)(b)(ii) evaluate the state treasurer's investment and management decisions respecting individual assets:
(5)(b)(ii)(A) not in isolation, but in the context of an investment portfolio as a whole; and
(5)(b)(ii)(B) as part of an overall investment strategy that has risk and return objectives that are reasonably suited to the investments.

Legislative History

Enacted by Chapter 187, 2025 General Session