Utah § 31A-18-108 Prohibited investments.

Utah Statutes

§ 31A-18-108 — Prohibited investments.

Utah § 31A-18-108

Title 31AInsurance Code

Ch. 31A-18Investments

This text of Utah § 31A-18-108 (Prohibited investments.) is published on Counsel Stack Legal Research, covering Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Utah Code Ann. § 31A-18-108 (2026).

Text

(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:

(1)(a) for the transfer of a risk or risks from one or more persons to one or more other persons; or

(1)(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:

(2)(a) invest in:

(2)(a)(i) an investment prohibited by a department rule or statute of this state;

(2)(a)(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;

(2)(a)(iii) securities issued by an insolvent corporation; or

(2)(a)(iv) any instrument

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(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:
(1)(a) for the transfer of a risk or risks from one or more persons to one or more other persons; or
(1)(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:
(2)(a) invest in:
(2)(a)(i) an investment prohibited by a department rule or statute of this state;
(2)(a)(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;
(2)(a)(iii) securities issued by an insolvent corporation; or
(2)(a)(iv) any instrument or security that the commissioner finds is designed to evade a limitation or prohibition in this chapter; or
(2)(b) use a derivative instrument for:
(2)(b)(i) replication; or
(2)(b)(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:
(4)(a) the insurer demonstrates the investment was not prohibited at the time the insurer made the investment;
(4)(b) the insurer made a good faith mistake in making the investment; or
(4)(c) the commissioner determines that the sale of the investment is contrary to the interests of insureds, creditors, or the general public.