§ 31A-3-304 — Annual fees -- Other taxes or fees prohibited -- Captive Insurance Restricted Account.

Utah § 31A-3-304

• Jurisdiction: Utah
• Title 31A: Insurance Code
• Ch. 31A-3: Department Funding, Fees, and Taxes
• Part 31A-3-3: Taxation of Surplus Lines, Illegal Transactions, and Captive Insurance Companies

Text

(1) (1)(a) A captive insurance company shall pay an annual fee imposed under this section to obtain or renew a certificate of authority.
(1)(b) The commissioner shall:
(1)(b)(i) determine the annual fee in accordance with Section 31A-3-103; and
(1)(b)(ii) consider whether the annual fee is competitive with fees imposed by other states on captive insurance companies.
(2) A captive insurance company that fails to pay the fee required by this section is subject to the relevant sanctions of this title.
(3) (3)(a) A captive insurance company that pays one of the following fees is exempt from Title 59, Chapter 7, Corporate Franchise and Income Taxes, and Title 59, Chapter 9, Taxation of Admitted Insurers:
(3)(a)(i) a fee under this section;
(3)(a)(ii) a fee under Chapter 37, Captive Insurance Companies Act; or
(3)(a)(iii) a fee under Chapter 37a, Special Purpose Financial Captive Insurance Company Act.
(3)(b) The state or a county, city, or town within the state may not levy or collect an occupation tax or other fee or charge not described in Subsections (3)(a)(i) through (iii) against a captive insurance company.
(3)(c) The state may not levy, assess, or collect a withdrawal fee under Section 31A-4-115 against a captive insurance company.
(4) A captive insurance company shall pay the fee imposed by this section to the commissioner by June 1 of each year.
(5) (5)(a) The commissioner shall deposit money received from a fee described in Subsection (3)(a) into the Captive Insurance Restricted Account.
(5)(b) There is created in the General Fund a restricted account known as the "Captive Insurance Restricted Account."
(5)(c) The Captive Insurance Restricted Account shall consist of the fees described in Subsection (3)(a).
(5)(d) The commissioner shall administer the Captive Insurance Restricted Account. Subject to appropriations by the Legislature, the commissioner shall use the money deposited into the Captive Insurance Restricted Account to:
(5)(d)(i) administer and enforce:
(5)(d)(i)(A) Chapter 37, Captive Insurance Companies Act; and
(5)(d)(i)(B) Chapter 37a, Special Purpose Financial Captive Insurance Company Act; and
(5)(d)(ii) promote the captive insurance industry in Utah.
(5)(e) An appropriation from the Captive Insurance Restricted Account is nonlapsing, except that at the end of each fiscal year, money received by the commissioner in excess of the legislative appropriation for the fiscal year that just ended shall be treated as free revenue in the General Fund:
(5)(e)(i) for fiscal year 2025, in excess of $1,650,000; and
(5)(e)(ii) for fiscal year 2026 and subsequent fiscal years, in excess of $1,668,500.

Legislative History

Amended by Chapter 175, 2025 General Session