(1)The commissioner may issue a certificate of authority to act as an insurer in this state to a captive insurance company that meets the requirements of this chapter.
(2)To conduct insurance business in this state, a captive insurance company shall:
(2)(a) obtain from the commissioner a certificate of authority authorizing the captive insurance company to conduct insurance business in this state;
(2)(b) (2)(b)(i) hold a meeting of the governing body:
(2)(b)(i)(A) at least once each year;
(2)(b)(i)(B) at which a quorum is present;
(2)(b)(i)(C) in the state; and
(2)(b)(i)(D) at which at least one out-of-state individual is physically present; or
(2)(b)(ii) become a member of the Utah Captive Insurance Association at the highest level of membership;
(2)(c) maintain in this state:
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(1) The commissioner may issue a certificate of authority to act as an insurer in this state to a captive insurance company that meets the requirements of this chapter.
(2) To conduct insurance business in this state, a captive insurance company shall:
(2)(a) obtain from the commissioner a certificate of authority authorizing the captive insurance company to conduct insurance business in this state;
(2)(b) (2)(b)(i) hold a meeting of the governing body:
(2)(b)(i)(A) at least once each year;
(2)(b)(i)(B) at which a quorum is present;
(2)(b)(i)(C) in the state; and
(2)(b)(i)(D) at which at least one out-of-state individual is physically present; or
(2)(b)(ii) become a member of the Utah Captive Insurance Association at the highest level of membership;
(2)(c) maintain in this state:
(2)(c)(i) the principal place of business of the captive insurance company; or
(2)(c)(ii) in the case of a branch captive insurance company, the principal place of business for the branch operations of the branch captive insurance company; and
(2)(d) except as provided in Subsection (3), appoint a resident registered agent to accept service of process and to otherwise act on behalf of the captive insurance company in the state.
(3) In the case of a captive insurance company formed as a corporation, if the registered agent cannot with reasonable diligence be found at the registered office of the captive insurance company, the commissioner is the agent of the captive insurance company upon whom process, notice, or demand may be served.
(4) (4)(a) Before receiving a certificate of authority, an applicant captive insurance company shall file with the commissioner:
(4)(a)(i) a certified copy of the captive insurance company's organizational charter;
(4)(a)(ii) a statement under oath of the captive insurance company's president and secretary or their equivalents showing the captive insurance company's financial condition; and
(4)(a)(iii) any other statement or document required by the commissioner under Section 31A-37-106.
(4)(b) In addition to the information required under Subsection (4)(a), an applicant captive insurance company shall file with the commissioner evidence of:
(4)(b)(i) the amount and liquidity of the assets of the applicant captive insurance company relative to the risks to be assumed by the applicant captive insurance company;
(4)(b)(ii) the adequacy of the expertise, experience, and character of the person who will manage the applicant captive insurance company;
(4)(b)(iii) the overall soundness of the plan of operation of the applicant captive insurance company;
(4)(b)(iv) the adequacy of the loss prevention programs for the prospective insureds of the applicant captive insurance company as the commissioner deems necessary; and
(4)(b)(v) any other factor the commissioner:
(4)(b)(v)(A) adopts by rule under Section 31A-37-106; and
(4)(b)(v)(B) considers relevant in ascertaining whether the applicant captive insurance company will be able to meet the policy obligations of the applicant captive insurance company.
(4)(c) In addition to the information required by Subsections (4)(a) and (b), an applicant sponsored captive insurance company shall file with the commissioner:
(4)(c)(i) a business plan at the level of detail required by the commissioner under Section 31A-37-106 demonstrating:
(4)(c)(i)(A) the manner in which the applicant sponsored captive insurance company will account for the losses and expenses of each cell; and
(4)(c)(i)(B) the manner in which the applicant sponsored captive insurance company will report to the commissioner the financial history, including losses and expenses, of each cell;
(4)(c)(ii) a statement acknowledging that the applicant sponsored captive insurance company will make all financial records of the applicant sponsored captive insurance company, including records pertaining to a cell, available for inspection or examination by the commissioner;
(4)(c)(iii) a contract or sample contract between the applicant sponsored captive insurance company and a participant; and
(4)(c)(iv) evidence that expenses will be allocated to each cell in an equitable manner.
(5) (5)(a) Information submitted in accordance with this section is classified as a protected record under Title 63G, Chapter 2, Government Records Access and Management Act.
(5)(b) Notwithstanding Title 63G, Chapter 2, Government Records Access and Management Act, the commissioner may disclose information submitted in accordance with this section to a public official having jurisdiction over the regulation of insurance in another state if:
(5)(b)(i) the public official receiving the information agrees in writing to maintain the confidentiality of the information; and
(5)(b)(ii) the laws of the state in which the public official serves require the information to be confidential.
(5)(c) This Subsection (5) does not apply to information provided by an industrial insured captive insurance company insuring the risks of an industrial insured group.
(6) (6)(a) A captive insurance company shall pay to the department the following nonrefundable fees established by the department under Sections 31A-3-103, 31A-3-304, and 63J-1-504:
(6)(a)(i) a fee for examining, investigating, and processing, by a department employee, of an application for a certificate of authority made by an applicant captive insurance company;
(6)(a)(ii) a fee for obtaining a certificate of authority for the year the captive insurance company is issued a certificate of authority by the department; and
(6)(a)(iii) a certificate of authority renewal fee, assessed annually.
(6)(b) The commissioner may:
(6)(b)(i) assign a department employee or retain legal, financial, or examination services from outside the department to perform the services described in:
(6)(b)(i)(A) Subsection (6)(a); and
(6)(b)(i)(B) Section 31A-37-502; and
(6)(b)(ii) charge the reasonable cost of services described in Subsection (6)(b)(i) to the applicant captive insurance company.
(7) If the commissioner is satisfied that the documents and statements filed by the applicant captive insurance company comply with this chapter, the commissioner may grant a certificate of authority authorizing the company to do insurance business in this state.
(8) A certificate of authority granted under this section expires annually and shall be renewed by July 1 of each year.