§ 31A-37-302 — Investment requirements.

(1) (1)(a) Except as provided in Subsection (1)(b), a captive insurance company and an industrial insured captive insurance company shall comply with the investment requirements contained in this title.
(1)(b) Notwithstanding Subsection (1)(a) and any other provision of this title, the commissioner may approve the use of alternative reliable methods of valuation and rating under Section 31A-37-106 for a captive insurance company or an industrial insured captive insurance company.
(2) (2)(a) Except as provided in Subsection (2)(b), a pure captive insurance company or industrial insured captive insurance company is not subject to any restrictions on allowable investments described in Section 31A-18-108.
(2)(b) Under Section 31A-37-106, the commissioner may prohibit or limit an investment that threatens the solvency or liquidity of a captive insurance company or industrial insured captive insurance company.
(3) (3)(a) (3)(a)(i) Except as provided in Subsection (3)(a)(ii), a captive insurance company may not make loans to:
(3)(a)(i)(A) the parent company of the captive insurance company; or
(3)(a)(i)(B) an affiliate of the captive insurance company.
(3)(a)(ii) A pure captive insurance company and an incorporated cell of a sponsored captive insurance company may make loans to:
(3)(a)(ii)(A) the parent company of the pure captive insurance company or incorporated cell of a sponsored captive insurance company; or
(3)(a)(ii)(B) an affiliate of the pure captive insurance company or incorporated cell of a sponsored captive insurance company.
(3)(b) A loan under Subsection (3)(a):
(3)(b)(i) may be made only on the prior written approval of the commissioner and, when applicable, the sponsor for an incorporated cell; and
(3)(b)(ii) shall be evidenced by a note in a form approved by the commissioner and, when applicable, the sponsor for an incorporated cell.
(3)(c) A pure captive insurance company may not make a loan from the paid-in capital required under Subsection 31A-37-204(2).
(4) If a captive insurer has excess surplus above the minimum capital required by Section 31A-37-204, the captive insurer may invest the captive insurer's excess surplus in a manner inconsistent with the authorized classes of investments described in Section 31A-18-110.
(5) Nothing in this section empowers a captive insurer to make an investment that is illegal or otherwise prohibited by this title.

Legislative History

Amended by Chapter 175, 2025 General Session