(1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commissioner may adopt rules to: (a) determine circumstances under which a branch captive insurance company is not required to be a pure captive insurance company; (b) require a statement, document, or information that a captive insurance company shall provide to the commissioner to obtain a certificate of authority; (c) determine a factor a captive insurance company shall provide evidence of under Subsection 31A-37-201(4)(b); (d) prescribe one or more capital requirements for a captive insurance company in addition to those required under Section 31A-37-204 based on the type, volume, and nature of insurance business transacted by the captive insurance company; (e) waive or modify a requirement for public notice and hearing for the following by a captive insurance company: (i) merger; (ii) consolidation; (iii) conversion; (iv) mutualization; (v) redomestication; or (vi) acquisition; (f) approve the use of one or more reliable methods of valuation and rating for: (i) an association captive insurance company; (ii) a sponsored captive insurance company; or (iii) an industrial insured group; (g) prohibit or limit an investment that threatens the solvency or liquidity of: (i) a pure captive insurance company; or (ii) an industrial insured captive insurance company; (h) determine the financial reports a sponsored captive insurance company shall annually file with the commissioner; (i) prescribe the required forms and reports under Section 31A-37-501; (j) establish one or more standards to ensure that: (i) one of the following is able to exercise control of the risk management function of a controlled unaffiliated business to be insured by a pure captive insurance company: (A) a parent; or (B) an affiliated company of a parent; or (ii) one of the following is able to exercise control of the risk management function of a controlled unaffiliated business to be insured by an industrial insured captive insurance company: (A) an industrial insured; or (B) an affiliated company of the industrial insured; and (k) establish requirements for obtaining, maintaining, and renewing a certificate of dormancy.

(a) determine circumstances under which a branch captive insurance company is not required to be a pure captive insurance company;

(b) require a statement, document, or information that a captive insurance company shall provide to the commissioner to obtain a certificate of authority;

(c) determine a factor a captive insurance company shall provide evidence of under Subsection 31A-37-201(4)(b);

(d) prescribe one or more capital requirements for a captive insurance company in addition to those required under Section 31A-37-204 based on the type, volume, and nature of insurance business transacted by the captive insurance company;

(e) waive or modify a requirement for public notice and hearing for the following by a captive insurance company: (i) merger; (ii) consolidation; (iii) conversion; (iv) mutualization; (v) redomestication; or (vi) acquisition;

(i) merger;

(ii) consolidation;

(iii) conversion;

(iv) mutualization;

(v) redomestication; or

(vi) acquisition;

(f) approve the use of one or more reliable methods of valuation and rating for: (i) an association captive insurance company; (ii) a sponsored captive insurance company; or (iii) an industrial insured group;

(i) an association captive insurance company;

(ii) a sponsored captive insurance company; or

(iii) an industrial insured group;

(g) prohibit or limit an investment that threatens the solvency or liquidity of: (i) a pure captive insurance company; or (ii) an industrial insured captive insurance company;

(i) a pure captive insurance company; or

(ii) an industrial insured captive insurance company;

(h) determine the financial reports a sponsored captive insurance company shall annually file with the commissioner;

(i) prescribe the required forms and reports under Section 31A-37-501;

(j) establish one or more standards to ensure that: (i) one of the following is able to exercise control of the risk management function of a controlled unaffiliated business to be insured by a pure captive insurance company: (A) a parent; or (B) an affiliated company of a parent; or (ii) one of the following is able to exercise control of the risk management function of a controlled unaffiliated business to be insured by an industrial insured captive insurance company: (A) an industrial insured; or (B) an affiliated company of the industrial insured; and

(i) one of the following is able to exercise control of the risk management function of a controlled unaffiliated business to be insured by a pure captive insurance company: (A) a parent; or (B) an affiliated company of a parent; or

(A) a parent; or

(B) an affiliated company of a parent; or

(ii) one of the following is able to exercise control of the risk management function of a controlled unaffiliated business to be insured by an industrial insured captive insurance company: (A) an industrial insured; or (B) an affiliated company of the industrial insured; and

(A) an industrial insured; or

(B) an affiliated company of the industrial insured; and

(k) establish requirements for obtaining, maintaining, and renewing a certificate of dormancy.

(2) Notwithstanding Subsection (1)(j), until the commissioner adopts the rules authorized under Subsection (1)(j), the commissioner may by temporary order grant authority to insure risks to: (a) a pure captive insurance company; or (b) an industrial insured captive insurance company.

(a) a pure captive insurance company; or

(b) an industrial insured captive insurance company.

(3) The commissioner may issue prohibitory, mandatory, and other orders relating to a captive insurance company as necessary to enable the commissioner to secure compliance with this chapter.