Authority to make rules -- Authority to issue orders.
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(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.
(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.
(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.