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(1) A captive insurance company, other than a branch captive insurance company, may be formed as a corporation or a limited liability company.
(2) The capital of a captive insurance company shall be held by:
(a) the interest holders of the captive insurance company; or
(b) a governing body elected by:
(i) the insureds;
(ii) one or more affiliates; or
(iii) a combination of the persons described in Subsections (2)(b)(i) and (ii).
(3) A captive insurance company formed in this state shall have at least one establisher who is an individual and a resident of the state.
(4)
(a) An applicant captive insurance company's establishers shall obtain a certificate of public good from the commissioner before filing its governing documents with the Division of Corporations and Commercial Code.
(b) In considering a request for a certificate under Subsection (4)(a), the commissioner shall consider:
(i) the character, reputation, financial standing, and purposes of the establishers;
(ii) the character, reputation, financial responsibility, insurance experience, and business qualifications of the principal officers or members of the governing body;
(iii) any information in:
(A) the application for a certificate of authority; or
(B) the department's files; and
(iv) other aspects that the commissioner considers advisable.
(5)
(a) Except as otherwise provided in this title, the governing body of a captive insurance company shall consist of at least three individuals as members, at least one of whom is a resident of the state.
(b) One-third of the members of the governing body of a captive insurance company constitutes a quorum of the governing body.
(6) A captive insurance company shall have at least three individuals as principal officers with duties comparable to those of president, treasurer, and secretary.
(7)
(a) A captive insurance company formed as a corporation is subject to the provisions of Title 16, Chapter 10a, Utah Revised Business Corporation Act, and this chapter. If a conflict exists between a provision of Title 16, Chapter 10a, Utah Revised Business Corporation Act, and a provision of this chapter, this chapter controls.
(b) A captive insurance company formed as a limited liability company is subject to the provisions of Title 48, Chapter 3a, Utah Revised Uniform Limited Liability Company Act, and this chapter. If a conflict exists between a provision of Title 48, Chapter 3a, Utah Revised Uniform Limited Liability Company Act, and a provision of this chapter, this chapter controls.
(c) Except as provided in Subsection (7)(d), the provisions of this title that govern a merger, consolidation, conversion, mutualization, and redomestication apply to a captive insurance company in carrying out any of the transactions described in those provisions.
(d) Notwithstanding Subsection (7)(c), the commissioner may waive or modify the requirements for public notice and hearing in accordance with rules adopted under Section 31A-37-106.
(e) If a notice of public hearing is required, but no one requests a hearing, the commissioner may cancel the public hearing.