No. 43693 (Amendment): Section R590-238-4. Annual Reporting Requirements

(Amendment)

DAR File No.: 43693
Filed: 05/01/2019 10:13:57 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The change is being made to comply with a statutory amendment that was enacted during the 2019 General Session via H.B. 55, Insurance Amendments.

Summary of the rule or change:

Before the 2019 General Session, Subsection 31A-37-501(2)(a) required the signature of one executive officer on a captive insurance company's annual report. Under the 2019 amendment that was included in HB 55, at least two executive officers and a captive insurance company manager or his or her representative must sign. The proposed rule change eliminates the requirement that one executive officer sign and adds a requirement that two executive officers and a captive insurance company's manager or his or her representative must sign.

Statutory or constitutional authorization for this rule:

• Section 31A-2-201
• Section 31A-37-106

Anticipated cost or savings to:

the state budget:

There is no anticipated cost or savings to the state budget. These changes do not alter the Insurance Department's workload and will not result in any change to the budget.

local governments:

There is no anticipated cost or savings to local governments. This rule governs the interactions between the Insurance Department (Department) and its licensees, and does not involve local governments in any way.

small businesses:

There is no anticipated cost or savings to small businesses. The only change is to the people who must sign a captive insurer's annual report.

persons other than small businesses, businesses, or local governmental entities:

There is no anticipated cost or savings to any other persons. The only change is to the people who must sign a captive insurer's annual report.

Compliance costs for affected persons:

There are no compliance costs for any affected persons. The only change is to the people who must sign a captive insurer's annual report.

Comments by the department head on the fiscal impact the rule may have on businesses:

After conducting a thorough analysis, it was determined that this rule change will not result in a fiscal impact to businesses.

Todd E. Kiser, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Insurance
Administration
Room 3110 STATE OFFICE BLDG
450 N MAIN ST
SALT LAKE CITY, UT 84114-1201

Direct questions regarding this rule to:

• Steve Gooch at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

06/14/2019

This rule may become effective on:

06/21/2019

Authorized by:

Steve Gooch, Information Specialist

RULE TEXT

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs

FY 2019

FY 2020

FY 2021

State Government

$0

$0

$0

Local Government

$0

$0

$0

Small Businesses

$0

$0

$0

Non-Small Businesses

$0

$0

$0

Other Person

$0

$0

$0

Total Fiscal Costs:

$0

$0

$0

Fiscal Benefits

State Government

$0

$0

$0

Local Government

$0

$0

$0

Small Businesses

$0

$0

$0

Non-Small Businesses

$0

$0

$0

Other Persons

$0

$0

$0

Total Fiscal Benefits:

$0

$0

$0

Net Fiscal Benefits:

$0

$0

$0

 

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described in the narrative. Inestimable impacts for Non - Small Businesses are described in Appendix 2.

 

Appendix 2: Regulatory Impact to Non - Small Businesses

This rule change is not expected to have any fiscal impacts on non-small businesses revenues or expenditures, because the only change is to the people who must sign a captive insurer's annual report.It requires signatures by two executive officers and the captive manager (or representative) of the insurer.

 

The head of the Insurance Department, Commissioner Todd E. Kiser, has reviewed and approved this fiscal analysis.

 

 

R590. Insurance, Administration.

R590-238. Captive Insurance Companies.

R590-238-4. Annual Reporting Requirements.

(1) A captive insurance company authorized in this state shall file an annual report of its financial condition with the commissioner as required by Section 31A-37-501. The report shall be verified by oath of [one of its]at least two individuals who are executive officers of the company and by the captive manager or a duly appointed representative. The report[and] shall be prepared using generally accepted accounting principles ("GAAP")[. The annual report] and shall be filed electronically consistent with directions from the commissioner.

(2) A captive insurance company shall observe the requirements of Section 31A-4-113 when it files an annual report of its financial condition. In addition, an industrial insured group shall observe the requirements of Section 31A-4-113.5 when it files an annual report.

(3) All captive insurance companies are to use the "Captive Insurance Company Annual Statement Form" except Risk Retention Group (RRG) insurers and special purpose financial captives which shall use the NAIC's Annual and Quarterly Statements.

(4) The Captive Insurance Company Annual Statement shall include a statement of a qualified Actuary titled "Statement of Actuarial Opinion," setting forth his or her opinion relating to loss and loss adjustment expense reserves.

 

KEY: captive insurance

Date of Enactment or Last Substantive Amendment: [September 25, 2015]2019

Notice of Continuation: May 2, 2017

Authorizing, and Implemented or Interpreted Law: 31A-2-201; 31A-37-106

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