31A-37-603. Minimum capitalization or reserves for a captive reinsurance
company.
(1) (a) The commissioner may not issue a certificate of authority to a captive reinsurance
company unless a captive reinsurance company possesses and maintains capital or free surplus of
not less than the greater of:
(i) $300,000,000; or
(ii) 10% of the reserves of the captive reinsurance company.
(b) The surplus required by this Subsection (1) may be in the form of:
(i) cash; or
(ii) securities.
(2) The commissioner may prescribe additional capital or surplus based upon the type,
volume, and nature of the insurance business transacted.
(3) (a) A captive reinsurance company may not pay a dividend out of, or other
distribution with respect to capital or surplus without the prior approval of the commissioner.
(b) Approval of an ongoing plan for the payment of dividends or other distributions shall
be conditioned upon the retention at the time of each payment of capital or surplus in excess of
amounts specified by, or determined in accordance with formulas approved by, the
commissioner.
Amended by Chapter 302, 2008 General Session
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Last revised: Thursday, May 28, 2009