COBI 2015 - Captive Insurers

Overview
Issues
Financials

Sources Uses

FY 2016 Appropriation

The Captive Insurance Division was created in 2003 when the Captive Insurance Companies Act (UCA 31A-37-101 through 604) was passed by the Legislature. The division licenses captive insurance companies formed by companies to manage their risk exposure. It also monitors their solvency and financial strength. The division is funded by the Captive Insurance Restricted Account.

Funding History

Appropriation Overview

During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $1,330,100 from all sources for Captive Insurers. This is a 25.8 percent increase from Fiscal Year 2015 revised estimated amounts from all sources.

Appropriation Adjustments

In addition to statewide compensation and internal service fund cost increases, the following appropriation adjustments were made during the 2015 General Session:

DescriptionOngoingOne-Time Captive Insurance Caseload Growth$225,000$0

OngoingOne-TimeFinancing Source

$225,000$0GFR - Captive Insurance

Growth in the Captive Insurance Program has increased administrative costs. Funding is intended to bring them up to the statutory caps.

Intent Language

HB0003: Item 71

Under Section 63J-1-603 of the Utah Code the Legislature intends that appropriations for Insurance Department Administration not lapse at the close of Fiscal Year 2015. Any appropriations related to the transfer of federal funds of $374,000 from the closing of the Comprehensive Health Insurance Pool program and $100,000 for general program revenues shall not lapse at the close of FY 2015. Transferred funds from the Comprehensive Health Insurance Pool program shall be utilized for any late claims from former program participants, audit costs, legal fees related to the program and health outreach activities. Any other funds are for replacement of computers, printers and copy machines, and scanners for electronic storage of documents.

Funding for the Captive Insurers program is from the Captive Insurance Restricted Account, and is used to fund all aspects of the program, including: personnel, audits and other supports for accomplishing the mission of the Captive Insurers program.

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Expenditure Category

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Appropriation History by

Sources of Finance	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
GFR - Captive Insurance	664,400	688,900	701,700	965,500	991,400	0	991,400	260,200	1,251,600
Beginning Nonlapsing	0	153,600	236,300	142,400	118,200	161,500	279,700	(107,500)	172,200
Closing Nonlapsing	(153,600)	(236,300)	(142,400)	(279,700)	(94,000)	(78,200)	(172,200)	78,500	(93,700)
Lapsing Balance	0	(46,100)	(101,700)	(15,600)	0	(41,400)	(41,400)	41,400	0
Total	$510,800	$560,100	$693,900	$812,600	$1,015,600	$41,900	$1,057,500	$272,600	$1,330,100

Categories of Expenditure	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Personnel Services	467,100	520,000	641,100	722,200	919,700	10,300	930,000	239,700	1,169,700
In-state Travel	0	0	0	0	5,100	2,400	7,500	(2,400)	5,100
Out-of-state Travel	8,500	12,600	17,900	18,300	29,500	500	30,000	(500)	29,500
Current Expense	19,200	19,900	19,300	29,800	38,000	12,000	50,000	47,900	97,900
DP Current Expense	16,000	7,600	15,600	42,300	23,300	16,700	40,000	(12,100)	27,900
Total	$510,800	$560,100	$693,900	$812,600	$1,015,600	$41,900	$1,057,500	$272,600	$1,330,100

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Other Indicators	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Budgeted FTE	6	6	6	6	6	0	6	0	6
Actual FTE	6	5.80	6.80	8.50	0	0	0	0	0

COBI contains unaudited data as presented to the Legislature by state agencies at the time of publication. For audited financial data see the State of Utah's Comprehensive Annual Financial Reports.