R590. Insurance, Administration.R590-103. Security Deposits.
R590-103-1. Authority.
This rule is promulgated by the commissioner pursuant to Subsections 31A-2-201(3) and 31A-2-206(17).
R590-103-2. Purpose and Scope.
(1) The purpose of this rule is to establish procedures and forms for a required deposit with the commissioner.
(2) This rule applies to each insurer licensee in this state.
R590-103-3. Definitions.
Terms used in this rule are defined in Section 31A-1-301.
R590-103-4. Rules.
(1) Rule R590-178 and the federal book-entry system shall apply to a security deposited with the state.
(2) A security held by a qualified transfer deposit corporation may be a qualified deposit if the security is held:
(a) in accordance with Rule R590-178; and
(b) through a qualified custodian.
(3) If a declining balance security is deposited with the commissioner, the insurer depositing the security shall:
(a) report the balance to the commissioner at least on a quarterly basis; or
(b) if ordered by the commissioner, report the balance on a monthly basis.
(4)(a) The custodian institution holding a deposit, or the state treasurer, shall provide an annual report to the insurer and the commissioner indicating the amount of securities held on December 31 of each year.
(b) The report shall be submitted by January 15 of the following year.
(c) The report shall provide a description of the securities, including:
(i) the Committee on Uniform Securities Identification Procedures (CUSIP) number;
(ii) the interest rate;
(iii) the par value; and
(iv) the maturity date.
(d) The report shall demonstrate that the securities held in the deposit satisfy the requirements of Subsection 31A-2-206(7).
(e) Failure to provide the report shall be grounds for appropriate action by the commissioner.
(5)(a) A certificate of deposit may be deposited in an amount not to exceed federal insurance limits.
(b) The face amount of the certificate of deposit shall be the market value.
(6) The following forms are available on the department's website at https://insurance.utah.gov:
(a) depository agreement;
(b) deposit request; and
(c) withdrawal request.
(7) A deposit required under this section shall apply to each insurer licensee in this state.
(8) A foreign insurer may deposit a security in:
(a) the insurer's domiciliary state; or
(b) another state with comparable deposit statutes or rules.
(9) The only acceptable deposit is a deposit held for all policyholders.
R590-103-5. Severability.
If any provision of this rule, Rule R590-103, or its application to any person or situation is held invalid, such invalidity does not affect any other provision or application of this rule that can be given effect without the invalid provision or application. The remainder of this rule shall be given effect without the invalid provision or application.
KEY: insurance
Date of Last Change: October 25, 2021
Notice of Continuation: December 8, 2021
Authorizing, and Implemented or Interpreted Law: 31A-2-201; 31A-2-206
