R590. Insurance, Administration.R590-197. Treatment of Guaranty Association Assessments as Qualified Assets.
R590-197-1. Authority.
This rule is promulgated by the commissioner pursuant to Sections 31A-2-201, 31A-17-201, and 31A-28-109.
R590-197-2. Purpose and Scope.
(1) The purpose of this rule is to establish the standard by which an assessment paid by an insurer to an insurance guaranty association may be treated as a qualified asset.
(2) This rule applies to an insurer licensed in Utah.
R590-197-3. Definitions.
Terms used in this rule are defined in Sections 31A-1-301 and 31A-17-201. Additional terms are defined as follows:
(1) "Qualified asset," as defined in Section 31A-17-201, includes a guaranty fund or guaranty association assessment paid in any state, if it is probable that the insurer can offset the assessment against present or future premium tax or income tax paid in the state in which the assessment was paid.
R590-197-4. Paid Assessments Are Qualified Assets.
(1) The amount of an assessment allowed as a qualified asset may not exceed 2-1/2 times the amount of premium or income tax paid for the previous calendar year.
(2) The commissioner may disallow an assessment as a qualified asset if the commissioner determines a company is unlikely to realize a present or future premium tax or income tax offset because of the assessment.
(3) An insurer is considered to have paid income or premium tax when it reduces its gross premium tax liability by use of a credit or other legally allowable deduction.
R590-197-5. Severability.
If any provision of this rule, Rule R590-197, 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 law
Date of Last Change: January 24, 2023
Notice of Continuation: November 4, 2024
Authorizing, and Implemented or Interpreted Law: 31A-2-201; 31A-17-201
