Utah Legislates Changes for Captive Insurers

Utah lawmakers have passed legislation that makes a wide range of changes for captive insurers licensed in the state.

Under the measure, S.B. 31, a requirement that captive insurers be examined by state regulators every 5 years was removed. Instead, examinations will be done when regulators decide they are needed.

The 5-year examination requirement was removed, and "we will check as necessary," said Utah Captive Insurance Director Travis Wegkamp in Salt Lake City.

In addition, association captives will be allowed to provide homeowners insurance coverage to their policyholders.

The legislation also says if a pure captive insurance company "is not acting as a pool that facilitates risk distribution for other captive insurers," its paid-in capital is the greater of "not less than 20 percent of the company's total aggregate risk or $50,000."