Utah Admin. Code 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.
Notes
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