Utah Admin. Code R590-181-3 - Definitions

Terms used in this rule are defined in Section 31A-1-301. Additional terms are defined as follows:

(1) "Investment quality" means a quality rating of "1" or "2" assigned by the National Association of Insurance Commissioners' Securities Valuation Office (SVO).

(a) A Yankee bond that is not SVO rated at the time of purchase by an insurer shall be submitted to the SVO for rating within 90 days of purchase.

(b)

(i) A Yankee bond that is not SVO rated at the time of purchase by an insurer may be temporarily considered investment quality if the insurer demonstrates to the satisfaction of the commissioner that an SVO rating of "1" or "2" is likely.

(ii) The assumption of quality is in effect only until rating by the SVO is complete.

(2) "Qualified assets" means the same as that term is defined in Subsection 31A-17-201(2).

(3) "Yankee bond" means a fixed income bond issued:

(a) in a U.S. Dollar denomination by a foreign government;

(b) by an entity whose bonds are guaranteed by a foreign government; or

(c) by a corporation not domiciled in the United States of America.

Notes

Utah Admin. Code R590-181-3

Amended by Utah State Bulletin Number 2022-07, effective 3/25/2022