Certificate of dormancy

(1) In accordance with the provisions of this section, a captive insurance company, other than a risk retention group, may apply, without fee, to the commissioner for a certificate of dormancy. (2) (a) A captive insurance company, other than a risk retention group or a cell of a sponsored captive insurance company, is eligible for a certificate of dormancy if the company: (i) has ceased transacting the business of insurance, including the issuance of insurance policies; and (ii) has no remaining insurance liabilities or obligations associated with insurance business transactions or insurance policies. (b) For purposes of Subsection (2)(a)(ii), the commissioner may disregard liabilities or obligations for which the captive insurance company has withheld sufficient funds or that are otherwise sufficiently secured. (3) Except as provided in Subsection (4), a captive insurance company that holds a certificate of dormancy is subject to all requirements of this chapter. (4) A captive insurance company that holds a certificate of dormancy: (a) shall possess and maintain unimpaired paid-in capital and unimpaired paid-in surplus of at least 10% of the minimum capital required in Section 31A-37-204; and (b) is not required to: (i) subject to Subsection (5), submit an annual audit or statement of actuarial opinion; (ii) maintain an active agreement with an independent auditor or actuary; or (iii) hold an annual meeting of the captive insurance company in the state. (5) The commissioner may require a captive insurance company that holds a certificate of dormancy to submit an annual audit if the commissioner determines that there are concerns regarding the captive insurance company's solvency or liquidity. (6) To maintain a certificate of dormancy and in lieu of a certificate of authority renewal fee, no later than July 1 of each year, a captive insurance company shall pay an annual dormancy renewal fee that is equal to 50% of the captive insurance's company's certificate of authority renewal fee.