Section R590-280-4 - Requirements for Counting Short-Term FundsAn insurer may count short-term funds for the purposes specified under Title 31A, Chapter 17, Part 6, Risk-Based Capital, if:
(1) the total amount of short-term funds, set forth in the insurer's annual or quarterly statutory financial statement that was last filed with the NAIC, does not exceed the following: (a) 1.5% of the insurer's total assets determined under Subsection 31A-18-106(4); and(b) 15% of the insurer's capital and surplus;(2) the duration of each loan does not exceed 150 days;(3) the insurer provides satisfactory proof of compliance with this rule, upon request;(4) the filing of the insurer's most recent RBC report did not qualify as an action level event or as a control level event under Title 31A, Chapter 17, Part 6, Risk-Based Capital; and(5) at the time of the insurer's loan to the SBA borrower, the insurer is not subject to administrative action under Title 31A, Chapter 27, Part 5, Administrative Actions.Utah Admin. Code R590-280-4
Adopted by Utah State Bulletin Number 2019-10, effective 4/23/2019Amended by Utah State Bulletin Number 2023-02, effective 1/10/2023