A hearty congratulations to Don Spann, director of the Captive Division, and Eric Showgren, captive licensing analyst, for their hard work in achieving their goal of 30 licensed captives by the end of 2006.  This is an increase of 114% over the previous year. 

In two years the captive program has gone from two captives to 30.  Sixteen new applications were received in 2006 with nine of these during the last five days of the year, and things haven't slowed down.

A captive insurance company is organized to cover the risks of the parent organization and/or its affiliates.  Through a captive company a parent organization can determine the risks they will cover, resulting in more control over their insurance costs.

As of December 31, 2006, Utah domiciled captive insurers had:

The captive program benefits the state of Utah in a number of ways.  It requires domiciled captive insurers to maintain their principle place of business within the state and to hold at least one board of director meeting each year.  Each meeting results in an infusion into the state's economy of between $50,000 and $1million.

Be on the look out for Aaron Phillips and Malis Rasmussen, financial examiners, and D. Shane Sadler, financial analyst, who have recently joined the Utah Insurance Department's financial examination team. We are fortunate to have persons of their character, education and real world experience.

All three joined us in December and are already making a big contribution while anxiously engaged in financial exam and analysis work. In January, they attended new regulator training in Kansas City, and are also pursuing the Certified Financial Examiner professional designation.

Aaron, Malis and Shane are part of the new front-line that will enable the department to move towards reducing the need for contract exams with a higher number of exams being performed in-house in the coming years.
 

License applications can now be done electronically for those applying for a resident producer, limited line producer, consultant, adjuster, or customer service representative license. This is generally available for both individual as well as agency license applicants. Applying electronically is faster, less costly to you, and is the department’s preferred method.

After passing the required licensing examination, please be aware that one must wait two business days before sending the license application and payment electronically.  If the applicant tries to apply sooner than this, they will not be able to see the license type or line on the screen.  Applicants also need to be aware that the fee is non-refundable. 

To apply electronically go to www.sircon.com/utah. Sircon will electronically forward your application and all fees to the department. After the department reviews and approves your application, your license will then be mailed directly to you at the mailing address provided on the license application.

NOTE: Passing an exam and submitting an application does not guarantee you will be issued a license. Issuance of a license depends on review and approval of all license application materials, including application questions regarding any prior civil or criminal proceedings. If your license application is denied, you will be notified in writing of the reason for such denial.

The option to apply by paper is still available, however, an additional Paper-Processing Fee of $25 will be assessed and the process will take considerably longer than the electronic process. To apply by paper go to the department’s website at  http://www.insurance.utah.gov/LicensingProc.html, click on "Forms" and then click on and print the desired form.  Once completed just mail it to us, along with a personal check or money order for the nonrefundable license fee and the $25 paper processing fee. Credit cards are no longer accepted for paper applications.

             License Applications

The Utah Comprehensive Health Insurance Pool for the uninsurable was awarded two grants.  Both were awarded by the Centers for Medicare & Medicaid Services of the federal Department of Health and Human Services.  One is in the amount of $1,162,603 for operational losses, and the second is an approved bonus grant in the amount of $1,250,000.  The bonus grant funds are approved to provide premium subsidies for low-income high-risk pool enrollees.

HIPUtah is funded from enrollee premiums and an annual appropriation from the legislature. 

The Utah Insurance Commissioner, by court order, has seized all of the assets and operations of National Annuity Corporation (NAC), which operates as a Utah domiciliary out of Camarillo, California and has obtained an order to liquidate the company.

Policyholders (annuitants) and agents of the company have been notified of the seizure resulting in a large volume of calls to the department.  Many are from producers seeking additional information about the seizure and it's impact on their clients.

The good news is that scheduled annuity payments are being made. It appears, there will be no interruption in the mailing of these payments. The receiver is working with the Utah Life and Health Insurance Guaranty Association to make sure the annuity holders contracts are either assumed by the association or another solvent carrier.

Questions regarding the status of NAC should be referred to Ron Rosen, the Special Deputy Receiver, at (800) 968-8089.