Utah Code § 31A-18-108: Prohibited investments.

(1) As used in this section, "government insurer" means a governmental entity that is authorized by statute or rule to provide an arrangement, contract, or plan:

(a) for the transfer of a risk or risks from one or more persons to one or more other persons; or

(b) for the distribution of a risk or risks among a group of persons that includes the person seeking to distribute that person's risk.

(2) An insurer may not:

(a) invest in:

(i) an investment prohibited by a department rule or statute of this state;

(ii) securities issued by a corporation if one or more of the insurer's officers or directors owns, directly or indirectly, a majority of the corporation's stock with voting power;

(iii) securities issued by an insolvent corporation; or

(iv) any instrument or security that the commissioner finds is designed to evade a limitation or prohibition in this chapter; or

(b) use a derivative instrument for:

(i) replication; or

(ii) any purpose other than hedging or income generation.

(3) A government insurer may not invest public funds in an investment where the sole purpose of the investment is a purpose other than maximizing the risk-adjusted return on the investment.

(4) The commissioner shall allow an insurer a reasonable time, not to exceed five years, to divest of prohibited investments if:

(a) the insurer demonstrates the investment was not prohibited at the time the insurer made the investment;

(b) the insurer made a good faith mistake in making the investment; or

(c) the commissioner determines that the sale of the investment is contrary to the interests of insureds, creditors, or the general public.