{"data":{"id":"us-ut/utah-code-31a-18-105","jurisdiction":"us-ut","citation":"Utah Code § 31A-18-105","heading":"Prudence evaluation criteria.","body":"(1) An insurer shall consider the following factors to determine whether an investment portfolio or investment policy is prudent:\n(a) general economic conditions;\n(b) the possible effect of inflation or deflation;\n(c) the expected tax consequences of investment decisions or strategies;\n(d) the fairness or reasonableness of the terms of an investment considering the investment's:\n(i) probable risk and reward characteristics; and\n(ii) relationship to the investment portfolio as a whole;\n(e) the extent of the diversification of the insurer's investments among:\n(i) individual investments;\n(ii) classes of investments;\n(iii) industry concentrations;\n(iv) dates of maturity; and\n(v) geographic areas;\n(f) the quality and liquidity of investments in the insurer's affiliates;\n(g) the investment exposure to:\n(i) liquidity risk;\n(ii) credit and default risk;\n(iii) systemic risk;\n(iv) interest rate risk;\n(v) call, prepayment, and extension risk;\n(vi) exchange rate risk; and\n(vii) foreign sovereign risk;\n(h) the amount of the insurer's:\n(i) assets;\n(ii) capital and surplus;\n(iii) premium writings;\n(iv) insurance in force; and\n(v) other appropriate characteristics;\n(i) the insurer's reported liabilities;\n(j) the matching of the expected cash flows of the insurer's assets and liabilities;\n(k) the risk of adverse changes in the insurer's assets and liabilities; and\n(l) the adequacy of the insurer's capital and surplus to secure the risks and liabilities of the insurer.\n(2) The commissioner shall consider the factors described in Subsection (1) before making a determination that an insurer's investment portfolio or investment policy is not prudent.","path":["Title 31A Insurance Code","Chapter 31A-18 Investments","Part 31A-18-1 Investments"],"source_url":"https://le.utah.gov/xcode/Title31A/Chapter18/31A-18-S105.html","current_through":"2026 General Session","vintage":"","retrieved_at":"2026-09-03T11:34:33Z","sha256":"6d31c53ac73dcaf109a6a3694dc5710894068904b2ad9520636a428921fcf4de","source_id":"us-ut","stale":false,"prev":"us-ut/utah-code-31a-18-103","next":"us-ut/utah-code-31a-18-106"},"notice":"GroundRules: Original legal text. Not legal advice."}