{"data":{"id":"us-ut/utah-code-31a-18-108","jurisdiction":"us-ut","citation":"Utah Code § 31A-18-108","heading":"Prohibited investments.","body":"(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:\n(a) for the transfer of a risk or risks from one or more persons to one or more other persons; or\n(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.\n(2) An insurer may not:\n(a) invest in:\n(i) an investment prohibited by a department rule or statute of this state;\n(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;\n(iii) securities issued by an insolvent corporation; or\n(iv) any instrument or security that the commissioner finds is designed to evade a limitation or prohibition in this chapter; or\n(b) use a derivative instrument for:\n(i) replication; or\n(ii) any purpose other than hedging or income generation.\n(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.\n(4) The commissioner shall allow an insurer a reasonable time, not to exceed five years, to divest of prohibited investments if:\n(a) the insurer demonstrates the investment was not prohibited at the time the insurer made the investment;\n(b) the insurer made a good faith mistake in making the investment; or\n(c) the commissioner determines that the sale of the investment is contrary to the interests of insureds, creditors, or the general public.","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-S108.html","current_through":"2026 General Session","vintage":"","retrieved_at":"2026-09-03T11:34:33Z","sha256":"a6fadd4246a53c71508f120e1892f4a4db8bfe65c0d8ffd0225f37929f50d49b","source_id":"us-ut","stale":false,"prev":"us-ut/utah-code-31a-18-107","next":"us-ut/utah-code-31a-18-109"},"notice":"GroundRules: Original legal text. Not legal advice."}