Section 201 – Risk Management Fund created — Administration — Use.

• (1)
  • (a) There is created the Risk Management Fund, which shall be administered by the risk manager.
  • (b) The fund shall cover property, liability, fidelity, and other risks as determined by the risk manager in consultation with the executive director.

• (2) The risk manager may only use the Risk Management Fund to pay:
  • (a) insurance or reinsurance premiums;
  • (b) costs of administering the Risk Management Fund and any captive insurance companies created by the risk manager;
  • (c) loss adjustment expenses;
  • (d) risk control and related educational and training expenses; and
  • (e) loss costs which at the time of loss were eligible for payment under rules made by the risk manager in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

• (3) In addition to any money appropriated to the Risk Management Fund by the Legislature, the risk manager shall deposit with the state treasurer for credit to the Risk Management Fund:
  • (a) any insured loss or loss expenses paid by insurance or reinsurance companies;
  • (b) the gross amount of all premiums and surcharges received under Section 63A-4-202;
  • (c) the net refunds from cancelled insurance policies necessary to self-insure previously insured risks, with the balance of the proceeds to be refunded to the previously insured entities;
  • (d) all refunds, returns, or dividends from insurance carriers not specifically covered in Subsections (3)(a), (b), and (c);
  • (e) savings from amounts otherwise appropriated for participation in the fund; and
  • (f) all net proceeds from sale of salvage and subrogation recoveries from adverse parties related to losses paid out of the fund.

• (4) The state treasurer shall invest the Risk Management Fund in accordance with Section 63A-4-208 and deposit all interest or other income earned from investments into the Risk Management Fund.

Amended by Chapter 169, 2022 General Session