31A-5-207. Powers under organization permit.

374 words·~2 min read·/ut/title-31a/chapter-5/31a-5-207

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)While its organization permit is in effect a stock corporation may:

(a)register stock under Section 31A-5-302 , solicit subscriptions subject to Section 16-10a-620 , accept payment for the subscriptions in cash or, with the approval of the commissioner, in other property constituting a permitted investment under Chapter 18, Investments , and issue receipts for payments made at values approved by the commissioner, but no certificates for shares may be issued until a certificate of authority has been issued; and

(b)transact all other business necessary and appropriate in the organization of the planned insurance enterprise.

(2)While its organization permit is in effect a mutual may:

(a)register mutual bonds under Section 31A-5-302 , solicit applications for qualifying insurance policies under Subsection 31A-5-211(5) , solicit subscriptions for mutual bonds and contribution notes and accept payment for the subscriptions in cash or, with the approval of the commissioner, in property constituting a permitted investment under Chapter 18, Investments , and issue receipts for payments made at values approved by the commissioner, but no policies or bonds are effective or may be issued until a certificate of authority has been issued; and

(b)transact all other business necessary and appropriate in the organization of the planned insurance enterprise.

(a)The existence of the organization permit may not be used as an inducement in any solicitation.

(b)No person may knowingly, with intent to deceive, exhibit any false document or account regarding the affairs of any organization under Section 31A-5-204 or make any misrepresentation about its affairs.

(4)Solicitations under this section may be made for stock or bond subscriptions only by persons registered under Title 61, Chapter 1, Utah Uniform Securities Act , as broker-dealers or agents. Solicitations under this section may be made for qualifying insurance policies only by persons licensed under Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries , as insurance producers. Before any solicitation, the solicitor shall obtain from the commissioner a license to solicit, after paying the fee applicable under Section 31A-3-103 .

(5)This section does not apply to stock or mutual insurance corporations already in existence on July 1, 1986.

Amended by Chapter 298 , 2003 General Session