31A-5-207 - Powers under organization permit.
31A-5-207. Powers under organization permit.
(1) While its organization permit is in effect a stock corporation may:
(a) register stock under Section 31A-5-302, solicit subscriptions subject to Section16-10a-620, accept payment for the subscriptions in cash or, with the approval of thecommissioner, in other property constituting a permitted investment under Chapter 18, and issuereceipts for payments made at values approved by the commissioner, but no certificates forshares may be issued until a certificate of authority has been issued; and
(b) transact all other business necessary and appropriate in the organization of theplanned 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 qualifyinginsurance policies under Subsection 31A-5-211(5), solicit subscriptions for mutual bonds andcontribution notes and accept payment for the subscriptions in cash or, with the approval of thecommissioner, in property constituting a permitted investment under Chapter 18, and issuereceipts for payments made at values approved by the commissioner, but no policies or bonds areeffective 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 theplanned insurance enterprise.
(3) (a) The existence of the organization permit may not be used as an inducement in anysolicitation.
(b) No person may knowingly, with intent to deceive, exhibit any false document oraccount regarding the affairs of any organization under Section 31A-5-204 or make anymisrepresentation about its affairs.
(4) Solicitations under this section may be made for stock or bond subscriptions only bypersons registered under Title 61, Chapter 1, as broker-dealers or agents. Solicitations under thissection may be made for qualifying insurance policies only by persons licensed under Chapter23a, Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries, asinsurance producers. Before any solicitation, the solicitor shall obtain from the commissioner alicense 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 inexistence on July 1, 1986.
Amended by Chapter 298, 2003 General Session