reglab/housing_qa huggingface dataset:
UT Code § 31A-5-206 (2021)
2021 Utah Code|Title 31A - Insurance Code|Chapter 5 - Domestic Stock and Mutual Insurance Corporations|Part 2 - Organization of Corporations|Section 206 - Sale of securities by authorized insurer.

31A-5-206. Sale of securities by authorized insurer.  A domestic insurer that has already received a certificate of authority may issue additional securities to obtain further financing, after obtaining a solicitation permit from the commissioner. The organizational permit requirements in Section 31A-5-204 apply if the commissioner prescribes its application. The phrase "organization permit" in Section 31A-5-204 means "solicitation permit" when being applied to this section. The solicitation permit terminates one year from the date of its issuance. However, this permit may be extended for not more than one additional year by the commissioner on terms he considers sufficient to protect the policyholders, the shareholders, and the public.  Amended by Chapter 95, 1987 General Session
UT Code § 31A-5-207 (2021)
2021 Utah Code|Title 31A - Insurance Code|Chapter 5 - Domestic Stock and Mutual Insurance Corporations|Part 2 - Organization of Corporations|Section 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 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.       (3)   (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
UT Code § 31A-5-208 (2021)
2021 Utah Code|Title 31A - Insurance Code|Chapter 5 - Domestic Stock and Mutual Insurance Corporations|Part 2 - Organization of Corporations|Section 208 - Deposit of proceeds of subscriptions.

31A-5-208. Deposit of proceeds of subscriptions.    (1) All funds, and the securities and documents representing interests in property, received by a stock corporation for stock subscriptions or by a mutual for applications for insurance policies or for mutual bond or contribution note subscriptions, shall be deposited in the name of the corporation with a custodian financial institution qualified under Subsection 31A-2-206(1). This deposit is subject to an escrow agreement approved by the commissioner under which withdrawals may be made only in accordance with conditions specified in the agreement, and with the commissioner's approval. Securities may be held as authorized in Subsection 31A-2-206(2) and are required to be approved by the commissioner.     (2) This section does not apply to stock or mutual insurance corporations already in existence on July 1, 1986.    Amended by Chapter 297, 2011 General Session
UT Code § 31A-5-210 (2021)
2021 Utah Code|Title 31A - Insurance Code|Chapter 5 - Domestic Stock and Mutual Insurance Corporations|Part 2 - Organization of Corporations|Section 210 - Incorporators' liability and organization expenses.

31A-5-210. Incorporators' liability and organization expenses.    (1) The incorporators are jointly and severally liable for all organizational and promotional expenses and obligations incurred prior to the issuance of the certificate of authority. Upon issuance of the certificate, the insurer may pay those outstanding expenses and obligations lawfully incurred.     (2)   (a)   (i) After issuance of the certificate of authority, incorporators of a stock corporation who have advanced money or incurred obligations for the reasonable and authorized expenses of organization, including underwriting of securities, may be reimbursed in cash from the proceeds of shares subscribed to under the organization permit, or in shares at the public offering price, on itemized receipts audited by the commissioner.     (ii) Promotional securities in connection with the financing of a stock corporation which is in the promotional, exploratory, or developmental stage may be issued in an amount and for a consideration which is not unreasonable. In this regard, the commissioner may adopt rules setting forth standards with respect to promotional securities allowed to be issued and the considerations to be received for them. The reimbursement for expenses under Subsection (2)(a)(i) has priority over the issuance of promotional securities under Subsection (2)(a)(ii).     (iii) In no event may securities issued under Subsection (2)(a)(i) or promotional securities issued under Subsection (2)(a)(ii) be issued in a manner which would, in the aggregate, cause the dilution in the net tangible asset value of the insurer's securities proposed to be issued to the public to exceed 25%.       (b) After issuance of the certificate of authority, incorporators of a mutual who have advanced money or incurred obligations for the reasonable and authorized expenses of organization may be reimbursed in cash from the proceeds of subscriptions for mutual bonds and contribution notes, on itemized receipts audited by the commissioner. The total reimbursement may not exceed 15% of the amount received for the bonds and notes.       (3) This section does not apply to stock or mutual insurance corporations already in existence on July 1, 1986.    Enacted by Chapter 242, 1985 General Session
UT Code § 31A-5-212 (2021)
2021 Utah Code|Title 31A - Insurance Code|Chapter 5 - Domestic Stock and Mutual Insurance Corporations|Part 2 - Organization of Corporations|Section 212 - Certificate of authority.

31A-5-212. Certificate of authority.    (1) The corporation may apply for a certificate of authority at any time prior to the expiration of its organization permit. The application shall include a detailed statement by a principal officer about any material changes that have taken place or are likely to take place in the facts on which the issuance of the organization permit was based, and if any material changes are proposed in the business plan, the information about the changes that would be required if an organization permit were being applied for.     (2)   (a) The commissioner shall issue a certificate of authority if the commissioner finds:   (i) enough cash or property authorized under Subsection 31A-5-207(1)(a) or (2)(a) has been received to satisfy the requirements of Section 31A-5-211;     (ii) there is no basis for revoking the organization permit under Subsection 31A-5-209(2); and     (iii) all other applicable requirements of the law have been met.       (b) The certificate of authority shall specify any limits placed on the insurance business the corporation may carry on and may, within the powers given the commissioner under this title, specify limits on the corporation's methods of operation.       (3) After the issuance of the certificate of authority the following action shall take place:   (a) The board shall authorize and direct the issuance of certificates for shares, bonds, or notes subscribed to under the organization permit, and of insurance policies upon qualifying applications obtained under the organization permit.     (b) The commissioner shall authorize the release to the corporation of all funds held in escrow under Section 31A-5-208.       (4)   (a) A corporation may apply to the commissioner for a new or amended certificate of authority altering limits on its business or methods of operation. The application shall contain or be accompanied by information in Subsection 31A-5-204(2) as the commissioner reasonably requires. The commissioner shall issue the new certificate if the commissioner finds:   (i) the corporation's capital and surplus satisfy the requirements of Section 31A-5-211 as to the operations proposed under the new certificate of authority; and     (ii) the proposed business would not be contrary to law or to the interests of insureds or the public.       (b) If the commissioner issues an order under Chapter 27, Part 5, Administrative Actions, against a corporation, the commissioner may also revoke the corporation's certificate and issue a new one with any limitation the commissioner considers necessary.       (5) Except as to Subsection (4), this section does not apply to stock or mutual insurance corporations already in existence on July 1, 1986.    Amended by Chapter 309, 2007 General Session
UT Code § 31A-5-213 (2021)
2021 Utah Code|Title 31A - Insurance Code|Chapter 5 - Domestic Stock and Mutual Insurance Corporations|Part 2 - Organization of Corporations|Section 213 - Accelerated organization procedure.

31A-5-213. Accelerated organization procedure.    (1) The incorporators may apply for a certificate of authority without first obtaining an organization permit if:   (a) their number is not more than 15;     (b) no compensation is paid directly or indirectly for soliciting any of them;     (c) they purchase for their own accounts all the shares proposed to be issued in the case of a stock corporation, or in the case of a mutual, they supply all the minimum permanent surplus and initial expendable surplus by contribution notes or otherwise; and     (d) the shares are promotional securities and are subject to Subsection 31A-5-304(3) and (4).       (2) The application for a certificate of authority shall include:   (a) proof that the purchase price for the shares or the proceeds of contribution notes have been deposited on behalf of the proposed corporation;     (b) a statement concerning whether and what property other than money is held in trust for the proposed corporation; and     (c) the information which the commissioner reasonably requires under Subsection 31A-5-204(2).       (3) The commissioner shall issue a certificate of authority if he finds that:   (a) all requirements of law have been met;     (b) all natural persons who are incorporators, the directors and principal officers of corporate incorporators, and the proposed directors and officers of the corporation being formed are trustworthy and collectively have the competence and experience to engage in the particular insurance business proposed; and     (c) the business plan is consistent with the interests of the corporation's potential insureds and of the public.       (4) The director of the Division of Corporations and Commercial Code shall issue a certificate of incorporation upon notice from the insurance commissioner that all the applicable requirements of law have been met, including the payment of fees.     (5) When the certificate of incorporation is issued, the corporation's legal existence begins, the articles and bylaws become effective, and the proposed directors and officers take office. The certificate is conclusive evidence of compliance with this section, except in a proceeding by the state against the corporation.     (6) This section does not apply to stock or mutual insurance corporations already in existence on July 1, 1986.    Amended by Chapter 95, 1987 General Session
UT Code § 31A-5-216 (2021)
2021 Utah Code|Title 31A - Insurance Code|Chapter 5 - Domestic Stock and Mutual Insurance Corporations|Part 2 - Organization of Corporations|Section 216 - Change of domicile.

31A-5-216. Change of domicile.    (1) A foreign insurance corporation may become a Utah insurance corporation if it submits an application which evidences that the corporation complies with all of the requirements imposed on domestic Utah corporations. The commissioner may, by order after a hearing, relax the requirements of this chapter applicable to corporations in the process of organization that, because of the developed status of the insurer, he finds unnecessary to protect policyholders and the public. The commissioner shall simultaneously issue a certificate of organization under Subsection 31A-5-204(3) and a certificate of authority under Subsection 31A-5-212(2) when the conditions for both have been satisfied.     (2) Upon approval by the commissioner, a domestic insurer may transfer its domicile to any other state in which it is admitted. The commissioner shall approve the transfer of domicile unless he finds that the transfer will prejudice the interests of policyholders, creditors, or the public in Utah. The commissioner may require a special deposit, reinsurance, or other protective measures as an alternative to rejecting the insurer's application to move. After or simultaneous with the removal of the corporation, it may seek entry into this state as a foreign corporation under Chapter 14, Foreign Insurers.     (3) The transfer of domicile of an insurance corporation under either Subsection (1) or Subsection (2) does not affect the obligations of the corporation under its existing insurance contracts or any other existing contracts.    Enacted by Chapter 242, 1985 General Session
UT Code § 31A-5-218 (2021)
2021 Utah Code|Title 31A - Insurance Code|Chapter 5 - Domestic Stock and Mutual Insurance Corporations|Part 2 - Organization of Corporations|Section 218 - Subsidiaries.

31A-5-218. Subsidiaries.    (1) Subject to the limitations under Subsection 31A-18-106(1)(k), an insurance corporation may form or acquire subsidiaries to do any lawful insurance business.     (2) An insurance corporation may form or acquire subsidiaries to hold or manage any assets that it might hold or manage directly.     (3)   (a) An insurance corporation may form or acquire subsidiaries to perform functions or provide services that are ancillary to its insurance operations.     (b) A subsidiary is an ancillary subsidiary if it is engaged principally in one or more of the following:   (i) acting as an insurance producer;     (ii) investing, reinvesting, or trading in securities, or acting as a securities broker, dealer, or marketing representative;     (iii) managing investment companies registered under the federal Investment Company Act of 1940, as amended, including related sales and services;     (iv) providing investment advice and services;     (v) acting as administrative agent for a government instrumentality performing an insurance, public assistance, or related function;     (vi) providing services related to insurance operations, including accounting, actuarial, pension administration, appraisal, auditing, claims adjusting, collection, data processing, communications, loss prevention, premium financing, safety engineering, and underwriting services;     (vii) holding or managing property used by the corporation, alone or with its affiliates for the convenient transaction of its business;     (viii) engaging in the motor club business under Chapter 11, Motor Clubs;     (ix) engaging in the business of any institution subject to the jurisdiction of the Department of Financial Institutions under Title 7, Financial Institutions Act;     (x) providing similar services or performing similar activities which the commissioner declares ancillary by rule; and     (xi) owning corporations that would be authorized as subsidiaries under Subsections (3)(b)(i) through (3)(b)(ix) and under Subsections (1) and (2).         (4) An insurance corporation may form or acquire subsidiaries other than those under Subsections (1) through (3), but only to the extent the insurer has excess surplus as defined under Section 31A-1-301.     (5)   (a) An insurance corporation shall notify the commissioner immediately following the formation or acquisition of a subsidiary under this section.     (b)Chapter 16, Insurance Holding Companies, provides additional requirements that are applicable to the acquisition of certain subsidiaries.      Amended by Chapter 298, 2003 General Session
UT Code § 31A-5-219 (2021)
2021 Utah Code|Title 31A - Insurance Code|Chapter 5 - Domestic Stock and Mutual Insurance Corporations|Part 2 - Organization of Corporations|Section 219 - Amendment of articles.

31A-5-219. Amendment of articles.    (1) Subject to Subsection (3) and to the requirements of the Insurance Code, a stock corporation may amend its articles under Sections 16-10a-1001 through 16-10a-1009 and a mutual may amend its articles under Sections 16-6a-1001 through 16-6a-1005 in any manner, including substantial changes of its original purposes. No amendment may be made contrary to Subsections 31A-5-203(1) through (3).     (2) An amendment becomes effective when the properly adopted and filed articles of amendment are approved by the commissioner.     (3) Section 16-10a-1009 applies to stock corporations and the second paragraph of Section 16-6a-1009 applies to mutuals.    Amended by Chapter 300, 2000 General Session
UT Code § 31A-5-301 (2021)
2021 Utah Code|Title 31A - Insurance Code|Chapter 5 - Domestic Stock and Mutual Insurance Corporations|Part 3 - Securities of Domestic Insurance Corporations|Section 301 - Securities regulation.

31A-5-301. Securities regulation.    (1)   (a) Except as provided in Subsections (1)(b) and (c), no security issued by a domestic or nondomestic insurance corporation may be sold in this state by or for the corporation or any other person unless it is registered under Section 31A-5-302 and otherwise complies with this chapter. Securities that comply with this chapter are not subject to Title 61, Chapter 1, Utah Uniform Securities Act.     (b) Securities and transactions exempt under Section 61-1-14 are also exempt under this chapter.     (c) Any exemption under Section 61-1-14 may be revoked by the commissioner for a particular insurance corporation by an order after a hearing. The order shall explain the reasons for the revocation.       (2)   (a) No person which is organizing or is acquiring additional funds in this state or elsewhere solely or partly for the purpose of organizing a corporation under this chapter, may register or sell its securities in this state, directly or indirectly, unless it obtains an organization permit under Section 31A-5-204.     (b) No security may be registered or sold in this state if the person registering or selling the security, or any person affiliated with the person, represents that an insurer will be organized or purchased in this state with the proceeds of the sale, unless the issuer first obtains an organization permit under Section 31A-5-204.       (3) If a security is issued or sold in violation of this chapter, the transaction is valid and enforceable by an outsider against the corporation or against an insider, and is valid and enforceable by the corporation against an insider.     (4) This section does not apply to securities issued prior to July 1, 1986.    Amended by Chapter 204, 1986 General Session
UT Code § 31A-5-302 (2021)
2021 Utah Code|Title 31A - Insurance Code|Chapter 5 - Domestic Stock and Mutual Insurance Corporations|Part 3 - Securities of Domestic Insurance Corporations|Section 302 - Registration of securities.

31A-5-302. Registration of securities.    (1)   (a) An insurance security shall be registered with the commissioner:   (i) by coordination under Section 61-1-9; or     (ii) by qualification under Section 61-1-10.        (b) A registration statement under this Subsection (1) shall conform to Section 61-1-11.       (2) The commissioner has the powers specified in Sections 61-1-12, 61-1-15, 61-1-19, 61-1-20, and 61-1-24.     (3) Sections 61-1-16, 61-1-17, 61-1-18.3, and 61-1-25 apply to the regulation of securities under this part.     (4) As used in this chapter, the words "commission" or "division" under Title 61, Chapter 1, Utah Uniform Securities Act, mean the insurance commissioner.    Amended by Chapter 351, 2009 General Session
UT Code § 31A-5-304 (2021)
2021 Utah Code|Title 31A - Insurance Code|Chapter 5 - Domestic Stock and Mutual Insurance Corporations|Part 3 - Securities of Domestic Insurance Corporations|Section 304 - Promoter stock.

31A-5-304. Promoter stock.    (1) While the organization permit is effective, the incorporators, directors, and principal officers of a stock corporation shall in the aggregate subscribe and pay, at the public offering price, at least $150,000 in cash or in property of equivalent value approved by the commissioner under Subsection 31A-5-207(1)(a) or (2)(a), for shares offered by the corporation under the organization permit.     (2)   (a) Certificates representing promotional securities and any stock received on those shares as the result of a stock dividend, stock split, or exercise of preemptive or conversion rights, shall be placed in escrow with a depository satisfactory to the commissioner under an agreement providing that the shares may not be transferred without the approval of the commissioner.     (b) If the corporation issues any life insurance policies, any shares subject to this section shall be released from escrow five years after issuance of the certificate of authority. In other cases, the shares shall be released from escrow three years after issuance of the certificate of authority.       (3) The commissioner's approval of the transfer of promoter stock under Subsection (2)(a):   (a) shall be granted upon request, if the corporation has made an addition to earned surplus in each of the two immediately preceding years of at least 15% of the capital and surplus raised by the sale of shares under the organization permit; and     (b) may be granted upon a showing of hardship by the shareholder or his estate or legatee, if the release from escrow of the shares or a portion of the shares would not, in the commissioner's opinion, endanger the interests of insureds or the public.       (4) For three years after the issuance of the certificate of authority, an option to purchase stock may be issued only under a plan approved by the commissioner.     (5) This section does not apply to promotional securities issued prior to July 1, 1986.    Enacted by Chapter 242, 1985 General Session