California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4 - Insurer Securities Permits › Article 4 - Preorganization, Subscription and Negotiating Permits › Section 2604.03 - Application for Subscription Permits

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A. Applications for a permit of this nature
				  presuppose a corporate applicant with or without assets but with officers and
				  directors, a well-defined plan of operation and an application with
				  substantially all of the exhibits required in the case of an application for a
				  permit authorizing a newly organized insurer to sell its first issue of shares.
				  (See Section
				  2605.01, infra, on "Applications
				  for Organizational Permits.") Such a permit will authorize the taking of
				  conditional subscriptions for the purchase of a particular security at a stated
				  price, but will not authorize the collection of stock purchase money. All
				  subscriptions shall recite substantially the conditions set forth in the
				  specimen form set forth in Section
				  2613.05, infra, except that the
				  time limits may be reasonably varied to suit applicant's plans. It is possible
				  to issue such a permit prior to the making of findings required by Insurance
				  Code Section
				  839.
				  (Section 827.7,
				  843) However, in the event a
				  permit is issued on the latter basis without such findings, it may under the
				  circumstances hereinafter specified require that each subscriber be afforded an
				  opportunity, within a reasonable time after receipt by the subscriber of a copy
				  of the Commissioner's definitive permit and of the prospectus as finally
				  approved by that permit, to disaffirm and cancel the subscriber's subscription.
				  The circumstances referred to in the preceding sentence are these:--where in
				  the Commissioner's judgment there has been a change between the dates of
				  issuance of the subscription permit and of the definitive permit in the
				  proposed venture which would render it unfair, unjust or inequitable not to
				  allow the subscriber to withdraw; such changes include, but are not limited to,
				  a substantial change in applicant's plan of financing or plan of operation, or
				  among the organizers, promoters, original officers, directors or proposed key
				  managerial personnel.
The filing fee is $25 payable at the time of filing the
					 application. (Section
					 859(a))
B. Except as otherwise authorized by statute
				  and these regulations, applications for subscription permits shall:
1. Comply with Sections
				  2603.01 to and including 2603.11;
				  paragraphs A., B., D., G., H., I., and K., and if applicable L. and M. of
				  Section 2603.12; paragraphs A. through E.
				  of Section
				  2603.13 and Sec.
				  2603.16.
2. Attach the form of subscription (see Sec.
				  2613.05 for sample) and any other
				  proposed contract, and all advertising or solicitation material proposed to be
				  used. Such materials may not be used unless a permit is issued and their use
				  has been approved by the Commissioner in writing.
3. State the desired commencement and
				  termination dates of the subscription effort.