State Codes and Statutes

Statutes > Utah > Title-31a > Chapter-05 > 31a-5-209

31A-5-209. Termination and revocation of organization permit and payment oforganization expenses.
(1) The organization permit terminates upon:
(a) issuance of a certificate of authority under Section 31A-5-212;
(b) revocation of the organization permit under Subsection (2); or
(c) expiration of one year after issuance, except that
(i) filing with the commissioner a good-faith application for a certificate of authority tollsthe running of the expiration period for 30 days or until the commissioner rejects the application,whichever is earlier; and
(ii) on application before expiration of the year the commissioner may grant a reasonableextension if he states that he expects the corporation to be able to satisfy the requirements for acertificate of authority within the extended period.
(2) The commissioner may revoke an organization permit if:
(a) he finds, after a hearing, that because of changes in circumstances, or because thefacts are not as represented in the application, the conditions for issuance of a permit are notsatisfied; or
(b) he denies an application for a certificate of authority and finds that the corporationcannot reasonably be expected to satisfy the requirements for a certificate of authority within theremaining term of the organization permit or extension allowable under Subsection (1)(c).
(3) (a) Except in cases under Subsections (3)(b) and (3)(c), if the organization permit isrevoked or expires before a certificate of authority is granted, after payment of the expenses ofthe state and payments to creditors under Section 31A-5-205, incorporators who have advancedmoney for the reasonable and authorized expenses of organization, including underwritingexpenses, may be reimbursed in cash from the proceeds of share, mutual bond, or contributionnote subscriptions under the organization permit, on itemized receipts audited by thecommissioner. The total reimbursement may not exceed 5% of the amount received fromsubscribers. The remainder in the escrow account shall then be distributed among the subscribersin proportion to their contributions, valued as of the time the contributions were made. The bondunder Section 31A-5-205 shall be discharged or the deposits under Section 31A-5-205 shall bereleased to the extent they are not needed for other purposes.
(b) Reimbursement may be refused to any incorporator under Subsection (3), if thecommissioner finds that in connection with the organization of the corporation, the incorporatorhas wilfully or negligently violated in a material way any provision of this chapter.
(c) No reimbursement may be made under Subsection (3)(a) to an incorporator of anassessable mutual until all advance premiums collected under Subsection 31A-5-211(5) have beenrepaid in full.
(4) The legal existence of the corporation terminates upon completion of the paymentsunder Subsection (3).
(5) This section does not apply to stock or mutual insurance corporations already inexistence on July 1, 1986.

Enacted by Chapter 242, 1985 General Session

State Codes and Statutes

Statutes > Utah > Title-31a > Chapter-05 > 31a-5-209

31A-5-209. Termination and revocation of organization permit and payment oforganization expenses.
(1) The organization permit terminates upon:
(a) issuance of a certificate of authority under Section 31A-5-212;
(b) revocation of the organization permit under Subsection (2); or
(c) expiration of one year after issuance, except that
(i) filing with the commissioner a good-faith application for a certificate of authority tollsthe running of the expiration period for 30 days or until the commissioner rejects the application,whichever is earlier; and
(ii) on application before expiration of the year the commissioner may grant a reasonableextension if he states that he expects the corporation to be able to satisfy the requirements for acertificate of authority within the extended period.
(2) The commissioner may revoke an organization permit if:
(a) he finds, after a hearing, that because of changes in circumstances, or because thefacts are not as represented in the application, the conditions for issuance of a permit are notsatisfied; or
(b) he denies an application for a certificate of authority and finds that the corporationcannot reasonably be expected to satisfy the requirements for a certificate of authority within theremaining term of the organization permit or extension allowable under Subsection (1)(c).
(3) (a) Except in cases under Subsections (3)(b) and (3)(c), if the organization permit isrevoked or expires before a certificate of authority is granted, after payment of the expenses ofthe state and payments to creditors under Section 31A-5-205, incorporators who have advancedmoney for the reasonable and authorized expenses of organization, including underwritingexpenses, may be reimbursed in cash from the proceeds of share, mutual bond, or contributionnote subscriptions under the organization permit, on itemized receipts audited by thecommissioner. The total reimbursement may not exceed 5% of the amount received fromsubscribers. The remainder in the escrow account shall then be distributed among the subscribersin proportion to their contributions, valued as of the time the contributions were made. The bondunder Section 31A-5-205 shall be discharged or the deposits under Section 31A-5-205 shall bereleased to the extent they are not needed for other purposes.
(b) Reimbursement may be refused to any incorporator under Subsection (3), if thecommissioner finds that in connection with the organization of the corporation, the incorporatorhas wilfully or negligently violated in a material way any provision of this chapter.
(c) No reimbursement may be made under Subsection (3)(a) to an incorporator of anassessable mutual until all advance premiums collected under Subsection 31A-5-211(5) have beenrepaid in full.
(4) The legal existence of the corporation terminates upon completion of the paymentsunder Subsection (3).
(5) This section does not apply to stock or mutual insurance corporations already inexistence on July 1, 1986.

Enacted by Chapter 242, 1985 General Session


State Codes and Statutes

State Codes and Statutes

Statutes > Utah > Title-31a > Chapter-05 > 31a-5-209

31A-5-209. Termination and revocation of organization permit and payment oforganization expenses.
(1) The organization permit terminates upon:
(a) issuance of a certificate of authority under Section 31A-5-212;
(b) revocation of the organization permit under Subsection (2); or
(c) expiration of one year after issuance, except that
(i) filing with the commissioner a good-faith application for a certificate of authority tollsthe running of the expiration period for 30 days or until the commissioner rejects the application,whichever is earlier; and
(ii) on application before expiration of the year the commissioner may grant a reasonableextension if he states that he expects the corporation to be able to satisfy the requirements for acertificate of authority within the extended period.
(2) The commissioner may revoke an organization permit if:
(a) he finds, after a hearing, that because of changes in circumstances, or because thefacts are not as represented in the application, the conditions for issuance of a permit are notsatisfied; or
(b) he denies an application for a certificate of authority and finds that the corporationcannot reasonably be expected to satisfy the requirements for a certificate of authority within theremaining term of the organization permit or extension allowable under Subsection (1)(c).
(3) (a) Except in cases under Subsections (3)(b) and (3)(c), if the organization permit isrevoked or expires before a certificate of authority is granted, after payment of the expenses ofthe state and payments to creditors under Section 31A-5-205, incorporators who have advancedmoney for the reasonable and authorized expenses of organization, including underwritingexpenses, may be reimbursed in cash from the proceeds of share, mutual bond, or contributionnote subscriptions under the organization permit, on itemized receipts audited by thecommissioner. The total reimbursement may not exceed 5% of the amount received fromsubscribers. The remainder in the escrow account shall then be distributed among the subscribersin proportion to their contributions, valued as of the time the contributions were made. The bondunder Section 31A-5-205 shall be discharged or the deposits under Section 31A-5-205 shall bereleased to the extent they are not needed for other purposes.
(b) Reimbursement may be refused to any incorporator under Subsection (3), if thecommissioner finds that in connection with the organization of the corporation, the incorporatorhas wilfully or negligently violated in a material way any provision of this chapter.
(c) No reimbursement may be made under Subsection (3)(a) to an incorporator of anassessable mutual until all advance premiums collected under Subsection 31A-5-211(5) have beenrepaid in full.
(4) The legal existence of the corporation terminates upon completion of the paymentsunder Subsection (3).
(5) This section does not apply to stock or mutual insurance corporations already inexistence on July 1, 1986.

Enacted by Chapter 242, 1985 General Session