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.
Terms Used In Utah Code 31A-5-212
Application: means a document:
(a)
(i)
completed by an applicant to provide information about the risk to be insured; and
(ii)
that contains information that is used by the insurer to evaluate risk and decide whether to:
(A)
insure the risk under:
(I)
the coverage as originally offered; or
(II)
a modification of the coverage as originally offered; or
(B)
decline to insure the risk; or
(b)
used by the insurer to gather information from the applicant before issuance of an annuity contract. See Utah Code 31A-1-301
Business plan: means the information required to be supplied to the commissioner under Subsections 31A-5-204(2)(i) and (j), including the information required when these subsections apply by reference under:
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
Corporation: means an insurance corporation, except when referring to:
a risk distributing arrangement providing for compensation or replacement for damages or loss through the provision of a service or a benefit in kind;
(ii)
a contract of guaranty or suretyship entered into by the guarantor or surety as a business and not as merely incidental to a business transaction; and
(iii)
a plan in which the risk does not rest upon the person who makes an arrangement, but with a class of persons who have agreed to share the risk. See Utah Code 31A-1-301
Surplus: means the excess of assets over the sum of paid-in capital and liabilities. See Utah Code 31A-1-301
(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 5, 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.
