The incorporators may apply for a certificate of authority without first obtaining an organization permit if:
Terms Used In Utah Code 31A-5-213
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:
Director: means a member of the board of directors of a corporation. See Utah Code 31A-1-301
Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
Insurance: includes :
(i)
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
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
Surplus: means the excess of assets over the sum of paid-in capital and liabilities. See Utah Code 31A-1-301
(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.
