31A-5-207. Powers under organization permit.
(1) While its organization permit is in effect a stock corporation may: register stock under Section, solicit subscriptions subject to Section, accept payment for the subscriptions in cash or, with the approval of the commissioner, in other property constituting a permitted investment under, 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 31A-5-302 16-10a-620 Chapter 18, Investments 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: register mutual bonds under Section, solicit applications for qualifying insurance policies under Subsection, 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, 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 31A-5-302 31A-5-211(5) Chapter 18, Investments transact all other business necessary and appropriate in the organization of the planned insurance enterprise.
(3) The existence of the organization permit may not be used as an inducement in any solicitation. No person may knowingly, with intent to deceive, exhibit any false document or account regarding the affairs of any organization under Sectionor make any misrepresentation about its affairs. 31A-5-204
(4) Solicitations under this section may be made for stock or bond subscriptions only by persons registered under, as broker-dealers or agents. Solicitations under this section may be made for qualifying insurance policies only by persons licensed under, as insurance producers. Before any solicitation, the solicitor shall obtain from the commissioner a license to solicit, after paying the fee applicable under Section. Title 61, Chapter 1, Utah Uniform Securities Act Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries 31A-3-103
(5) This section does not apply to stock or mutual insurance corporations already in existence on July 1, 1986.