31A-5-507 - Conversion of assessable to nonassessable and nonassessable to assessable mutuals. - Utah Statutes

31A-5-507. Conversion of assessable to nonassessable and nonassessable toassessable mutuals.
(1) When an assessable mutual accumulates enough surplus to satisfy the financialrequirements for the operation of a nonassessable mutual, it may apply for a certificate ofauthority authorizing it to sell nonassessable policies. The commissioner shall issue a certificateof authority designating it a nonassessable mutual, if he finds that the applicant satisfies therequirements of the law and that the issuance of nonassessable policies will not endanger theinterests of its insureds or the public. Policies issued after the issuance of this certificate ofauthority are nonassessable. Existing policies remain in effect and are nonassessable.
(2) A nonassessable mutual may apply to the commissioner for a certificate of authoritydesignating it an assessable mutual. The commissioner shall issue the certificate if the lawpermits the corporation to issue assessable policies and if he finds that the conversion will notendanger the interests of insureds or the public. All policies issued after conversion areassessable, unless otherwise provided by contract.

Enacted by Chapter 242, 1985 General Session