31A-9-504 - Rehabilitation or involuntary conversion. - Utah Statutes

31A-9-504. Rehabilitation or involuntary conversion.
(1) (a) If the commissioner believes that a fraternal does not satisfy the requirements ofthis chapter, the commissioner shall call a hearing. If the commissioner then finds that thefraternal does not satisfy the requirements:
(i) if the fraternal is domestic, the commissioner shall petition for rehabilitation underSection 31A-27a-207 to rehabilitate the fraternal or, if that is not possible, convert the fraternal toa mutual; or
(ii) if the fraternal is nondomestic, the commissioner shall order it to comply as soon aspracticable with the requirements of this chapter or lose its tax exemption.
(b) An order issued under Subsection (1)(a)(ii) shall specify the ways the nondomesticfraternal does not comply with this chapter.
(2) If the fraternal does not promptly comply with the requirements of this chapter, afternotice of the adverse results of a hearing under Subsection (1), it is subject to taxation as amutual life insurance company. This tax is retroactive to the date on which the commissionergave the fraternal notice of the hearing under Subsection (1).

Amended by Chapter 309, 2007 General Session