31A-9-504. Rehabilitation or involuntary conversion.
(1) (a) If the commissioner believes that a fraternal does not satisfy the requirements of
this chapter, the commissioner shall call a hearing. If the commissioner then finds that the
fraternal does not satisfy the requirements:
(i) if the fraternal is domestic, the commissioner shall petition for rehabilitation under
Section 31A-27a-207 to rehabilitate the fraternal or, if that is not possible, convert the fraternal to
a mutual; or
(ii) if the fraternal is nondomestic, the commissioner shall order it to comply as soon as
practicable 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 nondomestic
fraternal does not comply with this chapter.
(2) If the fraternal does not promptly comply with the requirements of this chapter, after
notice of the adverse results of a hearing under Subsection (1), it is subject to taxation as a
mutual life insurance company. This tax is retroactive to the date on which the commissioner
gave the fraternal notice of the hearing under Subsection (1).
Amended by Chapter 309, 2007 General Session
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Last revised: Thursday, May 28, 2009