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Substitute Senate Bill No. 454

PUBLIC ACT NO. 96-106

AN ACT REPEALING CHARTER REQUIREMENTS THROUGH THE LEGISLATURE.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subsection (c) of section 33-286 of the general statutes is repealed and the following is substituted in lieu thereof:

(c ) No corporation may be formed under this chapter for the purpose of transacting the business of an insurance company or a surety or indemnity company, unless [(1) it is an affiliate of an insurance company chartered by, incorporated, organized or constituted within or under the laws of this state; and (2)] at the time of the filing of its certificate of incorporation, there is also filed a certificate issued by the Insurance Commissioner pursuant to section 33-286a authorizing the formation of the corporation. No corporation formed under this chapter shall have power to transact in this state the business of an insurance company or a surety or indemnity company until it has procured a license from the Insurance Commissioner in accordance with the provisions of section 38a-41 AS AMENDED.

Sec. 2. Section 33-423 of the general statutes is repealed and the following is substituted in lieu thereof:

(a) A nonprofit corporation may be formed under this chapter for the conduct of any affairs or the promotion of any purpose which may be lawfully carried on by a corporation except that of a state bank and trust company, savings bank or building and loan association, provided where, by any other chapter of the general statutes, provision is made for the formation of a designated class or classes of corporations, such corporations shall be formed under such chapter and not under this chapter.

(b) [No] EXCEPT AS PROVIDED IN SUBSECTION (f) OF THIS SECTION, NO corporation formed under this chapter shall, or shall have power to, transact in this state the business of an insurance company or a surety or indemnity company, railroad company, telegraph company, gas, electric light or water company, or of any company requiring the right to take and condemn lands or to occupy the public highways of this state.

(c) Nothing in this chapter shall be construed to authorize a corporation formed hereunder to conduct any affairs except in compliance with any laws of this state regulating or otherwise applying to the same. The provisions of this chapter govern all corporations, but notwithstanding the provisions of this chapter, where by law special provisions are made in the case of a designated class or classes of corporations governing the corporate procedure thereof in any respect, limiting or extending the powers thereof, conditioning action upon the approval of any agency of the state, or otherwise prescribing the conduct of such corporations, such procedure, powers, action and conduct shall be governed by such special provisions whether or not such corporations are formed under this chapter.

(d) Nothing in this section shall prohibit the formation of a corporation under this chapter for the conduct of any affairs or for the promotion of any purpose in any other state if not prohibited by the laws thereof.

(e) Except as otherwise provided in section 38a-153, nothing in this chapter, other than the provisions of section 33-428, shall be construed to apply to any corporation incorporated under any provision of the special acts, other than a savings bank, which is or may be authorized to transact in this state the business of an insurance company.

(f) NO CORPORATION MAY BE FORMED PURSUANT TO THIS CHAPTER FOR THE PURPOSE OF TRANSACTING THE BUSINESS OF AN INSURANCE COMPANY OR A SURETY OR INDEMNITY COMPANY, UNLESS AT THE TIME OF THE FILING OF ITS ARTICLES OF INCORPORATION, THERE IS ALSO FILED A CERTIFICATE ISSUED BY THE INSURANCE COMMISSIONER, PURSUANT TO SECTION 3 OF THIS ACT, AUTHORIZING THE FORMATION OF THE CORPORATION. NO CORPORATION FORMED UNDER THIS CHAPTER SHALL HAVE THE POWER TO TRANSACT IN THIS STATE THE BUSINESS OF AN INSURANCE COMPANY OR A SURETY OR INDEMNITY COMPANY UNTIL IT HAS PROCURED A LICENSE FROM THE INSURANCE COMMISSIONER IN ACCORDANCE WITH THE PROVISIONS OF SECTION 38a-41, AS AMENDED.

Sec. 3. (NEW) (a) A certificate authorizing the formation of a corporation to transact the business of an insurance company shall be issued by the Insurance Commissioner if the following is submitted to him by the incorporators and is deemed to be satisfactory: (1) The proposed articles of incorporation, which shall state that the corporation has, as a purpose, the doing of an insurance business; (2) the proposed bylaws of the corporation; and (3) such information as the commissioner shall require to evaluate the objectives, management and control of the proposed corporation, pursuant to the provisions of chapter 54 of the general statutes.

(b) All expenses incurred by the commissioner in connection with proceedings under this section shall be paid by the person filing the application.

Sec. 4. Subsection (c) of section 33-645 of the general statutes is repealed and the following is substituted in lieu thereof:

(c) No corporation may be formed under sections 33-600 to 33-998, inclusive, AS AMENDED for the purpose of transacting the business of an insurance company or a surety or indemnity company, unless [(1) it is an affiliate of an insurance company chartered by, incorporated, organized or constituted within or under the laws of this state, and (2)] at the time of the filing of its articles of incorporation, there is also filed a certificate issued by the Insurance Commissioner pursuant to section 33-646 authorizing the formation of the corporation. No corporation formed under sections 33-600 to 33-998, inclusive, AS AMENDED shall have power to transact in this state the business of an insurance company or a surety or indemnity company until it has procured a license from the Insurance Commissioner in accordance with the provisions of section 38a-41 AS AMENDED.

Sec. 5. This act shall take effect October 1, 1996, except section 4 shall take effect January 1, 1997.

Approved May 24, 1996. Effective as provided in section 5.

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