(215 ILCS 5/20) (from Ch. 73, par. 632)
(Section scheduled to be repealed on January 1, 2027)
Sec. 20.
Authority
to solicit subscriptions.
(1) Upon the approval of the articles of incorporation by the Director
and upon compliance with such reasonable regulations relating to the
offering and subscription of or for shares as may be promulgated by the
Director to the end that no inequity, fraud or deceit may be worked or tend
to be worked upon prospective subscribers to or purchasers of such shares,
he shall issue to the company a permit, which shall expire at the end of
two years from its date, authorizing it to solicit subscriptions in
accordance with such regulations, this Code and the form of subscription
agreement filed with him, to receive payment for its shares and to do such
other acts as may be necessary and proper in order to complete its
organization and to entitle it to receive a certificate of authority to
transact an insurance business.
(2) No subscription for shares shall be solicited, until such
subscriptions or shares shall have been qualified or registered in
accordance with any law of this State or of the United States requiring
qualification or registration.
(3) If the Director finds that any company in process of organization
has failed to comply with, or has violated any provision of the Code, he
may proceed against the company under Article XIII, and may after notice
and hearing, if any provision of the Code or any regulation promulgated
under subsection (1) has been violated, revoke the permit issued to it
under subsection (1).
(Source: Laws 1959, p. 1428.)
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