§ 1204. Sale of insurance securities. (a) Subject to the provisions of\nsubsection (e) hereof, no person, firm, association or corporation shall\nin this state sell or propose to sell to the public any security issued\nby any insurer not authorized to do business in this state, unless\nlicensed to do so under this section. In this subsection and in\nsubsection (b) hereof, "insurer" includes any corporation whose\nsecurities are to be sold or offered for sale (except by exchange for\nshares or assets and except securities issued upon a merger in\nconversion of securities of a merging company) primarily to acquire,\norganize or finance the operations of another insurer not authorized to\ndo business in this state which is, or as a result of applying the\nproceeds of such offering will be, a subsidiary of such corporation.\n (b) The superintendent may issue a license to a named person, firm,\nassociation or corporation to sell and propose to sell to the public in\nthis state the specified securities of a specified insurer or other\ncompany subject to subsection (a) hereof. The applicant for such a\nlicense shall submit a written application, subscribed by the applicant\nand affirmed by him as true under the penalties of perjury and\ncontaining such information as the superintendent may require, including\nthe following: the name, residence address, business address in this\nstate and previous business experience of the applicant and of such\ninsurer and of his or its officers, members and employees, and\ninformation as to their trustworthiness; a copy of every security to be\noffered for sale; a statement in detail as to the insurer's financial\ncondition, plans and purposes, the amount and par value of securities\nand their selling price, the manner in which the proceeds of sale are to\nbe used, the rate of commissions to be paid for the sale of securities,\nthe salaries to be paid to the insurer's officers, and the safeguards to\nbe provided against diversion of proceeds from such plans and purposes.\nBefore issuing any such license the superintendent may make such\nexamination of the affairs of the proposed licensee and of such insurer\nas he deems expedient. The superintendent may refuse to issue such\nlicense, or may after notice and hearing revoke such license, if in his\njudgment such refusal or revocation will best promote the interests of\nthe people of this state. Such license shall be for a term of one year\nunless sooner revoked. No license to sell or to propose to sell\nsecurities of any foreign or alien insurer shall be issued unless such\ninsurer is qualified to obtain a license to do an insurance business in\nthis state or, in the case of a corporation described in subsection (a)\nhereof, unless the insurer subsidiary is so qualified.\n (c) No person, firm, association or corporation shall in this state\nissue, circulate or distribute any advertisement, circular, letter or\nother public announcement in connection with the sale or proposed sale\nto the public in this state of any securities of any insurer unless a\ncopy of such announcement has been filed with the superintendent and\napproved by him. The superintendent may approve any such announcement\nif, after such examination or investigation as he sees fit, he finds it\nis not false, misleading or likely to deceive the public. In this\nsubsection, "insurer" shall include any corporation whose securities are\nto be sold or offered for sale (except by exchange for shares or assets\nand other than securities issued upon a merger in conversion of\nsecurities of a merging company) primarily to acquire, organize or\nfinance the operations of another insurer which is, or as a result of\napplying the proceeds of such offering will be, a subsidiary of such\ncorporation; provided that examination or investigation of any such\ncorporation shall be limited to matters relating to the operations of\nthe insurance subsidiary.\n (d) Every such license to sell or propose to
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