506.1 Rules — limitations.
The commissioner of insurance shall promulgate such reasonable rules and regulations as the commissioner deems necessary to assure the proper operation of newly organized insurance companies but in no event shall the commissioner:
1. Require that more than twenty percent of the original capital and surplus of a stock corporation subject to the provisions of this chapter be invested by the organizers; or
2. Restrict the alienation of securities issued to organizers for a period of more than:
a. Five years, or
b. Until the operation of the insurance company produces earned surplus for two successive years.
[C66, 71, 73, 75, 77, 79, 81, §506.1]
Structure Iowa Code
Chapter 506 - DOMESTIC INSURANCE COMPANIES
Section 506.1 - Rules — limitations.
Section 506.2 - Sale of securities restricted.
Section 506.3 - Certificate of compliance.
Section 506.4 - Maximum promotion expense allowed.
Section 506.5 - Regulation by commissioner.
Section 506.6 - Promoters restricted.
Section 506.8 - Liability to stockholders.
Section 506.9 - Judicial review.
Section 506.10 - Sale of stock as inducement to insurance.
Section 506.11 - Securities law applicable.
Section 506.12 - Principal executive office.
Section 506.13 - New officers or directors — biographical affidavit required.
Section 506.14 - Voluntary dissolution of domestic mutual insurance companies.