506.4 Maximum promotion expense allowed.
The maximum promotion expense which may be incurred shall in no case exceed fifteen percent of the sale price of said stock, and no portion of such amount shall be used in the payment of salaries for officers and directors before the issuance, by the commissioner of insurance, of authority to transact an insurance business. Any amount paid to the company for stock above the par value of the stock shall constitute a contributed surplus but no dividends shall be paid by the company except from the earned profits arising from their business, which shall not include contributed capital or contributed surplus.
[C24, 27, 31, 35, 39, §8618; C46, 50, 54, 58, 62, §506.3; C66, 71, 73, 75, 77, 79, 81, §506.4]
Referred to in §506.6, 515.10
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.