(1) Every subscription to the capital stock of an insurer in the process of organization shall contain a stipulation that no sum shall be used for commission, promotion or organization expenses in excess of a stated percent of the amount paid upon the subscription. This stated amount shall not exceed 15 percent.
(2) All sums paid by subscribers and applicants shall be deposited under an escrow agreement approved by the Director of the Department of Consumer and Business Services in a bank, trust company or savings and loan association in the state until the insurer has procured a certificate of authority from the director.
(3) Every subscription for stock or every application for insurance in an insurer made prior to its receipt of a certificate of authority shall contain a stipulation that the money, securities or evidences of debt advanced by the subscriber or applicant shall be returned to the subscriber or applicant without any deduction in case the insurer fails to complete its organization or procure its certificate of authority or issue the policy applied for. [1967 c.359 §160]
Section: Previous 732.110 732.115 732.120 732.125 732.130 732.135 732.140 732.145 732.150 732.155 732.160 732.165 732.175 732.205 732.210 NextLast modified: August 7, 2008