506.4 - MAXIMUM PROMOTION EXPENSE ALLOWED. - Iowa Statutes

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.          Section History: Early Form [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