§ 506.10 — Sale of stock as inducement to insurance

Iowa § 506.10

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 506: DOMESTIC INSURANCE COMPANIES

Text

1. No insurance company shall issue in this state, or permit its agents, officers, or
employees to issue in this state its own stock, agency company stock or other stock or
securities, or any special or advisory board or other contract of any kind promising returns
and profits as an inducement to insurance.
2. No insurance company shall be authorized to do business in this state which issues or
permits its agents, officers, or employees to issue in this state or in any other state or territory,
agency company stock or other stock or securities, or any special advisory board or other
contract of any kind promising returns and profits as an inducement to insurance.
3. No corporation or stock company, acting as an agent of an insurance company, or any
of its agents, officers, or employees, shall be permitted to agree to sell, offer to sell, or give or
offer to give, directly or indirectly, in any manner whatsoever, any share of stock, securities,
bonds, or agreement of any form or nature, promising returns and profits as an inducement
to insurance, or in connection therewith.

4. Nothing contained in this section shall impair or affect in any manner any such
contracts issued or made as an inducement to insurance prior to April 16, 1921, or prevent
the payment of the dividends or returns therein stipulated to be paid.
5. It shall be the duty of the commissioner upon being satisfied that any insurance
company, or any agent thereof, has violated any of the provisions of this section, to revoke
the certificate of authority of the company or agent so offending.

Legislative History

[C24, 27, 31, 35, 39, §8624; C46, 50, 54, 58, 62, §506.9; C66, 71, 73, 75, 77, 79, 81, §506.10]