Iowa § 506.4 Maximum promotion expense allowed

Iowa Statutes

§ 506.4 — Maximum promotion expense allowed

Iowa § 506.4

Title XIIICOMMERCE

Ch. 506DOMESTIC INSURANCE COMPANIES

This text of Iowa § 506.4 (Maximum promotion expense allowed) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Iowa Code § 506.4 (2026).

Text

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.

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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.