COMPILED CODE - Iowa Legislature - State of Iowa

364
§ 5463-al. INSURANCE DEPARTMENT. Tit. XVIII, C\}. 1.
10 performance of the duties of his office ; and he may contract such exil
penses as may be necessary in the performance of his official duties,
12 including all actual and necessary expenses incurred in attending
13 meetings of the insurance commissioners and such other expense as
14 shall be approved by the executive council ; but the total amount to be so
15 expended for such contingent expenses shall not exceed the sum of one
16 thousand dollars annually ; and there is hereby appropriated out of any
17 funds in the state treasury not otherwise appropriated two thousand
18 dollars annually or so much thereof as may be necessary to meet the ex-
19 penses thus incurred. All salaries of additional clerks and assistants
20 herein provided for shall be paid in the same manner as are the salaries
21 of other state officers out of the general revenues of the state and on
22 the first day of each month all such salaries and other expenses as are
23 indicated herein shall be paid by warrant drawn by the auditor of
24 state upon the treasurer of state.
[S., '13, § 1683-r2 : 39 G. A., ch. 209, § 16.]
SEC. 5463-al. Supervision over organization, sale of stock and
system of bookkeeping—certificate of compliance—promotion
expenses.
1 The commissioner of insurance is hereby given supervision over
2 the organization of domestic insurance corporations, and over all trans-
3 actions leading up to the organization of such corporations, and also
4 over the sale in the state of Iowa, of all stock, certificates or other evi-
5 dences of interest, either by domestic or foreign insurance companies
6 or organizations proposing to engage in any insurance business.
7 Neither the stock in an insurance company nor the membershio in
8 an insurance association in process of organization shall be sold or
9 solicited until such company and association, and the promoters
10 thereof, shall have first complied with all of the statutory provisions
11 regulating the organization of such companies and associations, and
12 also have secured from the commissioner of insurance a certificate of
13 compliance indicating full compliance with the provisions of this
14 section.
15 Before the commissioner of insurance shall issue such certificate
16 of compliance, he shall first be satisfied with the general plan of such
17 organization and the character of the advertising to be used ; he shall
18 also fix the time within * such organization shall be completed; he
19 shall also prescribe the method of keeping books and accounts of such
20 corporation and those of fiscal agents.
21 The maximum promotion expense which may be incurred, which
22 shall in no case exceed fifteen per cent of the subscription price of said
23 stock providing that an additional two and one-half per cent of the
24 subscription price of said stock may be used by the company for office
25 expense but no portion of such amount shall be used in the payment of
26 salaries for officers and directors before the issuance by the commis-
27 sioner of insurance of authority to transact an insurance business.
28 The commissioner of insurance shall have power to regulate all
29 other matters in connection with the organization of such domestic
30 corporations, and the sale of stock or the issuing of certificates by all
31 insurance corporations within the state of Iowa, to the end that fraud
32 may be prevented in the organization of such companies and the sale of
33 their stocks and securities. The provisions of this and the two follow-