1812 ARTICLE 48A.

missioner with full particulars as to the methods and proposed cost of pro-
motion. Before any such person shall solicit subscriptions to or sell the
stock of such company, he shall be required to secure a license from the in-
surance commissioner, who, prior to the issuance of such license, shall in-
vestigate the record of the applicant and may, for good cause shown, refuse
to issue same. The fee for each such license shall be ten dollars. The cost
of promotion, including commissions to the stock salesmen and all expenses
of organization of whatever character, shall not exceed five per centum
of the subscription or selling price of each share of stock, and the insur-
ance commissioner shall require this provision to be plainly set forth in
the stock subscription agreement or contract for the sale of stock. No part
of the commissions to the salesmen or other organization expense under
any subscription for stock shall be payable until such share or shares of
stock have been fully paid for in cash or securities of equivalent value.
The subscription to or sale of stock in any such company in series is pro-
hibited, except that after a company is organized and actively engaged in
the insurance business, the insurance commissioner is empowered to au-
thorize it to sell a new issue of stock at an advanced price on conditions not
otherwise inconsistent with the provisions of this section. The fiscal agent,
person or corporation engaged in promoting the organization of any such
insurance company shall be required to give to the insurance commissioner
a surety bond in the amount of ten per cent, of the proposed maximum
capital of such company for the faithful performance of the undertaking
in accordance with the provisions of this section by both himself and his
salesmen.

Any violation of the provisions of this section shall be deemed a misde-
meanor and shall be punishable by a fine not exceeding one hundred dol-
lars for the first offense, and by a fine of not less than one hundred dollars
or more than one thousand dollars for each subsequent offense.
See art. 32A, sec. 11, et seq.

1922, ch. 492, sec. 44.

44. Rebating Unlawful (Life and Accident). No insurance company
doing business in this state shall make or permit any discrimination or
distinction in favor of individuals of the same class and equal expectation
of life in the amount of premiums or rates charged for policies of life or
endowment insurance, or for policies insuring persons against accidental
bodily injury, or in any of the terms and conditions of the contracts it
makes, as an inducement of such insurance; nor shall any such company
or any officer, agent, solicitor or representative thereof, or any insurance
broker, pay, allow or give, or offer to pay, allow or give, directly or indi-
rectly, as inducement to such insurance, or after the insurance shall have
been effected, any rebate from the premium which is specified in the policy,
nor shall the insured, his agent or representative, directly or indirectly
accept or knowingly receive any rebate from the premium specified in the
policy, or any special favor or advantage in the dividends or other benefits
to accrue thereon, or any paid employment or contract for services of any
kind, or any special advantage in date of policy or age of issue, or any