"EMERSON C. HARRINGTON, GOVERNOR. 549

amended by the addition thereto of a new and additional Sec-
tion, to follow immediately after Section 186, and to be desig-
nated and known as Section 186-A, and to read as follows:

186-A. No stock salesman, broker or other person represent-
ing any insurance company, wherever incorporated, in process
of organization and not licensed to transact business in this
State, shall be permitted to solicit subscriptions to or sell the
stock of such company in this State unless and until such com-
pany has furnished the Insurance Commissioner with full par-
ticulars as to the methods and proposed cost of promotion.
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 Insurance Commissioner, who, prior, to the
issuance. of such license, shall investigate 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 Insurance Commissioner shall re-
quire this provision to be plainly set forth in the stock sub-
scription agreement or contract for the sale of stock. No part
of the commissions to the salesmen or other organization ex-
pense 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 prohibited, except
that after a company is organized and actively engaged in the
insurance business, the Insurance Commissioner is empowered
to authorize 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 a 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 misdemeanor and shall be punishable by a fine not
exceeding one hundred dollars 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.