1150 LAWS OF MARYLAND. [CH. 402

may tend to incriminate himself, but no person shall be prose-
cuted for any act concerning which he shall be compelled so to
testify or produce evidence, documentary or otherwise, except
for perjury committed in so testifying.

SEC. 43. Blue Sky Provisions. No stock salesman, broker or
other person representing any insurance company, wherever
incorporated, in process of organization and not licensed to
transact business in this state, shall be permitted to solicit sub-
scriptions to or sell the stock of such company in this state
unless and until such company has furnished the insurance
commissioner with full particulars as to the methods and pro-
posed 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 commission or,
who, prior to the issuance of such license, shall investigate 4he
record of the applicant and may, for good cause shown, refuse
to issue same. The fee for each such license shall be ten dol-
lars. 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 com-
missioner 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 sub-
scription to or sale of stock in any such company in series is
prohibited, except that after a company is organized and ac-
tively engaged in the insurance business, the insurance com-
missioner is empowered to authorize it to sell a new issue of
stock at an advanced price on conditions not otherwise incon-
sistent 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 deem-
ed a misdemeanor and shall be punishable by a fine not exceed-
ing one hundred dollars for the first offense, and by a fine of