61A.45 LIMITATION ON EXPENSES; COMPANIES WITH RESERVE DEPOSITS.
No company, as described in section
61A.39, transacting the business of casualty or health
insurance in this state shall incur, lay out, or expend, in any one calendar year, as and for the
expenses of conducting such business, more than its application or membership fees and 40
percent of its total premiums or assessments. When any such company shall have on deposit with
the commissioner a reserve of $25,000, as provided by law, then and thereafter the company may
expend, in addition to the 40 percent, the interest earnings on the reserve fund and the interest on
any additional surplus funds it may accumulate.
Any officer of any corporation violating, or consenting to the violation of, this section or
section
61A.44 shall be guilty of a gross misdemeanor.
History: 1967 c 395 art 2 s 45