40-19a11. Disbursement limitations; administrative expenses defined.
40-19a11
40-19a11. Disbursement limitations; administrative expenses defined. (a) No corporation subject to the provisions of this act shall duringany one year disburse more than five percent (5%) of the aggregate amountof the payments received from subscribers during that year as expendituresfor the soliciting of subscribers, except that during the first year afterthe issuance of a permit, such corporation may so disburse not more thantwenty percent (20%) of such amount, during the second year not more thanfifteen percent (15%), and during the third year not more than ten percent(10%).
(b) No such corporation shall, during any one year, disburse more thantwelve percent (12%) of the aggregate amount of the payments received fromsubscribers during that year as administrative expenses, except that duringthe first two years after the issuance of the permit, such corporation maydisburse not more than twenty percent (20%) of the payments received fromsubscribers. The term, "administrative expenses," as used in this section,shall include all expenditures for nonprofessional services and, ingeneral, all expenses not directly connected with the furnishing of thebenefits specified in this act, but not including expenses referred to insubsection (a) hereof.
History: L. 1972, ch. 174, § 11; July 1.