Limitation on Organizational Expenses

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The total expenses of organization of any insurer organized under this chapter including commissions for the sale of stock shall not exceed 12 1/2 percent of the amount for which the stock is sold in the case of a stock insurer and 12 1/2 percent of the paid-in surplus in the case of a mutual insurer.

(Code 1933, § 56-1542, enacted by Ga. L. 1960, p. 289, § 1.)

OPINIONS OF THE ATTORNEY GENERAL

The word "organization" as used in this section includes the entire period from the inception of the company, the filing of application for charter, and the time required to raise the capital and surplus required by this title. 1960-61 Op. Att'y Gen. p. 271.

Limitation applies to all expenses from inception of company until certification.

- The limitation on expenses of 12 1/2 percent of the amount for which the stock was sold would apply to all expenses incurred from the inception of the company until a certificate of authority was obtained. 1960-61 Op. Att'y Gen. p. 271.


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