§432:1-305  Authority to offer death, sick,
disability, or other benefits; restrictions on use of funds.  (a)  At no
time shall the society, except as provided in subsection (c), use more than
twenty-five per cent of the payments up to $100,000 and seven per cent of the
payments in excess of $100,000, received from its members or applicants in the
form of admission fees, dues, contributions or assessments of any nature for
expenses other than taxes, in connection with the management or operation of
the death benefit, sick, disability, or other benefit funds.



(b)  Any commissions or other payments or
allowances to persons soliciting membership in or making collections for the
society shall be included in the foregoing expenditures and no part of the
commissions, payments or allowances may be in addition thereto; provided, that
any society which exacts a membership fee of its new members not in excess of
$10 for each membership may pay commissions or other payments to persons
soliciting membership out of the fund created by the membership fees, and the
amounts so paid as commissions or as such other payments out of such fund shall
not be considered as expenses within the meaning of section 432:1-304 and
section [432:1-305].



(c)  Any association or society organized and
operating solely as a nonprofit medical indemnity or hospital service
association or society may use for such expenses, in addition to taxes, not
more than thirty-five per cent of the payments received from its members or
applicants in the form of admission fees, dues, contributions, or assessments
of any nature. [L 1987, c 347, pt of §2]