§432:1-305  Authority to offer death, sick,disability, or other benefits; restrictions on use of funds.  (a)  At notime shall the society, except as provided in subsection (c), use more thantwenty-five per cent of the payments up to $100,000 and seven per cent of thepayments in excess of $100,000, received from its members or applicants in theform of admission fees, dues, contributions or assessments of any nature forexpenses other than taxes, in connection with the management or operation ofthe death benefit, sick, disability, or other benefit funds.

(b)  Any commissions or other payments orallowances to persons soliciting membership in or making collections for thesociety shall be included in the foregoing expenditures and no part of thecommissions, payments or allowances may be in addition thereto; provided, thatany 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 personssoliciting membership out of the fund created by the membership fees, and theamounts so paid as commissions or as such other payments out of such fund shallnot be considered as expenses within the meaning of section 432:1-304 andsection [432:1-305].

(c)  Any association or society organized andoperating solely as a nonprofit medical indemnity or hospital serviceassociation or society may use for such expenses, in addition to taxes, notmore than thirty-five per cent of the payments received from its members orapplicants in the form of admission fees, dues, contributions, or assessmentsof any nature. [L 1987, c 347, pt of §2]