17B:18-6.Ā  Stipulations in stock subscriptions and applications
Every subscription to the capital stock of a stock insurer shall contain theĀ  stipulation that no sum shall be used for commission, promotion or organizationĀ  expenses in excess of a per cent of the amount paid upon the stockĀ  subscription, to be named in the stipulation, in an amount to be named by theĀ  commissioner.Ā  Every subscription for stock and every application for insuranceĀ  in the insurer made prior to the granting to the insurer by the commissioner ofĀ  the certificate of authority shall contain the stipulation that the moneyĀ  advanced by the applicant shall be returned to him without any deduction if theĀ  insurer fails to complete its organization or procure the certificate or issueĀ  the policy applied for in the application.

L.1971, c. 144, s. 17B:18-6.