Ohio § 1707.32

§ 1707.32.

If an issuer of securities is incorporated or organized to make any insurance named

in Title XXXIX of the Revised Code, the superintendent of insurance shall, for all

the purposes of sections 1707.01 to 1707.50, inclusive, of the Revised Code , be substituted for the division of securities and the issuer and the beneficial

owners of shares thereof shall be subject to section 3901.31 of the Revised Code .  The superintendent of insurance shall have over any company disposing or attempting

to dispose of any of its securities within this state the powers of regulation, supervision,

and examination conferred on the superintendent by law, with reference to companies

licensed to transact the business of insurance within this state. No person shall, for the purpose of organizing or promoting any insurance company,

or of assisting in the sale of the securities of any insurance company after its organization,

dispose or offer to dispose, within this state, of any such securities, unless the

contract of subscription or disposal is in writing and contains a provision substantially

in the following language: No sum shall be used for commission, promotion, and organization expenses on account

of any share of stock in this company in excess of ____________ per cent of the amount

actually paid upon separate subscriptions, and the remainder of such payment shall

be invested as authorized by the law governing such company and shall be held by the

organizers of such company before organization, and by its directors and officers

after organization, as bailees for the subscriber, to be used only in the conduct

of the business of such company after the company has been licensed and authorized

for such business by proper authority. In lieu of “in excess of ___________ per cent of the amount actually paid upon separate

subscriptions,” the language of such contract may be, “________________ dollars per

share from every fully paid subscription”;  and in lieu of “organizers” it may be

“trustees” if such payments are to be held by trustees. Funds and securities held by such organizers, trustees, directors, or officers, as

bailees, shall be deposited with a bank or trust company of this state, or invested

as provided in sections 3925.05 and 3925.08 of the Revised Code , until such company has been licensed to transact the business of insurance in this

state. The amount of such commission, promotion, and organization expenses shall in no case

exceed fifteen per cent of the amount actually received upon the subscriptions;  except

that in the case of joint-stock life insurance companies and joint-stock insurance

companies other than life, the amount of such commission, promotion, and organization

expenses shall in no case exceed ten per cent of the amount actually received upon

the subscriptions.