Section 839.5 Of Article 8. Issue Of Securities From California Insurance Code >> Division 1. >> Part 2. >> Chapter 1. >> Article 8.

. The commissioner shall not issue a permit for the sale of any securities of a domestic insurer in any case where he finds that the expense of organization, exclusive of attorney fees, accountant fees, and actuary fees, will exceed 12 percent of the total amount actually paid for the capital stock.