Eighth-For every company doing fire and inland insurance business in this State he shall calculate the re-insurance reserve for unexpired fire and inland risks by taking fifty per centum of the premium received on all unexpired risks that have less than one year to run, and a pro rata of all premiums received on risks that have one year or longer to run, and in marine insurance he shall charge sixty per centum of the amount of premiums written in its marine policies upon yearly risks and risks covering more than one passage, not terminated, and the full amount of premium under its policies upon all other marine risks less than one year, not terminated; provided, that the foregoing requirements or re-insurance reserve when applied to companies organized under the laws of foreign governments shall be calculated only upon the business of such company in the United States, and only the assets of such company held and invested in the United States shall be recognized as constituting the reserve fund so required.

Ninth-Having charged the company the re-insurance reserve as above determined, for fire, inland and marine insurance, and adding thereto all debts and claims against the company, he shall, in case he finds the capital stock of the company impaired to the extent of twenty-five per centum, giving notice to the company to make good its whole capital stock within sixty days; and if this is not done he shall require the company to cease to do new business within this State; and shall thereupon, in case the company is organized under the authority of this State, immediately institute such legal proceedings as are necessary to protect the rights of all persons in said company.

Tenth-The Insurance Commissioner shall preserve in permanent form a full record of his proceedings, and a concise statement of the condition of each company visited or examined, and report annually to the Governor, on or before the first day of June, his official acts; and shall, on the first day of December, annually, report to the Comptroller the fees received and expenses of his department for the year then to end, and pay into the Treasury all excess of receipts over disbursements; and in his report to the Governor, he shall report the condition of the companies doing business in this State, and such other information as will exhibit the affairs of his department; a

copy of which said report to the Governor he shall forward to the Insurance Commissioner or other similar officer of every other State of the United States, and to each company doing business in this State; and on request he shall communicate to the Insurance Commissioner, or other proper officer of any other State, any facts which by law it is his duty to ascertain respecting companies of this State doing business within such other State; and at the request of any person, and on payment of the proper fee, as hereinafter provided, he shall give certified copies of any record or paper in his office when he deems it not prejudicial to the public interest so to do, and he shall give such other certificates as this sub-title provides for; and he shall adopt and renew from time to time, when necessary, with the approval of the Governor, a seal of office, an impression and description of which, with the Governor's certificate of approval, shall be filed with the Secretary of State. Lycoming Fire Ins. Co. v. Langley, 62 Md. 216.

1902, ch. 338, sec. 122A.

161. Whenever the actuary appointed by the State Insurance Commissioner, as provided for by Section 158 of this Article, shall ascertain that any insurance company doing business in this State is writing and issuing policies upon an insufficient, insecure or impracticable table of rates, then he shall report the same to the Insurance Commissioner, who, upon such report, shall notify such insurance company so writing or issuing policies at rates less than are deemed, in the opinion of said actuary, adequate for the protection of its contracts made with its policy-holders, of the fact of such report and advice; and shall thereupon, if such company shall refuse or neglect to adjust its rates in accordance with the advice of said actuary, cause an examination to be made into the affairs of said company as provided in sub-section fifth of Section 160 of this Article, and if the opinion of said actuary be sustained by the result of such examination it shall be the duty of the Insurance Commissioner to require said company to cease writing and issuing policies at rates so found to be insufficient. If said insurance company continues the writing and issuing of such policies after notice from the Insurance Commissioner, then it

shall be the duty of the Insurance Commissioner to institute proceedings against said company as provided in Section 160 of this Article.

Ibid. sec. 122B.

162. Held to be unconstitutional.

Kafka v. Monumental Mutual Life Ins. Co., 98 Md.

1888, art. 23, sec. 123. 1860, art. 56, sec. 29. 1858, ch. 432, sec. 5. 1872, ch. 388. 1874, ch. 400. 1876, ch. 248. 1878, ch. 106. 163. No declaration of organization or charter of an insurance company formed under this article, and no alteration or amendment thereof, shall be operative until it has been submitted to the Attorney General for examination, and found by him to be in accordance with the provisions of this article, and not inconsistent with the Constitution and laws of this State, and so certified by him and delivered to the Insurance Commissioner; and before any such company shall begin to do any business, the Insurance Commissioner shall examine the officers of said company under oath, to ascertain whether the capital required of the company named in the charter, according to the nature of the business proposed to be transacted by such company, to an amount of not less than one hundred thousand dollars, has been paid in money, and is held by the board of directors subject to their actual control, according to the provisions of the charter of said company, or has been by them invested in securities negotiable, and worth in the market not less than the sum of one hundred thousand dollars; or if a mutual company, that it has received and is in actual possession of the promises or bona fide engagements of insurance or other securities, as the case may be, to the full extent and of the value required by law, and the name and residence of the maker of each premium note forming part of the capital or assets; and the amount of such note shall be reported to the Insurance Commissioner; and the officers or corporators of such company shall be required to certify under oath that the capital exhibited to the Insurance Commissioner is bona fide property of the company, which certificate shall be filed in the office of the Insurance Commissioner; and any officer swearing

falsely in regard to the provisions of this section shall be deemed guilty of perjury, and shall be subject to the penalty or penalties prescribed for such offenses by the laws of this State.

1894, ch. 260, sec. 123A.

164. Associations of individuals, citizens of the United States, whether organized within the State, or elsewhere within the United States, formed upon the plan known as Lloyds, whereby each associate underwriter becomes liable for a proportionate part of the whole amount insured by a policy, may be authorized to transact insurance other than life in this State, upon the following conditions: That any such association organized in this State may be permitted to transact the insurance business upon the same terms and conditions as are by the laws of this State imposed upon an insurance company organized under the laws of this State, and any such association organized in any other of the United States may be permitted to transact its business in this State upon the same terms and conditions as are by the laws of this State imposed upon an insurance company incorporated in the State where such association was organized.

1888, art. 23, sec. 124. 1860, art. 56, sec. 30. 1858, ch. 432, sec. 6. 1872, ch. 388. 1874, ch. 400. 1876, ch. 248. 1878, ch. 106. 165. It shall not be lawful for any insurance company, association, partnership or corporation, organized under the laws of any other State of the United States, or by the Government of the United States, or any foreign government, directly or indirectly, to take risks or transact any business of insurance, whether life, fire, marine or inland, or other insurance risks, in this State, unless it be fully organized and possessed of the amount of actual capital required of similar companies formed under the laws of this State, or until the following conditions have been fully complied with: There must be filed with the Insurance Commissioner, first, a copy of its charter, declaration of organization or deed of settlement, duly ap proved and certified by the Secretary of State, Insurance Commissioner or other proper officer of its own State or Nation, with his certificate that the company is entitled to assume

risks and issue policies therein; second, a power of attorney, appointing a citizen of this State, resident within this State, the agent or attorney for the company, upon whom process of law can be served; there must also be filed with the Insurance Commissioner a certified copy of the vote or resolution of the directors appointing such attorney, which appointment shall continue until another attorney be substituted. And said writing or power of attorney shall stipulate and agree, on the part of the company making the same, that any lawful process against said company, which is served on such agent, shall be of the same legal force and validity as if served on such company or association within this State; and also, that in case of the death or absence of the attorney so appointed, service of process may be made upon the Insurance Commissioner of this State; and such power of attorney can not be revoked or modified (except that a new one may be substituted), so long as any policy or liability remains outstanding against such company in this State. The term process, used above, shall be held and deemed to include any writ, summons or order, whereby any action, suit or proceeding shall be commenced, or which shall be issued in or upon any action, suit or proceedings, by any court, officer or magistrate; third, a statement of the condition of the company on the thirty-first day of December next preceding, under oath of the president or vicepresident of the company, with that of the secretary or actuary, as hereinafter provided for; fourth, a certificate of the appointment of a general agent of the company for this State, and a list of its agents authorized to transact business for said company within this State; and no certificate of authority, as hereinafter described, shall be issued to any person or persons not so designated by the company as agent, except in the case of solicitors of life insurance, who may be designated by the general agent of the company for this State.

Ben Franklin Ins. Co. v. Gillett, 54 Md. 215. Metropolitan Ins. Co. v. Dempsey, 72 Md. 293. Talbott v. Fidelity Trust, 74 Md. 541.

1888, art. 23, sec. 125. 1880, ch. 387.

166. Every life insurance company, in addition to the above, shall file, and annually renew, a certificate from the Insurance