Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1878-05-03
LNaCS---Ge2zerOI.

the sum of five thousand dollars for the pay Of
such clerical assistance.
90. 1t shall be the duty of the lnsu
rance Commissioner First. To see that all
laws of this State relating TO insurance or
insurance companies, are faithfully executed, to
keep file in bis office, copies of the the charter,
declaration Of organization, or deed Of settle
ment Of every insurance company, including
partnerships, joint stock associations and corpo-
rations, organized under the laws of this State,
or organized under the laws of some other State
or nation, and applying 10 do business in this
State, which copies shall be duly certified in ac-
cordance with law by the Secretary of State or
other proper officer Of the State nation where
in such companies are orsanlzed and the lnsu-
rance Commissioner shall, upon application of
any such company or association, furnish them
with certified copies Of their charter so filed in
his department Second. To furnish in Decem-
Der of each year, to the companies required by
this act, to report to him the necessary blank
forms for the statement require and as soon
as practicable, in each year, he shall cause to be
calculated by the actuary of his department, UNI
der his supervision, the net value on the thirty
first day of December of The previous year, of
all the policies in force on that day, in each life
Insurance company doing business in this State,
organized by authority Of this State, and OF every
other life insurance company doing business in
matter provided, a certificate Of the insurance
commissioner of the State by whose authority
the company WAS organized, or OF the State In
which 1t may el, ct to have is policies valued
and its deposit made, in case the company is
chartered by the Government Of the United
States, or by any foreign government, or by any
State not having an insurance department, CIV
ing the net value of all policies in force in the
company on the thirty first day of December, of
the preceding year, which calculation of the net
value OF each policy shall be based upon the
american Experience Table of Mortality"
and four and one-half per cent. interest per an
mum and the net value Of policy Mt any
time snail be taken to be the single net premium
which will at that time effect the insurance, less
the value at that time of the future net premiums
payable upon the policy, as determined by the
table of mortality and rate Of interest designated
above. Third, the INSURANCE commissioner shall
accept the valuation made by the insurance COM
missioner Of the State, under whose authority
NE insurance company is organized, or that OF
the State in which it may elect TO have its poll
cies valued, when such valuations have been
properly made on sound and recognized prncl-
pies, and legal basis, not less than that pre-
scribed above :; proDided, that the company shall
furnish TO the insurance commissioner OF this
State certificate from the insurance commission
er of such State, setting forth the value calcu-
lated on the data designated above, of all the pol
icles in force in the company on the previous
thirty first day of December and stating that said
company is fully authorized to do business in its
own State; and every life insurance company
doing business in this State during the year for
which the statement is made, that fails promptly
to furnish the certificate aforesaid, shall be re-
qured to make full detailed list of its policies
and securities to the insurance commissioner OF
this State, who shall thereupon cause the same
to be valued at the expense OF said company.
Fourth. Ard il is hereby made the duty of the
insurance commissioner, after having ascer-
tanned the amount of the net values OF all the
policies in force, TO see that the company has
that amount in safe legal securities OF the des-
crption and character hereinafter provided for
in this act after all its other debts and claims
againstit including those resisted by the com
pany, but exclusive of capital stock, have been
provided for and in case 1t is found that any
life insurance company, doing business in this
State, has not in hand, after so deducting all
debt; and claims against it, exclusive of capital
stock, an amount of assets OF the charac er here
after prescribed in this act equal in value TO the
net present value of all its policies i'll force it
shall be the duty of the insurance commissioner
to publish the fact that the existing condition of
the affairs of the company is below the legal
standard of solvency, established by this State,
and he shall require the company at once to
cease doing new business, and he shall lmmedl-
ately institute such proceedings as are necessary
to protect the right Of all persons interested in
said company; and it shall be his duty TO see
that no company is permitted to insure lives In
this State whose charter authorizes it to do fire,
marine or inland insurance business. Fifth.
1t shall be the duty of the insurance commission
er after he has notified life insurance company,
organized under the authority of this State, to
cease doing new business, on account OF its con-
diton being below the legal standard of solven-
cy established by this State, at once to cause
rigid examination in regard to all the affairs OF
such company in case it shall appear that there
is no fraud or gross incompetency, or reckless
ness in the management, he may, upon publish
ing the facts in the case, permit such company
to continue in charge of its business for one
year piovided, there is, in his opinion, reason
to believe that the company may eventually be
able to re-establish its solvency according to the
legal standard at the expiration of such year
he may renew the permission, in case, on exami-
nation, he is satisfied that the company is likely
TO retrieve its condition but, in case the insu-
rance commissioner does not permit the company
to continue in the control of its business, it is
hereby made his duty TO institute the necessary
proceedings for the protection of its policy hold
ers in accordance with the laws of this State,
aud to publish the result oil the examination OF
the affirs of such company, whenever he may
deem it for the interest of TIE public so TO do in
one or more papers published in THIS State.
Sixth. For every company doing fire insurance
business in this State, he shall calculate the re-
insurance reserve for uneXpred fire risks, by
taking fifty per cent. of the premiums received
on all unexpired risks that have less than one
year TO run, and a pro rata of all premiums re-
ceived on risks that have one year or longer to
run and in marine and inland insurance he
shall charge all the premiums recei' ed on unex-
PRED risks as a Reinsurance reserve. Pr0gided,
that the foregoing requirements of reinsurance
reserve, when applied to companies organized
under the laws of foreign governments, shall be
calculated only upon the business of such COM
pany 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. Seventh. Having
charged against company the Reinsurance re-
serve 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 inn
paired to the extent Of twenty FIVE per cent.
give notice 10 the company TO make good its
whole capital stock within sixty days, and II
this is not DONE he shall require the company TO
cease to do new business within this State and
shall ihereupon, 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 interested in
said company Eighth. Once AT least during
his term of oilice, and oftener II he should deem
il expedient so to do, The insurance commissioner
shall visit the principal office Of every insurance
company organized under the laws OF this State,
the uurnosa af aNatni ming its affairs "A such