The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1878-05-11
CHAPTER 100.


tions and Companies, and the amendments neTe-
To made by chapter three hundred ana elgnty-
EIGHT of the Acts of the General Assembly, passed
at the January session, eighteen hundred ana
seventy-two chapter lour az th oi Isnvarv ses
sion eighteen hundred and seventy -four, ana
chapter two-hundred and forty-elght OF the ACTS
of the General Assembly, passed at the january
session eighteen hundred and seventy-slx; ana
10 repeal section one hundred and hVe OF arllcle
twenty-sx, of the Code OF PUBIC Generai laws Laws
title Corporations" subtitle insurance Compa-
mics" and the amendments made thereto by chap-
ter nine of the Acts of the General Assembly;
passed at the January session, eighteen huhared
and seyenty-four; and to re-enact said sections
tWenty-seven twenty-eight, twenty-nlne thirty,
fhirty.one thirtytwo. thirty three, thirty-four,
thirty and thirty-sx of said article ffty-six,
of the Code of Public General Laws, title Licen-
SEES" subtitle Foreign Corporations and Compa,
nies;" and also to re-enact section one hundred
and five of said article twentysiX, of the Code of
Public General Laws title Corporations, sub
title Insurance Companies" with amendments
Section l. Be it enacted by the General Assembly
of MARYLAND That sections twenty seven, twenty
eight twenty-nine, thirty, hirty-one, thirty
thirty three thirty four thfryve and thirty six of
title Licenses" subtitle Foreign Corporations and
Companies, and the amendments made thereto by
chapter three hundred and eighty OF the Acts
of the General Assembly passed at the January SEES
sion eighteen hundred and seventy-two, by chapter
four hundred of the acts Of the General Assembly;
passed at the January session, eighteen hundred and
seyenty-four; and chapter two hundred ana forty
eight of the of the General Assembly, passed at
the January session, eighteen hundred and seventy
six and section one hundred and five, Of article
tw enty-six of the Code of Public General Laws title
Corporations" subtitle Insurance Companies,
and the amendments made thereto by chapter nine,
of the acts of the General Assembly, passed at the
January session. eighteen hundred and seventy -four,
he and the same are hereby repealed and that said
sections twenty-seven, tWenty-eght twenty-nlne
thirty, thirty one. thirtytwo, thirty-three thirty
four thiry-ive and thirty-siX, of article hfty Six
of The Code of Public General Laws title Licenses,
subtitle Foreign Corporations and Companies"
and section one hundred and five of article twenty
six of the Code of Public General Laws, title Cor
porations" subtitle insurance Companies" be,
and the same are hereby repealed, amended and re-
enacted, SO as to read as follows:
X. There is hereby established distinct depart
ment to be known as the Insurance Department,
the Office for which shall be in the city of Annapolis
which shall be charged with the execution of the
laws of this State in relation to insurance the chief
oficer of which shall be appointed by the Governor
Treasurer and Comptroller, for the tenn of four
years and shall be known as the Insurance Com.
missioner, and shall receive an annual salary OF
twenty five hundred dollars payable only out OF the
fees OF said department authorized by this act and
shall hold his office during the term Tor winch ne
is appointed or until his successor Is appointed ana
qualified, unless sooner removed by tne governor,
treasurer and Comptroller, and the said Insurance
Commissioner shall give bond to the state OF Mary
land in the sum of twenty thousand dollars, Tor the
faithful discharge of his duties; ana no person VINO
is a director officer agent of, or directly or lndl
recty interested in any insurance company, except
as insured, shall be appointed as such insurance
Commissioner: and the said Insurance commissioner
is authorized to appoint an actuary Tor ms sald IN
surance department. and also to employ such clerl-
cal assistance as he may deem necessary 10 Ihe
proper discharge of the duties and enclency OF ms
department. prOuided, h0lreuer that tne salary ana
nav of uch actuary and clerks shall be PAID out oil
the fees of said insurance department.; and pTOried
further that he shall not exceed the sum of five hous-
and dollars for the pay of such clerical assistance
2S Ii shall be the duty of the Insurance commas
sioner First To that all laws of this state rea
ing to insurance or insurance companies are ialth
fully executed to keep file in his office copies OF
the charter declaration of organization, or deed OF
settlement of every insurance company, including
partnerships joint stock asSoeiatloflS and CORPORA
tions orqazed under the laws Of this State, or or
ganzed under the laws Of some other State or nation
and applying to do business IN tins s1ate, Whieh
law by the Secretary OF State or other proper officer
of the State or nation wherein such companies are
organized and the Insurance Commissioner shall,
upon application of any such company or asSocla-
ton furnish them with certified copies OF their
charter so filed in his department. Second. To fur
nish i'm December of each year. to the companies re-
uuired by this act to report to him, the necessary
blank forms for the statement required ana as soon
as practicable in each year, he shall cause to be
calculated by the actuary of his department under
his superysiop, the net value, on the 3lst day OF
b at S % eaa liz
doing business in this State organized by auhorlty
Of this State and of every other life insurance COM
many doing business in this State that shall fail to
furnish him as hereinafter provided, certlcate OIL
the insurance commissioner of the state by whose
authority the company was organized or OF the State
in Which il may elect 10 have its policies valued and
its deposit made, in case the company IS chartered
by the Government of the United States or BY any
foFaign government or by any State net having an
insurance department, giving the net value OF al
policies IN force in the company on the thirty
Citation til Of the net value Of each policy shall be
based upon the American Experience Table OF
Mortality" and four and one-haf per cent interest
DER annilm; and the net value of a policy at any
time shall be taken TO be the single Aet premium
which will at that time effect me insurance less tue
value at that time of the future net premiums paya.
BILE upon the policy, determined by the table OF
mortality and rate of interest designated above.
Third. The insurance commissioner snail accept he
valuation made by the insurance commissioner OF
the State Under whose authority he insurance
company IS organized, that ofthe State IN which
st have its OOllpieS valued Wl0n Sucl
valuations have been properly made ON SOUND anu
recognized principles, and legal basis, not less than
praseribed above prOuided that the company snail
furnish to the insurance commissioner OF this state
n certificate from thG insurance commissioner Oh
such State setting forth the Value calculated on The
data DESIGNATED above of all the policies in force in
the company on the previous thirty rst day OF De
cember, and stating tat said company IS tuily au-
life insurance company doing business in this State
during The year for which the statement is made,
that fails promptly to furnish the eerilcate a arc
is policies and securities to the insurance commits
sioner of this State, who shall thereupon cause the
same to be valued az the expense of said company.
Fourth And it is hereby made the duty of the insll-
| rance commissioner, after having ascerta1ned the
amount of the net values OF an the pOcies III lSffe
gal securities of the description and character here
matter provided for in this act after other debts
end claims against it, including those resisted o tne
eompany but exclusive of capital stock, have been
provided lor and in case il is found that any life IN
surance company, doing Business in this State has
not in hand after SO deducting all debts and claims
against it, exclusive of capital stock, an amount OF
assets OF the character hereinafter prescribed in this
pocies in 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 business. and he shall Immediately lnstl'
tute such proceedings necessary to protect the
right of all persons interested in said company; and
il Shall be his duty that no company is per
United to insure lives in this State whose charter
onfhorizes il 10 do fire marine, or inland insurance
! business Fifth II shall be the duly Of the tnsp-
rance commissioner after has notlhed ne insl
this State 10 cease doing new business, ON account
Of its condition being below tho legal standard OF
rigid examination in regard to all the affairs of such
company; in case it shall appear that there is nc
fraud or gross ncompeteney OF me- fi0 tHe
the case permit such company to continue IN charge
of its business for one year, pr0rded there Is IN MS
| opinion, reason to believe that the company may
eSentualiy be able 70 Te-establish its solvency ae
coFdng to the legal stapdaFd; e the expiration o.
Examination, he is satisfied that the c6RaHg Is
likely TO retrieve its condition. but, in case the in
suralce commissioner does not permit the company
TO con tpue in the control Of its business tits hereby
made his duty TO institute the necessary proceedings
for the protection of its policy holders
with the laws of this State and TO publish the result
of the examination of the affairs Of such company
! whenever he may deem it for the interest OF the
public so to do i'll one or more papers pupnsnea ~
! fhiS State Sixth. For every company doing fre
insurance business in this State, he snail calculate
the reinsurance reserve for unexpired fire risks by
taking fifty per cent. of the premiums received Oh
all unexpred risks that have less than one year tc
! run and a pro rata of all premiums received on
risks that have one year or longer to run; ana ~
! marine and inland insurance he shall charge al
| the premiums received on unexpired risks as a re
insurance reserve. r9pided that the foregoing re
ouirenents of repsurancG IesGrEe, Eleti aBblen Fc
Companies organized under the laws of foreign gov
ernments 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 tht
United States, shall be recognized as CONSTITUTING
| fhe reserve fund so required. seventh Having
charged against company the reinsurance reserve
as above determined, for fire, inland and marine IN
suranee, and adding thereto all debts and elalmi
against the company, be shall in case ne hnqs INT
capital stock of the company impaired 70 the e1ten
of twenty-five per cent give notlce TO the company
to make good its whole capital stock within sixtS
days. and ifthis is not done, he shall require INT
company to cease TO do new business within thi'
State; and shall theFeupoR in case the company
organized under the authority of this Sfate, lmme
diatey institute such legal proceedings as are neees
sary to protect the rights of all persons interested IL
| said company. Eighth. Once at least during hi'
term of office and ottener if he should deem 1t eXpe
dent so to do the insurance commissioner shall
visit the principal Office of every insurance company
organized under the laws of this State for the pur
lose of examining its affairs; at such time he shal
have free access 10 It's books and papers, and shall
thoroughly inspect and eSaminS its affars to such
| extent and make such inquiries as may be neeees
sary TO ascertain its condition and ability to fulfill
| its engagements, whether it has complied with al
the provisions OF law applicable TO its transactions
and whenever the insurance commissioner may
have reason to doubt the solYepcy or the CORRECTNESS
of the statement of any company not organized IN