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



Az ACT
To repeal SECTIONS twenty-seven. tweniy-eighf
twenty nine, thirty thirty thfrty-tTo thirty
three thirty four thirty-fve and thirty-six OF Ar
uele MY six. OF the Code Of Public General Laws
entitled License. subtitle Foreign Corpora.
tions and Companies, and theamendments there
10. made by chapter three hundred and eighty
eight. of the Acts of the General Assembly passed
ai the january session. eighteen hundred and
-, 49, tplai "a tut AT, oi
the General Assembly passed at the January ses-
sion, eighteen hundred and seventy four and
chapter two-hundred and forry-eight Of the Acts
OF the General Assembly, passed Al the January
session, eighteen hundred aud seventy-six: and
10 repeal section one hundred aud five of article
tWenty-six. OF the Code of Public General laws.
title Corporations" subtitle Insurance Comma
MES, and the amendments made thereto by chap
ter nine Of the Acts OF the General Assembly,
passed al the January session, eighteen hundred
and seventy flour; and TO re-enaet said sections
twenty-seven, twenty eight twenty-nine thirty.
thirty-one, thirty-two, thirty three thirty -four,
thirtyfve and thirty-six OF said article hfty-six
of the Code of Public General Laws title "iicen-
ses,' subtitle Foreign Corporations and Compa-
MES; and also 20 re-enact section one hundred
and I'VE OF said article tgentysix, OF the Code of
Public General Laws, title Corporations" sub
! title Insurance Companies" with amendments.
Section !. Be Il enacted by the General Assembly
OF Maryland, That sections twenty-seven twenty
eight, twenty nine, thirty, thirty-one thirty two
article ffty-six OF the Code OF Public General Laws
title Licenses, subtitle Foreign Corporations and
Companies and the amendments made thereto BIZ
chapter three hundred and eighty eight, Ofthe Acts
OF the General Assembly passed at the January Ses-
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
seventy four, and chapter TWO hundred and forty
eight OF the acts of the General Assembly passed
the January session. eighteen hundred and seventy
six, and section one hundred and five. of article
twentysix of the Code of Public General laws titl.
Corporations" subtitle Insurance Companies f'
and the amendments made thereto By chapter nine,
OF the acts of the General Assembly passsd NJ the
January session, eighteen hundred and seyenty-four
be, and the same are hereby repealed and that said
sections twenty-seven, twenty twenty nine,
four thirty five and thirty-sx of article iftysix
OF the Code ofPublie General Laws title Licenses
subtitle Foreign Corporations and Companies -
and section 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. 20 read as follows:
q. There is hereby established distinct depart
menS, 70 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 10 insurance the chief
officer of which shall be appointed by the Governor
Treasurer and Comptroller, for the team 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 for which he
Is appointed or until his successor IS appointed and
qualified unless sooner removed by the Governor
treasurer and Comptroller and the said Insurance
Commissioner shall give bond 10 the state of Mary
land in the sum of twenty thousand dollars for the
faithful discharge of his duties; and person who
Is director. officer, agent Of directly indi-
rectly interested in any insurance company except
as insured shall be appointed a. such Insurance
Commissioner. and the said Insurance Commissioner
Is authorized 10 appoint aetuary for his said in
surance department: and also 20 employ such cleri-
/ cal assistance as he may deem necessary 10 the
department. prOrided hgtoeUeT, that the salary and
pay Of such actuary and clerks shall be paid out of
the fees of said insurance department; and proriat
further that he shall not exceed the sum of five thous-
and dollars for the pay of such clerical assistance
y. 1t shall be the duty Of the Insurance Commits
siOner First To that all laws of this State relat-
ing 10 insurance or insurance companies are faith
fully executed TO keep file in his Office copies OF
the charter, declaration of organization deed of
settlement of every insurance company, including
partnerships, joint stock associations and corpora
lions organized under the laws of this state or or
ganized under the laws of other State or nation
and applying to do business in this State. which
copies shall be duly certified in accordance with
law by the Secretary OF State or other proper officer
of the State nation wherein such companies are
organized; and the Insurance Commissioner shall,
upon application of any such company or asSocia-
ton. furnish them with certified copies of their
charter. filed in his department Second. To fur
CURED by this act, TO report 70 him, the necessary
blank forms for the statement required and soon
as practicable, in each year he shall cause to be
calculated by the actuary of his department, under
his supervision, the net value, the 3lst day OF
December Of the previous year of all the policies in
force that day, in each life insurance company
doing business in this State organized by authority
of this State, and OF every other life insurance
pany doing business in this state that shall fail 10
furnish him as hereinafter provided certificate of
the insurance commissioner Of the State by whose
authority the company was organized or OF the state
/ its deposit made in case the company is chartered
I by the Government of the United States or by any
foreign government. or by any state not having an
insurance department., giving the net value of all
policies IN force in the company the thirty first
day OF December Of the preceding year, which cal
eulation 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 annum; and the net value of a policy at any
4 time shall be taken 10 be the single net premium
which will at that time effect the Insurance less the
value at that time OF the future net premiums paya-
bic 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 commissioner OF
I the state, under whose authority life insurance
company IS organized or that OF the state in which
1t may elect 10 have its policies valued when such
l valuations have been properly made sound and
recognized principles and legal basis not less than
prescribed above; prOridod that the company shall
furnish 70 the insurance commissioner Of this state
I "a certificate from the insurance commissioner OF
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 day of De-
cember, and stating that said company is fully au-
thOrized to do business in its State: and every
life insurance company doing business in this state
/ during the year for which the statement Is made
that fails promptly 10 furnish the certificate aore
said shall be required 70 make fun detailed list OF
its policies and securities 70 the insurance commits
soner Of this STATE who shall thereupon cause the
same 10 be valued al the expense of said company
Fourth And IL is hereby made the duty of the insl
rance commissioner, after having asccrtgined the
amount OF the net values OF all the policies in force
10 that the company has that amount in safe le
gal securities of the description and character here
inafter provided for in this after all its other debts
and claims against IT, including those resisted by the
company, bur exclusive of capital stock have been
provided Tor and in II is found that any life in
I Surance company doing business in this State ha,
not in band, after deducting all debts and claim.
against it. exclusive of capital stock, amount OF
assets of the character hereinafter prescribed In this
act equal in value To the present value OF all IL
policies in force il shall be the duty of the insurance
commissioner TO publish the fact that the existing
condition of the affairs of the company Is below IN,
legal standard Of solvency, established by this State
and he shall require the company nj once TO eeasC
doing new business. and he shall Immediately inst
tue such proceedings necessary protect the
right OF all persons Interested in said company and
ii shall be his duty 70 see that no company Is per
mitied 10 insure lives in this state whose charter
authorizes IL to do fire marine inland insurance
business. Fifth. IL shall be the duty OF the insu
rance commissioner after c has notified life insu
rance company, organized under the authority OF
this state, TO cease doing new business, account
of its condition being below the legal standard n
rigid examination in regard 10 all the affairs of such
company; in case IL shall appear that there is nc
fraud or gross incompeeucy Or reckleSsnesS in the
management he may, upon publishing the facts In
the case permit such company 10 continue in charge
Of its business for one year. proridei there is in his
opinion, reason 20 believe that the company may
eventually be able TO re-estahlish It's solyency ac
eording TO the legal standard; at the expiration o
| such year he may renew the permission in case on
examination, he is satisfied that the company /.
likely to retrieve its condition; out in case the in
surance commissioner does not permit the company
10 tinue in the control of its business tits hereby
made his duty 10 institute the necessary proceeding
for the protection of its policy holders in
of the examination of the Affairs OF such company
whenever he may deem II for the interest OF the
public 20 10 do. III one or more papers published u
this state. sixth For every company doing fir
insurance business In this State he shall caculat,
the reinsurance reserve for uneXpired fire risks by
taking tity per cent. of the premiums received OF
all unexpired risks that have less than one year &
run, aud q pro rata Of all premiums received OF
risks that have one year or longer 20 run: and III
marine aud inland insurance he shall charge al
the premiums received on uuexpired risks as a re
insurance reserve. PTorided. that the foregoing re
qurements Of Reinsurance reserve, when applied &
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 tn,
United States, shall be recognized ~ cousttutins
the reserve fund 50 required. Seventh Having
charged against company the Reinsurance reserve
a. above determined, for fire, inland and marine in
surance, and adding thereto all debts and claim
against the company, he shall, in case he finds the
capital stock Of the company impaired 10 the exten
Of twenty-five per cent give notice % the company
o. make good its whole capital stock within sixty
days and ifthis Is not done. he shall require thl
company to cease 20 do new business within thi
STATE; and shall thereupOn, in case the company 4
organized under the aaihqri!y of this State, imme
diaely institute such legal prucGadiugE rs are neceS
saTy - project the rights of al persons interested -
said company. Eighth. once at least during hi
term Of 0fige and oilener il he should deem expe
dient 80 10 do, tliB lpsHrpnce commissioner shall
visit the principal office of every iusau ce cnpan,
organized under the laws OF this state Tor tbs plr
pose Of examining its affairs at such time he shat
have Tree access 20 its books and papers. and shall
thoroughly inspect and examine IT, affairs To sucl
extent ana make such Inquiries a. may Dc uccces
saEy 20 ascertain llS CONDITION and ability 10 iqlrl
is engagements, WhethN Il has complied with al
the provisions Of law applicable 10 it. transactions
aud whenever the insurance commissioner maj
have reason 20 doubt the solvcncy or the CORRECTNESS