The Prince George's enquirer and southern Maryland advertiser. (Upper Marlborough, Md.) 1882-1925, 1914-05-08
ICHAPTER 1921

| AN ACT to amend and re-enact sub
| section Sixth of Section 160 of Ar
ticle % of the Code of 1904 of Public
General Laws of Maryland, entitled
Corporations" subtitle Insurance
Department" providing for the ex-
| animation Of insurance companies
| and for compensation to be paid the
examiners.
! Section 1. Be it enacted by the
General Assembly of Maryland. That
subsection Sixth Of Section $50 of
Article % of the Code of 1904 of
Public General Laws of Maryland, en-
titled Corporations" subtitle "Insur-
ance Department" be, and the same is
hereby repealed and re-enacted, with
amendments, SO as to read as follows:
Sixth Before granting certificates
of authority to an insurance company
to issue policies or make contracts OF
| insurance, the Insurance Commits
sioner shall be satisfied by such ex-
animation and evidence as he sees fit
to make and require, that such COM
pany is otherwise duly qualified I'M
der the laws of this State to transact
business therein; once at least during
his term of Office he shall cause the
affairs of every insurance company
organized under the laws of this State
! to be thoroughly inspected and ex-
amined, with special regard to its
financial condition and its ability to
fulfill its obligations, and shall ascer-
tain and determine whether or not it
has complied with the laws of this
State; he shall also cause an examina-
ton of every such company to be
made whenever he deems it prudent
to do so, or upon the request OF five
or more of the stockholders, creditors,
policy holders or persons pecuniar1ly
interested therein, who shall make
affidavit of their belief, with spec1ca-
ton of reasons therefor, showing
prima facia case that such company
is in an unsound condition; and
whenever the Insurance Commissioner
may have reason to doubt the solvency
or the correctness of the statement OF
any company not organized under the
laws of this State, which may have
been licensed to do business in this
State, or which may be applying for
said license, he shall communicate
such doubts, and the reasons for them,
to the Insurance Commissioner or 9TH
er officer charged with the supervision
of insurance corporations OF the State
in which said company is located, and
if he is not satisfied from the in
formation obtained from such Insur-
ance Commissioner or other officer, or
from the officers of the company, that
the condition of the company is such
as to warrant him in permitting it to
transact business in this State, under
the provisions of this Article, he shall
notify such company that it will be
necessary for him to have its affairs
examined. Whenever an examination
of any insurance company doing bust
ness in this State shall be determined
upon under the provisions of this Ar
ticle, the Examiner of the Insurance
Department and such other person or
persons who shall be appointed by the
Insurance Commissioner for that pur-
pose shall visit such company at its
principal Office and make thorough
examination into all it's affairs; and
if such company shall refuse to per-
NIT such examination, or shall refuse
free access to all its books and papers,
or shall in any way prevent or OBJ
struct a thorough examination into its
affairs, he shall not grant license to
such company, or if license shall al
ready have been granted, he shall at
once revoke it and publish the fact of
such revocation in one daily newspa-
per published in the City of Balti-
more The Examiner of the Insur-
ance Department shall be paid by the
company whose affairs are examined
his travelling and other expenses, and
in addition thereto sum to be ap-
proved by the Insurance Commission
er, not exceeding, however, fifteen dol
lars (s15.OO) for each and every day
that he shall be engaged in any such
examination, said per diem and ex-
penses to be in addition to the COM
Densation provided in Section 1874 of
this Article; and such other person or
persons who may be appointed by the
Insurance Commissioner for any of
the purposes mentioned herein shall
each be paid by the company whose
affairs are examined their travelling
and other expenses, and in addition
l. I,ryf l1N