Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1914-05-01
[cHAPTER 1921

AN ACT to amend and re-enact sub
section Sixth of Section 100 Of Ar
ticle 20 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 l. Be II enacted by the
General Assembly of Maryland, That
subsection Sixth of Section 100 of
Article 90 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hereby repealed and re-enacted, with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 un-
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 1t
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 1t prudent
to do so, or upon the request of FIVE
or more of the stockholders, creditors,
policy-holders or persons pecuniarily
interested therein, who shall make
affidavit of their belief, with specfca-
ton OF reasons therefor, showing a
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
II 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 II to
transact business in this State, under
A. - A.rtt nl< he Oh
notify such company that II Will be
necessary for him to have Its affairs
examined. Whenever an examination
Of any insurance company doing busi-
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 its affairs; and
II such company shall refuse to per-
NIT such examination, or shall refuse
free access to all It's books and papers.
or shall In any way prevent or OBJ
struct a thorough examination into It's
affairs. he shall not grant license to
such company. or II license shall al
ready have been granted. he shall at
once revoke 1t 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
bis travelling and other expenses, and
in addition thereto aum TO be APP
proved by the Insurance Commission
err. not exceeding. however, fifteen dol
lars $4,000 for each and every day
that he shall be engaged in any such
examination, said per diem and ex-
penscs to be In addition to the com
pensation provided in Section 1914 Of
this Article, and such other person OF
persons who may be appointed by the