138

LAWS OF MARYLAND.

Institute ne-
cessary pro-

tinue in the control of its business, it is hereby made
his duty to institute the necessary proceedings for

cecdings.

the protection of its policy holders, in accordance

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, in one or more papers published in

this State.

Sixth. For every company doing fire insurance

Basis of re-

business in this State he shall calculate the reinsur-

serve for fire
insurance
companies.

ance reserve for unexpired 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 received on risks that have one year or

For marine

longer to run, and in marine and inland insurance

and inland in-
surance com-

he shall charge all the premiums received on unex-

panies and for

pired risks as a reinsurance reserve ; provided that

foreign com-

the foregoing requirements of reinsurance reserve,

panies.

when applied to companies organized under the laws

of foreign governments, shall be calculated only upon
the business of such company in the United States,

and only the assets of such company held and in-

vested in the United States shall be recognized as

constituting the reserve fund so required.

Standard of

Seventh. Having charged against a company the

solvency for

reinsurance reserve, as above determined, for fire,

such compii-
nies.

inland and marine insurance, and adding thereto all

debts and claims against the company, he shall, in

Impairment

case he finds the capital stock of the company im-

of capital

paired to the extent of twenty-five per cent., give

must be made

notice' to the company to make good its whole capital

up, or now
business dis-

stock within sixty days, and if this is not done he

continued.

shall require the company to cease to do flew busi-

ness within this State, and shall thereupon, in case

Legal pro-

the company is organized under the authority of this

ceedings in

State, immediately institute such legal proceedings

case of com-
panies of this

as are necessary to protect the rights of all persons

Slate.

interested in said company.

Eighth. Once at least during his term of office,

Examinati'n

and oftener if he should deem it expedient so to do,

of companies

the Insurance Commissioner shall visit the principal

of this State.

office of every insurance company organized under

the laws of this State for the purpose of examining