HERBERT R. O'CONOR, GOVERNOR. 325
CHAPTER 306.
(House Bill 26)

AN ACT to add a new section to Article 48A of the Annotated
Code of Maryland (1939 Edition), title "Insurance", sub-
title "Life, Accident and Health Insurance", said new sec-
tion to follow immediately after Section 104 of the said
Article, and to be known as Section 104A; relating to the
formation and qualification of mutual life insurance com-
panies.

SECTION 1. Be it enacted by the General Assembly of Mary-
land, That a new section be, and is hereby added to Article
48A of the Annotated Code of Maryland (1939 Edition), title
"Insurance", sub-title "Life, Accident and Health Insurance",
to follow immediately after Section 104 and to be known as
Section 104A, and to read as follows:

104A. MUTUAL LIFE INSURANCE COMPANIES. Mutual Insur-
ance Companies issuing certificates, or other forms of contract,
for the payment of money or other benefits in the event of
sickness, accident or death, or other contingency, either to the
members, policy or certificate holders, or to their families or
representatives, in an amount greater than one thousand dol-
lars upon the termination of any one life, or combination of
lives, or sum greater than seventy-five dollars annually, or the
equivalent thereof, whether the payment be stipulated to be
made annually, or at shorter or longer intervals, upon any
contract of annuity in which the continuance of any one life,
whether singly or in connection with other lives jointly or in
succession, or combined in any way whatsoever, or during sick-
ness or disability, is involved as an element of the contract,
may be formed, subject to the provisions of this Article ap-
plicable to life insurance companies and not inconsistent here-
with, on the mutual plan. Any such company formed on the
mutual plan, shall not be entitled to receive a certificate of
authority to transact such business or issue any benefit certifi-
cate, or pay or allow, or offer or promise to pay or allow to
any person any death, endowment or disability benefit, until
(a) it shall have secured bona fide applications for insurance
upon which it shall issue simultaneously, or shall have in
force one thousand policies upon one thousand separate lives,
for the aggregate amount of at least one million dollars; (b)
it shall have collected in advance an annual cash premium
upon each application required for organization, the total of
which premiums shall be held in cash, or in securities in which
insurance companies are authorized to invest, and the total
assets so acquired and held shall not be less than two hundred