588 LAWS OF MARYLAND. [CH. 550

SECTION 1. Be it enacted by the General Assembly of Mary-
land, That a new section be and the same is hereby added to
Article 48A of the Annotated Code of Maryland (1939 Edi-
tion), title "Insurance", sub-title "Mutual Insurance Compa-
nies", said new section to follow immediately after Section
148 and to be known as Section 148A and to read as follows:

148A. (Blue Sky Provisions. ) No person representing any
mutual insurance company, wherever incorporated, in process
of organization and not licensed to transact business in this
State, shall be permitted to solicit applications or premiums
for prospective policies of such company in this State unless
and until such company has furnished the Insurance Com-
missioner with full particulars as to the methods and proposed
cost of promotion. Before any such person shall solicit ap-
plications or premiums for prospective policies in such com-
pany, he shall be required to secure a license from the Insur-
ance Commissioner, who, prior to the issuance of such license,
shall investigate the record of the applicant and if the appli-
cant is honest and trustworthy, the Commissioner shall issue a
license to him. The fee for each such license shall be ten dol-
lars ($10. 00). The incorporators of the company shall be re-
quired to give the Insurance Commissioner a surety bond for
Ten Thousand Dollars ($10, 000. 00), or for not less than twenty-
five percent (25%) of the minimum assets required by the
insurance laws of Maryland for the class of company proposed
to be organized, whichever is greater, with the incorporators as
principal and a duly licensed surety company as surety. The
bond shall be for the use and benefit of the State of Maryland
and all subscribers and creditors and shall be conditioned upon
the payment of costs incurred by the State by reason of any
legal proceeding against such company and for the, full and
complete accounting for all funds and property coming into
the possession of the company prior to the issuance to it of a
certificate of authority to do an insurance business. In lieu of
filing such bond, the incorporators may deposit with the In-
surance Commissioner cash or securities eligible for invest-
ment by insurance companies under the laws of Maryland,
having a market value at least equal to the amount of such
bond. The cash or securities so deposited shall be held in trust
by the Commissioner until a certificate or license is issued to
the company, to indemnify the State of Maryland and all sub-
scribers and creditors to the company for the matters and
things set forth in this section as conditions of the bond re-
quired hereunder. Any violation of the provisions of this sec-
tion shall be deemed a misdemeanor and shall be punishable by
a fine not exceeding one hundred dollars ($100. 00) for the first
offense, and by a fine of not less than one hundred dollars