552 LAWS OF MARYLAND. [CH. 289

SECTION 1. Be it enacted by the General Assembly of Mary-
land, That Section 114 of Article 48A of the Annotated Code
of Maryland (1935 Supplement), title "Insurance", sub-title
"Mutual Insurance Companies", be and it is hereby repealed
and re-enacted with amendments to read as follows:

114. Requirements Prior to Doing Business. No corpora-
tion organized under this sub-title shall issue policies or trans-
act any business of insurance unless it shall comply with the
conditions following, nor until the Insurance Commissioner
has, by formal license, authorized it to do so, and such license
shall not issue until the corporation shall have complied with
the following conditions:

(a) It shall hold bona fide applications for insurance upon
which it shall issue simultaneously, or it shall have in force,
at least twenty policies to at least twenty members for the
same kind of insurance, upon not less than two hundred
separate risks, each within the maximum single risk described
herein.

(b) For the purpose of transacting employer's liability
and workmen's compensation insurance, the application shall
cover not less than two thousand employees, each such em-
ployee being considered a separate risk for determining the
maximum single risk.

(c) The "maximum single risk" shall not exceed twenty
per cent of the admitted assets, or three times the average
risk, or one per cent of the insurance in force, whichever is
the greatest, any re-insurance taking effect simultaneously
with the policy being deducted in determining such maximum
single risk.

(d) It shall have collected 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 insur-
ance companies are authorized to invest, and the total assets
shall (1) in case of companies writing fire, marine, sprinkler
leakage or other water damage, lightning, hail, windstorm,
smoke or smudge damage, automobile fire, theft or property
damage, burglary, theft or inland marine insurance, either
singly or any or all of said classes of insurance combined, be
equal to not less than twice the maximum single risk assumed
subject to one fire or to one loss, nor less than ten thousand
dollars ($10, 000); and (2) in case of companies writing fidel-
ity or surety bonds, or workmen's compensation, or automo-
bile or public liability insurance, be equal to not less than five
times the maximum single risk assumed, nor less than one
hundred and fifty thousand dollars ($150, 000), and exceed
the amount required for legal reserves and all other lia-
bilities by not less than fifty thousand dollars ($50, 000);