32

LAWS OF MARYLAND.

CHAP. 31

or in part, as may be demanded by the president and direc-
tors of the company, the president and directors of the
company may proceed to collect the same by due process
of law.

Section 9. At the end of each calendar year, or earlier, at

Duty of board
of directors.

the option of the board of directors, it shall be the duty of
the said board of directors to ascertain whether or not the
income of the company has been sufficient to pay the losses
and expenses of the company; and in the event that the
losses and expenses of the company have exceeded the
income and surplus fund of said company, and one per cent,
of the premium notes held by the company, then the direc-
tors shall assess upon all property-holders whose policies are
more than one year old, not having sufficient to the credit of
their policies to meet their proportionate part of such defici-
ency, their proportionate part of such losses and expenses,
and shall give notice of the same to such policy-holders, and
upon their failure to pay the same sixty days from the time
of such notice being issued, said directors shall proceed to
collect the same by due process of law; but the directors
shall not allow at any time the losses and expenses of the
company to exceed its income and surplus fund to an amount
exceeding one per cent, of its premium notes without making
an assessment upon its premium notes as heretofore provided
for.

Sections 13 and 14. And be it enacted, That in all cases

Time allowed
to pay as-
sessment.

where property may be insured under this Act, where an
assessment upon any policy of the company has been made,
after due notice has been given, the party insured shall have
sixty days to pay such assessment, and after the expiration
of the said sixty days, in case the said assessment has not
been paid, the said policy-holder or policy-holders shall
forfeit all benefit under his or her policy, and the company
shall not be liable for any loss that may occur under any of
his or her policies until such assessment or assessments
have been fully paid, but such payment after default shall
reinstate the policy or policies only from the time of such
payment, and the company shall not be liable for any losses
that may occur during the time of such default under any of
the policies of the said policy-holder or holders.

Approved February 27, 1906.