1186 LAWS OF MARYLAND. [CH. 402

SEC. 103. Certificate of Authority. The commissioner shall
issue to any such company having complied with all the re-
quirements of this article applicable thereto and applying
therefor a license or certificate setting forth that said com-
pany has qualified and is authorized for the ensuing year to
do the classes of business in this state set forth in said certifi-
cate which said certificate shall be evidence of such
qualification of such company to do the classes of
business authorized by said certificate, and if so author-
ized therein of its authorization to become and be
accepted as sole surety on all bonds, undertakings, recogniz-
ances and obligations required or permitted by law, or in the
charter, ordinances, rules or regulations of any municipality,
board, body, organization or public officer, and of the solvency
and credit of such company for all purposes, and of its suf-
fiency as such surety.

SEC. 104. Corporate Fiduciary Shall not Act as Surety. No
corporation, which under the laws of this state shall act as
trustee, executor, administrator, guardian, committee or re-
ceiver, or in any one or more of those capacities, without bond
or security other than its own obligation, in any case in which
bond would be required from a natural person in the like or
similar capacity, shall incur the liability of a surety upon any
bond of any sort or description.

SEC. 105. Premium Reserve. Every company doing any of
the classes of business mentioned and embraced in the preced-
ing section, shall be charged with and maintain as any other
liability an unearned or reinsurance reserve for all unexpired
policies or risks in force, equal to the unearned portions of the
gross premiums charged for covering said policies or risks,
computed on each respective policy or risk from the date of
the issuance of the policy, bond or other contract of insurance:
or, in the discretion of the commissioner, at the rate of fifty
per centum of the current annual premiums on each outstand-
ing bond, policy or contract in force and written for one year
or less, and on policies and bonds in force and written for more
than one year at the rate of fifty per centum of the current
year's premiums, plus the whole of the premiums for subse-
quent years.

SEC. 106 Claim Reserves. All companies authorized to do
any of the above classes of business in this state, shall, in ad-
dition to the unearned premium or reinsurance reserve required