ALBERT C. RITCHIE, GOVERNOR. 173

CHAPTER 40.

AN ACT to add ten new sections to Article 48A of the An-
notated Code of the Public General Laws of Maryland
(Edition of 1924) entitled "Insurance, " sub-title "Gen-
eral Provisions, " to follow immediately after Section 51A
of said Article, and to be known as Sections 51B, 51C,
51D, 51E, 51F, 51G, 51H, 511, 51J, and 51K, to provide
a new method of procedure for the rehabilitation of dom-
estic insurance companies.

SECTION 1. Be it enacted by the General Assembly of
Maryland, That ten new sections be and the same are
hereby added to Article 48A of the Annotated Code of the
Public General Laws of Maryland (Edition of 1924) en-
titled "Insurance, " sub-title "General Provisions, " said new
sections to follow immediately after Section 51A, and to be
known as Sections 51B, 51C, 51D, 51E, 51F, 51G, 51H, 511,
51J, and 51K.

51B. Application may be made as set out in Section
51E of this Article for an order authorizing and directing
the Insurance Commissioner to rehabilitate any domestic
insurance company defined in Section 1 of this Article upon,
any one or more of the following grounds: That such com-
pany (1) is insolvent; or (2) has refused to submit its
books, records, papers, accounts, or affairs to the reason-
able inspection of the Commissioner, his deputy or ex-
aminer; or (3) has neglected or refused to observe an order
of the Commissioner to make good within the time pre-
scribed by law any deficiency, whenever its capital stock,
if it be a stock corporation, or its reserve, if it be a mutual
corporation, shall have become impaired; or (4) has, by
contract of reinsurance or otherwise, transferred or at-
tempted to transfer substantially its entire property or
business, or entered into any transaction the effect of which
is to merge substantially its entire property or business in
the property or business of any other corporation, associa-
tion, society, order, partnership or individual, without hav-
ing first obtained the written approval of the Commission-
er; or (5) is found, after an examination by the Commis-
sioner, to be in such condition that its further transaction
of business will be hazardous to its policyholders, bond-
holders, or to its creditors or to the public; or (6) has wil-
fully violated its charter or any law of the State of Mary-
land; or (7) has an officer who has refused to be examined
under oath, touching its affairs; or (8) is found, after ex-