HARRY W. NICE, GOVERNOR. 357

SEC. 2. And be it further enacted, That this Act shall
take effect June 1, 1935.

Approved: May 17, 1935.

CHAPTER 147.

AN ACT to repeal and re-enact, with amendments, Section
114 of Article 48A of the Code of Public General Laws of
Maryland, title "Insurance, " sub-title "Mutual Insur-
ance Companies, " as enacted by Chapter 492 of the Acts
of 1922, Section 111, prescribing the conditions and re-
quirements for mutual insurance companies prior to re-
ceiving authority to do business.

SECTION 1. Be it enacted by the General Assembly of
Maryland, That Section 114 of Article 48A of the Code
of Public General Laws of Maryland, title "Insurance, "
sub-title "Mutual Insurance Companies, " as enacted by
Chapter 492 of the Acts of 1922, Section 111, be and the
same is hereby repealed and re-enacted, with amendments,
so as to read as follows:

114. Requirements Prior to Doing Business. No cor-
poration organized under this sub-title shall issue policies
or transact any business of insurance unless it shall com-
ply 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 mem-
bers 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 appli-
cation shall cover not less than two thousand employees,
each such employee 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,