718 LAWS OF MARYLAND. [CH. 428

ance Companies", relating to the contingent liability of
policyholders of mutual insurance companies to assessments.

SECTION 1. Be it enacted by the General Assembly of Mary-
land, That Section 155 of Article 48A of Flack's Annotated
Code of Maryland (1939 Edition), title "Insurance", sub-title
"Mutual Insurance Companies", be and the same is hereby
repealed and re-enacted, with amendments, to read as follows:

155. Assessments. When such mutual company is not
possessed of admitted assets equal to unearned premium re-
serves and other liabilities, it shall make an assessment to
cover the deficiency. Every such assessment shall be made
upon all members liable to assessment therefor in the propor-
tion hereinafter specified, but subject to the maximum amount
of assessment liability expressed in their policies or applica-
tions for insurance. Every person, firm or corporation who or
which was a member of such company at any time during one
year prior to the making of an order of assessment shall be
severally liable to pay and shall pay such member's propor-
tionate share of any assessment which may be made in ac-
cordance with law, if such member is notified of such assess-
ment within one year after the making of an order of assess-
ment. A member's proportionate part of any assessment shall
be determined by applying to the premium earned on the
member's policy or policies during a period of one year next
preceding the order of assessment the ratio of the total assess-
ment to the total premiums earned during such period on all
policies subject to assessment. Provided, that the Commis-
sioner by written order may relieve the company from an
assessment or enter proceeding to restore such assets during
the time fixed in such order; and provided, that any domestic
company which shall be deficient in providing the unearned
premium reserve required hereby, may notwithstanding such
deficiency, come under this Act on the condition that it shall
each year thereafter reduce such deficiency by at least 15%
of the original amount thereof, and in such case it may in-
crease its assessments accordingly. Provided, however, that
<each member who became such by virtue of a policy or policies
effective prior to the effective date of this Act shall be liable
only on account of losses and expenses incurred while his policy
was in force.

SEC. 2. And be it further enacted. That this Act shall take
effect June 1, 1941.

Approved April 23, 1941.