HERBERT R. O'CONOR, GOVERNOR. 341

(1939 Edition), as amended by Chapter 836 of the Acts of
1941, title "Insurance", sub-title "Mutual Insurance Com-
panies", providing for the removal of mutual life insurance
companies from the operation of this sub-title.

SECTION 1. Be it enacted by the General Assembly of Mary-
land, That Section 148 of Article 48A of Flack's Annotated
Code of Maryland (1939 Edition), as amended by Chapter 836
of the Acts of 1941, title "Insurance", sub-title "Mutual In-
surance Companies", be and same is hereby repealed and re-
enacted, with amendments, to read as follows:

148. REQUIREMENTS PRIOR TO DOING BUSINESS. No com-
pany organized under this sub-title shall issue policies or
transact any business of insurance unless it shall comply with
the conditions following, nor until the Insurance Commis-
sioner has, by formal license, authorized it to do so, and such
license shall not issue until the Insurance Commissioner shall
have ascertained from the best sources of information at his
command, and by such investigation as he may deem necessary r
and shall be satisfied that the character, responsibility and
general fitness of the persons named as officers and directors
of said company, are such as to command confidence and war-
rant belief that the business of the company will be honestly
and efficiently conducted in accordance with the intent and
purposes of this Article, and that the public interest will not
be jeopardized by admitting said company to engage in busi-
ness in this State, and until the company shall have com-
plied 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 members 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 application shall cover
not less than two thousand employees, each such employee
being considered a separate risk for determining the maximum
single risk.

(e) 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, whichever is the greatest,
any reinsurance taking effect simultaneously with the policy
being deducted in determining such maximum single risk.

(d) It shall have collected an annual cash premium upon
each application required for organization, the total of which