596 LAWS OF MARYLAND. [CH. 495

SECTION 1. Be it enacted by the General Assembly of Mary-
land, That a new section be, and the same is hereby added to
Article 48A of Flack's Annotated Code of Maryland (1939
Edition), title "Insurance", sub-title "General Provisions",
to follow immediately after Section 68 and to read as follows:

68A. PROHIBITING DOMESTIC INSURANCE COMPANIES TRANS-
ACTING BUSINESS IN OTHER JURISDICTIONS WITHOUT A LICENSE.
It shall be unlawful for any insurance company, whether stock
or mutual, reciprocal exchange or inter-insurers, Lloyds Asso-
ciation, non-profit hospital association, fraternal beneficiary
association or any other plan of insurers, organized -under the
laws of this State, or any agent or representative of such
insurers, to solicit and accept risks by advertisement or other-
wise in any jurisdiction in which such Company is not licensed
in accordance with the laws of such jurisdiction.

Whenever the Insurance Commissioner shall have good and
sufficient evidence that any insurer, or any agent or repre-
sentative thereof, has wilfully violated this section, he shall
notify such insurer or such agent thereof that if such violation
is continued, he may suspend or revoke the license of such
insurer, if organized under the laws of this State, or of such
agent or representative thereof, for such length of time as the
Commissioner may think proper, unless such insurer or such
agent or representative thereof shall show cause on or before
a certain date, not less than twenty days from the date of such
notice, why its or his license should not be suspended or re-
voked. Such notice shall be in writing and shall be served
upon said insurer or upon such agent or representative of such
insurer by registered letter addressed to the last known ad-
dress of such insurer, agent or representative; provided, how-
ever, that such insurer or such agent or representative thereof
shall have a right of appeal from the action of the Commis-
sioner, in suspending or revoking any license, to any court of
competent jurisdiction within this State; provided, however,
that the aforegoing provisions shall not apply to a domestic
company when the major portion of risks written as a group
originated in a jurisdiction wherein such company was licensed
to transact such class or classes of business and when such
origin was by other means than by circularization or by ad-
vertising locally in any such jurisdiction wherein such company
is not licensed. The term 'transacting business', as used here-
in, shall be defined to include, in addition to its usual interpre-
tation, advertising in any publication, the circulation of which
is confined to any foreign jurisdiction in which such company
is not licensed, or circularizing in any such jurisdiction with-
out regard for the source of such circularization, whenever
such advertising locally or such circularization is for the pur-
pose of solicitation of insurance business. "