HERBERT R. O'CONOR, GOVERNOR. 773

Thousand Dollars ($1, 000) or imprisoned for a term not ex-
ceeding five years, or both fined and imprisoned in the discre-
tion of the Court.

SEC. 3. And be it further enacted, That this Act shall take
effect June 1, 1943.

Approved May 4, 1943.

CHAPTER 608.
(House Bill 658)

AN ACT to add a new section to Article 48A of the Anno-
tated Code of Maryland (1939 Edition), title "Insurance",
sub-title "Surety, Casualty, Liability and Compensation In-
surance", said new section to follow immediately after Sec-
tion 144 of said Article, and to be known as Section 144A;
providing for the setting up and maintenance of premium
reserves by title insurance companies.

SECTION 1. Be it enacted by the General Assembly of Mary-
land, That a new section be and is hereby added to Article
48A of the Annotated Code of Maryland (1939 Edition), title
"Insurance", sub-title "Surety, Casualty, Liability and Com-
pensation Insurance", to follow immediately after Section 144
and to be known as Section 144A and to read as follows:

144A. PREMIUM RESERVES FOR TITLE INSURANCE COMPANIES.
Every corporation heretofore or hereafter authorized to do
a title insurance business in this State shall set up, accumu-
late and maintain an unearned premium reserve as follows:
On any contract of title insurance, hereafter issued by a title
insurance company, there shall be reserved initially a sum
equal to eight per centum (8%) of the original premium,
whether or not the risk shall be for a fixed time. If for a
fixed time, then at the end of each year for the first four
years, there shall be a reduction in the sum reserved of one
per centum (1%) of the original premium, and thereafter
at the end of each year of the remainder of said time a re-
duction of a pro rata portion of the remaining four per
centum (4%) thereof, except that if the risk is of a mort-
gagee, trustee in a deed of trust to secure debt, or creditor
secured thereby, no reduction shall be made that will de-
crease the sum reserved below four per centum (4%) of
the original premium, until the expiration of the time of the
risk. If not for a fixed time, then a risk shall be deemed to