1388 LAWS OF MARYLAND. [CH. 926
CHAPTER 926.
(House Bill 795)

AN ACT to add a new section to Article 4SA of the Annotated
Code of Maryland (1939 Edition), title "Insurance", sub-
title "Surety, Casualty, Liability and Compensation Insur-
ance", said new section to follow immediately after Section
140 and to be known as Section 140A, relating to the mak-
ing, filing, and approval of rates for certain casualty insur-
ance, including fidelity, surety and guaranty bonds, and to
rating organizations.

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 the Annotated Code of Maryland (1939 Edi-
tion), title "Insurance", sub-title "Surety, Casualty, Liability
and Compensation Insurance", said new section to follow
immediately after Section 140 and to be known as Section
140A, and to read as follows:

140A. CASUALTY AND SURETY EATING.

1. (Scope of Act. ) This Act applies to all kinds or classes
of insurance customarily classified as casualty insurance, in-
cluding fidelity, surety and guaranty bonds, and credit insur-
ance, on risks or operations in this State, except re-insurance,
health and accident insurance, title insurance and insurance
against loss of or damage to, or against liability (other than
workmen's compensation and employers liability) arising out
of the ownership, maintenance or use of, any aircraft.

This Act applies to all insurance companies, including stock
and mutual companies, Lloyd's or a Lloyd's Plan of operation,
and reciprocal exchanges and inter-insurers, but shall not
apply to the Maryland "State Accident Fund", or to Non-
profit Hospital Service Plans.

2. (Making of Rates. ) All rates, shall be made in accord-
ance with the following provisions:

(1) Due consideration shall be given to past and prospective
loss experience within and outside the State, to catastrophe
hazards, if any, to a reasonable margin for profit and con-
tingencies, to policyholders' dividends in the case of partici-
pating insurers, and to all other relevant factors within and
outside the State.

(2) The systems of expense provisions included in the rates
for use by any insurer or group of insurers may differ from
those of other insurers or groups of insurers to reflect the
requirements of the operating methods of any such insurer