HERBERT R. O'CONOR, GOVERNOR. 439
CHAPTER 455.
(House Bill 16)

AN ACT to repeal and re-enact, with amendments, Section
104A of Article 48A of the Annotated Code of Maryland
(1943 Supplement), title "Insurance", sub-title "Life, Acci-
dent and Health Insurance", providing that all applica-
tions for insurance in a mutual life insurance company in
course of organization shall be from residents of Maryland.

SECTION 1. Be it enacted by the General Assembly of Mary-
land, That Section 104A of Article 48A of the Annotated Code
of Maryland (1943 Supplement), title "Insurance", sub-title
"Life, Health and Accident Insurance", be and the, same is
hereby repealed and re-enacted, with amendments, to read as
follows:

104A. (Mutual Life Insurance Companies. ) Mutual Insur-
ance Companies issuing certificates, or other forms of contract,
for the payment of money or other benefits in the event of sick-
ness, accident or death, or other contingency, either to the
members, policy or certificate holders, or to their families or
representatives, in an amount greater than one thousand dol-
lars upon the termination of any one life, or combination of
lives, or sum greater than seventy-five dollars annually, or the
equivalent thereof, whether the payment be stipulated to be
made annually, or at shorter or longer intervals, upon any con-
tract of annuity in which the continuance of any one life,
whether singly or in connection with other lives jointly or in
succession, or combined in any way whatsoever, or during sick-
ness or disability, is involved as an element of the contract,
may be formed, subject to the provisions of this Article ap-
plicable to life insurance companies and not inconsistent here-
with, on the mutual plan. Any such company formed on the
mutual plan, shall not be entitled to receive a certificate of
authority to transact such business or issue any benefit certifi-
cate, or pay or allow, or offer or promise to pay or allow to any
person any death, endowment or disability benefit, until (a) it
shall have secured bona fide applications for insurance upon
which it shall issue simultaneously, or shall have in force one
thousand policies upon one thousand separate lives, each of
whom shall be a resident of this State, for the aggregate amount
of at least one million dollars; (b) it shall have collected in
advance an annual cash premium upon each application re-
quired for organization, the total of which premiums shall be
held in cash, or in securities in which insurance companies are
authorized to invest, and the total assets so acquired and held
shall not be less than two hundred thousand dollars, and ex-