WM. PRESTON LANE, JR., GOVERNOR. 1941
INSURANCE

HOUSE BILL No. 466

AN ACT to repeal and re-enact, with amendments, Section 6
of Article 48A of the Annotated Code of Maryland (1947
Supplement), title "Insurance", sub-title "Insurance Depart-
ment", raising the salary of the Chief Examiner of the Insur-
ance Department.

This Bill, as its title indicates, fixes by law the salary of
the Chief Examiner of the Insurance Department, while under
existing law it is established at such an amount as shall be
provided in the budget. For several years the practice has been
to remove salary figures from various statutes and to provide
that they shall be determined in the budget. In actual prac-
tice, that system has worked well and it is my view that the
present Bill should be vetoed.

HOUSE BILLS Nos. 554 AND 555
No. 554

AN ACT to add a new section to Article 48A of the Anno-
tated Code of Maryland (1939 Edition), title "Insurance",
sub-title "General Provisions", said new section to follow
immediately after Section 51 and to be known as Section
51 A, relating to the payment of dividends on expiring par-
ticipating policies of stock Fire, Casualty and Miscellaneous
companies.

No. 555

AN ACT to add a new section to Article 48A of the Anno-
tated Code of Maryland (1939 Edition), title "Insurance",
subtitle "Reciprocal Exchanges and Inter-Insurers", said
new section to follow immediately after Section 170 and to
be known as Section 170A, providing for the payment of
dividends on expiring reciprocal or inter-insurance con-
tracts.

These two Bills seek to regulate the payment of dividends
on expiring participating policies of certain insurance com-
panies. Both Acts are obviously patterned after Section 163
of Article 48A of the Code, which deals with mutual companies
and was passed many years ago.

Recent conferences by the State Insurance Department with
representatives of both foreign and domestic companies, have
developed the fact that the provisions of these bills would
impose unreasonable hardships and expense on the companies