1914 LAWS OF MARYLAND [CH. 649

dividends on policies of FIRE, CASUALTY OR SURETY
stock companies and providing the manner and conditions
of the declaration and payment of such dividends.

SECTION 1. Be it enacted by the General Assembly of Mary-
land, That a new section be added to Article 48A of the Anno-
tated Code of Maryland (1947 Cumulative Supplement), title
"Insurance", sub-title "General Provisions", said new section
to be known as Section 51A, to follow immediately after Sec-
tion 51 thereof, and to read as follows:

51A. (Dividends on Policies. ) From time to time the di-
rectors of any FIRE, CASUALTY OR SURETY stock com-
pany may by vote fix and determine dividends to be paid
to policyholders on participating policies from the earned
surplus of such company, and when declared shall establish
an adequate reserve from which such dividends are to be
paid. No such dividend shall be declared or paid if by the
payment thereof the minimum surplus or other required
surplus of such company will be impaired. In declaring or
paying any such dividend the board of directors of such com-
pany may make reasonable classifications of policies, and
policies in the same classification shall be treated without
unfair discrimination. If any such company shall offer an
alternative method or plan for dividend classification, the
policy shall contain an endorsement setting forth the class
to which it is assigned. Each such company shall establish a
procedure which makes reasonable provision for notice to the
policyholder respecting dividends declared and payable under
his policy.

SEC. 2. And be it further enacted, That this Act shall take
effect June 1, 1951.

Approved April 30, 1951.

CHAPTER 649

(House Bill 542)

AN ACT to repeal and re-enact, with amendments, Section
163 (Dividends on Policies) of Article 48A of the Anno-
tated Code of Maryland (1939 Edition), title "Insurance",

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EXPLANATION: Italics indicate new 'matter added to existing law.

[Brackets] indicate matter stricken from existing law.
CAPITALS indicate amendments to bill.
Strike out indicates matter stricken out of bill.