1916 LAWS OF MARYLAND [CH. 650

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

Approved April 30, 1951.

CHAPTER 650
(House Bill 543)

AN ACT to add a new section to Article 48A of the Annotated
Code of Maryland (1939 Edition), title "Insurance", sub-title
"Reciprocal Exchanges and Inter-Insurers", relating to divi-
dends SAVINGS on policies or contracts of Reciprocal Ex-
changes and Inter-Insurers, and providing the manner and
condition of the declaration FIXING and payment of such
dividends SAVINGS.

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 (1939 Edition), title "Insurance", sub-
title "Reciprocal Exchanges and Inter-Insurers", said new sec-
tion to be known as Section 179A, to follow immediately after
Section 179 thereof, and to read as follows:

179A. (Dividends on Policies. ) From time to time the attor-
ney for the subscribers of any such reciprocal exchange or
inter-insurer, under the provisions of this sub-section, may fix
and determine dividends- SAVINGS to be paid to such sub-
scribers or policyholders on participating policies or contracts
from the earned surplus of such reciprocal exchange or inter-
insurer, and when declared FIXED shall establish an ade-
quate reserve SURPLUS from which such dividends SAV-
INGS are to be paid. No such dividend SAVINGS shall be
declared FIXED or paid if by the payment thereof the mini-
mum surplus or other required surplus of such reciprocal
exchange or inter-insurer will be impaired. In declaring FIX-
ING or paying any such dividend SAVINGS the attorney for
the subscribers of such reciprocal exchange or inter-insurer
may make reasonable classifications of policies or contracts,
and policies or contracts in the same classification shall be
treated without unfair discrimination. If any such reciprocal

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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.