1102                             Laws of Maryland                       [Ch. 653

Section 1. Be it enacted by the General Assembly of Maryland,
That a new sub-section be and it is hereby added to Section 28 of
Article 48A of the Annotated Code of Maryland (1957 Edition), title
"Insurance", sub-title "General Provisions", said new sub-section to
be known as Sub-section (4), to follow immediately after Sub-
section 3) of said section, and to read as follows:

28.

(4) (Investments of foreign and alien insurers.)

(a) The Commissioner may refuse a new or renewal license to

any foreign insurer if he finds that its investments do not comply

in substance with the investment requirements and limitations im-
posed by this section upon like domestic insurers organised to do
the same kind or kinds of insurance business.

(b) The Commissioner may refuse a new or renewal license to any

alien insurer if he find that its investments do not comply in sub-

stance with the investment requirements and limitations imposed
by this section upon like domestic insurers organized to do the same

kind or kinds of insurance business, except that bonds, notes or

other evidence of indebtedness issued or guaranteed by the govern-

ment of the country in which such alien insurer was organized or

by any province or other major political subdivision thereof, and
not in default as to principal or interest, may be recognized in an
amount not exceeding the minimum capital required of a domestic

stock insurer hereafter organized to do the same kind or kinds of

insurance business.'

(4) THE COMMISSIONER MAY REFUSE A NEW OR RE-
NEWAL LICENSE TO ANY FOREIGN OR ALIEN INSURER IF
HE FINDS THAT ITS INVESTMENTS DO NOT COMPLY IN
SUBSTANCE WITH THE INVESTMENT REQUIREMENTS AND
LIMITATIONS IMPOSED BY THIS SECTION UPON LIKE
DOMESTIC INSURERS ORGANIZED TO DO THE SAME KIND
OR KINDS OF INSURANCE BUSINESS; PROVIDED THAT
COMPLIANCE WITH THE SUBSTANCE OF SUCH REQUIRE-
MENTS AND LIMITATIONS SHALL NOT BE CONSTRUED SO
AS TO CONSTITUTE GROUNDS FOR REFUSING A NEW OR
RENEWAL LICENSE, IF SUCH INVESTMENTS ARE AS PER-
MITTED BY THE LAW OF THE INSURER'S DOMICILE AND
THE INSURER'S INVESTMENT PORTFOLIO IS SUCH AS NOT
TO BE HAZARDOUS TO THE PERFORMANCE OF SUCH IN-
SURER'S OBLIGATIONS TO MARYLAND POLICYHOLDERS.

Sec. 2. And be it further enacted, That this Act shall take effect
June 1, 1961.; IT SHALL REMAIN EFFECTIVE FOR A PERIOD
OF ONE YEAR, AND AT THE END OF MAY 31, 1962, AND
WITH NO FURTHER ACTION REQUIRED BY THE GENERAL
ASSEMBLY, THIS ACT SHALL BE ABROGATED AND OF NO
FURTHER FORCE AND EFFECT.

Approved May 3, 1961.