1092                            LAWS OF MARYLAND                      [CH. 553

declares it is in the interest of the citizens of this State who pur-
chase insurance from insurers which solicit insurance business in
this State in the manner set forth in the preceding sentence that
such insurers be subject to the provisions of this Act. In further-
ance of such State interest, the Legislature herein provides a method
of substituted service of process upon such insurers and declares
that in so doing, it exercises its power to protect its residents and
also exercises powers and privileges available to the State by virtue
of Public Law 15, 79th Congress of the United States, Chapter 20,
1st Session, S. 340, which declares that the business of insurance and
every person engaged therein shall be subject to the laws of the
several states; the authority provided herein to be in addition to any
existing powers of this State.

(b) The provisions of this Act shall be liberally construed.

237.    Definitions.

When used in this Act:

(1)   "Unfair Trade Practice Act" shall mean sections 212 through
234, inclusive, relating to unfair methods of competition and unfair
and deceptive acts and practices in the business of insurance.

(2)   "Residents" shall mean and include person, partnership or
corporation, domestic, alien or foreign.

238.    Notice to Domiciliary Supervisory Official.

No unauthorized foreign or alien insurer of the kind described in
section 236 shall make, issue, circulate or cause to be made, issued
or circulated, to residents of this State any estimate, illustration,
circular, pamphlet, or letter, or cause to be made in any newspaper,
magazine or other publication or over any radio or television station,
any announcement or statement to such residents misrepresenting
its financial condition or the terms of any contracts issued or to be
issued or the benefits or advantages promised thereby, or the divi-
dends or share of the surplus to be received thereon in violation of
the Unfair Trade Practice Act, and whenever the Commissioner
shall have reason to believe that any such insurer is engaging in
such unlawful advertising, it shall be his duty to give notice of such
fact by registered or certified mail to such insurer and to the insur-
ance supervisory official of the domiciliary state of such insurer.
For the purpose of this section, the domiciliary state of an alien
insurer shall be deemed to be the state of entry or the state of the
principal office in the United States.

239.    Action By Commissioner.

If after thirty days following the giving of the notice mentioned
in section 238 such insurer has failed to cease making, issuing, or
circulating such false misrepresentations or causing the same to be
made, issued or circulated in this State, and if the Commissioner
has reason to believe that a proceeding by him in respect to such
matters would be to the interest of the public, and that such insurer
is issuing or delivering contracts of insurance to residents of this
State or collecting premiums on such contracts or doing any of the
acts enumerated in section 240, he shall take action against such
insurer under the Unfair Trade Practice Act.