J. MILLARD TAWES, Governor                       1117

247.    "Stock" Insurer Defined.

A "stock" insurer is an incorporated insurer with capital divided
into shares and owned by its stockholders.

248.    "Mutual" Insurer Defined.

A mutual insurer is an incorporated insurer without capital stock
and the governing body of which is elected as provided in this article.

249.    Formation of Domestic Insurers.

Domestic insurers may be formed under the provisions of
Article 23 of the Code of Public General Laws for insurance pur-
poses, and may be formed either as mutual or stock corporations, as
shall be determined and declared in the articles of incorporation of
any such insurer.

250.    Applicability of General Corporation Statutes.

Domestic insurers shall comply with all the provisions of Article
23 of the Code of Public General Laws, so far as applicable, relating
to the formation, powers vested in and obligations imposed upon cor-
porations formed under the provisions of said article, except as other-
wise specifically provided in this article, but shall in all other respects
be subject to and regulated by the provisions of this article and by no
other law, act or part of act now in force or that may hereafter be
passed, unless one or more classes of corporations embraced within
this article shall be specifically mentioned and embraced within the
provisions of any such act hereafter passed.

251.    Articles of Incorporation; Approval by Commissioner.

The articles of incorporation of every domestic insurer, and any
amendment thereof, shall be submitted to the Commissioner for ex-
amination and approval before the same may be received for record
by the State Department of Assessments and Taxation. No such
articles of incorporation or articles of amendment shall be operative
until the Commissioner, by written endorsement thereon, approves
the articles of incorporation or amendment as being in accordance
with the insurance laws of Maryland.

252.    Qualification of Mutuals; Assets Required.

No mutual insurer shall be issued a certificate of authority until
bona fide applications have been received and cash premiums col-
lected in such amount that the premiums, together with any other
funds which may be legally available, will result in the insurer hav-
ing unencumbered assets over and above all required reserves and
other liabilities in an amount at least equal to that required under
either (1) sections 48 and 49 if the insurer is to be authorized to do
business on a nonassessable basis, or (2), Section 253 if the insurer
is to be authorized to do business on an assessable basis.

253.    Mutuals; Assessable Basis; Assets Required.

(a) A mutual insurer which proposes to or is writing assessable
policies must comply with all the requirements of this article except
that the financial requirements of this section shall apply in lieu of
sections 48, 49, 50, and 72.