1120                           LAWS OF MARYLAND                      [CH. 553

not below the minimum required for the kinds of insurance business
thereafter to be transacted; or if a mutual insurer, by amendment
of its certificate of authority to cover only such kind or kinds of
insurance business thereafter for which the insurer has sufficient
surplus under this article.

(c) If the deficiency is not made good and proof thereof filed
with the Commissioner within such sixty-day period, the insurer
shall be deemed insolvent and the Commissioner shall institute delin-
quency proceedings against it under subtitle 10 of this article; except
that if such deficiency exists because of increased loss reserves re-
quired by the Commissioner, or because of disallowance by the Com-
missioner of certain assets or reduction of the value at which carried
in the insurer's accounts, the Commissioner may, in his discretion and
upon application and good cause shown, extend for not more than
an additional sixty days the period within which such deficiency
may be so made good and such proof thereof so filed.

257.    Membership in Mutuals.

(a)  Each policyholder of a domestic mutual insurer, other than of
a reinsurance contract, is a member of the insurer with all rights
and obligations of such membership, and the policy shall so specify.

(b)   Any person, government or governmental agency, state or
political subdivision thereof, public or private corporation, board,
association, firm, estate, trustee or fiduciary may be a member of a
domestic, foreign, or alien mutual insurer. Any officer, stockholder,
trustee or legal representative of any such corporation, board, asso-
ciation or estate may be recognized as acting for or on its behalf
for the purpose of such membership, and shall not be personally
liable upon any contract of insurance for acting in such representa-
tive capacity.

(c)   Any domestic corporation may participate as a member of a
mutual insurer as an incidental purpose for which such corporation
is organized, and such right is as much granted as the rights and
powers expressly conferred.

258.    Membership Voting.

Every member of a domestic mutual insurer shall be entitled to
one vote, or to such a number of votes based upon the insurance in
force, the number of policies held, or the amount of premium paid,
as may be provided in the bylaws. Under any group policy, the
policyholder only shall be a member of the company and entitled to
vote as such member at the meetings of the company.

259.    Contingent Liability of Mutual Members.

(a)   Each member of a domestic mutual insurer other than a life
insurer shall, except as otherwise hereinafter provided with respect
to nonassessable policies, have a contingent liability, pro rata and not
one for another, for the discharge of its obligations, which contin-
gent liability shall be expressed in the policy.

(b)   Termination of the policy of any such member shall not
relieve the member of contingent liability for his proportion, if any,
of the obligations of the insurer which accrued while the policy was
in force.