1136                            LAWS OF MARYLAND                       [CH. 553

tions of policies or contracts, and policies or contracts in the same
classification shall be treated without unfair discrimination. If any
such reciprocal insurer shall offer an alternative method or plan for
savings classifications, the policy of contract shall contain an endorse-
ment setting forth the class to which it is assigned. Each such
reciprocal insurer shall establish a procedure which makes reason-
able provision for notice to the policyholder or subscriber respect-
ing savings fixed and payable under his policy or contract.

300.    Merger or Conversion.

(a)   A domestic reciprocal insurer upon affirmative vote of not
less than two-thirds of its subscribers who vote on such merger pur-
suant to due notice and the approval of the Commissioner of the
terms therefor, may merge with another reciprocal insurer or be
converted to a stock or mutual insurer.

(b)   Such a stock or mutual insurer shall be subject to the same
capital or surplus requirements and shall have the same rights as a
like domestic insurer transacting like kinds of insurance business.

(c)  The Commissioner shall not approve any plan for such merger
or conversion which is inequitable to subscribers, or which, if for
conversion to a stock insurer, does not give each subscriber prefer-
ential right to acquire stock of the proposed insurer proportionate to
his interest in the reciprocal insurer and a reasonable length of time
within which to exercise such right.

301.    Impaired Reciprocals.

(a) If the assets of a reciprocal insurer are at any time insuffi-
cient to discharge its liabilities, other than any liability on account
of funds contributed by the attorney or others, and to maintain the
required surplus, its attorney shall forthwith make up the defi-
ciency or levy an assessment upon the subscribers for the amount
needed to make up the deficiency; but subject to the limitation set
forth in the power of attorney or policy.

(b) If the attorney fails to make up such deficiency or to make
the assessment within thirty (30) days after the Commissioner
orders him to do so, or if the deficiency is not fully made up within
sixty days after the date the assessment was made, the insurer shall
be deemed insolvent and shall be proceeded against as authorized by
this article.

(c) If liquidation of such an insurer is ordered, an assessment
shall be levied upon the subscriber for such an amount, subject to
limits as provided by this subtitle, as the Commissioner determines
to be necessary to discharge all liabilities of the insurer, exclusive
of any funds contributed by the attorney or other persons, but includ-
ing the reasonable cost of the liquidation.

19. FRATERNAL BENEFIT SOCIETIES

302.    Fraternal Benefit Societies Defined.

Any incorporated society, order or supreme lodge, without capital
stock, including one exempted under the provisions of section 306
(a) 2 of this subtitle whether incorporated or not, conducted solely
for the benefit of its members and their beneficiaries and not for