1154                           LAWS OF MARYLAND                       [CH. 553

applicable to all certificates of insurance on sub-standard lives or
other extra hazardous lives by any society authorized to do business
in this State. Whenever the mortality experience under all certifi-
cates valued on the same mortality table is in excess of the expected
mortality according to such table for a period of three consecutive
years, the Commissioner may require additional reserves when
deemed necessary in his judgment on account of such certificates.

(i) Any society, with the consent of the insurance supervisory
official of the state of domicile of the society and under such condi-
tions, if any, which he may impose, may establish and maintain
reserves on its certificates in excess of the reserves required here-
under, but the contractual rights of any insured member shall not
be affected thereby.

340.    Annual Statement—Penalty for Failure to File or to Comply.

A society neglecting to file the annual statement in the form and
within the time provided by this section shall forfeit one hundred
dollars ($100) for each day during which such neglect continues, and,
upon notice by the Commissioner to that effect, its authority to do
business in this State shall cease while such default continues.

341.    Examination of Domestic Societies.

(a)   The Commissioner, or any person he may appoint, shall have
the power of visitation and examination into the affairs of any
domestic society and he shall make such examination at least once in
every three (3) years. He may employ assistants for the purpose of
such examination, and he, or any person he may appoint, shall have
free access to all books, papers and documents that relate to the
business of the society.

(b)   In making any such examination the Commissioner may sum-
mon and qualify as witnesses under oath and examine its officers,
agents and employees or other persons in relation to the affairs,
transactions and condition of the society.

(c)   A summary of the report of the Commissioner and such
recommendations or statements of the Commissioner as may ac-
company such report, shall be read at the first meeting of the board
of directors or corresponding body of the society following the
receipt thereof, and if directed so to do by the Commissioner, shall
also be read at the first meeting of the supreme legislative or govern-
ing body of the society following the receipt thereof. A copy of the
report, recommendations and statements of the Commissioner shall be
furnished by the society to each member of such board of directors
or other governing body.

(d)   The expense of each examination and of each valuation, in-
cluding compensation and actual expense of examiners, shall be paid
by the society examined or whose certificates are valued, upon state-
ments furnished by the Commissioner.

342.    Examination of Foreign and Alien Societies.

The Commissioner, or any person whom he may appoint, may
examine any foreign or alien society transacting or applying for
admission to transact business in this State. He may employ assistants
and he, or any person he may appoint, shall have free access to all