SPIRO T. AGNEW, Governor                       475

under contract, and after this two-year period the provisions of Sec-
tion 10 of said Chapter shall be fully effective and applied to this
item.

Sec. 2. And be it further enacted, That this Act shall take effect
July 1, 1968.

Approved April 10, 1968.

CHAPTER 410
(House Bill 1351)

AN ACT to repeal and re-enact, with amendments, Section 81 of
Article 48A of the Annotated Code of Maryland (1964 Replace-
ment Volume), title "Insurance Code," subtitle "5. Assets and
Liabilities," amending the laws concerning certain reserves for
title insurance contracts in order to specify the amount of a certain
reduction fund.

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 81 of Article 48A of the Annotated Code of Mary-
land (1964 Replacement Volume), title "Insurance Code," subtitle
"5. Assets and Liabilities," be and it is hereby repealed and re-
enacted, with amendments, to read as follows:

81.

In addition to an adequate reserve as to outstanding losses as re-
quired under Section 77, a title insurer shall maintain a guaranty
fund or unearned premium reserve of not less than an amount com-
puted as follows:

(1)    Ten percent (10%) of the total amount of the risk premiums
written in the calendar year for title insurance contracts shall be
as assigned originally to the reserve.

(2)    During each of the twenty (20) years next following the year
in which the title insurance contract was issued, the reserve appli-
cable to the contract [may] shall be reduced by five percent (5%)
of the original amount of such reserve.

Sec. 2. And be it further enacted, That this Act shall take effect
July 1, 1968.

Approved April 10, 1968.

CHAPTER 411
(House Bill 1352)

AN ACT to repeal and re-enact, with amendments, Section 649(a)
(1) of Article 43 of the Annotated Code of Maryland (1967 Sup-
plement), title "Health," subtitle "Sanitary Districts," and to add