SPIRO T. AGNEW, Governor                        897

BETWEEN DECEMBER 31, 1975 AND DECEMBER 30, 1976—
$250,000

BETWEEN DECEMBER 31, 1976 AND DECEMBER 30, 1977—
$275,000

ON AND AFTER DECEMBER 31, 1977, SUCH INSURER
SHALL MAINTAIN AT LEAST THE MINIMUM AMOUNTS OF
CAPITAL AND SURPLUS REQUIRED BY SECTIONS 48 AND
49. AN INSURER DESIRING TO CONTINUE IN OPERATION
UNDER THE PROVISIONS OF THIS SUBSECTION SHALL
MAKE SUCH ELECTION BY A BINDING AND IRREVOCABLE
RESOLUTION OF THE BOARD OF DIRECTORS OF THE IN-
SURER, A TRUE COPY OF WHICH RESOLUTION SHALL BE
TRANSMITTED TO THE COMMISSIONER NOT LATER THAN
NOVEMBER 1, 1968. AN INSURER OPERATING UNDER SUCH
A RESOLUTION MAY NOT THEREAFTER DECLARE DIVI-
DENDS TO STOCKHOLDERS PAYABLE IN CASH UNLESS
THE AMOUNTS OF CAPITAL AND SURPLUS REMAINING
AFTER PAYMENT OF SUCH DIVIDENDS WOULD BE NOT
LESS THAN THE MINIMUM AMOUNTS OF CAPITAL AND
SURPLUS REQUIRED BY SECTIONS 48 AND 49.

(4) Notwithstanding the provisions of Section 252, any domestic
mutual insurer other than a life insurer which (1) for five years
prior to December 31, 1967 has been continuously engaged in busi-
ness, and (2) was issuing motor vehicle policies on an assessable
basis at that date and (3) maintains assets and surplus in accordance
with Section 253, may MUST HAVE SURPLUS FUNDS OF AT
LEAST $225,000 AS OF DECEMBER 31, 1969. SUCH COMPANY
SHALL cancel BY DECEMBER 31, 1973, existing contingent liabili-
ties of its policyholders in accordance with Section 262 and MAY
thereafter continue transacting the same kind or kinds of insurance
business for which it is authorized on a nonassessable basis without
the necessity of increasing minimum surplus to comply with Sections
48, 49 and 252, , BUT IT WILL BE REQUIRED TO HAVE
ASSETS AND SURPLUS IN THE AMOUNTS OF $750,000 AND
$375,000, RESPECTIVELY, PRIOR TO ISSUING NONASSESS-
ABLE POLICIES AND IN ANY EVENT BY DECEMBER 31,1973.
BY DECEMBER 31, 1980 SUCH COMPANY MUST COMPLY
WITH SECTIONS 48, 49 AND 252.

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

Approved May 7, 1968.

CHAPTER 483
(House Bill 374)

AN ACT to repeal Section 175 of Article 77 of the Annotated Code
of Maryland (1965 Replacement Volume), title "Public Educa-
tion," subtitle "Chapter 15, Teachers' Associations," regarding
the promotion of teachers' associations by the county examiners,
and to enact new Section 175 in lieu thereof, said new section to