614                             LAWS OF MARYLAND                     [CH. 173

497. NOTICE OF PAYMENTS OF DIVIDENDS

EVERY INSURANCE COMPANY SUBJECT TO REGISTRA-
TION UNDER SECTION 495 SHALL GIVE THE COMMISSIONER
NOT LESS THAN THIRTY DAYS ADVANCE NOTICE OF THE
PAYMENT OF ANY EXTRAORDINARY DIVIDEND OR THE
MAKING OF ANY EXTRAORDINARY DISTRIBUTION TO
STOCKHOLDERS WHICH TOGETHER WITH THOSE MADE
WITHIN THE PRECEDING TWELVE MONTHS EXCEED IN
VALUE (10) PERCENT OF THE INSURER'S SURPLUS AS RE-
GARDS POLICYHOLDERS AS OF THE 31ST DAY OF DECEM-
BER NEXT PRECEDING. SUCH NOTICE SHALL COMMENCE
TO RUN FROM THE DATE OF MAILING BY REGISTERED OR
CERTIFIED MAIL OR SUCH NOTICE TO THE COMMISSIONER.
ANY SUCH DIVIDEND PAID OR DISTRIBUTION MADE
WITHIN THE THIRTY DAY NOTICE PERIOD, OR PAID OR
MADE WITHOUT FIRST MAILING SUCH NOTICE TO THE
COMMISSIONER, SHALL BE INVALID AND SHALL CONFER
NO RIGHTS OF BENEFITS UPON ANY STOCKHOLDER. THE
INSURER'S SURPLUS FOLLOWING ANY DIVIDENDS OR DIS-
TRIBUTIONS TO STOCKHOLDERS SHALL BE REASONABLE
IN RELATION TO THE INSURERS' OUTSTANDING LIABILI-
TIES AND SHALL BE ADEQUATE TO MEET ITS FINANCIAL
NEEDS.

498.

(a)    Subject to the limitation contained in this section and in
addition to the powers which the Commissioner has under Sections
30 through 34 of this Article relating to the examination of insurers,
the Commissioner shall also have the power to order any insurer
required to be registered under Section 495 of this subtitle to pro-
duce such records, books or papers in the possession of the insurer
or its affiliates as shall be necessary to verify the information re-
quired to be contained in the insurer's registration statement, and
any additional information pertinent thereto. Such books, records,
papers and information shall be examined in the manner prescribed
in Sections 30 through 34 relating to the time and place of examina-
tion.

(b)    The purpose of the examination under subsection (a) above
shall be to verify the registration statement and any addition or
amendment thereto made pursuant to this subtitle. The Commis-
sioner shall exercise his power under subsection (a) above only if
the examination of the insurer under Sections 30 through 34 is in-
adequate, or the interests of the policyholders of such insurer are
being adversely affected and, in any event, within three (3) calen-
dar years from the date of filing of such registration statement or
such addition or amendment thereto unless there is fraud involved in
which case the three year limitation is not applicable.

(c)    The Commissioner may retain at the registered insurer's
expense the services of an accounting firm if reasonably necessary
to assist in the conduct of the examination under subsection (a)
above. Any firm so retained shall be under the direction and control
of the Commissioner and shall act in a purely advisory capacity.

(d)    <