and to administer to him or them the proper and necessary oath, and to examine him or them, under oath, in relation to the affairs and conditions of any insurance company. In order that the public may be fully informed as to the condition of all companies doing business in this State, the result of the official examination of any such company, in such condensed form as shall show the true condition of the company examined, shall be published within thirty days thereafter by the Insurance Commissioner, at the expense of said company, in one daily newspaper published in the City of Baltimore. Should any insurance company organized under the laws of this State refuse to permit its affairs to be examined as herein provided, or refuse free access to its books or papers, or in any manner whatever prevent a thorough examination, the said Insurance Commissioner shall proceed against said company in the manner provided in the seventh sub-section of this section.*

Seventh. Whenever the Insurance Commissioner shall have reason to believe that any insurance company is insolvent, or fraudulently conducted, or that its assets are not sufficient for carrying on the business of the same, or during any non-compliance with the provisions of this Article, it shall be his duty to make complaint thereof to the judge of either of the Circuit Courts of Baltimore City, or any judge of the Circuit Court for the county where the company or agent may be located, as the case may be; which judge shall, upon the requisition of the Commissioner, appoint a commission, consisting of the Insurance Commissioner and two disinterested and competent persons, whose duty it shall be to examine every detail of the business and condition of said company, and report, in writing, the result of such examination to the judge appointing them, who shall, if in his judgment the charges of insolvency, fraud, neglect or abuse, as charged by the Insurance Commissioner, are sustained by the said report, at once issue an injunction suspending the business of said company; and the Insurance Commissioner shall institute, or cause to be instituted, the necessary proceedings under the laws of this State, to close the affairs of any insurance company of this State which shall ap

This sub-section is the amendment of 1914, chapter 152,

pear to him, upon examination, to be insolvent or be fraudulently conducted; and the Insurance Commissioner is a necessary party to any proceedings instituted for the purpose of closing up the affairs of any insurance company, when the same shall not be in the name of the State of Maryland; it shall be the duty of the Insurance Commissioner to report in detail to the Attorney-General any violation of the laws relative to insurance companies, their officers or agents, or the business of insurance; and he shall have power to institute suits and prosecutions, either by the Attorney-General or such other attorney as the Attorney-General may select, for any violation of the provisions of this sub-title.

Eighth. For every company doing fire and inland insurance business in this State, he shall calculate the reinsurance reserve for unexpired fire and inland risks by taking fifty per centum of the premium received on all unexpired risks that have less than one year to run, and a pro rata of all premiums received on risks that have one year or longer to run, and in marine insurance he shall charge sixty per centum of the amount of premium written in its marine policies upon yearly risks and risks covering more than one passage, not terminated, and the full amount of premium under its policies upon all other marine risks less than one year, not terminated; provided, that the foregoing requirements or reinsurance reserve when applied to companies organized under the laws of foreign governments, shall be calculated only upon the business of such company in the United States, and only the assets of such company held and invested in the United States shall be recognized as constituting the reserve fund so required.

Ninth. Having charged the company the reinsurance reserve as above determined, for fire, inland and marine insurance, and adding thereto all debts and claims against the company, he shall, in case he finds the capital stock of the company impaired to the extent of twenty-five per cent., give notice to the company to make good its whole capital stock within sixty days, and if this is not done he shall require the company to cease to do new business within this State; and shall thereupon, in case the company is organized under the authority of this State, immediately institute such legal proceedings

as are necessary to protect the rights of all persons in said.

company.

Tenth. The Insurance Commissioner shall preserve in permanent form a full record of his proceedings, and a concise statement of the condition of each company visited or examined, and report annually to the Governor, on or before the first day of June, his official acts; and shall, on the first day of December, annually, report to the Comptroller the fees received and expenses of his department for the year then to end, and pay into the treasury all excess of receipts over disbursements; and in his report to the Governor, he shall report the condition of the companies doing business in this State, and such other information as will exhibit the affairs of his department; a copy of which said report to the Governor he shall forward to the Insurance Commissioner or other similar officer of every other State of the United States, and to each company doing business in this State; and on request he shall communicate to the Insurance Commissioner, or other proper officer of any other State, any facts which by law it is his duty to ascertain respecting companies of this State doing business within such other State; and at the request of any person, and on payment of the proper fee, as hereinafter provided, he shall give certified copies of any record or paper in his office when he deems it not prejudicial to the public interest so to do, and he shall give such other certificates as this sub-title provides for; and he shall adopt and renew from time to time, when necessary, with the approval of the Governor, a seal of office, an impression and description of which, with the Governor's certificate of approval, shall be filed with the Secretary of State.

Eleventh. All stock corporations doing the business of bonding and casualty insurance, whether incorporated under the laws of Maryland or of some other State and authorized by the Insurance Department to transact such business in this State, shall at all times keep and maintain adequate reserves sufficient to pay the claims which may have been filed against such corporations, and also reserves for unearned premiums, said reserves to be estimated as hereinafter described.*

Sub-sections 11 to 15, inclusive, are the amendments made by 1914, chapter 631.

Twelfth. The reserve for outstanding losses under insurance against loss or damage resulting from accident to or injuries suffered by an employee or other person, and for which the insured it liable, and under insurance against loss from liability on account of the death of or injury to an employee not caused by the negligence of the employer, shall be determined as follows: Each corporation which writes policies covering any of the said kinds of insurance shall include in the annual statement required by the insurance laws of this State a schedule of its experience thereunder, in the United States and foreign countries in the case of corporations organized in the United States, and in the United States only in the case of corporations organized outside of the United States, giving each calendar year's experience separately, and crediting or charging each item to the year in which the policy to which it relates was written, as follows: (1) The earned premium on all such policies written during the period of ten years immediately preceding the date as of which the statement is made, being the gross premiums on all such policies, including excess and additional premiums and premiums in course of collection, less return premiums and premiums on canceled policies and less the unearned premiums on policies in force as shown in such annual statement: (2) the amount of all payments of whatsoever nature made by reason or on account of injuries covered by such policies written during said period. This amount shall include medical and surgical attendance, payments to claimants, legal expenses, salaries and expenses of investigators, adjustors, and field men, rents, stationery, telegraph and telephone charges, postage, salaries and expenses of office employees, home office expenses, and all other payments made on account of such injuries, whether such payments are allocated to specific claims or are unallocated; (3) the number of suits being defended at the date as of which the statement is made under policies written during said period, except suits in which liability is not dependent upon negligence of the insured, and a charge of seven hundred and fifty dollars for each suit; (4) the number of deaths for which the insured are liable without proof of negligence, covered by policies written during said period, and not paid for at the date as of which the statement is made and a

charge of the amount necessary to pay for such deaths; (5) the number of unpaid claims at the date as of which the statement is made on account of non-fatal injuries for which the insured are liable without proof of negligence, covered by policies written during said period, and a charge equal to the present value of the estimated future payments; (6) the loss ratio deter mined from the foregoing as to each year separately, using as the divisor the earned premiums shown in item (1) and as the dividend the amount of payments shown in item (2) plus the amount charged in items (3), (4) and (5); (7) the number of suits being defended at the date as of which the statement is made under policies written more than ten years prior to such date, except suits in which liability is not dependent upon negligence of the insured; (8) the number of deaths for which the insured are liable without proof of negligence, covered by policies written more than ten years prior to the date as of which the statement is made, and not paid for at such date; (9) the number of unpaid claims at the date as of which the statement is made on account of the non-fatal injuries for which the insured are liable without proof of negligence, covered by policies written more than ten years prior to such date. All unallocated payments in item (2) made in a given calendar year subsequent to the first four years in which a corporation has been issuing such policies shall be distributed as follows: Thirty-five per centum shall be charged to the policies written in that year, forty per centum to the policies written in the preceding year, ten per centum to the policies written in the second year preceding, ten per centum to the policies written in the third year preceding, and five per centum to the policies written in the fourth year preceding, and such payments made in the first four calendar years in which a corporation has been issuing such policies shall be distributed as follows: In the first calendar year one hundred per centum shall be charged to the policies written in that year, in the second calendar year fifty per centum shall be charged to policies written in that year, and fifty per centum to the policies written in the preceding year; in the third calendar year forty per centum shall be charged to the policies written in that year, forty per centum to the policies in the preceding year, and twenty per centum to the policies written