in the second year preceding, and in the fourth calendar year 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, fifteen per centum to the policies written in the second year preceding, and ten per centum to the policies written in the third year preceding, and a schedule showing such distribution shall be included in such annual statement. Each such corporation shall be charged with indebtedness for outstanding losses upon such policies determined as follows: (10) For all suits being defended under policies written more than ten years prior to the date as of which the statement is made, except suits in which liability is not dependent upon negligence of the insured, one thousand dollars for each suit; (11) for all suits being defended under policies written more than five years and less than ten years prior to the date as of which the statement is made, except suits in which liability is not dependent upon negligence of the insured, seven hundred and fifty dollars for each suit; (12) for all deaths for which the insured are liable without proof of negligence, covered by policies written more than five years prior to the date as of which the statement is made, the amount necessary to pay for such deaths; (13) for all unpaid claims on account of non-fatal injuries for which the insured are liable without proof of negligence under policies written more than five years prior to the date as of which the statement is made, the present value of the estimated future payments; (14) for the policies written in the five years immediately preceding the date as of which the statement is made, an amount determined as follows: Multiply the earned premiums of each such five years as shown in item (1) by the loss ratio ascertained as in item (6) on all the policies written in the first five years of the said ten-year period, using as the divisor the sum of the earned premiums shown in item (1) for such first five years, and as the dividend the sum of the payments shown in item (2) for such five years, plus the sum of the charges in items (3), (4) and (5) for such first five years, but the ratio to be used shall in no event be less than fifty-three per centum at and after December 31st, 1914, nor less than fifty-four per centum at and after December 31st, 1915, nor less than fifty-five per centum at and after December 31st, 1916. From the amount so ascertained in each of the last five years of said ten-year period deduct all payments made under policies written in the corresponding year as shown in item (2), and the remainder in the case of each year shall be deemed the indebtedness for that year, provided, however, that if the remainder in the case of any year of the first three years of the five years immediately preceding the date as of which the statement is made shall be less than the sum of the three following items for that year at that date (a) the number of suits, except suits in which liability is not dependent upon negligence of the insured, being defended under policies written in that year and a charge of seven hundred and fifty dollars for each suit, (b) the amount necessary to pay for all deaths for which the insured are liable without proof of negligence, covered by policies written in that year, and (c) the present value of estimated unpaid claims on account of non-fatal injuries for which the insured are liable without proof of negligence, covered by the policies written in that year, then the sum of said items (a), (b) and (c) shall be in the indebtedness for that year. A corporation which has been issuing such policies for a period of less than ten years shall nevertheless include in its annual statement, a schedule as hereinbefore required for the years in which it shall have issued such policies, and shall be charged with an indebtedness determined in the same manner, but in determining the indebtedness for policies written in the five years immediately preceding the date as of which the statement is made, the minimum ratio hereinbefore prescribed shall be used subject to the same deductions and provisions as in the case of corporations that have been issuing such policies for ten years or more. Thirteenth. The reserve for all other outstanding losses under any and all other classes of casualty insurance policies and under every character of bond and writing obligatory, executed by such casualty or bonding insurance company, shall be determined by a consideration of the facts and circumstances of each particular claim, the amount so set aside as a reserve to be reasonably sufficient to cover the probable expenses and payments in each case. The reserves for claims of the classes mentioned in this sub-section (Thirteenth) shall be first estimated and set aside by each such corporation, and may be in quired into and verified by the Insurance Commissioner, or any deputy, examiner, or assistant from his office, during any regular examination of said corporation, and, if found to be inadequate, the said corporation may be required to set aside such reserves on claims mentioned in this section as may in the ag gregate be deemed reasonably and fairly sufficient by the Insurance Commissioner. Fourteenth. On all policies of casualty insurance and bonds in force and written for one year or less there shall be maintained a premium reserve of fifty per centum of the current year's premium. On all such policies and bonds in force and written for more than one year there shall be maintained a premium reserve of fifty per centum of the current year's premium, plus the whole of the premium for subsequent years. If the premium for the entire term is paid in one installment the premium for the current year shall be calculated on a pro rata basis. Such premium reserves shall be subject to verification by the Insurance Commissioner during any regular examination of such corporation. Fifteenth. Should any corporation, incorporated under the laws of any other State, but authorized by law to do a bonding and casualty insurance business in this State, fail or refuse to set aside reserves for premiums and unadjusted losses, then the Insurance Commissioner of this State is authorized and directed to revoke the license of such foreign bonding or casualty insurance company until this Act is complied with.* 1916, ch. 521. 178A. That upon the taking effect of this Act, all of the pow ers and duties now exercised and performed by the State Fire Marshal, his deputy or assistants, under and by virtue of the provisions of Sections 222 to 228, inclusive, of Article 23 of the Annotated Code of Maryland, title "Corporations," sub-title "Fire Marshal," and all of the records, documents, unexpended balances and other property and things of or appertaining to the said State Fire Marshal or his department, shall be transferred to and devolved upon the State Insurance Commissioner, * Monumental Insurance Co. vs. Wilkinson, 100 Md. 31; Kafka vs. Wilkinson, 99 Md. 238. and the office of the State Fire Marshal shall thereupon be abolished. 1916, ch. 521. 178B. That in order to carry out and perform the powers and duties transferred to and devolved upon the State Insurance Commissioner by Section 178A, the said State Insurance Commissioner is authorized to appoint and remove at pleasure an additional deputy, whose duties and powers shall be such as are now prescribed by law for the deputy fire marshal, at such compensation as may be approved by the Board of Public Works, not exceeding, however, $2,000 per annum, and such additional clerical assistance, receiving such compensation, as the said Commissioner, with the approval of the Board of Public Works, may deem necessary; provided, however, that the total compensation and expenses authorized by this Act shall not exceed in the aggregate the sum of $4,000 per annum. 1916, ch. 521. 178c. That all Acts and parts of Acts inconsistent with this Act be and the same are hereby repealed to the extent of such inconsistency. 1904, art. 23, sec. 161. 1902, ch. 338, sec. 122A. 179. Whenever the actuary appointed by the State Insurance Commissioner, as provided for by Section 175 of this Article, shall ascertain that any insurance company doing business in this State is writing and issuing policies upon an insufficient, insecure or impracticable table of rates, then he shall report the same to the Insurance Commissioner, who, upon such report, shall notify such insurance company so writing or issuing policies at rates less than are deemed in the opinion of said actuary adequate for the protection of its contracts made with its policyholders, of the fact of such report and advice; and shall thereupon, if such company shall refuse or neglect to adjust its rates in accordance with the advice of said actuary, cause an examination to be made into the affairs of said company as provided in sub-section fifth of Section 178 of this Article, and if the opinion of said actuary be sustained by the result of such examination it shall be the duty of the Insur ance Commissioner to require said company to cease writing and issuing policies at rates so found to be insufficient. If said insurance company continues the writing and issuing of such policies after notice from the Insurance Commissioner, then it shall be the duty of the Insurance Commissioner to institute proceedings against said company as provided in Section 178 of this Article. 1904, art. 23, sec. 163. 1888, art. 23, sec. 123. 1860. art. 56, sec. 29. 1858, ch. 432, sec. 5. 1872. ch. 388. 1874, ch. 400. 1876, ch. 248. 1878, ch. 106. 180. No declaration of organization or charter of an insurance company formed under this Article, and no alteration or amendment thereof, shall be operative until it has been submitted to the Attorney-General for examination, and found by him to be in accordance with the provisions of this Article, and not inconsistent with the Constitution and laws of this State, and so certified by him and delivered to the Insurance Commissioner; and before any such company shall begin to do any business, the Insurance Commissioner shall examine the officers of said company under oath, to ascertain whether the capital required of the company named in the charter, according to the nature of the business proposed to be transacted by such company, to an amount of not less than one hundred thousand dollars, has been paid in money, and is held by the board of direc tors, subject to their actual control, according to the provisions of the charter of said company, or has been by them invested in securities negotiable, and worth in the market not less than the sum of one hundred thousand dollars; or if a mutual company, that it has received and is in actual possession of the premises or bona fide engagements of insurance or other se curities, as the case may be, to the full extent and of the value required by law, and the name and residence of the maker of each premium note forming part of the capital or assets; and the amount of such note shall be reported to the Insurance Commissioner; and the officers or corporators of such company shall be required to certify under oath that the capital exhibited to the Insurance Commissioner is bona fide property of the company, which certificate shall be filed in the office of the Insurance Commissioner; and any officer swearing falsely in re |