Marvin Mandel, Governor                         641

48A of the Annotated Code of Maryland (1969 Supplement), title
"Insurance Code," subtitles "Unauthorized Insurers," "Rates and
Rating Organizations," "Nonprofit Health Service Plans," and
"Maryland Insurance Acquisitions Disclosure and Control Act,"
amending the insurance code laws of this State in order to make
certain corrections in the language and references thereof.

Section 1. Be it enacted by the General Assembly of Maryland,
That Sections 208(a), 243(n)(3), 243(n)(4) (i), 356, 495(j), 497,
and 499 of Article 48A of the Annotated Code of Maryland (1969
Supplement), title "Insurance Code," subtitles "Unauthorized In-
surers," "Rates and Rating Organizations," "Nonprofit Health
Service Plans," and "Maryland Insurance Acquisitions Disclosure
and Control Act," be and the same are hereby repealed and re-
enacted, with amendments, to read as follows:

208.

(a) Except as to premiums on lawfully procured surplus (lines)
(A) EXCEPT AS TO PREMIUMS ON LAWFULLY PRO-
CURED SURPLUS LINES insurance and premiums on indepen-
dently procured insurance on which a tax has been paid pursuant to
Section 209 of this article, every unauthorized insurer shall pay to
the Commissioner before March 1 next succeeding the calendar year
in which the insurance was so effectuated, continued or renewed a
premium receipts tax of three percent (3%) of gross premiums
charged for such insurance, other than wet marine and transporta-
tion insurance as defined in Section 70(2) of this article, on subjects
resident, located or to be performed in this State. Such insurance on
subjects resident, located or to be performed in this State procured
through negotiations or an application, in whole or in part occurring
or made within or from within or outside of this State, or for which
premiums in whole or in part are remitted directly or indirectly
from within or outside of this State, shall be deemed to be insur-
ance procured or continued or renewed in this State. The term
"premium" includes all premiums, membership fees, assessments,
dues and any other consideration for insurance. Such tax shall be
in lieu of all other Maryland taxes. On default of any such unau-
thorized insurer in the payment of such tax the insured shall pay
the tax. If the tax prescribed by this section is not paid within
the time stated, the tax shall be increased by a penalty of twenty-
five percent (25%) and by the amount of an additional penalty
computed at the rate of one percent per month or any part thereof
from the date such payment was due to the date paid. The moneys
paid into the Maryland State treasury from time to time under
this section shall be placed in a special fund for the purposes of
the Maryland Insurance Development Fund.

243(n).

(3) Every insurer undertaking to afford any insurance or cover-
age named in the first paragraph of this subsection, whether singly
or in any combination, and every rating organization which files
rates for such insurance shall cooperate in the preparation and
submission of a plan to be known as Maryland automobile insur-
ance plan for the equitable apportionment among insurers of ap-
plicants who are unable to procure such insurance through ordinary