1646 LAWS OF MARYLAND. [CH. 906

shall not include premiums on policies covering weekly dis-
ability benefits on which premiums are payable weekly.

(3) The term "policy" includes insurance, surety, guaranty
and annuity contracts.

102. (a) There is hereby annually levied and imposed upon
every insurance company a tax on all new and renewal gross
direct premiums allocable to this State and written during
the preceding calendar year at the rate of one per cent, in the
case of considerations for annuities and two per cent, in the
case of all other premiums without deduction for any cause
whatever except as herein provided. The tax imposed by this
section shall first be collected and paid with respect to prem-
iums written during the calendar year 1941.

(b) In computing the tax on premiums hereby imposed
the following deductions from gross direct premiums allocable
to this State shall be allowed, but only to the extent they
are properly allocable to premiums taxable hereunder; (1)
returned premiums (not including surrender values); (2) divi-
dends paid or credited to policyholders, or applied to purchase
additional insurance or to shorten the premium paying period
and (3) returns or refunds made or credited to policyholders
because of retrospective ratings or safe driver rewards.

(c) Gross direct premiums, or portions thereof, derived
from or reasonably attributable to insurance business in this
State shall be allocated to this State. The Department is
hereby authorized to prescribe or permit, by regulations, such
method or methods of allocating the gross direct premiums
written by insurance companies as may justly and fairly deter-
mine the portion thereof derived from or reasonably at-
tributable to their insurance business in this State.

103 (a) There is hereby annually levied and imposed a tax
upon the deposits held by every insurance company issuing
perpetual policies of fire insurance on property situated in
this State without the payment of ordinary premiums but in
consideration of the deposit with such company of sums of
money to be held by it during the time such policies are in
force, and to be returned to the policyholders, in whole or in
part, upon the cancellation of such policies.

(b) Such tax shall be at the rate of one-fifteenth of one
per cent, of the average amount of deposits held by such
insurance company during the twelve months of the preceding
calendar year, in connection with perpetual policies of fire
insurance issued on property situated in this State and in
force during such calendar year or any part thereof, without
deduction for any cause whatever. The tax imposed by this
section shall first be collected and paid with respect to the
deposits held during the calendar year 1941.