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LAWS OF MARYLAND

[Ch. 276

NOTHING IN THIS SUBTITLE MAY PROHIBIT ANY HEALTH
MAINTENANCE ORGANISATION FROM MEETING THE REQUIREMENTS OF
ANY FEDERAL LAW WHICH WOULD AUTHORIZE THE HEALTH
MAINTENANCE ORGANIZATION TO RECEIVE FEDERAL FINANCIAL
ASSISTANCE OR TO ENROLL BENEFICIARIES ASSISTED BY FEDERAL
FUNDS.

SECTION 2. AND BE IT FURTHER ENACTED, That Sections
135(1) and 136(b) of Article 81 - Revenue and Taxes, of
the Annotated Code of Maryland (1969 Replacement Volume
and 1974 Supplement) be and they are hereby repealed and
re-enacted, with amendments, to read as follows:

Article 81 — Revenue and Taxes

135.

As used in this article:

(1) The phrase "insurance company" means (a) every
person engaged as principal in the business of writing
insurance, surety, guaranty or annuity contracts (except
nonprofit hospital service plan corporations and
fraternal [beneficiary associations] BENEFIT SOCIETIES,
AS DEFINED BY ARTICLE 48A OF THIS CODE; AND HEALTH
MAINTENANCE ORGANIZATIONS AUTHORIZED IN ACCORDANCE WITH
ARTICLE 43 OF THIS CODE) and includes mutual insurance
companies, title insurance companies, the Maryland
Automobile Insurance Fund and credit indemnity companies,
and (b) attorneys in fact for reciprocal exchanges or
interinsurers.

136.

(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) dividends 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[.]; AND (4) PREMIUMS RECEIVED BY AN
INSURANCE COMPANY UNDER POLICIES PROVIDING HEALTH
MAINTENANCE ORGANIZATION BENEFITS TO THE EXTENT OF THE
AMOUNTS ACTUALLY PAID BY THE INSURANCE COMPANY TO A
NONPROFIT HEALTH MAINTENANCE ORGANIZATION AUTHORIZED
UNDER ARTICLE 43 OF THIS CODE OPERATING SOLELY AS A
HEALTH MAINTENANCE ORGANIZATION WHICH IS EXEMPT FROM
TAXES UNDER SUBSECTION 856 (B) OF ARTICLE 43 OF THIS CODE,
OR TO THE EXTENT THE PREMIUMS HAVE BEEN PAID BY A HEALTH