3756

LAWS OF MARYLAND

Ch. 710

BY repealing and reenacting, with amendments,

Article 48A - Insurance Code

Section 194

Annotated Code of Maryland

(1979 Replacement Volume and 1981 Supplement)

BY repealing

Article 48A - Insurance Code

Section 195

Annotated Code of Maryland

(1979 Replacement Volume and 1981 Supplement)

BY adding to

Article 48A - Insurance Code

Section 195

Annotated Code of Maryland

(1979 Replacement Volume and 1981 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
read(s) as follows:

Article 48A - Insurance Code

194.

(a) The premiums charged for surplus lines coverages
are subject to a premium receipts tax of 3% on all gross
premiums less any returned premiums charged for such
insurance. The surplus lines broker shall charge the insured
the amount of the tax at the time of delivery of the cover
note, certificate of insurance, policy or other initial
confirmation of insurance in addition to the full amount of
the gross premium charged by the insurer for the insurance,
provided, however, that the tax on any unearned portion of
the premium shall be returned to the policyholder by the
surplus lines broker. The surplus lines broker is
prohibited from absorbing such tax, or, as an inducement for
insurance or for any other reason, rebating all or any part
of such tax or of his commission.

(b) [The surplus lines broker shall pay the taxes
under subsection (a) to the Commissioner on a monthly basis;
on or before the 45th day after the last day of the month in
which the insurance was placed.

(c)] If The surplus lines policy covers risks or
exposures only partially in this State, the tax payable
shall be computed on the portion of the premium which is