WILLIAM DONALD SCHAEFER, Governor                         Ch. 399

WHEREAS, The statutory exemption for domestic mutual insurers raises
substantive constitutional questions, and its historical justification no longer exists; now,
therefore,

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 48A - Insurance Code

632.

(a) (2) The tax rate is zero % in the case of considerations for annuities and 2%
in the case of all other premiums (except IT SHALL BE 1% ON property insurance written
by domestic mutual insurance companies) without deduction for any cause whatever
except as provided in subsection (b) of this section.

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland
read as follows:

Article 48A - Insurance Code

632.

(a) (2) The tax rate is zero % in the case of considerations for annuities and 2%
in the case of all other premiums [(except it shall be 1% on property insurance written by
domestic mutual insurance companies)] without deduction for any cause whatever except
as provided in subsection (b) of this section.

SECTION 3. AND BE IT FURTHER ENACTED, That every domestic mutual
insurer may file with the Insurance Commissioner any modification of its property
insurance rates which it proposes to use on or after July 1, 1993, based upon the
requirement that premium taxes on property insurance be remitted.

SECTION 4. AND BE IT FURTHER ENACTED, That Sections 1 and 3 of this
Act shall take effect January 1, 1994 and Section 2 of this Act shall take effect January 1,
1995.

Approved May 11, 1993.

CHAPTER 399
(House Bill 1615)

AN ACT concerning

Jennings Randolph Lake Project Compact

FOR the purpose of authorizing the Governor to execute a certain Jennings Randolph
Lake Project Compact between the State and the State of West Virginia and
concurred in by the United States Army Corps of Engineers; stating certain
purposes and goals related to establishing the Compact; establishing through the

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