Ch. 36

1995 LAWS OF MARYLAND

(1)      THE CONSIDERATION FOR A SURETY CONTRACT, GUARANTY
CONTRACT, OR ANNUITY CONTRACT;

(2)      DIVIDENDS ON LIFE INSURANCE POLICIES THAT HAVE BEEN
APPLIED TO BUY ADDITIONAL INSURANCE OR TO SHORTEN THE PERIOD DURING
WHICH A PREMIUM IS PAYABLE; AND

(3)      THE PART OF THE GROSS RECEIPTS OF A TITLE INSURER THAT IS
DERIVED FROM INSURANCE BUSINESS OR GUARANTY BUSINESS.

(C)     PREMIUMS NOT TO BE TAXED.
PREMIUMS NOT TO BE TAXED INCLUDE:

(1)      PREMIUMS ON POLICIES COVERING WEEKLY DISABILITY BENEFITS
ON WHICH PREMIUMS ARE PAYABLE WEEKLY; OR

(2)      CREDITS ALLOWED ON PREMIUMS UNDER POLICIES OF INDUSTRIAL
INSURANCE BECAUSE OF PAYMENT BEING MADE TO THE HOME OFFICE OR A
BRANCH OFFICE OF THE INSURER.

(D)     ALLOCATION OF GROSS DIRECT PREMIUMS.

(1)      GROSS DIRECT PREMIUMS OR PARTS OF GROSS DIRECT PREMIUMS
THAT ARE DERIVED FROM OR REASONABLY ATTRIBUTABLE TO INSURANCE
BUSINESS IN THE STATE SHALL BE ALLOCATED TO THE STATE.

(2)      BY REGULATION, THE COMMISSIONER MAY REQUIRE OR ALLOW A
METHOD OF ALLOCATING GROSS DIRECT PREMIUMS WRITTEN BY A PERSON
SUBJECT TO TAXATION UNDER THIS TITLE THAT JUSTLY AND FAIRLY DETERMINES
THE PART OF THE GROSS DIRECT PREMIUMS THAT IS DERIVED FROM OR
REASONABLY ATTRIBUTABLE TO THE PERSON'S INSURANCE BUSINESS IN THE
STATE.

(E)     ACCUMULATED FUNDS TO BUY ANNUITIES.

(1)      FUNDS ACCEPTED BY A LIFE INSURER UNDER A GROUP CONTRACT
THAT PROVIDES FOR AN ACCUMULATION OF FUNDS TO BUY ANNUITIES AT FUTURE
DATES MAY BE CONSIDERED AS "GROSS PREMIUMS WRITTEN":

(I)       ON RECEIPT OF THE FUNDS; OR

(II)     ON THE ACTUAL APPLICATION OF THE FUNDS TO BUY
ANNUITIES.

(2)      ANY FUNDS TAXED ON RECEIPT AND ANY INTEREST LATER
CREDITED TO THOSE FUNDS ARE NOT SUBJECT TO TAXATION ON THE PURCHASE OF
ANNUITIES.

(3)      ANY INTEREST CREDITED TO FUNDS THAT ARE NOT TAXED ON
RECEIPT ALSO SHALL BE INCLUDED IN "GROSS PREMIUMS WRITTEN".

(4)      EACH LIFE INSURER SHALL ELECT BETWEEN ALTERNATIVES IN
PARAGRAPH (1) OF THIS SUBSECTION.

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