PARRIS N. GLENDENING, Governor

Ch. 36

(5)      A LIFE INSURER MAY NOT CHANGE AN ELECTION BETWEEN
ALTERNATIVES IN PARAGRAPH (1) OF THIS SUBSECTION WITHOUT THE CONSENT OF
THE COMMISSIONER.

(6)      IF FUNDS THAT HAVE BEEN TAXED AS GROSS PREMIUMS ARE
WITHDRAWN BEFORE ACTUALLY APPLIED TO BUY ANNUITIES, THE FUNDS ARE
ELIGIBLE TO BE INCLUDED AS RETURNED PREMIUMS IF OTHERWISE ELIGIBLE
UNDER § 6-104(A)(1) OF THIS TITLE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, §§ 631(c) and 632(a)(1), (c), and (d).

In subsections (a) and (d)(2) of this section, the reference to a "person subject
to taxation under this title" is substituted for the former reference to an
"insurance compan[y]" to conform to § 6-101 of this title.

Subsections (b) and (c) of this section are revised to state which premiums are
and are not subject to taxation under this section. The Insurance Article
Review Committee decided that former Art. 48A, § 631(c) was more properly
revised as a scope provision rather than a definition of "premiums" because
the purpose of the former definition seemed to be to delineate what types of
premiums or other consideration are subject to taxation.

In subsection (e)(3) of this section, the phrase "that are not taxed on receipt",
which modifies "funds", is substituted for the former phrase "accumulated
while under the latter alternative" for clarity.

In subsection (e)(4) of this section, the former reference to a life insurer
signifying an alternative "on its premium tax return covering premiums for the
calendar year 1964" is deleted as obsolete.

Defined terms: "Annuity" § 1-101
"Annuity contract" § 1-101
"Commissioner" § 1-101
"Insurance" § 1-101
"Insurance business" § 1-101
"Life insurance" § 1-101
"Life insurer" § 1-101
"Person" § 1-101
"Policy" § 1-101
"Premium" § 1-101

6-103. TAX RATE.

THE TAX RATE IS:

(1)      0% FOR PREMIUMS FOR ANNUITIES; AND

(2)      2% FOR ALL OTHER PREMIUMS.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 632(a)(2).

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