Ch. 36                                          1995 LAWS OF MARYLAND

The former phrase "without deduction for any cause whatever except as
provided in subsection (b) of this section" is deleted as unnecessary because
there is no implication that an insurer may take any deductions other than
those expressly listed in § 6-104 of this title.

Defined terms: "Annuity" § 1-101
"Premium" § 1-101

6-104. COMPUTATION OF TAX.

(A)     DEDUCTIONS ALLOWED.

SUBJECT TO SUBSECTION (B) OF THIS SECTION, IN COMPUTING THE TAX
UNDER THIS SECTION, THE FOLLOWING DEDUCTIONS FROM GROSS DIRECT
PREMIUMS ALLOCABLE TO THE STATE ARE ALLOWED:

(1)      RETURNED PREMIUMS, NOT INCLUDING SURRENDER VALUES;

(2)      DIVIDENDS THAT ARE:

(I)       PAID OR CREDITED TO POLICYHOLDERS; OR

(II)     APPLIED TO BUY ADDITIONAL INSURANCE OR TO SHORTEN
THE PERIOD DURING WHICH PREMIUMS ARE PAYABLE;

(3)      RETURNS OR REFUNDS MADE OR CREDITED TO POLICYHOLDERS
BECAUSE OF RETROSPECTIVE RATINGS OR SAFE DRIVER REWARDS; AND

(4)      PREMIUMS RECEIVED BY A PERSON SUBJECT TO TAXATION UNDER
THIS TITLE UNDER POLICIES PROVIDING HEALTH MAINTENANCE ORGANIZATION
BENEFITS TO THE EXTENT:                                               

(I)       OF THE AMOUNTS ACTUALLY PAID BY THE PERSON TO A
NONPROFIT HEALTH MAINTENANCE ORGANIZATION AUTHORIZED BY TITLE 19.
SUBTITLE 7 OF THE HEALTH - GENERAL ARTICLE THAT OPERATES ONLY AS A
HEALTH MAINTENANCE ORGANIZATION THAT IS EXEMPT FROM TAXES UNDER §
19-727(B) OF THE HEALTH - GENERAL ARTICLE; OR

(II)     THAT THE PREMIUMS HAVE BEEN PAID BY A HEALTH
MAINTENANCE ORGANIZATION THAT IS EXEMPT FROM TAXES UNDER § 19-727(B) OF
THE HEALTH - GENERAL ARTICLE.

(B)     EXTENT OF DEDUCTION.

DEDUCTIONS FROM GROSS DIRECT PREMIUMS ARE ALLOWED ONLY TO THE
EXTENT THAT THE DEDUCTIONS ARE PROPERLY ALLOCABLE TO PREMIUMS
SUBJECT TO TAX.

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

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