Ch. 352

1995 LAWS OF MARYLAND

(3) THE CHANGES IN MARKET SHARES OF INSURERS IN THE MARKET IN
BALTIMORE CITY; AND

(4) WHETHER INSURANCE IS AVAILABLE FROM INSURERS OTHER THAN
THE MARYLAND MOTOR VEHICLE AUTOMOBILE INSURANCE FUND.

SECTION 5. AND BE IT FURTHER ENACTED, That the Laws of Maryland
read as follows:

Article 48A - Insurance Code

640A.

(A)     THE COMMISSIONER SHALL COLLECT AN ANNUAL REGULATORY SURTAX
FRAUD PREVENTION FEE AS PROVIDED IN THIS SUBTITLE.

(B)     THE REGULATORY SURTAX FRAUD PREVENTION FEE IS IN ADDITION TO
ANY FEES, PENALTIES, CHARGES, OR PREMIUM TAXES IMPOSED UNDER THIS
ARTICLE.

(C) THE REGULATORY SURTAX SHALL BE PAID BY ANY INSURER
AUTHORIZED TO ENGAGE IN BUSINESS IN MARYLAND UNDER A CERTIFICATE OF
AUTHORITY OR LICENSE ISSUED BY THE COMMISSIONER.

640B.

(A)     (1) THE REGULATORY SURTAX FRAUD PREVENTION FEE IS DUE AND
PAYABLE ON OR BEFORE AUGUST 1 OCTOBER 1 OF EACH YEAR.

(2) THE COMMISSIONER SHALL COLLECT THE REGULATORY SURTAX
FRAUD PREVENTION FEE.

(B)     THE TOTAL AMOUNT OF THE REGULATORY SURTAX FRAUD
PREVENTION FEE COLLECTED BY THE COMMISSIONER SHALL BE DEPOSITED IN THE
GENERAL FUND INSURANCE FRAUD DIVISION FUND FOR THE SOLE PURPOSE OF
FUNDING THE ACTIVITIES OF THE INSURANCE FRAUD DIVISION.

640C.

(A) THE REGULATORY SURTAX SHALL BE EXPRESSED AS A PERCENTAGE OF
ALL NEW AND RENEWAL GROSS DIRECT PREMIUMS WRITTEN BY AN INSURER
SUBJECT TO THE REGULATORY SURTAX DURING THE IMMEDIATELY PRECEDING
CALENDAR YEAR.

(B) THE REGULATORY SURTAX CHARGED TO AN INSURER SUBJECT TO THE
REGULATORY SURTAX SHALL BE ESTABLISHED BY THE COMMISSIONER TO RAISE
THE FOLLOWING SUMS FOR THE OPERATION OF THE FRAUD UNIT;

(1) $1 MILLION FOR FISCAL YEAR 1966;

(2) $1.5 MILLION FOR FISCAL YEAR 1997; AND

(3) $2 MILLION FOR EACH FISCAL YEAR THEREAFTER.

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