Ch. 352                                    1995 LAWS OF MARYLAND

(3)     the Maryland Automobile Insurance Fund; and

(4) a credit indemnity company.

(b) The following persons are not subject to taxation under this [title]
SUBTITLE:

(1)     a nonprofit health service plan corporation;

(2)     a fraternal benefit society;

(3) a health maintenance organization authorized by Title 19, Subtitle 7 of
the Health - General Article;

(4)     a surplus lines broker, who is subject to taxation in accordance with Title
3, Subtitle 3 of this article; or

(5)     an unauthorized insurer, who is subject to taxation in accordance with
Title 4, Subtitle 2 of this article.

6-102.

(a) A tax is imposed on all new and renewal gross direct premiums of each person
subject to taxation under this [title] SUBTITLE that are:

(1) allocable to the State; and

(2) written during the preceding calendar year.

(e) (6) If funds that have been taxed as gross premiums are withdrawn before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] SUBTITLE.

6-104.

(a) 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:

(4) premiums received by a person subject to taxation under this [title]
SUBTITLE 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.

- 2404 -