PARRIS N. GLENDENING, Governor

Ch. 36

(2) THE SURPLUS LINES BROKER SHALL RETURN TO THE INSURED THE
TAX ON ANY UNEARNED PART OF THE PREMIUM.

(D)     PAYMENT BY BROKER PROHIBITED.
THE SURPLUS LINES BROKER MAY NOT: .

(1)      ABSORB THE PREMIUM RECEIPTS TAX; OR

(2)      REBATE ALL OR PART OF THE PREMIUM RECEIPTS TAX OR THE
SURPLUS LINES BROKER'S COMMISSION.

(E)     PRORATION OF TAX.

IF A SURPLUS LINES POLICY COVERS RISKS ONLY PARTLY IN THE STATE, THE
TAX PAYABLE SHALL BE COMPUTED ON THE PART OF THE PREMIUM THAT IS
PROPERLY ALLOCABLE TO THE RISKS LOCATED IN THE STATE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 194.

In subsection (a) of this section, the former references to "reinsurance" and
"insurance of risks referred to in [former] § 199" are deleted as unnecessary in
light of § 3-302 of this subtitle.

In subsection (c)(2) of this section, the reference to the "insured" is
substituted for the former reference to the "policyholder" for consistency with
subsection (c)(1) of this section.

In subsection (d)(2) of this section, the former phrase "as an inducement for
insurance or for any other reason" is deleted as surplusage.

In subsection (e) of this section, the former word "exposures" is deleted as
unnecessary in light of the word "risks".

Defined terms: "Insurance" § 1-101
"Policy" § 1-101
"Premium" § 1-101
"Surplus lines insurance" § 1-101

3-325. REPORT OF PREMIUM RECEIPTS AND PAYMENT OF TAX.

(A) IN GENERAL.

ON OR BEFORE MARCH 15 AND SEPTEMBER 15 OF EACH YEAR, EACH SURPLUS
LINES BROKER SHALL:

(1)      FILE WITH THE COMMISSIONER A REPORT OF THE GROSS
PREMIUMS CHARGED, LESS PREMIUMS RETURNED, FOR BUSINESS SUBJECT TO TAX
DURING THE PRECEDING HALF CALENDAR YEAR; AND

(2)      PAY TO THE COMMISSIONER THE TOTAL AMOUNT OF TAX IMPOSED
BY § 3-324 OF THIS SUBTITLE AND APPEARING ON THE REPORT.

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