PARRIS N. GLENDENING, Governor

Ch. 36

In subsection (c)(2) of this section, the former reference to a form "designated
by" the Commissioner is deleted as included in the reference to the form
"provided by" the Commissioner.

In subsection (c)(3)(v) of this section, the former reference to premium
"currently" charged is deleted as surplusage.

The Insurance Article Review Committee notes, for consideration by the
General Assembly, that the reference to an "industrial insured" in subsection
(a) of this section differs from the definition of the term in § 4-201(a) of this
subtitle.

The Insurance Article Review Committee also notes, for the consideration of
the General Assembly, that the reference to a "self-insured" in subsection
(b)(1) of this section is a nonsequitur as a "self-insured" does not "procure"
insurance from an insurer.

Defined terms: "Commissioner" § 1-101
"Insurance" § 1-101
"Insurer" § 1-101
"Premium" § 1-101
"Surplus lines insurance" § 1-101
"Unauthorized insurer" § 1-101

4-211. PREMIUM RECEIPTS TAX — INSUREDS.

(A)     SCOPE OF SECTION.

THIS SECTION DOES NOT APPLY TO WET MARINE AND TRANSPORTATION
INSURANCE.

(B)     TAX.

(1)     IF AN INSURED PROCURES, CONTINUES, OR RENEWS INSURANCE
FROM AN UNAUTHORIZED INSURER THAT IS SUBJECT TO A REPORT UNDER § 4-210
OF THIS SUBTITLE, A PREMIUM RECEIPTS TAX OF 3% OF THE GROSS PREMIUMS
CHARGED FOR THE INSURANCE IS LEVIED ON THE OBLIGATION, CHOSE IN ACTION,
OR RIGHT REPRESENTED BY THE PREMIUM CHARGED FOR THE INSURANCE.

(2)     THE INSURED SHALL PAY THE AMOUNT OF THE TAX TO THE
COMMISSIONER BEFORE MARCH 1 OF THE NEXT CALENDAR YEAR AFTER THE
INSURANCE WAS PROCURED, CONTINUED, OR RENEWED.

(3)     IF AN INSURANCE CONTRACT SUBJECT TO THE TAX IS CANCELED
AND REWRITTEN, THE ADDITIONAL PREMIUM, FOR PURPOSES OF THE PREMIUM
RECEIPTS TAX, IS THE PREMIUM IN EXCESS OF THE UNEARNED PREMIUM OF THE
CANCELED INSURANCE CONTRACT.

(C)     PRORATION OF TAX.

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