Ch. 11

1996 LAWS OF MARYLAND

(II) NOTWITHSTANDING SUBPARAGRAPH (I) OF THIS PARAGRAPH,
A PURCHASING GROUP MAY PURCHASE INSURANCE COVERAGE THAT PROVIDES
FOR A DEDUCTIBLE OR SELF-INSURED RETENTION APPLICABLE TO INDIVIDUAL
MEMBERS.

(E) TAXATION.

(1)     TAXES ON PREMIUMS PAID FOR COVERAGE OF RISKS RESIDENT OR
LOCATED IN THE STATE BY A PURCHASING GROUP OR MEMBER OF THE
PURCHASING GROUP SHALL BE IMPOSED IN ACCORDANCE WITH TITLE 6 OF THIS
ARTICLE.

(2)      IF THE TAXES IMPOSED BY TITLE 6 OF THIS ARTICLE ARE NOT PAID
BY THE INSURER, THEN THE TAXES SHALL BE PAID BY THE PURCHASING GROUP.

(3)     IF THE PURCHASING GROUP FAILS TO PAY THE SPECIFIED TAXES,
THE TAXES SHALL BE PAID BY EACH OF THE PURCHASING GROUP'S MEMBERS
WHOSE RISKS ARE RESIDENT OR LOCATED IN THE STATE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, §§ 622, 623, 624, 625, and 625A.

In subsection (b)(1) of this section, the former phrase "which intends to do
business in this State" is deleted as implicit in the phrase "[b]efore doing
business in the State".

In subsection (b)(2)(iv) and (v) of this section, the references to "liability"
insurance are added for clarity and consistency with subsection (b)(2)(ii) of
this section.

In subsection (c)(1) of this section, the former reference to legal "documents"
is deleted as unnecessary in light of the reference to legal "process".

In subsection (c)(3)(ii)1 and 2 of this section, the defined term "insurer" is
substituted for the former references to an "insurance carrier" for consistency
throughout this article.

Defined terms: "Agent" § 1-101
"Broker" § 1-101
"Commissioner" § 1-101
"Domicile" § 25-101
"Insurance" § 25-101
"Insurer" § 1-101
"Liability" § 25-101
"Person" § 1-101
"Policy" § 1-101
"Premium" § 1-101
"Purchasing group" § 25-101
"Risk retention group" § 25-101
"State" § 25-101

"Surplus lines insurance" § 1-101
"Unauthorized insurer" § 1-101

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