Ch. 685                                        1997 LAWS OF MARYLAND

(C) THE TOTAL AMOUNT OF THE INSURANCE REGULATION FEE COLLECTED
BY THE COMMISSIONER SHALL BE DEPOSITED IN THE FUND.

41C.

(A) (1) THE TOTAL INSURANCE REGULATION FEE IS APPORTIONED IN
RELATION TO THE BURDEN ON THE STATE TO ADEQUATELY AND APPROPRIATELY
REGULATE THE INSURANCE BUSINESS ENGAGED IN BY INSURERS WITHIN THE
STATE THE INSURANCE REGULATION FEE SHALL BE AN AMOUNT THAT WILL BE
ADEQUATE TO PROPERLY REGULATE THE INSURANCE BUSINESS IN THE STATE.

(2) THE INSURANCE REGULATION FEE MAY NOT BE CONSTRUED AS A
USED TO LEVY OR EXCISE A TAX ON PREMIUMS FOR THE PURPOSE OF RAISING
GENERAL REVENUE FOR TIE STATE.

(B) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, IN ORDER TO
PROPERLY REFLECT TIE REGULATORY BURDEN IMPOSED BY EACH INSURER
ENGAGED IN THE INSURANCE BUSINESS IN TIE STATE, TIE INSURANCE
REGULATION FEE SHALL BE EXPRESSED AS A PERCENTAGE OF ALL NEW AND
RENEWAL GROSS DIRECT PREMIUMS WRITTEN BY AN INSURER SUBJECT TO TIE
INSURANCE REGULATION FEE DURING THE IMMEDIATELY PRECEDING CALENDAR
YEAR EACH INSURER SHALL PAY AN INSURANCE REGULATION FEE THAT IS THE
PRODUCT OF TIE INSURER'S ADJUSTED GROSS DIRECT PREMIUM. TO THE EXTENT
ALLOCABLE TO THIS STATE AND WRITTEN IN THE STATE DURING THE PRECEDING
CALENDAR YEAR. MULTIPLIED BY TIE BASE ASSESSMENT RATE DETERMINED
UNDER SUBSECTION (D) OF THIS SECTION.

(2) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) Or THIS
PARAGRAPH, THE MINIMUM INSURANCE REGULATION FEE SHALL BE $2,500.

(II) FOR FRATERNAL BENEFIT SOCIETIES AND WORKERS'

COMPENSATION SELF-INSURANCE GROUPS, THE MINIMUM INSURANCE

REGULATION FEE SHALL BE $1,500.

(C) IN DETERMINING ADJUSTED PREMIUMS SUBJECT TO THE INSURANCE
REGULATION FEE, THE FOLLOWING DEDUCTIONS SHALL BE MADE FROM GROSS
DIRECT WRITTEN PREMIUMS:

(1) RETURNED PREMIUMS, BUT NOT INCLUDING SURRENDER VALUES;

(2) RETURNS OR REFUNDS MADE OR CREDITED TO POLICYHOLDERS
BECAUSE OF RETROSPECTIVE RATINGS OR SAFE DRIVER AWARDS; AND

(3) ANY OTHER DEDUCTION THAT TIE COMMISSIONER CONSIDERS
REASONABLE.

(D) (1) THE BASE ASSESSMENT RATE SHALL EQUAL TIE FRACTION
OBTAINED BY DIVIDING TIE TOTAL REGULATORY COST, MINUS THE SUM OF ALL
REVENUE PROJECTED TO BE COLLECTED BY TIE COMMISSIONER UNDER § 4lD(A)(2)
OF THIS SUBTITLE AND ANY FUND BALANCE CARRIED FORWARD FROM THE
PREVIOUS FISCAL YEAR, BY THE TOTAL AMOUNT OF ADJUSTED NEW AND RENEWAL
GROSS DIRECT PREMIUMS WRITTEN IN THE STATE BY ALL INSURERS.

- 3940 -