Ch. 5

2004 LAWS OF MARYLAND

(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;

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

[(6)] (5) the Maryland Health Insurance Plan established under Title
14, Subtitle 5, Part I of this article; or

[(7)] (6) the Senior Prescription Drug Program established under Title
14, Subtitle 5, Part II 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 subtitle that are:

(1)     allocable to the State; and

(2)     written during the preceding calendar year.

(b)     Premiums to be taxed include:

(1)     the consideration for a surety contract, guaranty contract, or annuity
contract;

(2)      GROSS RECEIPTS RECEIVED AS A RESULT OF CAPITATION
PAYMENTS, SUPPLEMENTAL PAYMENTS, AND BONUS PAYMENTS, MADE TO A
MANAGED CARE ORGANIZATION FOR PROVIDER SERVICES TO AN INDIVIDUAL WHO
IS ENROLLED IN A MANAGED CARE ORGANIZATION;

(3)      SUBSCRIPTION CHARGES OR OTHER AMOUNTS PAID TO A HEALTH
MAINTENANCE ORGANIZATION ON A PREDETERMINED PERIODIC RATE BASIS BY A
PERSON OTHER THAN A PERSON SUBJECT TO THE TAX UNDER THIS SUBTITLE AS
COMPENSATION FOR PROVIDING HEALTH CARE SERVICES TO MEMBERS;

[(2)] (4) dividends on life insurance policies that have been applied to
buy additional insurance or to shorten the period during which a premium is payable;
and

[(3)] (5) the part of the gross receipts of a title insurer that is derived
from insurance business or guaranty business.

6-103.

The tax rate is:

(1)     0% for premiums for annuities; and

(2)     2% for all other premiums, INCLUDING:

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