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§ 3-324. Premium receipts tax on surplus lines insurance

West's Annotated Code of MarylandInsuranceEffective: July 1, 2011

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 3. Kinds of Insurers
Subtitle 3. Surplus Lines Insurance (Refs & Annos)
Effective: July 1, 2011
MD Code, Insurance, § 3-324
§ 3-324. Premium receipts tax on surplus lines insurance
Application of section
(a) This section does not apply to insurance of risks of the State or a political subdivision of the State.
Premiums subject to premium receipts tax
(b) The premiums charged for surplus lines insurance are subject to a premium receipts tax of 3% on all gross premiums, less any returned premiums, charged for surplus lines insurance.
Policies effective before July 21, 2011
(c) For policies effective before July 21, 2011:
(1) if the policy covers property, risks, or exposures located or to be performed entirely in the State, the premium receipts tax shall be computed on the entire premium at the rate specified in subsection (b) of this section; and
(2) if the policy covers property, risks, or exposures located or to be performed both in and outside the State, the premium receipts tax shall be computed at the rate specified in subsection (b) of this section only on that portion of the premium that is properly allocable to the risks located in the State.
Rate of premium receipts tax
(d) For policies effective on or after July 21, 2011, if the State is the insured's home state, the premium receipts tax shall be computed on the entire premium at the rate specified in subsection (b) of this section.
Receipt of premium receipts tax and reports by home state
(e) For policies effective on or after July 21, 2011, only the home state of an insured may receive premium receipts tax payments and reports for nonadmitted insurance.
Charge of premium receipts tax for surplus lines insurance
(f)(1) On delivery of the cover note, certificate of insurance, policy, or other initial confirmation of insurance, a surplus lines broker shall charge the insured the amount of the premium receipts tax in addition to the full amount of the gross premium charged by the insurer for the surplus lines insurance.
(2) The surplus lines broker shall return to the insured the premium receipts tax on any unearned part of the premium.
Absorption or rebate of premium receipts tax or commission prohibited
(g) 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.
Adoption and implementation of uniform requirements
(h) The Commissioner shall cooperate with other states to adopt and implement uniform requirements for nonadmitted insurance in compliance with the Act.
Regulation of nonadmitted insurance
(i) For policies effective on or after July 21, 2011, the regulation of nonadmitted insurance is subject to the statutory and regulatory requirements solely of the home state of the insured.

Credits

Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997. Amended by Acts 2011, c. 520, § 1, eff. July 1, 2011; Acts 2011, c. 521, § 1, eff. July 1, 2011.
Formerly Art. 48A, § 194.
MD Code, Insurance, § 3-324, MD INSURANCE § 3-324
Current with all legislation from the 2023 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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