Maryland Insurance Section 3-324

      (a)      This section does not apply to insurance of risks of the State or a political subdivision of the State.

      (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.

      (c)      (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 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 tax on any unearned part of the premium.

      (d)      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.

      (e)      If a surplus lines policy covers risks only partly in the State, the tax payable shall be computed on the part of the premium that is properly allocable to the risks located in the State.