2013 Maryland Code
INSURANCE
§ 4-211 - Premium receipts tax -- Insureds

§4-211.

(a) This section does not apply to wet marine and transportation insurance.

(b) (1) If an insured procures, continues, or renews insurance from an unauthorized insurer that is subject to a report under § 4-210 of this subtitle, a premium receipts tax of 3% of the gross premiums charged for the insurance is levied on the obligation, chose in action, or right represented by the premium charged for the insurance.

(2) If an insurance contract subject to the tax is canceled and rewritten, the additional premium, for purposes of the premium receipts tax, is the premium in excess of the unearned premium of the canceled insurance contract.

(c) If the insured fails to withhold from the premium the amount of the tax levied under this section, the insured is liable for the amount of the tax imposed under subsection (b) of this section and shall pay the tax to the Commissioner.

(d) If the tax imposed under subsection (b) of this section is not timely paid, the amount of the tax due shall be increased by a penalty of:

(1) 25% of the tax due; and

(2) an amount computed at the rate of 1% per month or part of a month after the date the payment is due until the date the payment is made.

(e) If the tax is not timely paid under this section, on request of the Commissioner, the Attorney General shall proceed in a court of this State or another state or in a federal court or agency to recover the tax.

§ 4-211 - 1. Premium receipts tax -- Nonadmitted or unauthorized insurance.

(a) Definitions. --

(1) In this section the following words have the meanings indicated.

(2) "Act" has the meaning stated in § 3-301 of this article.

(3) "Home state" has the meaning stated in § 3-301 of this article.

(4) "Nonadmitted insurance" has the meaning stated in § 3-301 of this article.

(b) Requirements of insured's home state apply to nonadmitted insurance. -- For policies effective on or after July 21, 2011, the placement of nonadmitted insurance is subject to the statutory and regulatory requirements solely of the insured's home state.

(c) Premiums charged for unauthorized insurance subject to premium receipts tax; rate. -- The premiums charged for unauthorized insurance are subject to a premium receipts tax in the State on all gross premiums, less any returned premiums, charged for nonadmitted insurance as specified in §§ 4-209 and 4-211 of this subtitle.

(d) Premium receipts tax -- Policies before July 21, 2011. -- 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 (c) 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 (c) of this section only on that portion of the premium that is properly allocable to the risks located in the State.

(e) Premium receipts tax -- Policies on or after July 21, 2011. -- 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 (c) of this section.

(f) Premium receipts tax -- Policies on or after July 21, 2011 -- Nonadmitted insurance. -- 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.

(g) Nonadmitted insurance subject to requirements of home state of insured. -- 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.

(h) Uniform requirements for nonadmitted insurance. -- The Commissioner shall cooperate with other states to adopt and implement uniform requirements for nonadmitted insurance in compliance with the Act.