31.03.06.05

.05 Surplus Lines Reports and Premium Receipts Tax.

A. Each surplus lines broker that has transacted surplus lines business in the State during the preceding half calendar year shall file with the Commissioner a semiannual statement that reports on business subject to the tax imposed by Insurance Article, §3-324, Annotated Code of Maryland, during the preceding half calendar year. The report shall be made in accordance with the form prescribed by the Commissioner and available from the Commissionerís office.

B. The broker shall deliver the report to the office of the Commissioner on or before March 15 and September 15 of each year.

C. The March 15 report shall cover the business placed between July 1 and December 31, inclusive, of the preceding calendar year. The September report shall cover the business placed between January 1 and June 30, inclusive, of the calendar year in which the report is made.

D. The reports shall be open to public inspection and shall include:

(1) The gross amount of each kind of insurance business transacted and the aggregate gross premiums charged;

(2) The aggregate of returned premiums and taxes paid to insureds;

(3) The aggregate of net premiums; and

(4) Any additional information required by the form.

E. All premiums and taxes, including additional and return premiums and taxes, may be reported and paid on a placed or written basis but shall be paid in any case for the full term of the policy, whether or not one or more installments of premium remain unearned and payable at some future date or dates during the term of policy. In computing the tax due, the broker may deduct the expense of any examination made in accordance with Insurance Article, §§2-208 and 3-325(d), Annotated Code of Maryland, during the period covered by the report.