In this subtitle the following words have the meanings indicated. “Assessment” means an assessment that, subject to § 2-505(c)(3) of this subtitle, equals 60% of the Administration’s approved annual budget appropriation under this article. “Fund” means the Insurance Regulation Fund established under § 2-505 of this subtitle. “Health insurer” means an insurer that holds a certificate of authority issued by the Commissioner to engage in the business of health insurance. “Health insurer” includes: a health maintenance organization operating under a certificate of authority issued by the Commissioner under Title 19, Subtitle 7 of the Health - General Article; a nonprofit health service plan operating under Title 14, Subtitle 1 of this article; and a dental plan operating under Title 14, Subtitle 4 of this article. “Health insurer assessment portion” means 40% of the assessment. “Insurer” means an insurer or other entity authorized to engage in the insurance business in the State under a certificate of authority issued by the Commissioner. “Insurer” includes: a health maintenance organization operating under a certificate of authority issued by the Commissioner under Title 19, Subtitle 7 of the Health - General Article; a nonprofit health service plan operating under Title 14, Subtitle 1 of this article; a dental plan operating under Title 14, Subtitle 4 of this article; and the Maryland Automobile Insurance Fund. “Life insurer” means an insurer that holds a certificate of authority issued by the Commissioner to engage in the business of life insurance. “Life insurer assessment portion” means 26% of the assessment. “Multiple type insurer” means an insurer that engages in more than one of the following types of insurance: life; health; or property and casualty. “Premium” has the meaning stated in § 1-101 of this article to the extent it is allocable to this State. “Premium” includes any amounts paid to a health maintenance organization as compensation on a predetermined basis for providing services to members and subscribers as specified in Title 19, Subtitle 7 of the Health - General Article to the extent it is allocable to this State. “Property and casualty insurer” means an insurer that holds a certificate of authority issued by the Commissioner to engage in the business of property and casualty insurance. “Property and casualty insurer” includes the Maryland Automobile Insurance Fund. “Property and casualty insurer assessment portion” means 34% of the assessment.

The Commissioner shall collect an annual assessment fee from each insurer as provided in subsection (b) of this section. The assessment fee shall be calculated as follows: for each health insurer, the assessment fee is the product of the fraction obtained by dividing the gross direct premium written by the health insurer in the prior calendar year by the total amount of gross direct premium written by all health insurers in the prior calendar year, multiplied by the health insurer assessment portion; for each life insurer, the assessment fee is the product of the fraction obtained by dividing the gross direct premium written by the life insurer in the prior calendar year by the total amount of gross direct premium written by all life insurers in the prior calendar year, multiplied by the life insurer assessment portion; for each property and casualty insurer, the assessment fee is the product of the fraction obtained by dividing the gross direct premium written by the property and casualty insurer in the prior calendar year by the total amount of gross direct premiums written by all property and casualty insurers in the prior calendar year, multiplied by the property and casualty insurer assessment portion; and for each domestic reinsurer subject to § 4–115(b)(2)(ii) and (c)(3) of this article, the assessment fee is the average of the assessment fee paid by the 100 property and casualty insurers with the highest gross direct written premium in the prior calendar year. For the purpose of calculating the assessment fee in subsection (b) of this section, a multiple type insurer shall be considered either a health insurer, a life insurer, or a property and casualty insurer based on the majority of premium type written. Notwithstanding any other provision of this subtitle, the minimum assessment shall be $300 for each authorized insurer.

The Commissioner shall collect the annual assessment fee from each insurer as calculated in § 2-502 of this subtitle. The assessment fee collected under this section is: in addition to any penalties or premium tax imposed under this article; and due and payable to the Commissioner on or before a date determined by the Commissioner each year. Failure by an insurer to pay the assessment fee on or before the due date shall subject the insurer to the provisions of §§ 4-113 and 4-114 of this article. In addition to paragraph (1) of this subsection, an assessment fee not paid on or before the due date may be subject to a penalty of 5% and interest at the rate determined under § 13-701(b)(1) of the Tax - General Article from the due date until payment is made to the Commissioner. If an additional amount is found to be due after the assessment fee has been paid to the Commissioner, the additional amount is subject to interest at 6% from the due date until payment is made to the Commissioner. The total amount of the assessment fee collected by the Commissioner shall be deposited in the Fund. This section does not affect any requirement otherwise established by law for the payment of premium taxes by an insurer.

The assessment fee imposed on insurers under this subtitle is in lieu of any life insurance valuation fees and a reduction in specified insurance producer fees that the Commissioner had previously charged and collected under § 2-112 of this title. In determining adjusted premiums subject to the assessment fee, the Commissioner may use the premiums as stated in the report required under § 2-506(a) of this subtitle.

There is an Insurance Regulation Fund that consists of: all revenue received through the imposition and collection of the assessment fee under this subtitle; all revenue received through the imposition and collection of the fees set forth in § 2–112 of this title; all revenue received through the imposition and collection of the fraud prevention fee under Title 6, Subtitle 2 of this article; all revenue received through the collection of examination expenses under § 2–208 of this title; except as provided in § 2–114(a) of this title, all other fees received through the imposition and collection of fees set forth in this article; and income from investments that the State Treasurer makes for the Fund. The purpose of the Fund is to pay all the costs and expenses incurred by the Administration that are related to its responsibilities to regulate the insurance activities of all insurers that engage in the insurance business in this State. All the costs and expenses of the Administration shall be included in the State budget. Any expenditures from the Fund to cover costs and expenses of the Administration may only be made: with an appropriation from the Fund approved by the General Assembly in the annual State budget; or by the budget amendment procedure provided for in § 7–209 of the State Finance and Procurement Article. Subject to subsubparagraph 2 of this subparagraph, if, in any fiscal year, the amount of revenue collected by the Commissioner and deposited into the Fund exceeds 105% of the actual appropriations for the Administration, the excess amount shall be carried forward within the Fund. The assessment fee imposed under this subtitle shall be adjusted to maintain the Fund at a level that does not exceed 105% of the Administration’s approved annual budget. If, in any given fiscal year, the amount of revenue collected by the Commissioner and deposited into the Fund is insufficient to cover the expenditures of the Administration because of an unforeseen emergency and expenditures are made in accordance with the budget amendment procedure provided for in § 7–209 of the State Finance and Procurement Article, an additional assessment for the expenditures may be made. The State Treasurer is the custodian of the Fund. The State Treasurer shall deposit payments received from the Commissioner into the Fund. The Fund is a continuing, nonlapsing fund and is not subject to § 7–302 of the State Finance and Procurement Article, and may not be deemed a part of the General Fund of the State. No part of the Fund may revert or be credited to: the General Fund of the State; or a special fund of the State, unless otherwise provided by law.

On or before March 1 of each year, each insurer subject to this subtitle shall file with the Commissioner a report of the new and renewal gross direct premiums. The report shall be filed in a manner and contain the information required by the Commissioner. If an insurer files its annual statement on or before March 1, and the information required under subsection (a) of this section is included in that annual statement, the insurer is not required to file a report under subsection (a) of this section.

The Commissioner may adopt regulations necessary to implement any provision of this subtitle.