# COMAR Title 31 — Maryland Insurance Administration

## Subtitle 06 — Taxes and Fees

### Chapter 01 — Allocation and Taxation of Premiums

**Authority:** Insurance Article, §§2-109 and 6-102—6-104, Annotated Code of Maryland

**Administrative History:** Effective date:

**Administrative History:** Regulations .01—.03 effective December 1, 1969

**Administrative History:** Regulation .01A amended effective October 23, 1995 (22:21 Md. R. 1615)

**Administrative History:** Regulation .04 effective August 1, 1970

**Administrative History:** Chapter recodified from COMAR 09.30.12 to COMAR 31.06.01 effective September 7, 1998 (25:18 Md. R. 1439)

#### Regulation .01 Authority and Purpose.

*COMAR 31.06.01.01*

A. Pursuant to the authority contained in  Insurance Article, Title 6, Subtitle 1, Annotated Code of Maryland, the State Insurance Commissioner prescribes by this chapter the methods of allocating the gross direct premium for business transacted by insurers.

B. The purpose of this chapter is to establish a uniform method for determining how premiums are to be allocated for premium tax purposes, and to make clear what that method is.

#### Regulation .02 Method.

*COMAR 31.06.01.02*

Beginning with the annual statement for the calendar year 1970, to be filed on or before March 1, 1971, each insurer shall allocate its premiums in accordance with the following:

A. Property and Casualty.

B. Life.

C. Accident and Health.

D. Annuity Allocations. Insofar as annuity considerations are taxable, they shall be allocated by the same method as that adopted for life insurance premiums.

E. Title Allocations. Title insurance premiums are to be allocated to location of risk.

F. Federal Areas Allocations. Business done at Army, Navy, or Air Force bases, and other similar federal installations, shall be allocated to the jurisdiction of the insured's residence, as listed on the application.

#### Regulation .03 Waiver By Commissioner.

*COMAR 31.06.01.03*

The method of allocation of gross direct premiums set forth above may be altered or waived in whole or in part by the Commissioner upon application by any insurer and a finding by the Commissioner that the proposed method of allocation justly and fairly determines the portion of the premiums derived from, or reasonably attributable to, the insurer's business in this State.

#### Regulation .04 Taxes on Premiums Received.

*COMAR 31.06.01.04*

A. Authority. This regulation is deemed necessary as an aid to effectuation of Insurance Article, §6-101, Annotated Code of Maryland.

B. Applicability. This regulation applies to all domestic insurers.

C. Taxes on Premiums Received by Domestic Companies Which Are Not Taxed by Another State. In determining the amount of direct premiums taxable in this State, premiums written, procured, or received in this State shall be deemed written on property or risks located or resident in this State, except such premiums as are properly allocated or proportioned and reported as taxable premiums of any other state or states.