Marvin Mandel, Governor                           987

to the satisfaction of the court, shall forfeit and pay to the State of
Maryland a sum not to exceed $250.00 which may be recovered in a
civil action, except that if the violation is found to be willful, the
amount of the penalty shall be a sum not to exceed $1,000.00. The
Commissioner, in his discretion, may revoke or suspend the license
or certificate of authority of the insurer or person guilty of such
violation. The order for suspension or revocation shall be upon notice
and hearing and shall be subject to judicial review as provided in
Section 436N of this Article.

Sec. 2. And be it further enacted, That if any provision of this
subtitle, or the application of any provision to any person or circum-
stances, shall be held invalid, the remainder of the subtitle and
application of the provision to any person or circumstances other
than those as to which it is held invalid, shall not be affected thereby.

Sec. 3. And be it further enacted, That this Act shall take effect
July 1, 1970. The provisions of Sections 436F, 436G, 436H, and 436-1
of this Article shall not be operative until ninety (90) days after the
effective date of this subtitle, and the Commissioner in his discre-
tion may extend by not more than an additional ninety (90) days
the initial period within which the provisions of said sections shall
not be operative.

Approved April 28, 1970

CHAPTER 417
(Senate Bill 219)

AN ACT to add new sections, Sections 234A, 234B, 234C, and 234D
AND 234C to Article 48A, title "Insurance Code," subtitle 15,
"Unfair Trade Practices," of the Annotated Code of Maryland
(1957 Edition, 1968 Replacement Volume), to follow immediately
after Section 234 thereof to establish standards of fairness in
insurance underwriting, claim payment, and treatment of agents
or brokers, and to confer authority on the Insurance Commis-
sioner to remedy failure to observe such standards.

Section 1. Be it enacted by the General Assembly of Maryland,
That new Sections 234A, 234B, 234C, and 234D AND 234C be added
to Article 48A, title "Insurance Code," subtitle 15, "Unfair Trade
Practices," of the Annotated Code of Maryland (1957 Edition, 1968
Replacement Volume) to follow immediately after Section 234, there-
of, to read as follows:

234A. Unfairness in Underwriting.

(a) No insurer shall cancel or refuse to underwrite or renew a
particular insurance risk or class of risks for any arbitrary, capri-
cious, unfair or discriminatory reason, including but not limited
to, a refusal or cancellation based in whole or in part upon the race,
creed, color, religion, or national origin , OR PLACE OF RESI-
DENCY OR EMPLOYMENT of an applicant or policyholder.