988                              Laws of Maryland                       Ch. 418

(b) No insurer shall require the existence of special conditions,
facts, or situations as a condition to its acceptance or renewal of,
a particular insurance risk or class of risks unless the insurer can
demonstrate by substantial evidence that the requirement to be satis-

fied will materially reduce its loss exposure; and further that said

requirement shall not be applied in any instance IN AN ARBI-
TRARY, CAPRICIOUS, UNFAIR, OR DISCRIMINATORY MAN-
NER in an arbitrary, capricious, unfair, or discriminatory manner
based in whole or part upon the race, creed, color, religion, or
national origin. , OR PLACE OF RESIDENCY.

234B. Unfairness in Claim Payment.

No insurer shall delay or refuse payment of a claim where such

delay or refusal would be arbitrary, capricious, unfair, or discrimi-

natory, or based in whole or part upon the race, creed, color, re-

ligion, or national origin of the claimant.

234C. 234B. Unfairness in Treatment of Agent or Broker.

No insurer may cancel or amend a written agreement with an
agent, or broker, or refuse to accept business from such agent or
broker if the cancellation or amendment is ARBITRARY, CAPRI-
CIOUS, UNFAIR, DISCRIMINATORY, OR arbitrary, capricious,
unfair, discriminatory, or based in whole or part upon the race,
creed, color, religion, or national origin , PLACE OF RESIDENCY
of the agent or broker. , HIS APPLICANTS OR POLICYHOLDERS.

234D. 234C. Commissioner's Authority.

If the Commissioner in a specific instance shall make a finding
that an insurer has violated Sections 234A, 234B, or 234C, OR 234B,
he may, in addition to the exercise of any power granted elsewhere in
this Article, order the insurer to accept the risk, pay the claim, or
accept the business, as the case may be. All hearings and proceed-
ings conducted under Sections 234A, 234B, and 234C, as well as any
decision of the Commissioner, shall be subject to appeal by any party
involved; said hearings, proceedings, and appeal shall be in accord-
ance with the provisions of Section 40 of Article 48A of the Anno-
tated Code of Maryland.

Sec. 2. And be it further enacted, That this Act shall take effect
July 1, 1970.

Approved April 28, 1970

CHAPTER 418
(Senate Bill 265)

AN ACT to repeal and re-enact, with, amendments, Section 96 of
Article 48A of the Annotated Code of Maryland (1968 Replace-
ment volume) providing for the definition of entire reserves and
providing generally for the types of assets life insurers must in-
vest such reserves in.