BLAIR LEE III, Acting Governor

1671

(B) NO SURETY SHALL REQUIRE THE EXISTENCE OF SPECIAL

CONDITIONS, FACTS, OR SITUATIONS AS A CONDITION TO ITS

ACCEPTANCE OR RENEWAL OF A PARTICULAR SURETY RISK IN AN

ARBITRARY, CAPRICIOUS, UNFAIR, OR DISCRIMINATORY MANNER

BASED IN WHOLE OR IN PART UPON THE RACE, CREED, COLOR, SEX,
RELIGION, NATIONAL ORIGIN OR PLACE OF RESIDENCE.

(C) NO SURETY SHALL MAKE ANY INQUIRY AS TO RACE,

CREED, COLOR, OR NATIONAL ORIGIN IN ANY SURETY FORM,

QUESTIONNAIRE, OR OTHER MANNER OF GENERAL INFORMATION WHICH
WOULD PERTAIN TO ANY APPLICATION FOR SURETY BONDS.

(D) ANY PERSON AGGRIEVED UNDER THIS SECTION SHALL

NOTIFY THE COMMISSIONER WITHIN 30 DAYS IN WRITING,

SPECIFYING THE FACTS GIVING RISE TO HIS COMPLAINT. THE

COMMISSIONER SHALL, UPON RECEIPT OF THE COMPLAINT, FORWARD A

COPY OF THE COMPLAINT TO THE SURETY. IF THE COMMISSIONER

FINDS FROM THE COMPLAINT THAT IT IS WITHOUT MERIT, HE SHALL

DISMISS THE COMPLAINT WITHOUT A HEARING, AND SHALL, IN THAT

EVENT PROMPTLY NOTIFY, IN WRITING, THE SURETY AND THE

COMPLAINANT. IN ALL OTHER CASES, THE COMMISSIONER SHALL

HOLD A HEARING ON THE COMPLAINT WITHIN 30 DAYS AFTER RECEIPT

OF THE COMPLAINT AND SHALL GIVE WRITTEN NOTICE OF THE TIME

AND PLACE OF THE HEARING TO ALL PARTIES AT LEAST 10 DAYS

PRIOR TO THE SCHEDULED DATE OF THE HEARING. AT ANY HEARING

TO DETERMINE WHETHER THERE HAS BEEN A VIOLATION OF THIS

SECTION, THE BURDEN OF PERSUASION SHALL BE UPON THE SURETY

TO DEMONSTRATE THAT THE CANCELLATION OR REFUSAL TO

UNDERWRITE OR RENEW IS NOT BASED IN WHOLE OR IN PART UPON

RACE, COLOR, CREED OR SEX OF AN APPLICANT OR PRINCIPAL OR

FOR ANY UNFAIRLY DISCRIMINATORY REASON. IF, AFTER THE

HEARING, THE COMMISSIONER FINDS THAT THE SURETY HAS VIOLATED

ANY PROVISION OF THIS SECTION, HE MAY ISSUE AN APPROPRIATE

ORDER SPECIFYING THE MANNER IN WHICH THE SURETY HAS VIOLATED

THIS SECTION. THE ORDER MAY ALSO PROVIDE RELIEF UNDER

SUBSECTIONS (F) OR (G) OF THIS SECTION, IF APPROPRIATE; AND

THE ORDER SHALL STATE WHEN WITHIN A REASONABLE PERIOD

THEREAFTER AND IN NO EVENT LESS THAN 10 DAYS, IT SHALL BE

EFFECTIVE.

ALL HEARINGS AND PROCEEDINGS CONDUCTED UNDER THIS

SECTION, AS WELL AS ANY DECISION OF THE COMMISSIONER, SHALL

BE SUBJECT TO APPEAL BY ANY PARTY INVOLVED. SUCH HEARINGS,

PROCEEDINGS, AND APPEAL SHALL BE IN ACCORDANCE WITH THE

PROVISIONS OF SECTION 40 OF THIS ARTICLE.

(E)        ANY INFORMATION OR TESTIMONY PROVIDED BY A SURETY

PURSUANT TO A COMPLAINT UNDER THIS SECTION SHALL BE

PRIVILEGED AND CONFIDENTIAL AND THERE SHALL BE NO LIABILITY

ON THE PART OF AND NO CAUSE OF ACTION OF ANY NATURE SHALL

ARISE AGAINST ANY SURETY, ITS REPRESENTATIVES, OR ANY PERSON
WHO IN GOOD FAITH FURNISHES TO THE SURETY ANY INFORMATION OR
TESTIMONY RELATING TO THE COMPLAINT.

(F) IF THE COMMISSIONER FINDS THAT THE SURETY HAS

WILLFULLY VIOLATED ANY OF THE PROVISIONS OF THIS SECTION, HE
MAY IMPOSE A FINE UPON THE OFFENDING PARTY IN ACCORDANCE