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LAWS OF MARYLAND

Ch. 424

underwrite or renew a particular insurance risk or class of
risk except by the application of standards—which are

reasonably related to the insurer's economic and business

purposes. At any hearing to determine whether there has

been a violation of this section, the burden of persuasion

shall be upon the insurer to demonstrate that the

cancellation, or refusal to underwrite or renew is justified

under the standards so demonstrated.

(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 in an arbitrary, capricious, unfair, or
discriminatory manner based in whole or part upon race,
creed, color, sex, religion, national origin, place of
residency, or blindness OR OTHER PHYSICAL HANDICAP OR
DISABILITY. Actuarial justification may be considered with
respect to sex.

234AA.

(a)    No surety shall cancel or refuse to issue or
renew a surety bond as defined in § 69 of this article for
any reason based in whole or in part upon race, color, creed
Tor], sex, OR PHYSICAL HANDICAP OS DISABILITY of an
applicant or principal or for any other arbitrary,
capricious, or unfairly discriminatory reason.

(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, OR
PHYSICAL HANDICAP OR DISABILITY.

(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, OR PHYSICAL HANDICAP OR
DISABILITY of an applicant or principal or for any unfairly
discriminatory reason. If, after the hearing, the
Commissioner finds that the surety has violated any