HARRY HUGHES, Governor

2683

FOR the purpose of requiring a surety upon request to give
the applicant or principal bond holder written notice
of certain actions and to state the reason for the
action; and permitting the Insurance Commissioner to
order the surety to rescind certain actions if a
complaint is filed.

BY repealing and reenacting, with amendments,

Article 48A - Insurance Code

Section 234AA

Annotated Code of Maryland

(1979 Replacement Volume and 1980 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article 48A - Insurance Code

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,
sex, or physical handicap or 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, place of residence, or physical
handicap or disability.

(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) AN INSURER WHICH INTENDS TO CANCEL OR REFUSE TO
ISSUE OR RENEW A SURETY BOND SHALL, UPON REQUEST, SEND
WRITTEN NOTICE TO THE BOND HOLDER WHICH STATES THE REASON
FOR THE PROPOSED ACTION.

[(d)] (E) 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 A COMPLAINT IS
FILED WHICH ALLEGES CANCELLATION OR REFUSAL TO RENEW A
SURETY BOND THE COMMISSIONER MAY ORDER THE SURETY TO RESCIND

THE ACTION PENDING A FINAL DETERMINATION BY THE

COMMISSIONER. If the Commissioner finds from the complaint