PARRIS N. GLENDENING, Governor

Ch. 35

DISCOUNT, ABATEMENT, CREDIT, REDUCTION OF PREMIUM, SPECIAL FAVOR,
ADVANTAGE, VALUABLE CONSIDERATION, OR INDUCEMENT DESCRIBED IN
SUBSECTION (B) OF THIS SECTION.

(D) UNFAIR DISCRIMINATION.

(1) AN INSURER MAY NOT MAKE OR ALLOW UNFAIR DISCRIMINATION
BETWEEN INSUREDS OR PROPERTIES HAVING LIKE INSURING OR RISK
CHARACTERISTICS IN:

(I) THE PREMIUM OR RATES CHARGED FOR INSURANCE;

(II) THE DIVIDENDS OR OTHER BENEFITS PAYABLE ON THE

INSURANCE; OR

(III) ANY OF THE OTHER TERMS OR CONDITIONS OF THE

INSURANCE.

(2) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, AN
INSURER MAY NOT MAKE OR ALLOW A DIFFERENTIAL IN RATINGS, PREMIUM
PAYMENTS, OR DIVIDENDS FOR A REASON BASED ON THE SEX, PHYSICAL
HANDICAP, OR DISABILITY OF AN APPLICANT OR POLICYHOLDER UNLESS THERE IS
ACTUARIAL JUSTIFICATION FOR THE DIFFERENTIAL.

(E) EFFECT OF SECTION.

THIS SECTION DOES NOT PROHIBIT AN INSURER FROM:

(1) PAYING COMMISSIONS OR OTHER COMPENSATION TO QUALIFIED
AGENTS OR QUALIFIED BROKERS; OR

(2) ALLOWING OR RETURNING TO ITS PARTICIPATING
POLICYHOLDERS, MEMBERS, OR SUBSCRIBERS LAWFUL DIVIDENDS, SAVINGS, OR
UNABSORBED PREMIUM DEPOSITS.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 226.

Defined terms: "Agent" § 1-101
"Annuity" § 1-101
"Broker" § 1-101
"Commissioner" § 1-101
"Health insurance" § 1-101
"Insurance" § 1-101
"Insurer" § 1-101
"Life insurance" § 1-101
"Policy" § 1-101
"Premium" § 1-101
"Qualified agent" § 1-101
"Qualified broker" § 1-101

- 1213 -