Ch. 35

1997 LAWS OF MARYLAND

A SURETY INSURER MAY NOT MAKE AN INQUIRY ABOUT RACE, CREED,
COLOR, OR NATIONAL ORIGIN IN A SURETY FORM, QUESTIONNAIRE, OR OTHER
MANNER OF REQUESTING GENERAL INFORMATION THAT RELATES TO AN
APPLICATION FOR A SURETY BOND.

(D) NOTICE OF PROPOSED ACTION.

ON REQUEST, A SURETY INSURER THAT INTENDS TO CANCEL OR REFUSE TO
ISSUE OR RENEW A SURETY BOND SHALL SEND TO THE BONDHOLDER OR
APPLICANT WRITTEN NOTICE THAT STATES THE REASON FOR THE PROPOSED
ACTION.

(E) COMPLAINT; HEARING.

(1) A PERSON AGGRIEVED UNDER THIS SECTION SHALL NOTIFY THE
COMMISSIONER IN WRITING WITHIN 30 DAYS AFTER THE OCCURRENCE GIVING RISE
TO THE COMPLAINT AND SHALL STATE THE FACTS GIVING RISE TO THE COMPLAINT.

(2) ON RECEIPT OF A COMPLAINT, THE COMMISSIONER SHALL
FORWARD A COPY OF THE COMPLAINT TO THE SURETY INSURER.

(3) IF THE COMMISSIONER FINDS THAT THE COMPLAINT IS WITHOUT
MERIT, THE COMMISSIONER SHALL DISMISS THE COMPLAINT WITHOUT A HEARING
AND SHALL NOTIFY. THE SURETY INSURER AND COMPLAINANT PROMPTLY IN
WRITING.

(4) IF THE COMPLAINT IS NOT DISMISSED WITHOUT A HEARING, THE
COMMISSIONER SHALL:

(I) HOLD A HEARING ON THE COMPLAINT WITHIN 30 DAYS AFTER
RECEIPT OF THE COMPLAINT; AND

(II) GIVE WRITTEN NOTICE OF THE TIME AND PLACE OF THE
HEARING TO ALL PARTIES AT LEAST 10 DAYS BEFORE THE HEARING.

(5) AT A HEARING TO DETERMINE WHETHER THIS SECTION HAS BEEN
VIOLATED, THE BURDEN OF PERSUASION IS ON THE SURETY INSURER TO SHOW
THAT THE CANCELLATION OR REFUSAL TO UNDERWRITE OR RENEW IS NOT BASED
WHOLLY OR PARTLY ON RACE, COLOR, CREED, SEX, OR PHYSICAL HANDICAP OR
DISABILITY OF AN APPLICANT OR PRINCIPAL OR FOR ANY UNFAIRLY
DISCRIMINATORY REASON.

(6) IF, AFTER THE HEARING, THE COMMISSIONER FINDS THAT THE
SURETY INSURER HAS VIOLATED THIS SECTION, THE COMMISSIONER MAY ISSUE AN
APPROPRIATE ORDER THAT:

(I) STATES THE MANNER IN WHICH THE SURETY INSURER HAS
VIOLATED THIS SECTION;

(II) PROVIDES RELIEF UNDER SUBSECTION (G) OR (H) OF THIS

SECTION; AND

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