PARRIS N. GLENDENING, Governor

Ch. 35

(D) DISCRIMINATION IN CANCELLATION, AMENDMENT, OR REFUSAL TO
ACCEPT INSURANCE BUSINESS.

NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, AN INSURER
MAY NOT CANCEL OR AMEND A WRITTEN AGREEMENT WITH AN AGENT OR BROKER
OR REFUSE TO ACCEPT BUSINESS FROM THE AGENT OR BROKER IF THE
CANCELLATION, AMENDMENT, OR REFUSAL IS ARBITRARY, CAPRICIOUS, UNFAIR,
OR DISCRIMINATORY OR IS BASED WHOLLY OR PARTLY ON THE RACE, CREED,
COLOR, SEX, RELIGION, NATIONAL ORIGIN, OR PLACE OF RESIDENCY OF THE
AGENT OR BROKER OR THE APPLICANTS OR POLICYHOLDERS OF THE AGENT OR
BROKER.

(E) REASONS FOR REJECTION.

IF AN INSURER OR AGENT THAT ACCEPTS BROKERAGE BUSINESS REJECTS THE
BUSINESS OF A BROKER, THE INSURER OR AGENT SHALL GIVE TO THE
COMMISSIONER AND THE BROKER, ON REQUEST OF THE BROKER, THE REASONS
FOR THE REJECTION IN WRITING.

(F) PROPERTY OR CASUALTY INSURANCE.

AN INSURER MAY NOT CANCEL OR AMEND A WRITTEN AGREEMENT WITH AN
AGENT OR BROKER ABOUT PROPERTY INSURANCE OR CASUALTY INSURANCE
BECAUSE OF AN ADVERSE LOSS RATIO EXPERIENCE ON THE AGENT'S OR BROKER'S
BOOK OF BUSINESS IF:

(1) THE INSURER REQUIRED THE AGENT OR BROKER TO SUBMIT THE
APPLICATION FOR UNDERWRITING APPROVAL, ALL MATERIAL INFORMATION ON
THE APPLICATION WAS COMPLETED, AND THE AGENT OR BROKER DID NOT OMIT
OR ALTER ANY INFORMATION PROVIDED BY THE APPLICANT; OR

(2) THE INSURER ACCEPTED, WITHOUT PRIOR APPROVAL, POLICIES
ISSUED BY THE AGENT OR BROKER, IF ALL MATERIAL INFORMATION ON THE
APPLICATION FOR THE POLICY OR ON THE INSURER'S COPY OF ANY POLICY ISSUED
BY THE AGENT OR BROKER WAS COMPLETED AND THE AGENT OR BROKER DID NOT
OMIT OR ALTER ANY INFORMATION PROVIDED BY THE APPLICANT.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 234B.

In subsection (b)(1)(i) of this section, the defined term "wet marine and
transportation insurance" is substituted for the former reference to "wet
marine ... insurance" to conform to terminology used throughout this article.

In subsection (d) of this section, the word "refusal" is added in light of the
reference to "refus[ing] to accept business" in former Art. 48A, § 234B(d).

In subsection (f)(1) and (2) of this section, the word "fully", which formerly
modified "completed", is deleted as surplusage.

Defined terms: "Agent" § 1-101
"Broker" § 1-101

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