Section 26-A208. DENIAL OF SURETY BONDS

 

208.1Any surety company doing business in the District of Columbia which shall deny an applicant a bid bond, performance bond, or payment bond for any construction contract shall reasonably explain in writing the reason or reasons for the denial and make recommendations which would aid the contractor to overcome the deficiency.

 

208.2There shall be no liability on the part of, and no cause of action of any nature shall arise against, any officer or employee of the District of Columbia, any surety, its authorized representative, its agents, its employees, or any firm, person, or corporation who in good faith does any of the following:

 

(a)Furnishes to the applicant for a bond specified in §208.1, information required in §208.1 of this section;

 

(b)Makes any statement in any communication, oral or written, specifying the reasons for denial of bond;

 

(c)Provides any information pertaining thereto; or

 

(d)Makes or submits evidence at any proceeding which may arise due to the provisions of this section.

 

208.3No applicant for any bond specified in §208.1 of this section shall be required, as a condition precedent to obtaining that bond, to disclose either in writing or orally, whether he or she has ever been rejected for such a bond or had such a bond cancelled; Provided, that an applicant may be required to disclose at the time of application any information that the surety company may need to make a reasonable judgment as to the applicant's qualifications for being bonded.

 

208.4Upon request of the applicant, the surety company shall within five (5) days after a denial furnish a copy of the written statement required in §208.1 to the Department of Consumer and Regulatory Affairs; Provided, that at the time of denial the applicant is advised of his or her right to make that request.

 

208.5Any surety company agent, broker, or salaried surety company employee who violates any provision of this section shall be imprisoned for not more than ten (10) days or fined not more than three hundred dollars ($300), or both, for each offense.