The bill amends Section 27-2.4-20.1 of the General Laws under the "Producer Licensing Act" to establish new procedures for the revocation or modification of property and casualty insurance producers' contracts. It declares that any change in producer compensation shall be considered a contract modification. The act requires that insurance companies provide written notice of their intent to modify producer compensation at least 180 days prior to the proposed effective date of the modification.

Additionally, if a property and casualty insurance company cancels an insurance producer's authority, it is required to continue renewing the producer's expiring policies for 14 months following the cancellation notice, provided these policies meet the company's underwriting guidelines. However, these provisions do not apply to producers who have been convicted of dishonest acts, had their licenses revoked, or are employees of the insurance company. The act will take effect upon passage.

Statutes affected:
315: 27-2.4-20.1