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 mandates that insurance companies must provide written notice of intent to cancel an insurance producer's authority at least fourteen months prior to the cancellation date. Additionally, any modifications to the contract, including changes in producer compensation, require a written notice at least 180 days before the effective date of the modification. The bill also stipulates that companies must continue to renew expiring policies for a period of fourteen months after notification of cancellation, maintaining the same compensation rate as in the expiring contract.

The bill includes specific exceptions where these provisions do not apply, such as in cases of dishonesty, revocation of the producer's license, surrender of the company's license, or if the producer is an employee of the insurance company. The new legal language inserted into the bill clarifies that any change in producer compensation is considered a contract modification, while no deletions from the current law are noted. The act is set to take effect upon passage.