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 bill requires that insurance companies provide written notice of their intent to modify a producer's contract, including changes in 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 must continue to renew the producer's expiring policies for 14 months, provided they meet underwriting guidelines, and at the same compensation rate as the expiring contract. 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:
2199: 27-2.4-20.1