DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 663 Reengrossed 2016 Regular Session Thibaut
Abstract: Requires an insurance company to provide one hundred eighty days notice to a non-
captive insurance producer prior to terminating the insurer's appointment.
Present law allows an insurance company to terminate the appointment of an insurance producer.
Proposed law retains present law, but requires the insurance company to provide the producer with
180 days notice prior to the termination of the appointment. Further provides that the 180 days
notice does not apply to captive producers, surplus lines, non-captive producers writing life and
annuity insurance policies, and certain contractual relationships.
Proposed law allows an insurer to terminate the non-captive producer's appointment without notice
under certain conditions for cause.
Proposed law requires an insurer who has terminated a non-captive producer's appointment to renew
all contracts of insurance written by the producer for 180 days from the notice of termination.
Further requires the insurer to pay the producer commissions for the renewals.
(Adds R.S. 22:1569)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Insurance to the original bill:
1. Clarify that proposed law does not apply to captive producers.
2. Add additional reasons allowing termination for cause without the 180 day notice.
3. Add exemptions from the application of proposed law to individually rated excess
insurance policies and non-captive producers writing life and annuity insurance policies.
4. Make technical changes.
The House Floor Amendments to the engrossed bill:
1. Allow both insurer and agent to change the notice period by mutual agreement. 2. Add additional reasons allowing termination for cause without the 180 day notice.
3. Add exemption from the application of proposed law to non-captive producers writing
health insurance policies.