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| 5 | 5 | | 2025 -- S 0315 |
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| 6 | 6 | | ======== |
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| 7 | 7 | | LC000887 |
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| 8 | 8 | | ======== |
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| 9 | 9 | | S T A T E O F R H O D E I S L A N D |
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| 10 | 10 | | IN GENERAL ASSEMBLY |
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| 11 | 11 | | JANUARY SESSION, A.D. 2025 |
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| 12 | 12 | | ____________ |
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| 13 | 13 | | |
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| 14 | 14 | | A N A C T |
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| 15 | 15 | | RELATING TO INSURANCE -- PRODUCER LICENSING ACT |
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| 16 | 16 | | Introduced By: Senators McKenney, Tikoian, and Patalano |
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| 17 | 17 | | Date Introduced: February 21, 2025 |
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| 18 | 18 | | Referred To: Senate Commerce |
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| 19 | 19 | | |
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| 20 | 20 | | |
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| 21 | 21 | | It is enacted by the General Assembly as follows: |
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| 22 | 22 | | SECTION 1. Section 27-2.4-20.1 of the General Laws in Chapter 27-2.4 entitled "Producer 1 |
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| 23 | 23 | | Licensing Act" is hereby amended to read as follows: 2 |
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| 24 | 24 | | 27-2.4-20.1. Revocation or modification of property and casualty insurance 3 |
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| 25 | 25 | | producer’s contract — Procedures. 4 |
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| 26 | 26 | | (a) No property and casualty insurance company shall cancel the authority of an insurance 5 |
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| 27 | 27 | | producer, having a contract with and placing such insurance with more than one property and 6 |
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| 28 | 28 | | casualty insurance company, unless the company gives written notice of its intent to cancel that 7 |
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| 29 | 29 | | insurance producer at least fourteen (14) months before the proposed effective date of any 8 |
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| 30 | 30 | | cancellation. In such case, no company shall allow the license of that insurance producer to expire 9 |
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| 31 | 31 | | unless the company gives written notice of its intent to do so at least fourteen (14) months before 10 |
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| 32 | 32 | | the proposed effective date of expiration because of cancellation. In addition, no company shall 11 |
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| 33 | 33 | | modify a contract with an insurance producer, unless the company gives written notice of its intent 12 |
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| 34 | 34 | | to modify the contract of that insurance producer at least one hundred eighty (180) days before the 13 |
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| 35 | 35 | | proposed effective date of the modification. Any change in producer compensation shall be 14 |
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| 36 | 36 | | considered a contract modification. 15 |
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| 37 | 37 | | (b) When a property and casualty insurance company cancels the authority of an insurance 16 |
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| 38 | 38 | | producer having a contract with and places such insurance with more than one property and casualty 17 |
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| 39 | 39 | | insurance company, under the provisions of this section, the company shall continue to renew the 18 |
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| 40 | 40 | | expiring policies of the insurance producer who has received notification of cancellation that meets 19 |
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| 41 | 41 | | |
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| 42 | 42 | | |
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| 43 | 43 | | LC000887 - Page 2 of 3 |
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| 44 | 44 | | its underwriting guidelines for a period of fourteen (14) months of the issuance of the notice at a 1 |
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| 45 | 45 | | rate of compensation to that insurance producer equal to that provided in the expiring contract. 2 |
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| 46 | 46 | | (c) The provisions of subsections (a) and (b) do not apply to a property and casualty 3 |
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| 47 | 47 | | insurance producer: 4 |
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| 48 | 48 | | (1) Convicted of a dishonest act related to his or her occupation as an insurance agent; or 5 |
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| 49 | 49 | | (2) Whose license to engage as an insurance producer was revoked; or 6 |
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| 50 | 50 | | (3) Whose company surrendered its license to do business in the state; or 7 |
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| 51 | 51 | | (4) Who is an employee of the insurance company. 8 |
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| 52 | 52 | | SECTION 2. This act shall take effect upon passage. 9 |
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| 53 | 53 | | ======== |
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| 54 | 54 | | LC000887 |
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| 55 | 55 | | ======== |
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| 56 | 56 | | |
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| 57 | 57 | | |
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| 58 | 58 | | LC000887 - Page 3 of 3 |
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| 59 | 59 | | EXPLANATION |
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| 60 | 60 | | BY THE LEGISLATIVE COUNCIL |
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| 61 | 61 | | OF |
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| 62 | 62 | | A N A C T |
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| 63 | 63 | | RELATING TO INSURANCE -- PRODUCER LICENSING ACT |
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| 64 | 64 | | *** |
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| 65 | 65 | | This act would declare that any change in producer compensation would be a contract 1 |
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| 66 | 66 | | modification. 2 |
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| 67 | 67 | | This act would take effect upon passage. 3 |
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| 68 | 68 | | ======== |
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| 69 | 69 | | LC000887 |
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| 70 | 70 | | ======== |
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| 71 | 71 | | |
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