2025 -- S 0315
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LC000887
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S T A T E O F R H O D E I S L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2025
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A N A C T
RELATING TO INSURANCE -- PRODUCER LICENSING ACT
Introduced By: Senators McKenney, Tikoian, and Patalano
Date Introduced: February 21, 2025
Referred To: Senate Commerce
It is enacted by the General Assembly as follows:
SECTION 1. Section 27-2.4-20.1 of the General Laws in Chapter 27-2.4 entitled "Producer 1
Licensing Act" is hereby amended to read as follows: 2
27-2.4-20.1. Revocation or modification of property and casualty insurance 3
producer’s contract — Procedures. 4
(a) No property and casualty insurance company shall cancel the authority of an insurance 5
producer, having a contract with and placing such insurance with more than one property and 6
casualty insurance company, unless the company gives written notice of its intent to cancel that 7
insurance producer at least fourteen (14) months before the proposed effective date of any 8
cancellation. In such case, no company shall allow the license of that insurance producer to expire 9
unless the company gives written notice of its intent to do so at least fourteen (14) months before 10
the proposed effective date of expiration because of cancellation. In addition, no company shall 11
modify a contract with an insurance producer, unless the company gives written notice of its intent 12
to modify the contract of that insurance producer at least one hundred eighty (180) days before the 13
proposed effective date of the modification. Any change in producer compensation shall be 14
considered a contract modification. 15
(b) When a property and casualty insurance company cancels the authority of an insurance 16
producer having a contract with and places such insurance with more than one property and casualty 17
insurance company, under the provisions of this section, the company shall continue to renew the 18
expiring policies of the insurance producer who has received notification of cancellation that meets 19
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its underwriting guidelines for a period of fourteen (14) months of the issuance of the notice at a 1
rate of compensation to that insurance producer equal to that provided in the expiring contract. 2
(c) The provisions of subsections (a) and (b) do not apply to a property and casualty 3
insurance producer: 4
(1) Convicted of a dishonest act related to his or her occupation as an insurance agent; or 5
(2) Whose license to engage as an insurance producer was revoked; or 6
(3) Whose company surrendered its license to do business in the state; or 7
(4) Who is an employee of the insurance company. 8
SECTION 2. This act shall take effect upon passage. 9
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO INSURANCE -- PRODUCER LICENSING ACT
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This act would declare that any change in producer compensation would be a contract 1
modification. 2
This act would take effect upon passage. 3
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LC000887
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