AN ACT RELATING TO INSURANCE -- PRODUCER LICENSING ACT .

Longer notice and pay for insurance producers, with exceptions

The law gives property and casualty insurance producers longer notice and renewal pay protections. Insurers must give at least 14 months’ written notice before canceling an independent producer’s authority or letting the license expire because of that cancellation, when the producer places business with more than one insurer. Insurers must give at least 180 days’ written notice before changing a producer’s contract, including any change to pay. After a cancellation notice, the insurer must renew expiring policies for 14 months and pay the same commission rate, if the policies meet underwriting guidelines and the producer places business with more than one insurer. These protections do not apply if the producer was convicted of a dishonest act, had the producer license revoked, the insurer surrendered its state license, or the producer is an employee of the insurer. The act takes effect upon passage.