Bill > H5160

This bill clarifies the definition of a contract modification for property and casualty insurance producers by explicitly stating that any change in producer compensation constitutes a contract modification. Currently, the law requires insurance companies to provide 180 days written notice before modifying a contract with an insurance producer. The bill adds language specifying that any alteration in how a producer is compensated will be considered a contract modification, thus triggering the existing notification requirement. This means insurance companies must inform producers at least 180 days in advance if they plan to change the producer's commission rate, payment structure, or other compensation-related terms. The bill applies specifically to insurance producers who have contracts with multiple property and casualty insurance companies, with some exceptions such as producers who have been convicted of dishonest acts or have had their licenses revoked. The legislation is designed to provide greater transparency and protection for insurance producers by ensuring they receive advance notice of any changes to their compensation arrangements. The bill will take effect immediately upon its passage.

Business and Industry

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