Section 375.035

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 375

Effective - 01 Jan 2003, 2 histories, see footnote   

  375.035.  Renewal after termination of producer's contract. — 1.  Any insurer in this state shall, upon termination or cancellation of an independent insurance producer's contract, permit the renewal of all contracts of insurance written by the independent insurance producer for a period of one year from the date of termination, as determined by the underwriting requirements of the insurer.  If any insured fails to meet the current underwriting requirements of the insurer, the insurer shall give the terminated independent insurance producer and the insured thirty days' notice of its intention not to renew the contract of insurance.

  2.  Any insurer renewing contracts of insurance in accordance with this section shall pay commissions for the renewals to the terminated or cancelled independent insurance producer in the same amount and manner as paid to the independent insurance producer under the terminated or cancelled contract.

  3.  When the insurer renews a contract of insurance pursuant to this section, the renewal shall be for a time period equal to the greater of one year or one additional term of the term specified in the original contract.

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(L. 1979 H.B. 506 § 3, A.L. 2001 S.B. 193)

Effective 1-01-03