H 7111

2026 -- H 7111
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LC004171
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  STATE  OF      RHODE  ISLAND
  IN GENERAL ASSEMBLY
  JANUARY SESSION, A.D. 2026
  ____________
  AN ACT
  RELATING TO INSURANCE -- PRODUCER LICENSING ACT
  Introduced By: Representatives Solomon, and Casey
  Date Introduced: January 15, 2026
  Referred To: House Corporations
It is enacted by the General Assembly as follows:
1SECTION 1. Section 27-2.4-20.1 of the General Laws in Chapter 27-2.4 entitled "Producer
2 Licensing Act" is hereby amended to read as follows:
327-2.4-20.1. Revocation or modification of property and casualty insurance
4 producer’s contract — Procedures.
5(a) No property and casualty insurance company shall cancel the authority of an insurance
6 producer, having a contract with and placing such insurance with more than one property and
7 casualty insurance company, unless the company gives written notice of its intent to cancel that
8 insurance producer at least fourteen (14) months before the proposed effective date of any
9 cancellation. In such case, no company shall allow the license of that insurance producer to expire
10 unless the company gives written notice of its intent to do so at least fourteen (14) months before
11 the proposed effective date of expiration because of cancellation. In addition, no company shall
12 modify a contract with an insurance producer, unless the company gives written notice of its intent
13 to modify the contract of that insurance producer at least one hundred eighty (180) days before the
14 proposed effective date of the modification. Any change in producer compensation shall be
15 considered a contract modification.
16(b) When a property and casualty insurance company cancels the authority of an insurance
17 producer having a contract with and placing such insurance with more than one property and
18 casualty insurance company, under the provisions of this section, the company shall continue to
19 renew the expiring policies of the insurance producer who has received notification of cancellation
1 that meets its underwriting guidelines for a period of fourteen (14) months of the issuance of the
2 notice at a rate of compensation to that insurance producer equal to that provided in the expiring
3 contract.
4(c) The provisions of subsections (a) and (b) do not apply to a property and casualty
5 insurance producer:
6(1) Convicted of a dishonest act related to his or her occupation as an insurance agent; or
7(2) Whose license to engage as an insurance producer was revoked; or
8(3) Whose company surrendered its license to do business in the state; or
9(4) Who is an employee of the insurance company.
10SECTION 2. This act shall take effect upon passage.
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LC004171
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  EXPLANATION
  BY THE LEGISLATIVE COUNCIL
  OF
  AN ACT
  RELATING TO INSURANCE -- PRODUCER LICENSING ACT
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1This act would declare that any change in producer compensation would be a contract
2 modification.
3This act would take effect upon passage.
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    LC004171
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