Section 402:15-c Termination of Insurance Agency Contracts.
I. Any insurance company authorized to transact fire or casualty business in this state shall, upon termination of an agent's appointment by said company, permit the renewal of all contracts of insurance written by such agent for a period of one year from the date of such termination, as determined by the individual underwriting requirements of said company; provided, however, that if any contract does not meet such underwriting requirements, the company shall give the agent 60 days' notice of its intention not to renew said contract.
II. No insurance agency contract entered into in this state by a licensed insurer with an insurance agent licensed under this chapter shall be terminated by the licensed insurer unless the licensed insurer upon terminating such contract shall give not less than 90 days' written notice in advance to the other party unless the contract shall be terminated by the licensed insurer for failure of the licensed insurance agent, after receiving a written demand, to pay over monies due to such insurer, provided during said 90-day period after any such notice, the licensed insurance agent shall not write or bind any new business on behalf of the licensed insurer without the specific written approval by such insurer of such business. This paragraph shall not apply to any contract with an agent for the sale of life insurance.
III. Any insurance company renewing contracts of insurance in accordance with this section shall pay commissions for such renewals to the terminated agent in the same amount as had been paid to him on similar policies during the 12 months immediately preceding the notice of termination.
IV. This section shall not apply to business owned by the insurer and not the agent; provided, that the insurer offers to continue such policies through another of its agents.
Source. 1975, 498:1. 2004, 29:1, eff. June 22, 2004.