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26.1-26.1 Independent Insurance Agent Contract Termination

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CHAPTER 26.1-26.1INDEPENDENT INSURANCE AGENT CONTRACT TERMINATION26.1-26.1-01. Definitions. For the purposes of this chapter, an &quot;independent insuranceproducer&quot; means any licensed property and casualty insurance producer representing a property<br>and casualty insurance company on an independent contractor basis and not as an employee.<br>This term includes only those producers not obligated by contract to place property and casualty<br>insurance accounts with any insurance company or group of companies.This chapter onlyapplies to contracts which have been in effect for more than one year between an independent<br>insurance producer and a property and casualty insurance company.26.1-26.1-02. Producer and company rehabilitation. In an effort to avoid termination,a property and casualty insurance company and an independent insurance producer may<br>endeavor to reach mutual agreement on a written plan for rehabilitation for a period of time<br>agreed upon by them. Any written plan agreed upon must identify the problem areas and specify<br>what the insurance producer must do in order to avoid termination.26.1-26.1-03.Notice of termination.Contracts between an independent insuranceproducer and any property and casualty insurance company may not be terminated or amended<br>by the company except by mutual agreement or unless ninety-day prior written notice has been<br>provided to the independent insurance producer. The rate of commission and renewal terms<br>must be in accordance with those in effect immediately prior to the termination.26.1-26.1-04.Termination of insurance producers for cause - Exceptions.Thischapter does not apply to terminations for abandonment, insolvency of the terminating company,<br>gross and willful misconduct, refusal, suspension, revocation, or termination of the insurance<br>producer's license by the insurance commissioner, sale or material change or ownership of<br>agency, fraud, material misrepresentation or failure to pay an independent insurance producer's<br>account less the independent insurance producer's commission and any disputed items within<br>thirty days after written demand by the company.Page No. 1Document Outlinechapter 26.1-26.1 independent insurance agent contract termination