40-2,107. Minimum notice requirements for cancellation of insurance agency contract by insurance company.
40-2,107
40-2,107. Minimum notice requirements for cancellation of insuranceagency contract by insurance company.(a) Insurance companies may contract with independent insurance agents asto binding authority, policy services, adjusting services, commissions andother subjects of interest between agent and company. Such contracts whichhave been effective for more than one year shall not be terminated or amendedby the company except by mutual agreement or unless180 days' prior notice has been tendered to the agent, except that this shall notapply to terminations for fraud, material misrepresentation or failure topay such agent's account less the agent's commission and any disputed itemswithin 10 days after written demand by the company. During such noticeperiod all contractual conditions existing prior to such notice shall continue.
(b) Any independent insurance agent whose contract with an insurance companyhas been terminated under the provisions of subsection (a) shall have untilthe policy renewal date, but not more than one year, to place the businesswritten under such terminated contract with another insurance company.
History: L. 1977, ch. 163, § 2; L. 1982, ch. 199, § 2;L. 1985, ch. 161, § 1; July 1.