Cancellation or restriction of agent’s authority based solely on submission of claims prohibited.
1. An insurer shall not, without the written consent of the agent, cancel a written agreement with an agent or reduce or restrict the agent’s authority to transact property or casualty insurance based solely on the loss ratio experience on insurance transacted by that agent, if the agent was required to submit the applications for that insurance for underwriting approval, all material information on those applications was fully completed and the agent did not omit or alter any information provided by the applicants for that insurance.
2. As used in this section, “loss ratio experience” means the amount of money received by the insurer in payment of premiums divided by the amount of money expended by the insurer in payment of claims for a specified period.
Last modified: February 27, 2006