Oregon Statutes - Chapter 744 - Insurance Producers; Life Settlement Providers, Brokers and Contracts; Adjusters; Consultants; Third Party Administrators; Reinsurance Intermediaries; Rental Company Limited Licenses - Section 744.081 - Termination of appointment.

(1) An insurer may terminate an agency appointment at any time as provided in this section. Termination shall be without prejudice to the contract rights, if any, of the insurance producer so terminated. The insurer shall give written notice of the termination and the date thereof to the insurance producer at least 90 days prior to the effective date of the termination. The notice must specify the reasons for the termination. The insurer shall deliver the notice either in person or by mail at the address last provided by the insurance producer to the insurer. The insurance producer shall not have a cause of action against the insurer as a result of any statement in the notice unless the statement is false and the insurer knew the statement was false when made.

(2) An insurer may terminate an agency appointment without giving the notice required by subsection (1) of this section on any of the grounds specified in this subsection. The following are grounds for termination under this subsection:

(a) The insurance producer’s insurance license is denied, restricted, revoked, suspended or canceled by any public authority;

(b) The insurance producer’s business is sold, transferred or merged and the insurer has not appointed the successor;

(c) The insurance producer is insolvent or fails to remit balances to the insurer in accordance with the agreement;

(d) The insurance producer commits fraud or engages in intentional misconduct;

(e) The insurer amends its certificate of authority in order to discontinue a class of insurance;

(f) The insurer ceases selling insurance in this state; or

(g) The insurer and insurance producer mutually agree to terminate the agency appointment.

(3) An insurance producer may terminate an agency appointment at any time, but the termination shall be without prejudice to the contract rights, if any, of the appointing insurer. The insurance producer shall give written notice of the termination and the date thereof to the director not later than the 30th day after the effective date of the termination, and to the insurer. The director may require reasonable proof from the insurance producer that the insurance producer has given such notice to the insurer. [Formerly 744.175; 2003 c.364 §20]

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Last modified: August 7, 2008