# Title 26.1 — Insurance

## Chapter 26.1-26.1 — Independent Insurance Agent Contract Termination

### § 26.1-26.1-01. Definitions.

For the purposes of this chapter, an "independent insurance producer" means any licensed
property and casualty insurance producer representing a property and casualty insurance
company on an independent contractor basis and not as an employee. This term includes only
those producers not obligated by contract to place property and casualty insurance accounts
with any insurance company or group of companies. This chapter only applies to contracts
which have been in effect for more than one year between an independent 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 endeavor to reach mutual agreement on a written plan for
rehabilitation for a period of time agreed upon by them. Any written plan agreed upon must
identify the problem areas and specify what the insurance producer must do in order to avoid
termination.
### § 26.1-26.1-03. Notice of termination.

Contracts between an independent insurance producer and any property and casualty
insurance company may not be terminated or amended by the company except by mutual
agreement or unless ninety-day prior written notice has been provided to the independent
insurance producer. The rate of commission and renewal terms 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.

This chapter does not apply to terminations for abandonment, insolvency of the terminating
company, gross and willful misconduct, refusal, suspension, revocation, or termination of the
insurance producer's license by the insurance commissioner, sale or material change or
ownership of agency, fraud, material misrepresentation or failure to pay an independent
insurance producer's account less the independent insurance producer's commission and any
disputed items within thirty days after written demand by the company.
