§1570. Limitation on termination of independent insurance producers

            A.(1) For the purposes of this Section, "captive insurance producer" means:

            (a) Any licensed insurance producer whose agency contract with an insurance company requires the insurance producer to act exclusively as an agent only for that insurance company or group of insurance companies under common ownership.

            (b) A licensed insurance producer whose contract with an insurance company prohibits the producer from selling competitors' products that are the same or similar to products sold by the insurer, but allows the producer to sell other products that do not directly compete with products sold by the insurer.

            (2) For purposes of this Section, "non-captive insurance producer" means any licensed insurance producer whose agency contract with an insurance company establishes the insurance producer as an independent contractor with the ability to represent more than one insurance company.

            B.(1) No admitted insurance company which is authorized to do business in this state shall terminate the appointment or the agency contract of a non-captive insurance producer without the mutual agreement of the parties in writing at the time of the termination of the agency agreement or without providing at least one hundred eighty days' advance written notice, except when the termination is for one of the following reasons which shall constitute "cause" for which an insurer may terminate a producer's appointment without providing such notice:

            (a) Loss of license.

            (b) Cause as set forth in R.S. 22:1554.

            (c) Nonpayment of insurance company premiums due and not in dispute by the producer.

            (d) Withdrawal of the insurance company from this state.

            (e) Violation of any state or federal law or regulation, or violation of any provision of the insurer's contract with the producer that would potentially cause the insurer to be in violation of such laws or regulations.

            (f) Commission of any dishonest or fraudulent act.

            (g) Gross or willful misconduct or negligence by the producer.

            (h) Submission of any document bearing a false or unauthorized signature or containing falsified information.

            (i) Failure to maintain the agent's professional liability coverage required in the agency contract and as required in R.S. 22:1570.1.

            (j) Change in the ownership of the insurance agency.

            (2) For purposes of this Section, a reasonable belief by the insurer that any such action has occurred is sufficient to be considered as cause as defined in this Subsection.

            C.(1)(a) Any admitted insurance company which is authorized to do business in this state shall, upon issuing the written notice required in Subsection B of this Section of the termination or cancellation of a non-captive insurance producer's contract, permit the renewal of all contracts of insurance written by the non-captive insurance producer until the producer's contract is terminated, subject to the normal underwriting requirements of the insurer.

            (b) If the insured fails to meet the current underwriting requirements of the insurer, the insurer shall provide the policyholder with the statutory notice of nonrenewal.

            (2) Any insurer renewing contracts of insurance in accordance with this Section shall pay commissions for the renewals to the terminated or cancelled non-captive insurance producer in the same amount and manner as previously paid to the non-captive insurance producer under the terminated or cancelled contract.

            D. The provisions of this Section shall not apply to:

            (1) A captive insurance producer.

            (2) Insurance companies whose agency contract contains a written provision expressly reserving to the insurer all right, title, and interest to the ownership or use of business written by the insurance producer.

            (3) Nonadmitted, excess, or surplus lines insurance policies.

            (4) Individually rated excess insurance policies.

            (5) Non-captive producers writing life, annuity, and health insurance policies.

            Acts 2016, No. 142, §1; Acts 2017, No. 380, §1.