AN ACT RELATING TO INSURANCE -- PRODUCER LICENSING ACT (Clarifies what a contract modification is, namely any change in producer compensation.)

S2199

2026 -- S 2199
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LC004451
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO INSURANCE -- PRODUCER LICENSING ACT

Introduced By:
Senators McKenney, Tikoian, Burke, Britto, and Urso

Date Introduced:
January 23, 2026

Referred To:
Senate Commerce
It is enacted by the General Assembly as follows:
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SECTION 1. Section 27-2.4-20.1 of the General Laws in Chapter 27-2.4 entitled "Producer
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Licensing Act" is hereby amended to read as follows:
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27-2.4-20.1. Revocation or modification of property and casualty insurance
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producer’s contract — Procedures.
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(a) No property and casualty insurance company shall cancel the authority of an insurance
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producer, having a contract with and placing such insurance with more than one property and
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casualty insurance company, unless the company gives written notice of its intent to cancel that
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insurance producer at least fourteen (14) months before the proposed effective date of any
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cancellation. In such case, no company shall allow the license of that insurance producer to expire
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unless the company gives written notice of its intent to do so at least fourteen (14) months before
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the proposed effective date of expiration because of cancellation. In addition, no company shall
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modify a contract with an insurance producer, unless the company gives written notice of its intent
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to modify the contract of that insurance producer at least one hundred eighty (180) days before the
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proposed effective date of the modification.
Any change in producer compensation shall be
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considered a contract modification.
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(b) When a property and casualty insurance company cancels the authority of an insurance
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producer having a contract with and placing such insurance with more than one property and
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casualty insurance company, under the provisions of this section, the company shall continue to
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renew the expiring policies of the insurance producer who has received notification of cancellation

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that meets its underwriting guidelines for a period of fourteen (14) months of the issuance of the
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notice at a rate of compensation to that insurance producer equal to that provided in the expiring
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contract.
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(c) The provisions of subsections (a) and (b) do not apply to a property and casualty
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insurance producer:
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(1) Convicted of a dishonest act related to his or her occupation as an insurance agent; or
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(2) Whose license to engage as an insurance producer was revoked; or
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(3) Whose company surrendered its license to do business in the state; or
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(4) Who is an employee of the insurance company.
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SECTION 2. This act shall take effect upon passage.
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LC004451
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO INSURANCE -- PRODUCER LICENSING ACT
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This act would declare that any change in producer compensation would be a contract
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modification.
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This act would take effect upon passage.
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LC004451
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