Contracts between an independent agent and a company cannot be terminated
until?
~~One year in effect
(COMPANY MUST PROVIDE 180 DAY WRITTEN NOTICE OF TERMINATION TO
THE INDEPENDENT AGENT)
General Cancellation Provisions
~~- Individual auto and property policies (fire and extended perils) - ...
2. Write rules and regulations
3. Approve insurance policy forms, rates and increases
4. Impose penalties
5. Issue insurance licenses and certificates of authority
Cease and desist orders (HEARINGS)
✓✓~~held 20-30 days from hearing notice
Cease and desist orders (PENALTIES)
✓✓~~$100 per day each violation continues
$5,000 max fine
Revocation or suspension of license or Certificate of authority
Any combination of both
Examination of records - INSURERS
, ✓✓~~Director can examine records of any domestic insurance company to determine
insurers financial condition
Domestic insurers MUST be examined at least once every 5 YEARS
Violators may request hearing within 14 DAYS OF RECEIVING EXAM REPORT
Director must issue a written order within 90 DAYS of hearing
MAX PENALTY FOR VIOLATING AN ORDER IS $2,000
Examination of records - PRODUCERS
✓✓~~Director may examine the records of any licensed producer, temp producer, limited
lines producer to make sure they are following rules and regulations
Violators may request hearing within 14 days of receiving exam report
Director must issue a written order within 90 DAYS of hearing
MAX PENALTY FOR VIOLATING ORDER IS $20,000
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