AN ACT RELATING TO INSURANCE -- PRODUCER LICENSING ACT

HB 7111 clarifies that any change to an insurance producer's compensation is considered a contract modification under Rhode Island's Producer Licensing Act. It requires insurance companies to provide 180 days' written notice before modifying such contracts (including compensation changes) for producers working with multiple insurers. The bill also mandates 14 months' written notice before canceling a producer's contract or allowing their license to expire, with continued policy renewals at prior rates during that period. This applies to producers not excluded under specific circumstances (e.g., license revocation, conviction for dishonest acts, or being an employee). The law takes effect upon passage.