AN ACT RELATING TO INSURANCE -- PRODUCER LICENSING ACT

SB 2199 clarifies that any change to an insurance producer's compensation is considered a "contract modification" under Rhode Island's Producer Licensing Act. This requires insurance companies to provide 180 days' written notice before altering payment terms for producers who place business with multiple insurers. The bill directly affects independent insurance producers working with multiple companies, ensuring they receive advance notice before compensation changes take effect. It also mandates continued policy renewals at prior rates during a 14-month transition period if a company cancels a producer's contract. The law takes effect upon passage.