(215 ILCS 5/141.02) (from Ch. 73, par. 753.02)
Sec. 141.02.
(1) Definitions.
For purposes of this Section an independent
insurance agent is any licensed agent representing an insurance company
on an independent contractor basis and not as an employee. This term shall
include only those agents not obligated by contract to place insurance accounts
with any insurance company or group of companies. This Section shall only
apply to contracts which have been effective for more than one year between
an independent insurance agent and any company authorized in this State
for the purpose of transacting the kind or kinds
of business enumerated in Class 2 or Class 3 of Section 4 of this Code,
except accident and health insurance.
(2) Rehabilitation. In an effort to avoid termination, the company and
agent may endeavor to reach mutual agreement on a written plan for rehabilitation
for a period of time agreed by them. Any written plan agreed upon shall
identify the problem areas and specify what the agent must do in an effort
to avoid termination.
(3) Notice of Termination. Contracts between the independent insurance
agent and any company shall not be terminated by the company
except by signed mutual agreement at the time of written termination
notice or unless the company provides 180 days written notice to the
independent insurance agent prior to the effective date
of termination. The effective date of termination shall be 180 days from
the date of mailing of the termination notice. The company must maintain
proof of mailing of the termination notice on a recognized U.S. Post Office form.
(4) Renewals following termination. A. During the 180 days notice or
other mutually agreed time period
the independent insurance agent shall not write or bind any new business
on behalf of the terminating company without specific written approval.
B. The terminating company shall, following the date of
termination, renew all policies
written by the independent insurance agent for one policy term or for a period
of one year if the policy period is longer than one year unless:
(a) the policies do not meet the insurer's underwriting standards; or
(b) the independent insurance agent notifies the insurer in writing that
the policy has been placed with another insurer.
C. If a renewal policy does not meet the underwriting requirements, the terminating
insurer must give the independent insurance agent 60 days notice of its
intention not to renew.
D. The rate of commission and renewal terms shall
be in accordance with those in effect immediately prior to termination.
The commission must be paid only through the first renewal subsequent to
the effective date of the termination.
(5) Paragraphs (1) through (4) of this Section shall not apply to
terminations for abandonment, insolvency
of the terminating company, gross and willful misconduct, refusal, suspension,
revocation or termination of the agent's license by the Director of Insurance,
sale or material change of ownership of agency, fraud, material misrepresentation
or failure to pay such independent insurance agent's account less the
independent insurance agent's commission and any disputed items within 30 days after
written demand by the company.
(Source: P.A. 85-334.)
|