AN ACT RELATING TO INSURANCE -- PRODUCER LICENSING ACT

HB 5160 clarifies that any change in an insurance producer’s pay (compensation) is considered a "contract modification" under Rhode Island’s insurance licensing law. It requires insurers to provide 180 days’ written notice before modifying such contracts, affecting producers who work with multiple insurers. The bill also mandates 14 months’ notice for canceling a producer’s contract, with continued policy renewal at prior rates during that period. Exceptions apply for producers convicted of dishonest acts, revoked licenses, or employees of the insurer. This law directly impacts insurance agents/brokers and their business relationships with insurers.