806 KAR 9:110.

Agent's rights after contract termination.

 

      RELATES TO: KRS

304.9-290

      STATUTORY AUTHORITY:

KRS 304.2-110

      NECESSITY, FUNCTION,

AND CONFORMITY: KRS 304.2-110 provides that the Executive Director of the

Office of Insurance may make reasonable rules and administrative regulations

necessary for or as an aid to the effectuation of any provision of the Kentucky

Insurance Code. This administrative regulation sets forth the rights of

property or a casualty agent who is an independent contractor after termination

of an agency contract.

 

      Section 1. No agency

contract with a property or casualty agent who is an independent contractor

agent compensated on a commission basis shall, except as provided in Section 2

of this administrative regulation, infringe upon the right of the agent, while

licensed, to service run-off business after termination of the agency contract;

nor shall it contain any provision which prevents the agent from being licensed

with another insurer in order to avoid policy lapses which would otherwise

occur after such termination.

 

      Section 2. Nothing

herein in intended to infringe upon a company's contract with an agent or

agency which provides that ownership of renewals and records, manuals,

documents, and right of renewals is the property of the company and is to be

returned to the company upon cancellation and/or termination of the contract.

(I-9.15; 1 Ky.R. 862; eff. 5-14-75; TAm eff. 8-9-2007.)