HF 1493

Introduction - 89th Legislature (2015 - 2016)

Posted on 03/05/2015 02:10 p.m.

A bill for an act
relating to insurance; prohibiting the enforcement of certain restrictive covenants
against involuntarily terminated agents; proposing coding for new law in
Minnesota Statutes, chapter 60A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [60A.181] INVOLUNTARY TERMINATION OF AGENT;
ENFORCEABILITY OF CERTAIN RESTRICTIVE COVENANTS.
new text end

new text begin A covenant or agreement entered into by an insurer and an agent is void and
unenforceable if:
new text end

new text begin (1) the agent was involuntarily terminated by the insurer; and
new text end

new text begin (2) the covenant or agreement prohibits one or both of the following activities:
new text end

new text begin (i) working in a specific geographic area for a specific period of time after the
cancellation or termination of the agency contract; or
new text end

new text begin (ii) soliciting employees of the insurer or soliciting or transacting business with
customers of the insurer.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies to a covenant or agreement in effect on, or entered into on
or after, that date.
new text end