as introduced - 90th Legislature (2017 - 2018) Posted on 01/26/2017 05:00pm
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:
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A covenant or agreement entered into by an insurer and an agent is void and
unenforceable if:
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(1) the agent was involuntarily terminated by the insurer; and
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(2) the covenant or agreement prohibits one or both of the following activities:
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(i) working in a specific geographic area for a specific period of time after the cancellation
or termination of the agency contract; or
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(ii) soliciting employees of the insurer or soliciting or transacting business with customers
of the insurer.
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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.
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