2002 Minnesota Statutes

     60A.172 Insurance agency contracts; cancellation. 

    (a) An insurer may not cancel a written agreement with an 
 agent or reduce or restrict an agent's underwriting authority 
 with respect to property or casualty insurance, based solely on 
 the loss ratio experience on that agent's book of business, if:  
 the insurer required the agent to submit the application for 
 underwriting approval, all material information on the 
 application was fully completed, and the agent has not omitted 
 or altered any information provided by the applicant. 

    (b) For purposes of this section, "loss ratio experience" 
 means the ratio of claims paid divided by the premiums paid. 

    (c) This section applies only to agents who write 80 
 percent or more of their gross annual insurance business for one 
 company or any or all of its subsidiaries, and are not in the 
 direct employ of the company. 

    HIST: 1987 c 288 s 1; 1989 c 170 s 1; 1992 c 379 s 1