as introduced - 89th Legislature (2015 - 2016) Posted on 03/27/2015 09:22am
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:
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
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