1.1 	A bill for an act
1.2 	relating to insurance; prohibiting the enforcement of certain restrictive covenants 
1.3 	against involuntarily terminated agents; proposing coding for new law in 
1.4 	Minnesota Statutes, chapter 60A.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [60A.181] INVOLUNTARY TERMINATION OF AGENT; 
1.7 	ENFORCEABILITY OF CERTAIN RESTRICTIVE COVENANTS.
1.8 	A covenant or agreement entered into by an insurer and an agent is void and 
1.9 	unenforceable if:
1.10 	(1) the agent was involuntarily terminated by the insurer; and
1.11 	(2) the covenant or agreement prohibits one or both of the following activities:
1.12 	(i) working in a specific geographic area for a specific period of time after the 
1.13 	cancellation or termination of the agency contract; or
1.14 	(ii) soliciting employees of the insurer or soliciting or transacting business with 
1.15 	customers of the insurer.

1.16 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
1.17 	final enactment and applies to a covenant or agreement in effect on, or entered into on 
1.18 	or after, that date.