215 ILCS 5/141.02
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article IX - Provisions Applicable To All Companies

 (from Ch. 73, par. 753.02)Sec. 141.02.     (1) Definitions.     For purposes of this Section an independent  insurance agent is any licensed agent representing an insurance company  on an independent contractor basis and not as an employee.  This term shall  include only those agents not obligated by contract to place insurance accounts  with any insurance company or group of companies.  This Section shall only  apply to contracts which have been effective for more than one year between  an independent insurance agent and any company authorized in this State  for the purpose of transacting the kind or kinds  of business enumerated in Class 2 or Class 3 of Section 4 of this Code,  except accident and health insurance.(2) Rehabilitation.  In an effort to avoid termination, the company and  agent may endeavor to reach mutual agreement on a written plan for rehabilitation  for a period of time agreed by them.  Any written plan agreed upon shall  identify the problem areas and specify what the agent must do in an effort  to avoid termination.(3) Notice of Termination.  Contracts between the independent insurance  agent and any company shall not be terminated by the company  except by signed mutual agreement at the time of written termination  notice or unless the company provides 180 days written notice to the  independent insurance agent prior to the effective date  of termination.  The effective date of termination shall be 180 days from  the date of mailing of the termination notice.  The company must maintain  proof of mailing of the termination  notice on a recognized U.S. Post Office form.(4) Renewals following termination. A.  During the 180 days notice or  other mutually agreed time period  the independent insurance agent shall not write or bind any new business  on behalf of the terminating company without specific written approval.B. The terminating company shall, following the date of  termination, renew all policies  written by the independent insurance agent for one policy term or for a period  of one year if the policy period is longer than one year unless:(a) the policies do not meet the insurer's underwriting standards; or(b) the independent insurance agent notifies the insurer in writing that  the policy has been placed with another insurer.C. If a renewal policy does not meet the underwriting requirements, the terminating  insurer must give the independent insurance agent 60 days notice of its  intention not to renew.D. The rate of commission and renewal terms shall  be in accordance with those in effect immediately prior to termination.   The commission must be paid only through the first renewal subsequent to  the effective date of the termination.(5) Paragraphs (1) through (4) of this Section shall not apply to  terminations for abandonment, insolvency  of the terminating company, gross and willful misconduct, refusal, suspension,  revocation or termination of the agent's license by the Director of Insurance,  sale or material change of ownership of agency, fraud, material misrepresentation  or failure to pay such independent insurance agent's account less the  independent insurance agent's commission and any disputed items within 30 days after  written demand by the company.    (Source: P.A. 85-334.)