H737 - Department of Insurance Omnibus Bill. (SL 2025-45)

Overview: Part VII of S.L. 2025-45 (House Bill 737) makes the following changes to the statutes governing the licensing of insurance producers, limited representatives, and adjusters:

• Adds a new definition for "exchange business," "exchange of business," and "proper exchange of business."
• Allows producers to exchange business if both producers are licensed in all lines of business, include their National Producers Numbers, give notice to insureds and customers, and have a good-faith belief that the exchange of business complies with requirements set out in law.
• Allows commissions to be assigned (i) to an agency principal for business placed by a duly licensed and appointed producer on behalf of that agency and (ii) in connection with the exchange of business.

This Part became effective July 1, 2025, and applies to contracts entered into or renewed on or after that date.