Business Transacted with Producer Controlled Property Act

Business Transacted with Producer Controlled Property Act

Also called the Business Transacted with Producer Controlled Property/Casualty Insurer Act. Model legislation to regulate insurance brokers in U.S. states. The act allows state insurance commissioners (or their equivalent) to hold brokers liable for civil penalties if their conduct results in the bankruptcy of an insurance company regulated by that state. The commissioners may also require the broker to pay into the guarantee fund. It was written by the National Association of Insurance Commissioners so states would have roughly the same guidelines.

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