House Bill No. 5462
               House Bill No. 5462

               PUBLIC ACT NO. 98-72


AN  ACT  CONCERNING  CONTRACTS  AFFECTING HEIRS OR
ASSIGNS OF LICENSED INSURANCE AGENTS.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section  38a-711  of  the  general statutes is
repealed and the following is substituted in  lieu
thereof:
    No  insurance  company  or producer shall pay,
directly or indirectly, any  commission  or  other
valuable  consideration to any person, partnership
or corporation for services performed within  this
state as an insurance producer unless such person,
partnership or corporation holds a license to  act
as  an  insurance producer in this state, provided
the provisions of this section shall  not  prevent
the   payment   of   renewal   or  other  deferred
commissions to formerly licensed insurance agents,
brokers  or  producers  OR THE HEIRS OR ASSIGNS OF
SUCH AGENTS, BROKERS OR PRODUCERS, nor shall  this
section  apply  to  persons  acting  as  executive
officers or traveling  salaried  employees  of  an
insurance  company authorized to transact business
in  this  state.  Any   person,   partnership   or
corporation  which  violates any provision of this
section shall be fined not more than five  hundred
dollars.

Approved May 19, 1998