Connecticut: NAMIC Opposes Bill to Prohibit Non-Compete, Exclusivity Agreements

NAMIC testified at the Feb. 27 hearing of the Labor & Public Employees Committee in opposition to HB 5269, which would impose a ban on certain non-compete and exclusivity agreements, which may have grave, unintended implications for the thousands of “captive” or “dedicated” insurance agents in Connecticut, their livelihoods, and the companies they represent.

NAMIC warned the committee that the current language in “this legislation is so overbroad and unclear that its enactment could void the agreements captive agents have with insurers and imperil their livelihoods. Moreover, this would significantly, negatively impact one of Connecticut’s leading generators of jobs, state revenues and economic activity. This unintended consequence can be remedied by amending Section 3 by making it clear that these prohibitions do not apply to licensed insurance agents.”