| (a) Scope and application. This section applies to
any person required to be licensed as an agent pursuant to the provisions
of the Insurance Code or other insurance law of this state. For purposes
of this section, "person" means both natural persons and
business association entities.
(b) Prohibition. No person subject to the provisions
of this section is permitted, directly or indirectly, to require,
solicit or accept any power of attorney to act as attorney-in-fact
for any applicant for any insurance coverage in this state for purposes
of placing, procuring, instituting, maintaining, canceling or nonrenewing
any insurance coverage, or for any other act in connection with the
placement or institution of such insurance coverage.
(c) Exceptions. This section does not apply to the
situations described in paragraphs (1) and (2) of this subsection,
as follow:
(1) insurance activities for which the Insurance Code
or other insurance law of this state expressly authorizes a person
to conduct such insurance activities as an attorney-in-fact pursuant
to a power of attorney; or
(2) instances in which a person required to be licensed
as an agent under the Insurance Code is appointed attorney-in-fact
by a relative or household member of such person for purposes which
include placing personal lines insurance coverages for such relative
or household member.
(d) Premium finance company provisions. The provisions
of this section do not prohibit any person subject to the provisions
of this section from accepting applications for premium financing
on premium financing agreement forms that include a power of attorney
in favor of the premium financing company for purposes of canceling
a financed insurance contract, so long as the power-of-attorney provisions
comply with statutory provisions of Insurance Code Chapter 651, concerning
the financing of insurance premiums.
(e) Declaration of unfair practice. The failure to
comply with the provisions of this section constitutes unfair competition
and unfair practices according to Insurance Code Chapter 541 and is
subject to the provisions of that chapter.
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