Changes to Existing Law

An employee may agree with an employer at the time of employment or at any time5 during his the employment not to engage directly or indirectly in the same business or profession6 as that of his the employer for any period not exceeding two years one year from the date of7 termination of the agreement and not to solicit existing customers of the employer within a8 specified county, first or second class municipality, or other specified area for any period not9 exceeding two years one year from the date of termination of the agreement, if the employer10 continues to carry on a like business therein.

Any independent contractor who is an insurance producer as defined in subdivision13 58-1-2(16) and is a captive agent who is not an independent agent and who works exclusively14 for a single insurance company or an affiliated group of insurance companies, even if the single15 100 copies were printed on recycled paper by the South DakotaLegislative Research Council at a cost of $.167 per page.v Insertions into existing statutes are indicated by underscores.Deletions from existing statutes are indicated by overstrikes. - 2 -SB insurance company allows its captive agents to market the products of another insurance1 company pursuant to contract, may agree with an insurer at the time of contracting or at any time2 during the term of the contract: (1)Not to engage directly or indirectly in the same business or profession as that of the4 insurer for any period not exceeding two years one year from the date of termination5 of the independent contractor's agreement with the insurer; and6 (2)Not to solicit existing customers of the insurer within a specified county, first or7 second class municipality, or other specified area for any period not exceeding two years one year from the date of termination of the agreement, if the insurer continues9 to carry on a like business within the specified area.10