Section 242 - Cancellation of contract(a) Notice.--No insurer shall terminate its contract with an agent without first providing such agent and the Insurance Commissioner with written notification at least 90 days prior to the date of termination. Such notice shall advise the agent of his right of appeal under subsection (d).(b) Reason for action.--Such notification shall set forth the insurer's reason for the action.(c) Privileged information.--Any information, document, record or statement so furnished or disclosed to the department shall be absolutely privileged and shall not be admissible as evidence in or as basis for any action against the appointing insurer or against any representative of the foregoing.(d) Administrative review.--Any agent may, if within 30 days of receipt of notice of termination, request in writing to the Insurance Commissioner that the Insurance Commissioner review the action of the insurer for the purpose of determining that said termination was in compliance with the provisions of this act.(e) Restriction on termination.--Prior to termination due to adverse experience, mix of business or lack of premium volume, it shall be the obligation of the insurer to make a reasonable attempt to rehabilitate such agent as set forth in subsection (f). No insurer shall terminate its contract with an agent due solely to the adverse experience for a period of less than two successive years prior to the notice of rehabilitation as set forth in subsection (f).(f) Rehabilitation.--(1) An insurer shall notify an agent, in writing, that the agent is placed on a rehabilitation program.(2) Such notice shall specify the reasonable goals and objectives of the rehabilitation program.(3) Such notice shall inform the agent that failure to attain the goals and objectives specified in the rehabilitation program may result in agency termination.(4) The rehabilitation program of an agent under this act shall not be for a period of less than one year.(5) Compliance with the rehabilitation program and attainment of the rehabilitation goals shall bar termination of the agency solely due to adverse experience, mix of business or lack of premium volume.(6) Upon request of administrative review pursuant to subsection (d), it shall be the obligation of the insurer to demonstrate to the Insurance Commissioner that it has made a reasonable attempt to rehabilitate such agent.1978, Sept. 22, P.L. 763, No. 143, §2, imd. effective. Amended 1987 , Dec. 18, P.L. 418, No. 88, § 3, imd. effective.