Section 18 in The Life Insurance Corporation of India (Agents) Regulations, 2017
18. Procedure in insolvency cases.
(1)If an agent applies to a court of competent authority for being adjudged insolvent or is adjudged insolvent by such court, the competent authority may direct him to forthwith discontinue soliciting or procuring new life insurance business and the agent shall not thereupon solicit or procure new life insurance business until the court grants an absolute order of discharge and the competent authority revokes its earlier direction.(2)Where an agent ceases to solicit or procure new life insurance business in accordance with sub-regulation (1), the requirements of regulation 9 shall not apply.(3)If an agent fails to obtain an absolute order of discharge up to the end of two agency years following the agency year in which the order adjudging him insolvent was passed, his appointment shall liable to be terminated by the competent authority by giving him three month's notice in writing.
