Vermont § 3884 - Required renewals; continuation of agents’ contracts and brokers’ accounts

§ 3884. Required renewals; continuation of agents’ contracts and brokers’ accounts

• (a) In the event of an insurer’s cancellation of an agent’s contract or a broker’s account
  placement authority with such insurer, each policyholder of such an agent or broker
  shall be entitled to renew his or her policy, upon timely payment of premium, for
  one additional annual policy period commencing at the next annual anniversary date
  of the policy; except that an insurer shall have the right to cancel such policy pursuant
  to section 3879 and chapter 128, subchapter 3 of this title. (b) The terminated agent or broker shall be entitled to receive commissions on account
  of all business continued or written pursuant to this section at the insurer’s prevailing
  commission rate for such line of insurance. However, this subsection shall not apply
  to an agent who agrees to represent exclusively one insurer or a group of insurers
  under common management or an agent or broker whose license has been revoked by the
  Commissioner or whose contract or account has been terminated for insolvency, abandonment,
  gross and willful misconduct, or failure to pay over to the insurer monies due to
  the insurer after receipt of a written demand therefor. (c) If, after hearing, the Commissioner finds that the financial condition of the insurer
  is insecure to the extent that continuation of agents’ contracts and brokers’ accounts
  represent a potential hazard to the policyholders in this State, or that any other
  condition of the insurer represents such a hazard, the Commissioner may issue an order
  relieving the insurer from its obligation to provide the renewal policies otherwise
  required by subsection (a) of this section. (Added 1985, No. 230 (Adj. Sess.), § 1.)