DFS Advises as to Agents’ Rights Following Termination of Appointment
The Department of Financial Services advises that it frequently receives inquiries from agents whose appointments with insurers have terminated. These agents often ask what they are legally allowed to do for customers relating to policies transacted before termination of the appointment. According to DFS, following the termination of an appointment as to an insurer, the agent may continue to service, and receive commissions or other compensation relative to, policies written during the existence of the appointment. In addition, DFS advises that an agent may countersign all certificates or endorsements necessary to continue policies to their expiration dates, including renewal option periods, and collect and remit premiums due. An agent cannot, however, without the consent of the insurer, change or modify the policy in any way nor increase the hazards insured against. DFS also recommends that agents consult the terms of their agency contracts with the insurers.