The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
Subchapter
002
:
CANCELLATION OF POLICIES
(Cite as: 8 V.S.A. § 4228)
-
§ 4228. 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 4223 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under common management or an agent or broker whose license has been revoked by the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.), § 2.)