Where does the policy go - When the contract gets Terminated

[AZDave]

With the Termination of many Safeco contracts and others, where do these orphan policy's go?

Are the agents policy's all non renewed? Are they open for other non termed agents to BOR with a simple signature?

Is it done on a State by State basis? - I lost my Mercury contract last year due to production. Since they quit writing commercial auto and non renewed, my little Agency just couldn't give them the personal auto and home they wanted. However, I am still getting paid on my book that renews with them. The Rep said since I am in AZ, this is the way. So not a bad thing losing them.

Or is it all by contract? maybe only a renewal for so long, or x many times?

Anyone have other experience to share? I feel 2024 will be a year of Contract Terminations.

 

[NY independent]

In NY, "agent no longer represents carrier" is the reason for each policy's non renewal notice. It's indicated on the notice. Once the notice is issued and the insured wants to stay with the carrier, find an agent in good standing for a new business rewrite. Prior to the issuance of the non renewal notice, a BOR to the new agency will suffice. Otherwise, the policy is just runoff into cancellation land. If you can roll the book to another carrier, that's best but good luck finding an interested carrier. Not happening here. Agreed that 2024 will be a blood bath for agents.