Sometimes referred to as ‘business on the books’ or ‘renewals’, etc., ‘policy expirations’ is also an often loosely used term that to some refers to the book of business that an agency has or will develop over a period of time. At its very essentials, it is what stays on the books. However, “expirations” really encompasses more than that alone. It also includes various information and data about your clients - your valuable customer relations information.
Agents need to clearly understand the wording and meaning of their rights to retain and possibly move their developed business at the termination of an agency contract, for whatever reasons. Also, they need to make sure that their hard-earned and valuable clients’ data does not get jeopardized in any way.
This is just one of the critical points in an agency agreement that needs to be fully understood.
I always recommend that the agency principal have a legal review of the contract, from an attorney who is well-versed in insurance carrier developed contracts.
In some States, both the Independent Insurance Agents Association (IIA) and the Professional Insurance Agents Association (PIA) have archive libraries and related services that can help with contract reviews for their members.
I have known unfortunate agents who have been blind-sided in agency termination situations because they signed an agreement that contained one or more such important sections that they really didn’t understand.