February 11, 2008
INSURANCE AGENT RESTRICTIONS
By: Janet L. Kaminski Leduc, Associate Legislative Attorney
You asked if an insurance company can legally restrict the number of policies its agents are permitted to write.
We found no laws or regulations that prohibit an insurance company from imposing restrictions on the volume of business its agents are permitted to write for the company. Therefore, such a restriction appears to be legally permissible.
We contacted the Connecticut Insurance Department regarding this matter. They concur that there is nothing to prevent an insurer from limiting the policies its agents can produce. They indicate that it is a business decision for the insurer to make.