A Broker of Record (BoR) transfer is a process used in the insurance industry to change the designated agent or broker on an insurance policy. This process typically involves the following steps:
- Decision to Change Brokers: The policyholder decides to change their broker. This decision could be due to various reasons such as seeking better service, more competitive rates, or a broker’s specialized expertise.
- Selection of New Broker: The policyholder selects a new broker to manage their insurance policies. This might involve researching potential brokers, evaluating their services, expertise, and reputation.
- Broker of Record Letter: The key step in a BoR transfer is the creation of a Broker of Record Letter. This is a formal document, typically written by the policyholder, which authorizes the transfer of their insurance policies to the new broker. The letter should include:
- Policyholder’s name and policy number(s).
- A statement explicitly designating the new broker as the Broker of Record.
- The effective date of the transfer.
- The policyholder’s signature and the date of signing.
NOTE: Some carriers have an agenet-of-record (AOR), broker-of-record (BOR), or producer-of-record (POR) form tha twill need to be completed (the terms all mean the same thing). Others might ask the employer to write a letter, print it on company letterhead, and sign it. Check with the insurer for their specific requirements.
- Submission of the BoR Letter: The policyholder or the new broker submits the Broker of Record Letter to the insurance carrier. This can be done via mail, email, or through other means as specified by the carrier.
- Verification and Acknowledgment by the Carrier: Upon receipt of the BoR letter, the insurance carrier will verify its authenticity. This process might include confirming with the policyholder that the request is valid and intentional.
- Notification to Previous Broker: The insurance carrier typically notifies the previous broker of the change. The previous broker may be given a chance to respond or retain the business, depending on the carrier’s policies and the terms of the broker’s contract.
- Transfer of Records and Information: After the insurance carrier acknowledges the change, they will update their records to reflect the new Broker of Record. The new broker will then receive access to the policyholder’s records and start managing the account.
- Ongoing Communication: The new broker should communicate with the policyholder to discuss their insurance needs, review current policies, and make any necessary adjustments or recommendations.
It’s important to note that the specific procedures and requirements for a Broker of Record transfer can vary depending on the insurance carrier, the type of insurance, and the jurisdiction. Therefore, policyholders and brokers should familiarize themselves with the relevant processes and legal requirements. Additionally, engaging in transparent and open communication with both the current and new brokers can facilitate a smooth transition.