If you are shopping for an insurance company, you may have seen the term broker of record letter. What does broker of record mean in the insurance market?
The broker of record letter is a legal document that an agency or insurance broker can use to negotiate on your behalf. In other words, the agency you sign the letter for will be taking over representation on your insurance policies.
What is a broker of record letter, and do you need it? This blog post by the team at i.e. Insurance LLC will answer those questions!
What is a Broker of Record Letter?
In an insurance company, broker of record is a title given to an agent. This letter indicates that this person will negotiate on your behalf and handle all negotiations between you and an insurance carrier or another broker dealer. Basically, this means that the agency is the representative for you on the insurance policy.
If an agency has a broker of record, this means they are the agency assigned to assisting you with your insurance policy.
Why Do I Need a Broker of Record Letter as an Insurance Policy Holder?
If you dislike your insurance agent, but the policy is the best option for your personal or business insurance needs, then you can sign a broker of record letter to “move” that insurance policy away from your current agency and to the new agency you’ve selected.
When an agency requests that you sign a broker of record letter to get a quote on new insurance, it means they are demanding that you move your policies to their agency whether they find you a better deal or not.
It is reasonable to sign a broker of record for each policy you have.
Broker of Record Letter Benefits
As an insurance broker or agency, broker of record letters can be helpful. If you change brokers, your broker of record letter will allow your new broker or agency to access information about the account and continue working with carriers on your behalf.
A broker of record letter ensures that the broker is getting paid properly by carriers, and it ensures that commissions are being distributed fairly among different entities involved in a transaction. Usually, these letters need to be completed at the renewal date of a policy, not in the middle of the term.
Keep in mind that if you sign a broker of record, you are choosing to leave your old agency which will no longer receive any commission. So, make sure that you have thoroughly researched the new policy, and that it is right for you!
How Do I Get a Broker of Record Letter?
To get a broker of record letter, your insurance broker will need to obtain information such as:
- Name of broker-of-record contact
- Person’s title – owner, partner, or licensed agent
- Your name and phone number
- Policy account number
- Willingness to handle executions for any documents related to changes in the policy
- If required by carrier, a copy of license information
- Most times new application documents for the insurance policies you are moving
What Should I Expect to See on My Broker of Record Letter?
When you get broker of record letter template, the broker will include their name and contact information. Insurance brokers should also include your policy number, your name, and phone number on there as well – so they can easily reach you to discuss any changes made to policies or if anything comes up with future renewals!
Do You Have Further Questions About a Broker of Record Letter? i.e. Insurance LLC Can Help!
Here at Insurance LLC we can help you with broker of record letters and broker agency agreements. We can take the stress out of finding a broker to work with. i.e. Insurance LLC is an insurance company that cares about your success. Our team of insurance agents wants you to get the best insurance coverage.
Contact us online or give us a call at 724-719-2093. We are happy to help you in any way we can!
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