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Broker of Record / Agent of Record

Broker of Record / Agent of Record

If you are actively shopping for an insurance policy for your home or business, you may be asked to sign a broker of record or agent of record letter at some point during the process. While it may seem like a small thing, it can affect the quotes you are able to get for insurance. Here’s the scenario:  your insurance renewal just showed up with a huge increase. You decide to shop around and contact a couple of brokers and insurance companies and put them to work getting quotes for you. Suddenly, one or both brokers is telling you they need an agent of record or broker of record letter because “the market is blocked”. Should you sign? What is a Broker/Agent of Record Letter? An Agent of Record (AOR) or Broker of Record (BOR) letter is a document that you must sign that says you are naming an agent or broker as your representative to negotiate coverage and premiums with a particular insurance company. It may include a statement saying that you wish to rescind a certain waiting period (usually 10 days), which means that the agent or broker can receive quotes from the insurance company right away. Why Do You Need an AOR or BOR? Independent brokers and agents are able to access many insurance companies. When you submit an application, your broker will go to all of the available insurance companies that will be most likely to write the insurance for your home or business. Unfortunately, many brokers have access to the same insurance companies. If an insurance company receives more than one application for the...