It’s always important to not just read, but understand anything you sign. A Broker-of Record or Agent-of-Record letter is formal notification giving an agent or broker authority to access insurance carriers that have previously been accessed by other agents or brokers. It also revokes the formers’ authority to deal with the insurance carriers on your behalf.
Simply put, a BOR or AOR letter allows an agent to take the quotes and work of another agent. The letter will say something such as “Please recognize ( XYZ agency or agent ) as my Broker of Record for all prior submissions. This authorization revokes any previous authorizations.”
I do not have a problem with BOR or AORs if properly represented. However, I see more and more insurance agents deceiving their prospects by asking them to sign BOR letters and telling them it is standard operating procedure. This is, in fact, shrewd play to take the work of others.
Below are some legitimate reasons you may want to provide an agent or agency a BOR/AOR letter:
The next time you are seeking multiple quotes from different agents or agencies and they send you a BOR or AOR , think twice. Make a decision based on knowing that trust and honesty are the most basic requirements for a relationship.
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