Broker of Record Letter: How a BOR Change Works

A broker of record (BOR) letter is a short signed letter that names a new insurance broker as your representative with your insurance company. Once the carrier accepts it, the new broker can quote, service and negotiate renewals for every policy the letter lists, the commission moves to the new broker, and the old broker's authority ends. The letter changes only who represents you: your policy, your carrier and your premium stay the same.

Many businesses don't realize how easy this is. If your broker stopped returning calls, missed a renewal deadline or never shopped your account, you do not have to cancel your policies to leave. You appoint a replacement with one page. This guide covers what the letter does legally, what happens after you sign, and when a BOR change makes sense.

What is a broker of record?

The broker of record is the broker your insurance company recognizes as your representative on a particular policy. "BOR" is industry shorthand for that designation, so "signing a BOR" means signing the letter that appoints a new broker of record. Carriers do not let two brokers give instructions on the same account, so each policy has only one broker of record. That broker receives your policy documents, endorsements and cancellation notices, negotiates with the underwriter at each renewal, and earns the commission built into your premium.

An agent of record letter works the same way. The only difference is whom the producer legally represents. An agent and a broker sit on opposite sides of the transaction, so carriers call it an agent of record (AOR) letter when the producer is an appointed agent and a broker of record letter when the producer is a broker. For you, the paperwork and the confirmation process are identical.

What does a broker of record letter do?

A broker of record letter is your written instruction to the carrier to replace one broker with another. Most carriers want it on your company letterhead, dated, signed by an owner or officer, and listing the lines or policies it covers. When the carrier accepts the letter, three things move at once.

First, the new broker can request endorsements, issue certificates and negotiate renewal terms. Second, the carrier's portal and underwriters start working with the new broker, and the old broker loses access. Third, the commission payments go to the new broker of record.

Who signs matters. Carriers generally want the signature of someone who can legally bind the named insured: an owner, an officer, or usually the person who signed the application. A letter signed by an office manager on plain paper often comes back for a proper signature, which costs days you may not have before the policy expires. The letter cannot cancel, rewrite or requote a policy, because your contract is with the carrier, not the broker. Your coverage, limits and premium stay in place until the new broker actually markets your renewal.

What happens after you sign a BOR letter?

After you sign, the new broker sends the letter to the carrier, and the carrier notifies your current broker before processing it. Under the standard producer of record provision, the incumbent broker typically has 10 business days after that notice to confirm your intent. Some carriers use shorter windows under their own agreements. During the window, the incumbent can ask you to reconsider, and if you send the carrier signed revocation instructions before it closes, nothing changes. If the window passes quietly, the change becomes binding on both brokers.

Not every letter goes through. Carriers process BOR letters under their contracts with producers, so if the new brokerage has no contract (appointment) with your carrier, the carrier will reject the letter. Most states have adopted the NAIC Producer Licensing Model Act, under which an insurer has up to 15 days after the agency contract or first application to file a notice of appointment with the regulator.^[1] Direct writers do not accept BOR letters at all, because they sell only through their own producers. Before you sign, confirm that the new brokerage can access your current carrier.

Expect a call from your old broker after you sign. Almost every incumbent makes one, and it is often the first call the account has had in years.

The 10 business day window looks like a regulation, but it is really a term carriers wrote into their producer agreements, which is why it varies by company. As the Independent Insurance Agents of Texas (IIAT) put it, there are "no regulations covering the use of AOR letters" at all.^[2]

Commission timing is the part brokers argue about. Many producer contracts say the old brokerage keeps the commission on premium already written until the policy ends by cancellation, expiration or its renewal anniversary, and only then does commission go to the new brokerage. The IIAT is direct about the mid-term case: the new agent services the account without commission until the policy renews.^[2] Your new broker takes on the work either way, which is why brokerages weigh a mid-term BOR carefully.

Here is what a processed BOR letter changes and what it leaves alone:

Open claims need their own plan. The adjuster works for the carrier, so a claim in progress continues without interruption, but the old broker's advocacy ends the day the change becomes final. If you have a large open claim, confirm that the new broker takes over follow-up on it from day one.

When should you change your broker of record?

Change brokers when staying costs you more than switching. The warning signs repeat: renewals that arrive days before the effective date with no marketing summary, certificates that take a week instead of an hour, no yearly review of how your operations have changed, and the same carrier every year even as the premium climbs. Market access matters as much as effort. If your business has outgrown standard markets, you need a broker who can reach both admitted and non-admitted carriers, not one who quotes the same two companies every year.

Watch one wrinkle with surplus lines placements. E&S business runs through a wholesale broker, so the record sits with the wholesaler, and a retail BOR may not move the account if your incumbent controls that relationship. A second BOR at the wholesale level is often needed. Timing matters too. Carriers process BOR letters mid-term, but most buyers sign 60 to 90 days before renewal so the new broker has time to market the account. When you are ready, follow this order:

1. Interview the replacement before signing anything

   Ask which carriers the new broker is appointed with, how they will handle day-to-day service, and how they run the renewal. A capable broker reviews your current policies and loss history before promising anything.

2. Sign the BOR letter the new broker prepares

   Put the letter on company letterhead, list the carrier and the policy numbers that are moving, state the effective date, and have an authorized officer or owner sign it. You need one letter per carrier.

3. Wait out the carrier's confirmation window

   The carrier notifies your current broker and holds the change open for the period in the standard producer of record clause, typically 10 business days. Expect a retention call from the incumbent, and revoke in writing only if they genuinely change your mind.

4. Move the account file to the new broker

   Once the change is final, the new broker pulls your policies, endorsements and loss runs from the carrier and rebuilds your certificate holder list so proof of coverage continues without a gap.

5. Set the renewal strategy with your new broker

   Agree on which markets to approach, what parts of your program need work, and when the submissions are due. That plan is why you changed brokers.

A broker who asks for your recent loss runs before promising savings is a good sign, because real marketing starts with underwriting information, not a guess. If the switch follows this order, your first renewal should come with a marketing summary listing the carriers approached and the quotes they gave, weeks before the effective date instead of days.

This guide is for educational purposes and describes common carrier practice. Your carrier's producer agreements and your policy's terms control. Talk to a licensed broker about your situation.

Before you sign a BOR letter

A broker of record letter names a different broker to represent you with a carrier without changing your policy, premium or carrier. Signing costs nothing, and you usually have about 10 business days to take it back. After that window, everything moves at once. Before you sign, confirm that the new broker can actually access your carrier, and then hold them to a real marketing summary at renewal.