So what exactly is a
Broker of Record Letter?
Because a BOR insurance letter is usually very short, it may appear to be a very simple document. On one level, it is. Essentially, an insurance BOR informs an insurance company that a particular broker is now managing the insurance coverage for your business or individual and is replacing the broker who had previously been doing that for you.
Representation
The BOR acts as the insured's agent, communicating with the insurance company, providing updates, and managing the policy.
Communication Channel
The BOR becomes a channel for receiving communications, notifications, and other information from the insurance company.
Broker of Record Letter
The Formal broker of record letter is required to formally designate the new broker to represent you whether you are a individual or a business entity.
Legally Authorized
The BOR has legal authority to represent the insured in all matters related to the policy.
Policy Management
The BOR will help manage the insurance policy, including renewals and changes.
Purpose
Companies often use a BOR to streamline the insurance process and allow them to focus on their core business operations.
What happens when you sign a Broker of Record letter?
When you sign a BOR letter, the new broker will immediately share that letter with the insurance company with which you have policies. The insurance company will then reach out to your current broker to let them know you are making a change, and unless something happens within the five to 10 day rescindment period, they'll lose your business. Once that rescindment ends, the new broker will take control of your insurance as directed in the BOR letter
What will a broker of record do for your business?
Your BOR should understand the priorities most important to you-whether its watching your budget, keeping premiums low, limiting deductibles, or procuring broad coverage. As you enter into a relationship with a BOR, ensure these priorities are clear and communicated so that the broker can find the most appropriate plan options for you and your business.
marcam
can represent you !
Regardless of how you obtained your coverage—be it through another agent, broker, online, or directly from the insurance carrier—we are here to provide assistance. Our services encompass small group plans for 2-100 employees, in addition to individual and family health, dental, and vision plans.