Broker of Record Letter: What It Does and How to Use One
A broker of record (BOR) letter is a signed document that tells an insurance carrier which broker now represents you on a policy. Once the carrier accepts it, the new broker can negotiate, service the account and handle claims questions, and your old broker loses that access. It is short to write and simple to send. But it carries more weight than its length suggests, so read this before you sign one.
TL;DR
A BOR letter hands your account with one carrier to a new broker. It does not cancel or rewrite your policy.
It is not the same as a letter of authorization, which only lets someone look at your information.
No Minnesota statute is cited in our research that sets the procedure. Timing and notice come from the carrier’s own rules and your contracts, so ask the carrier.
Never sign one just to get a price comparison. Carriers generally recognize one broker per risk, so a casual signature can lock you in.
Gather your loss runs and policy details first, and confirm who is asking you to sign.
Table of Contents
What a broker of record letter actually does
A broker of record is the agent or broker designated to oversee your policy and act as your contact with the carrier. Investopedia describes the broker of record as the central point of contact for the insured. The BOR letter is the official vehicle for changing that person. By signing, you designate a new broker as your exclusive representative for your account with a specific carrier. The authority to negotiate rates, manage policy changes and handle claims moves from the previous broker to the new one.
Three details matter:
It is carrier-specific. The letter names one carrier, and often specific policy numbers. If you place coverage with four carriers, a single letter does not move all four.
It moves the servicing, not the coverage. Your policy, your premium and your terms stay as they are on the day of the change. What changes is who you call, who receives notices and who is paid the commission.
It is exclusive. The new broker replaces the old one. You do not get two brokers on the same account with the same carrier.
You may also see the term “agent of record” (AOR). LegalClarity notes that the two terms are used almost interchangeably in the industry, and in most situations they mean the same thing.
BOR letter versus letter of authorization
People mix these up, and the difference can cost you. A letter of authorization usually gives someone limited permission to see specific information, such as your policy details, financial data or loss history. It does not give them the right to negotiate or manage your account, and it does not replace your existing broker. Investopedia draws this line: the BOR letter grants full negotiation and servicing authority, while the letter of authorization is narrower.
BOR letter | Letter of authorization | |
What it allows | Negotiate, service, handle claims questions | View or request specific information |
Replaces current broker? | Yes, for that carrier | No |
Who can get quotes from it | The new broker, as your representative | Usually just a data request |
Right to use for a comparison | Only if you are ready to switch | Yes, in most cases |
If you only want a second opinion on your coverage, a letter of authorization or simply sharing your declarations page is usually the lighter route. Save the BOR letter for when you have decided to move.
When you need one, and when you don’t
You need a BOR letter when you want to keep your policy with the same carrier but change who services it. This comes up most often with commercial accounts: a business owner who likes their workers’ compensation or general liability carrier but is unhappy with service, response times or advice.
You usually do not need one when:
You are changing carriers at renewal. A new policy with a new carrier comes with a new application. The old policy simply expires or is cancelled.
You are only collecting quotes. A broker shopping new markets for you does not need to take over your existing account to do it.
You want a coverage review. Sharing documents is enough.
If you are switching carriers in the middle of a term, the timing of cancellation matters more than any BOR paperwork. Our guide on switching insurance mid-term without a coverage gap walks through how to avoid being uninsured for even a day.
What the law says (and doesn’t)
Many readers assume a state statute governs this process. In New York, at least, it does not. The state’s Department of Financial Services has said in an opinion on broker of record letters that the Insurance Law does not specifically address the procedures. A later DFS opinion on which broker receives the commission after a change reached the same practical picture: these are industry practices set by contract among the policyholder, the carrier and the brokers.
That is New York guidance, not Minnesota law, and we are not aware of a Minnesota statute that lays out a BOR procedure. Treat it as a signal about how this works in general. In practice:
The carrier’s own BOR rules decide how and when the change takes effect.
Notice to your old broker is often a courtesy, not a legal requirement, unless a contract says otherwise.
Your existing agreements may contain terms about notice. Read them, especially on commercial accounts.
Before you sign, ask the carrier directly how it handles BOR changes, including any waiting period and how it notifies the current broker. Carrier practices differ, and none of this is legal advice. If a contract with your current broker has a notice clause, a business attorney can tell you what it means for you.
Why a casual signature is risky
The AOPA calls the BOR letter one of the most powerful and abused documents in the insurance industry. The concern is that some brokers persuade buyers to sign without explaining what it does. The same article cautions that underwriters generally recognize one broker per risk, often first come, first served. Sign for a broker who just wants to “see what they can find,” and that broker may effectively hold your account with that carrier. A second broker who offers you a better deal may find the door closed.
There is also a fraud side. In a 2019 California Department of Insurance release, a licensed broker was charged with identity theft for allegedly forging agent of record forms to collect commissions. The practical lessons for you:
Confirm that anyone asking you to sign is licensed and is who they say they are.
Be wary of surveys or giveaways that ask for personal details and later turn out to be a way to capture a signature.
Read what you sign, and keep a copy.
In Minnesota, you can check an agent’s license through the state Department of Commerce before handing over anything.
What to put in the letter
There is no single legal template, but carriers typically ask for the same core items. Many use the ACORD 36 form titled Agent/Broker of Record Change, which asks for the carrier, the current agency and the new one. Some carriers publish their own, for example this sample group BOR letter from a health plan. Check which format your carrier accepts before drafting your own.
A clean letter includes:
Date.
Carrier name and address, or the underwriting contact the new broker gives you.
Named insured, exactly as it appears on the policy.
Policy numbers and the lines of coverage being moved.
The new broker’s agency name, address and license details.
An effective date, or a statement that the change is effective on receipt, if the carrier allows it.
A clear statement that the new broker is appointed as exclusive broker of record for those policies.
Signature, printed name and title of someone with authority to sign for the policyholder. For a business, that means an owner or officer, not an office assistant.
Here is a plain-language sample you can adapt:
[Date] [Carrier name and address] Re: Broker of Record change, [Named insured], Policy no. [number], [line of coverage] This letter confirms that, effective [date], we appoint [New agency name], [address], as our exclusive broker of record for the policy listed above. Please direct all correspondence, notices and servicing to the new broker, and release policy and loss information to them on request. [Signature, printed name, title, company]
Send it to the carrier, not just to the new broker, unless the carrier tells you otherwise. Keep a dated copy for your records.
Before you sign: a short checklist
These questions take a few minutes and prevent most problems.
Why am I changing? If it is price, ask whether the current broker can fix it. If it is service, ask whether the new broker can show you how they handle claims and renewals.
Is the broker paid by commission, by fee, or both? Our post on how insurance brokers are paid lists what to ask, and do insurance brokers charge fees covers the fee side.
What exactly am I moving? Confirm each carrier, policy and line.
When does it take effect, and what happens to my renewal? Ask the carrier.
Will anything change in my coverage? It should not. Get that in writing.
Do I have my paperwork? See below.
Get your loss runs and documents ready
A new broker needs your claims history to market your account. Loss runs are the carrier’s report of your claims. Practitioners note that they often take 10 to 15 business days for a carrier to produce, and that a new broker generally cannot request them without a signed BOR letter in hand. That means a switch can stall at the very start if nobody plans for it.
To keep things moving, have these ready:
Current declarations pages for each policy
Policy numbers and carrier contacts
Loss runs, or permission for your new broker to request them
Your renewal date
For businesses: payroll figures, certificates of insurance you have issued, and any contract insurance requirements. Our guide to certificates of insurance explains what to keep in order.
If you are moving a home policy tied to a mortgage, tell your new broker early so the lender’s details stay correct. A wrong mortgagee clause can delay a closing; see how to fix the mortgagee clause on proof of insurance.
Our perspective
We see BOR letters from both sides. As an independent brokerage working with more than 20 carriers, we are often asked to take over an account, and our approach is to slow the conversation down first.
Our view is that the letter should come last, not first. Before anyone signs, we want to look at your current coverage, explain what we would change and why, and show you what we would shop. If we can place you with a better-fitting carrier, a new application may be the cleaner path and you may not need a BOR at all. If you are happy with your carrier but not the service, a BOR letter is the right tool, and then we want to earn the account through claims help, renewals and policy changes, not just the first quote.
We do not charge broker fees. We are paid by the carriers when a policy is placed, which is why we say plainly: you should know how any broker is paid before you appoint them. We also think you should feel free to ask us how a letter works, what it ends and what it does not, and we will answer even if it means you stay where you are.
— Andrew
If you’re ready to move your account
If you have decided to change brokers, we can walk you through the carrier’s process, collect the documents and coordinate with your lender or title company where a property is involved. We work with more than 20 carriers on home, auto, life and business coverage, and we do not charge broker fees. Start with the line that matches your account: homeowners, auto, or business insurance. You can also upload your prior insurance so we can review what you have now. No letter needs to be signed for that review.
Prefer to talk to someone nearby? See our pages for Saint Paul, Saint Louis Park and greater Minnesota.
FAQ
Is a broker of record the same as a broker?
Not quite. A broker is anyone licensed to place insurance. The broker of record is the one formally designated on your account with a specific carrier. You can have worked with several brokers, but only one is the broker of record for a given policy at a time.
Do I have to tell my current broker I am leaving?
Often there is no legal requirement. New York regulators have said that notice is governed by the contracts involved, not by statute. The carrier will usually notify your broker anyway. If you have a written agreement with your broker, check it for notice terms first.
Can I cancel or reverse a BOR letter?
Often, yes, but it depends on the carrier and how far along the change is. Contact the carrier as soon as you have second thoughts and ask about its process. Another broker’s BOR letter may also be accepted later, but do not count on a quick reversal.
Does a BOR letter change my coverage or premium?
No. It changes who represents you with the carrier, not the terms of the policy. Any later change in coverage or price should come from a separate, documented decision, such as a renewal or endorsement.
Is a BOR letter the same as a letter of authorization?
No. A letter of authorization generally only lets someone access information such as loss history. A BOR letter transfers the right to negotiate and service the account.
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