Short answer: A Broker of Record (BOR) letter is a signed document in which an employer names the broker or agency authorized to service its insurance with a carrier. It moves the servicing rights and commissions to the new broker without changing the plan, carrier, premium, or benefits. The carrier usually acts on it after a short waiting period, during which the current broker can try to keep the account.
A Broker of Record letter tells your insurance carrier which broker is authorized to manage your policy. Employers use it to begin a relationship with a new broker or to replace the broker they have, and it is the standard way to change brokers without disturbing your coverage.
What a BOR letter does and does not change:
The letter changes who services your account and receives the commission the carrier already builds into your premium. It does not change your plan, your carrier, your premium, your benefits, or your renewal date, and you do not go through underwriting again. The commission simply moves from the old broker to the new one once the change takes effect.
How the process works:
- The new broker prepares a letter with your company name, the carrier name, the policy or group number, and the date.
- You review and sign it, then return it to the broker.
- The broker submits the signed letter to the carrier.
- The carrier transfers servicing to the new broker, commonly within about five to ten business days.
During that window, the current broker is usually allowed to submit a countermand and try to retain the account, so the change is not always final the moment you sign. A later BOR letter supersedes an earlier one, and exact timing and rules vary by carrier and state.