Financial Planning and Analysis

What Is an Agent of Record (AOR) in Insurance?

Gain clarity on the Agent of Record (AOR) in insurance, the key to your policy representation, and how to manage this crucial relationship.

An Agent of Record (AOR) establishes how a policyholder’s relationship with an insurance carrier is managed. This designation ensures a clear line of communication and responsibility for all insurance-related matters.

What Agent of Record Means

An Agent of Record (AOR) is the insurance agent, broker, or agency formally authorized to represent a policyholder in dealings with an insurance carrier. This designation grants the AOR authority to manage and service an insurance policy on the policyholder’s behalf. The purpose of establishing an AOR is to create a single, recognized point of contact and accountability for all insurance needs.

The AOR is the entity that either initiated the insurance policy or currently oversees its management for the client. Insurance carriers communicate and work exclusively with the designated AOR regarding a policy. An AOR can be an individual insurance agent, an independent broker, or an entire agency. This arrangement helps streamline interactions and ensures that only an authorized party can access sensitive policy information or make changes.

The Role of the Agent of Record

The Agent of Record performs a variety of functions that extend beyond merely selling an insurance policy. A primary responsibility involves client representation, acting as the main liaison between the policyholder and the insurance carrier.

Policy management is another significant aspect of an AOR’s role. This includes assisting with policy inquiries, processing renewals, and managing endorsements. The AOR also helps policyholders understand the terms and conditions of their coverage.

An AOR also provides market access, helping policyholders find appropriate coverage. They can shop for suitable policies and advise on coverage options that best fit a client’s specific needs. When claims arise, the AOR offers claims assistance by guiding policyholders through the process, communicating with the carrier, and advocating for a fair outcome. AORs also serve an advisory role, offering professional advice on risk management strategies and tailored insurance solutions.

Changing Your Agent of Record

Policyholders may change their Agent of Record for various reasons, such as seeking improved service, consolidating multiple insurance policies, or due to changes in their relationship with the current agent. This process typically involves a formal document known as an “Agent of Record Letter” or “Broker of Record Letter” (AOR/BOR letter). This letter is crucial for officially transferring representation from one agent to another without necessarily changing the insurance carrier or the policy itself.

The AOR/BOR letter generally requires specific information to be valid. This includes the policyholder’s name, relevant policy number(s), the name of the current AOR, and the detailed information for the new AOR. It also specifies the effective date of the change and must bear the policyholder’s signature. Policyholders can often obtain a template for this letter from their prospective new agent or utilize a standard form provided by some insurance companies.

Once the AOR/BOR letter is completed and signed, it is typically submitted to the insurance carrier. While the policyholder can send it directly, the new agent often facilitates this submission on the policyholder’s behalf. Upon receipt, the insurance carrier reviews the request and, if approved, updates their records to reflect the new AOR. There is often a short transition period, commonly ranging from five to ten business days, during which the previous agent may be notified and given an opportunity to contact the policyholder. After this period, the new AOR officially assumes responsibility for managing the policy.

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