Broker of Record

What does “broker of record” mean?

When you see a BOR designation, check whether it concerns an insurance policy or a U.S. real-estate brokerage. The documents and responsibilities differ.

In insurance, the named representative works with the carrier for the policyholder

The policyholder names an intermediary to represent them in dealings with a particular insurer. The named broker, agent, or agency is the representative on the account; a broker of record (BOR) letter is the policyholder's signed instruction identifying that representative. A New York insurance regulator's explanation describes the letter as notice to the insurer of which broker or agent will represent the insured. The letter is separate from the representative it names. The title alone does not settle the intermediary's legal role.

The designation can concern business insurance or insured employee benefits. It identifies the intermediary for the stated coverage; the intermediary does not become the employer or the insurer. The insurer still makes underwriting decisions. A sample line-specific BOR form shows why scope matters: it identifies the insurer and the lines or policies covered by the instruction. If a company receives a BOR form for its health plan, it should check which carrier or administrator and which coverage it names. The form should not be assumed to cover the company's other insurance. Whether a separate appointment is accepted depends on the relevant insurer or administrator.

In U.S. real estate, the same words can identify a firm's supervising broker

In New Jersey, the broker of record is an individual licensed broker designated to be in charge of and responsible for the brokerage activity carried out by or for a licensed real-estate business entity. The firm's broker license and the individual's responsibility are related but distinct: naming the individual identifies who oversees the entity's brokerage conduct. The state's adopted N.J.A.C. 11:5-1.3 definition, effective January 2026, sets out that role. A New Jersey regulator bulletin further explains that the broker of record supervises the firm's licensees even when a team leader directs a particular team.

New Jersey also distinguishes a broker-salesperson, who is qualified as a broker but works under another licensed broker's supervision, from an employing broker operating as a sole proprietor. Thus, another licensed broker working at a brokerage is not automatically that firm's designated broker of record. A company forming a New Jersey brokerage should identify the individual responsible under the state's licensing rules; a policyholder replacing a commercial-insurance broker instead deals with its insurer's appointment process. Other states may assign different titles or duties, and an insurance BOR letter does not appoint a real-estate firm's supervising broker.

What does an insurance broker of record do?

The insurer's account record identifies the intermediary it may deal with. The services a business receives still depend on its agreement with that intermediary and the insurer's process. Confirm the work and account access available for each policy.

The work spans placement, servicing, renewals, and claims support

Before a policy is placed, a broker can discuss the buyer's risks, seek coverage and compare the insurer options available to it. The NAIC describes brokers as buyer-facing intermediaries that seek insurance and typically advise on risk. Ask what coverage the broker will seek and which insurers it can approach for this account.

After placement, agree who will handle insurer communications, policy documents, certificate requests, proposed changes, renewal preparation and claims support. These are possible servicing tasks, not services guaranteed by a BOR designation. The broker can take a request to the carrier and explain its response. The insurer makes underwriting decisions, and a policy change requires the appropriate insurer action. Account access matters here: a Chubb appointment example specifically authorizes the new representative to obtain policy copies and information, subject to that carrier's process. Ask which representative the insurer currently recognizes and what information the broker can obtain.

If a business opens another location or its seasonal activity changes before renewal, it should have the broker review the policy and discuss coverage options promptly. The NAIC recommends reviewing insurance when circumstances change; a location or limit that needs changing calls for separate policy action, such as an insurer-issued endorsement. Naming a different broker does not itself update the coverage.

Broker, agent, insurer, and compensation are distinct

In the NAIC's general U.S. description, brokers usually seek insurance for buyers, while agents often act on behalf of insurers. An intermediary's precise capacity depends on the arrangement. The word “broker” on a BOR form does not establish whom it legally represents or how widely it can search. The insurer remains the party that selects and prices the risk and issues the policy. Ask the proposed intermediary which insurers it can approach for this account and whether its recommendations will be limited to a particular panel.

The intermediary may receive an insurer commission, charge a fee or have another agreed payment arrangement. A change in the named representative can raise a separate question about who earns commission on existing and future policy business; it does not set a universal transfer rule. Chubb's BOR guidance, for example, discusses an allocation under its process while warning that other insurers may handle it differently. Before signing, ask what fees or commissions apply, who pays them and how the relevant contracts treat a midterm change.

What does a broker of record letter change?

Read the letter for the authority it gives, the policies it covers and its requested effective date. Then confirm when the insurer will recognize the new representative. Those details govern the handoff.

It changes who is authorized to represent the account

For a first appointment, the policyholder tells the insurer which intermediary should represent the account. For a replacement, the instruction can supersede an earlier appointment for the stated coverage and direct the insurer to deal with the new representative. A Chubb sample BOR letter names an effective date, replaces prior appointments and authorizes the new intermediary to obtain policy copies and information. Once the insurer recognizes the change, the new representative can take over the communications and information requests covered by that appointment; the former representative's authority ends only to the extent stated and accepted.

Signing does not prove that every carrier has already changed its account record. Chubb's guidance says some insurers do not automatically accept BOR letters and may have further requirements or timing rules. If a renewal is in progress, the business should ask the carrier which representative it currently recognizes, when the new appointment takes effect and whether the new broker can obtain the current policy and renewal information. That answer gives both brokers a clear starting point for the handoff.

Scope and signature determine which policies or lines are affected

Before signing, match the insured's legal name and the insurer to the policy record. Check the current and proposed representatives, the policy numbers or lines of business, the requested effective date, and whether the wording revokes an earlier appointment. The signer should have authority to act for the insured, with their title and signing date recorded. A published ACORD 36 example contains these fields and limits its replacement language to the stated lines. This example is dated 2007. It does not establish what a carrier accepts today; that carrier may require its own form or a signed letter.

Read any “all policies” or “all carriers” wording against the move the business actually intends. If it wants to appoint a new intermediary only for employee benefits while retaining its property and casualty broker, the instruction should identify the benefits coverage and avoid revoking the other broker's appointment for unrelated lines. A line-specific form shows how that boundary can be stated, but the business must confirm that the affected insurer or plan administrator accepts the proposed arrangement before assuming the split is effective.

A quote authorization is narrower, and a new broker does not rewrite the policy

If the business wants another intermediary to seek a renewal quote from its existing insurer, it may need permission for that limited task rather than a replacement BOR appointment. Chubb's guidance distinguishes its separate insured authorization for a renewal quotation from a BOR letter used to appoint a new representative. The business should ask the carrier what authorization it accepts and make clear whether the incumbent should remain on record. Spell out the limited purpose so the quote request does not inadvertently replace the servicing broker.

An accepted BOR letter changes representation. It does not amend insured locations, limits or deductibles, or resolve an open claim. If a commercial property appears to be missing from the policy documents, the new broker should review the actual declarations and endorsements with the business, then ask the insurer what coverage action is needed. An endorsement can amend a policy, including its locations or limits; the business should confirm any issued change and its effective date. The BOR letter alone cannot establish whether the property is covered. An open claim likewise needs its own handoff and insurer response rather than a new broker's name on the account.

How does a broker of record change work?

A broker change takes more than a signed form. The policyholder needs the insurer's answer to the scoped instruction and a working service handoff.

Choose a broker, sign the right scope, and let the insurer review it

Start by deciding which policies need a new representative and evaluating whether the proposed broker can service those lines and approach the relevant insurers. For a U.S. business, the NAIC recommends comparing intermediaries and checking licensing. Discuss any renewal or outstanding request already under way so the business knows what the incoming broker can take over once recognized.

Next, ask each affected carrier which signed document it accepts and where to submit it. ACORD 36 is one published U.S. example of a scoped change form; Chubb supplies its own BOR sample and guidance. Neither example establishes a universal form requirement. The policyholder should sign the document that names the intended representative and coverage, then give the carrier the information it needs to review and record that instruction.

After submission, ask the carrier to confirm which representative it now recognizes for each listed policy, the effective date, and whether the incoming broker has access to the information needed for service. A broker's report that it sent the form does not confirm carrier acceptance. Once the account record is clear, the business can tell the outgoing and incoming brokers who is handling each policy and any work already in progress.

Timing, acceptance, and rescission depend on the carrier and agreement

The date requested in a BOR letter is not necessarily the day the new broker can act. The insurer may need to review the instruction, apply a waiting period or obtain another acceptance before changing its records; some arrangements may not allow this kind of transfer. Chubb's carrier guidance gives examples of those limits, without establishing one timetable for every insurer. Ask the actual carrier whether it has accepted the letter, when it will recognize the new representative, and when that person can communicate about the account and obtain information. If a renewal is already being quoted, identify the broker who can speak to the carrier now and who will carry the work forward.

If the policyholder changes its mind, it should ask the carrier how to withdraw or countermand the instruction and whether a written cancellation is required. Chubb's sample keeps an appointment in force until it is cancelled in writing, but another insurer's procedure or the parties' agreement may differ. Confirm whose name the carrier records after any reversal and who will continue the renewal work. Signing a cancellation request does not by itself prove that the former broker has been restored or that a proposed change never took effect.

Confirm the handoff and review actual coverage

Once the insurer acknowledges the change, check that the incoming broker can obtain the policy documents and information needed for the work it has agreed to do. For each policy, identify who owns the next renewal and any open certificate request, claim follow-up or proposed endorsement. Tell both brokers about outstanding tasks and confirm which one will pursue each with the carrier; the account-record change does not complete those requests.

The incoming broker should then review the declarations, existing endorsements and current business exposures with the policyholder before recommending changes. If the business had already asked to add a location, carry that request into the handoff and check the insurer's response. An issued endorsement can change listed locations or limits, but a pending request or a new broker's name is no proof of the location's coverage. The business needs the actual policy documents and the insurer's answer to know where it stands.

When should you appoint, replace, or split a broker of record?

Start with the problem the business needs to solve: broker service, access to suitable insurer options, or the terms of an existing policy. That determines whether a new representative, a narrower appointment, or a coverage request is the useful next step.

Match the decision to service, expertise, and the lines of insurance

A business may reassess its broker when renewal work is not getting done, questions go unanswered, or a new exposure calls for expertise the current intermediary cannot provide. Compare the service each candidate will actually deliver, the insurers it can approach for the relevant line, and who will handle changes and claims. The NAIC advises insurance buyers to compare intermediaries, while its policy-review guidance points to reviewing coverage when circumstances change. If the immediate problem is an inaccurate limit or an unlisted location, ask for a policy review and insurer action regardless of which broker services the account. The coverage request still needs a separate insurer response.

One broker may be convenient as a single service contact when it can handle all the business's lines. A narrower appointment can preserve an incumbent's useful work while bringing in a specialist for another line, but the resulting division needs a clear owner for each insurer, policy and pending task. If the current broker serves employee benefits well but lacks the commercial-property service the company needs, it can explore a property-only appointment rather than revoke every line. A line-specific BOR form illustrates how an instruction can name only stated business lines; confirm that each affected insurer or plan administrator will accept the proposed split before relying on it.

Check the proposed broker’s permission, advice, market access, and remuneration

For a UK small or medium-sized business, the proposed appointment does not tell you whether the broker will give a personal recommendation or arrange cover without one. Ask which service it will provide for the line you intend to appoint it to. Also ask which insurers it can approach, how many quotes or alternatives it considered, and why it proposes a single insurer if that is the case. The FCA's guidance for SMEs distinguishes advised from non-advised service and notes that some brokers use only one insurer. A single-insurer offer may suit the business, but the broker should explain its scope. That answer shows what comparison and advice the business will receive before granting account authority.

Use the FCA Firm Checker to check the proposed firm's authorization and permissions for the insurance service in question. If the intermediary is an appointed representative, identify its principal and ask the principal to confirm which activities it permits the firm to carry out. Match those findings to the broker and coverage named in the proposed BOR instruction. An authorization check does not establish that a particular policy is suitable.

Finally, ask how the broker will be paid, including fees, insurer commission and any income tied to premium finance or add-on policies. A UK commercial customer can request commission information from its broker, including specified related income from premium finance and add-on policies. Compare the remuneration with the advice, insurer access and coverage named in the proposed appointment. The business can then judge the service and options it is agreeing to. These FCA checks are UK-specific; businesses elsewhere should use their applicable local regulator and insurer processes.