What does the phrase Agent of Record mean?

Basically, when a policy holder wants to change insurance agents but keep the same insurance carrier, they must provide the new agent with an Agent of Record letter. This grants the new agent legal authority to represent the policy holder with the same insurance carrier.

Shocking, I know, but sometimes people just want to fire their insurance agent. It’s a sad realization that good insurance has become a rarity. We work to keep our clients happy and help them to succeed. We realize there are people who may like the insurance carrier who underwrites their policies just fine, but they want a new agent. Naming a new insurance agent as the Agent of Record grants them authority to manage your existing policies without switching insurance carriers altogether.

Why do I need an Agent of Record to change insurance agents?

Most insurance carriers are legally bound not discuss a policy holder’s account with an insurance agent unless they are the agent of record. An Agent of Record letter gives the new agent rights to receive all communications on behalf of the policy holder.

The new agent is allowed to manage policies, quotes, certificates of insurance, endorsements and all other notices an insurance agent would normally handle for their client. The agent of record is also entitled to receive commissions from the insurance carrier who underwrites the insured’s policies.

Where do I get an Agent of Record letter?

First, you need to find a new insurance agent. The new agent will provide you with an either an ACORD Agent of Record letter or one they drafted themselves, and all you need to do is sign it.

Once the new agent receives the letter, they will turn around and give it to the insurance carrier who will then recognize that agent as the one who is now designated to represent you through that carrier. Once this happens, the insurance carrier will stop all communications with the old agent about your policies.

Real Life Example

Let’s say you own a flower shop and your business insurance policies are underwritten by Travelers Insurance. You got those policies a couple of years ago through your local independent insurance agent, Bob who works for Bob’s Insurance Agency.

The honeymoon is over with Bob now. He never really gave you good service, and he didn’t even call you to see if you were okay after you reported that hail damage claim to his assistant last year. Time to get a new agent!

This is where the Agent of Record letter comes in. Because you originally signed insurance applications with Bob’s agency, he still has the authority to manage your Travelers Insurance policies. But, if you like Travelers and you just want a new agent, all you need to do is sign an Agent of Record letter with a new insurance agent. Once you do this and Travelers accepts the letter, you’re the proud owner of a new insurance agent! Bye bye, Bob.

Summary

If you don’t like your insurance agent, but you like your insurance carrier, there’s no need to start all over from scratch. Find a new insurance agent you like, sign an Agent of Record letter giving them authority to represent you with your current insurance carrier and you’re done. Don’t you wish all things in life were that easy?

Our insurance agency wants to work with you to provide you with good insurance coverage. We want to do more than pair you with an agent you like, but an agent who helps you succeed. Let us help you find an insurance company who wants what is best for you. Start the conversation by requesting a free insurance quote at the top of the page and we will contact you. We look forward to getting to know you.

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