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    The Advantage of An Agent Of Record Change

    Posted by Brad Hancock on Jul 3, 2023 2:31:47 PM

    Whether you're a home owner or a business owner, Texans are making choices everyday about where to get services to make our lives go smoothly. We are constantly being bombarded by people who are claiming to have our best interest in mind. We sign up with them and believe that we have secured the right product or service to take care of our needs. But then something weird happens. The people and culture of that business that you signed up with just doesn't seem to fit with how you operate and it can become easy to be frustrated. It has happened to all of us.


    If you have signed up for someone to paint your house, you often have to grin and bear the frustration since there is a finite timeline to the project. But when you're dealing with an ongoing service, that frustration can become a bigger headache to you. Insurance is not immune to this effect, and people often feel trapped by it because they know that they have the right coverage from the right insurance company, and it's at a great price. The question becomes, are you really trapped or is there something that can be done to find a better match for you and relieve the frustration?

    The Solution Is Called An Agent Of Record Letter

    As an independent insurance agent, one of the services we provide is assisting clients with their insurance needs. One significant aspect of our role is helping insureds navigate the complexities of their insurance policies. The Agent of Record Letter (AOR) change request is a crucial tool at our disposal.

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    An agent of record letter change, also known as a broker of record letter, refers to the process of changing the designated insurance agent or broker responsible for handling a policy on behalf of an individual or business. The agent of record is the authorized representative who interacts with the insurance company on your behalf. The appointed agent can then assist with policy selection, provide advice, manage claims, and handle other insurance-related matters. When an agent of record change occurs, you appoint a new agent or broker to act as your representative.

    Agent of Record requests can be implemented for home/auto policies, commercial/business policies, as well as health insurance policies, including employee benefits packages. AOR requests are also not limited to just active policies, if you receive an insurance quote from your current agent but prefer to be represented by another agent, an agent of record letter can be used to transfer access to the insurance quote to the agent of your choice.

    The Nuts & Bolts Of How An AOR Works 

    The process of changing the agent of record typically involves submitting a formal request, known as an Agent of Record Letter, to the insurance company. The insurer will review the request and, upon approval, update their records to reflect the new agent of record. The current agent will be notified of the change and may reach out to confirm the request. It's worth noting that an agent of record change does not usually impact the terms and conditions of the insurance policy itself. The change primarily affects the relationship between you and the current agent handling the insurance contract that you have with the insurance company. The policy coverage and premiums remain the same, and the new agent assumes responsibility for managing the policy moving forward.

    It is important to understand that this process is not immediate. In most cases, the carrier will provide a 10-business-day period where the current agent is notified of the request and has the opportunity to contact you to revoke the request. This is a safety measure built into the process to keep "shady" insurance agents from taking over your policies without your permission. If the request is recognized and approved, your current agent can waive their recension rights and speed up the 10-day transfer window. Lastly, depending on the carrier, the agent of record change may happen within the existing policy term (mid - term) or may not be processed until the next renewal. Your agent should disclose all provisions prior to executing the request.

    What Would You Improve With An AOR?

    Why Is An AOR Needed?

    While not all matters require an agent of record letter, there are several situations in which the agent/broker of record letter can be of great benefit to you. 

    Increased Advocacy and Personalized Service:

    When you decide to switch coverage from the original agent, you gain the opportunity to work with an agent who better understands your unique needs. By choosing an agent who specializes in your specific industry or insurance type, you can benefit from enhanced advocacy and a personalized approach to your insurance coverage. The new agent may have a deeper understanding of your individual requirements and can provide tailored advice and recommendations.

    Improved Access to Markets and Coverage Options:

    Changing the Agent of Record and moving away from your current insurance agent can open doors to a broader range of insurance companies and coverage options with different policy details available. Different agents often have access to various insurance carriers, each with their own strengths and areas of specialization. By exploring new avenues and considering alternative licensed agents, you can potentially find policies with better coverage terms, more competitive premiums, or specialized endorsements that better meet their evolving needs.

    Streamlined Insurance Portfolio Management:

    Managing multiple insurance policies from various insurance carriers can be a time-consuming and challenging task. By centralizing your insurance portfolio with a single agent, you can streamline your insurance management processes. An AOR change request allows you to consolidate their policies under one knowledgeable agent, simplifying communication, policy reviews, and claims management. Overall this helps to limit potential coverage gaps between policies. 

    For commercial policies, consolidating insurance coverage with a single agent can assist with a more comprehensive approach to insurance requirements and needs from third-party vendors. In addition, having all policies centralized with a single agent allow your agent you process service requests, including certificates of insurance, much quicker.

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    Objective Assessment of Policies and Risk Management:

    A fresh perspective can offer valuable insights when it comes to assessing insurance policies and risk management strategies. An AOR change request presents an opportunity for you to receive an objective evaluation of their existing coverage. The new agent can review policies, identify any potential gaps or overlaps, and provide recommendations for optimizing coverage based on their expertise. This unbiased assessment can lead to a more robust and cost-effective insurance program for the insured.

    Proactive Risk Mitigation and Loss Control:

    Switching the Agent of Record provides businesses with a chance to work with an agent who prioritizes proactive risk mitigation and loss control if your current agency does not offer those services. By choosing an agent who focuses on comprehensive risk management, businesses can benefit from tailored loss control programs, safety training, and claims prevention strategies. This proactive approach can help you reduce exposures to risk, minimize claims, and ultimately save money on insurance premiums in the long run.

    Is An AOR Request Right For You?

    Agent of Record change requests offer individuals and businesses significant advantages when it comes to managing their insurance needs effectively without changing their current insurance premiums. By selecting an agent who understands your unique requirements, insureds gain increased advocacy, personalized service, and access to a broader range of coverage options. Consolidating policies under a single agent simplifies insurance management, while an objective assessment and proactive risk mitigation strategies contribute to more effective risk management. As independent insurance agents, we encourage insureds to explore the benefits of an Agent of Record change request and make informed decisions that align with their evolving insurance needs.

    If you are not happy with the current agent or insurance agency that represents you today, considering if an Agent of Record request is right for you could be beneficial. At Insurance For Texans, we will discuss your individual and or business needs before any recommendations or requests are made. Click the button below to contact our office today for an individual assessment of your personal or business insurance needs.

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    Topics: independent insurance agent, Insurance Policy, basics of home insurance, basics of business insurance