Broker of Record letters
If you are ever approached by an insurance agent/broker who wants you to sign a broker of record letter, understand one key thing.
You are FIRING your current agent.
A broker of record letter instructs your insurance company (ex. Safeco, Travelers, Firemans Fund) that you are firing your current agent and authorizing them to deal with the agent for which you are signing the letter for. Plain and simple. If you are unhappy with your current agent and wish to change, this is the avenue you take. However, never sig one under the pretense that the broker needs it to procure proposals. That is not true.
Only sign a broker of record letter if you are intent on firing your agent. A “best practice” would be to call your terminated agent before they get word from the company. It saves you getting a call from them and is the courteous thing to do.
© 2010 Dan Weedin. All Rights Reserved