- 01Check eligibilityThe carrier must accept broker-of-record letters and the new agency must be appointed with that carrier in your state. Direct writers that do not use agencies cannot switch.
- 02Sign the letterA one-page letter, or the carrier's own form, naming the policy, the carrier and the new agency, signed by an owner or officer.
- 03The agency submits itSent to the carrier's agency services address with the policy details. The submission date starts the carrier's waiting period.
- 04Waiting periodCarriers typically wait a set number of business days and may allow the current agent to contact you. You can withdraw during this time.
- 05Carrier acceptsThe carrier updates the agent of record. Future certificates, changes, renewals and commission go through the new agency. Nothing about the policy itself changes.
Why this exists
Agencies are paid by carriers to service policies. When the service is poor, owners assume the only remedy is a new policy, which means new underwriting, new forms and new risk. The broker-of-record process exists precisely so an owner can change who services the policy without disturbing the policy.
What the letter says
The letter states that you appoint the new agency as agent or broker of record for the listed policy with the named carrier, effective on receipt or on a stated date, and that it supersedes any previous appointment. Some carriers require their own form, the ACORD 36, instead. Either is signed by an owner or officer of the insured.
What changes and what does not
| Stays the same | Changes |
|---|---|
| Carrier, policy number, coverage, limits, endorsements | Who issues certificates and handles changes |
| Premium and billing plan | Who the carrier sends notices and commission to |
| Claims process and history | Where renewal shopping happens |
The waiting period
Each carrier sets its own: a number of business days during which the old agent is notified and may contact you, and after which the change takes effect. Some carriers allow the incumbent to rescind the change if you sign a counter-letter. Nothing lapses during the wait.
When a re-quote is the better tool
If you want different coverage, a different carrier or a different price, a broker-of-record letter will not get you there. A re-quote will. The honest answer to "should I switch or re-quote?" depends on whether the problem is the policy or the service, and a wallet that holds both options can tell you which applies to each policy.
The plain-language disclosure
Switching servicing to a new agency keeps your carrier, your policy and your coverage exactly as they are. It changes who services the policy and who the carrier pays. It is not a new policy and it does not promise savings.