What Exactly Is a BOR in Insurance?
Emma MarroneIntroduction
When it comes to insurance, there are many terms and acronyms that can be confusing. One such term is "BOR," which stands for "Broker of Record." In this article, we will explore what a BOR is in insurance and its significance.
What is a BOR?
A BOR is essentially a document that allows a new insurance broker to take over an existing policy from another broker. It is a legal agreement between the policyholder and the new broker, which gives the new broker the authority to act on behalf of the policyholder and manage their insurance policies.
Why is a BOR important?
A BOR is significant because it enables the policyholder to change brokers without having to cancel their policy and start over again. This is particularly useful when a policyholder is dissatisfied with their current broker's services and wants to switch to a new one. It also allows the policyholder to maintain their existing coverage and avoid any gaps in insurance.
How does a BOR work?
To initiate a BOR, the policyholder must sign aBroker of Recordletter, which is a legal document that authorizes the new broker to act on their behalf. The new broker then contacts the insurance company and requests to become the policyholder's new broker. The insurance company will review the request and, if approved, will transfer the policy to the new broker.
What are the benefits of a BOR?
A BOR provides several benefits, including the ability to change brokers without disrupting coverage, access to a wider range of insurance products, and the potential forcost savings. By working with a new broker, policyholders may be able to find better coverage options and lower premiums, which can save them money in the long run.
Conclusion
In summary, a BOR is a legal document that allows a new broker to take over an existing insurance policy from another broker. It is a valuable tool for policyholders who want to switch brokers without disrupting their coverage or starting over again. When considering a BOR, it is essential to work with a reputable broker who can provide the best coverage options and advice. By doing so, policyholders can ensure that they are getting the most out of their insurance policies and protecting themselves and their families from unforeseen events.
Article review