Broker of Agent

[snowbird]

Once a policy has been processed on a BOR, does the original agent get hit for a claim that is reopened after the effective date of the BOR?

ie, a BOR is effective 12-10-2010, the policy is now with the new agent: In Feb 2011 , a formerly closed claim is reopened from 03-2009 for BI, which agent gets tagged with the loss result?

[Temblor]

In this case, if the claim happened before the eff. date of the aor, it goes to the former agent.

Most cos. charge everything to the former agent, premium changes and claims, until the first renewal after the aor.

NOTE!: The national brokers generally don't make any coverage changes until renewal (very dangerous for the insured) whereas, actually, the new agent should thoroughly review and update the program (with client's agreement) as of the date of the aor.

While any changes then become chargeable to the new agents E & O, it is , of course, in the best interests of the client. NOTE: Make sure client agrees with all changes, and with remaining program structure as well, this minimizes your E & O exposure.

It is in the best interests of the agent to wait until renewal (but that's not supposed to be how we work, is it?).

Whatever you do, make sure you thoroughly review and update (with client's agreement) on renewal, otherwise the old agent's mistakes become yours and go to your E & O and of course, any shortfalls in cov. or limits do severe harm to the client.

Finally, there isn't one hard and fast rule on how cos. handle mid-term AOR's. Some refuse to accept them until anniversary, some will accept the mid-term but all claims, changes incl. premium changes, get charged to old agent, some (but they are rare now) will accept mid-term but all changes and claims thereafter get charged to new agent.

[Liz Raifman]

Broker of Record.Sounds great! We have a new client with no marketing for the time being. The BOR letter asks that the policy and all the endorsements be forwarded to us THE NEW BROKER after the 10 day waiting period. -- I wish. When was the last time you received the current information from the company? Many companies now will not recognize us if not within 90 days of renewal. So here we are somewhere in the middle. The client has now assigned the policy to us and is under the impression we are in a position to handle it. Now they need a certificate or some other information and what am I to do -- tell them to call the "old" broker. The situation leaves us in limbo. Any thoughts????

[Duke]

Broker of Record.Sounds great! We have a new client with no marketing for the time being. The BOR letter asks that the policy and all the endorsements be forwarded to us THE NEW BROKER after the 10 day waiting period. -- I wish. When was the last time you received the current information from the company? Many companies now will not recognize us if not within 90 days of renewal. So here we are somewhere in the middle. The client has now assigned the policy to us and is under the impression we are in a position to handle it. Now they need a certificate or some other information and what am I to do -- tell them to call the "old" broker. The situation leaves us in limbo. Any thoughts????

If the company has not accepted your Broker of Record letter, then you are not in any position to represent your client with respect to that coverage and should tell the client so immediately. Yes, as far as the insurer is concerned, the "old" broker is the current broker. Come clean with your client now, before you get yourself into trouble.