Glossary · Insurance agency commissions
Agent of record (AOR)
The agent of record is the agency a carrier recognizes as handling a policy, and so the one it pays commission to. An insured can usually move a policy to another agency without changing carriers by signing an AOR or BOR letter.
What it means
Agent of record and broker of record are often used interchangeably, and usage varies by carrier and by region. In one Big “I” Virtual University Ask an Expert answer, an expert draws the line by pay: an AOR request when the agency takes commission, and a BOR when a broker works for a fee and takes no commission from the carrier.
An insured moves a policy with a letter and keeps the same carrier. A Big “I” Virtual University faculty answer in IA Magazine describes the AOR letter as “a document directed to the carrier” saying the insured wants the new agent to handle their business. Carriers differ on when they act on it; the same answer notes that more markets have refused to recognize AOR letters until 30 to 45 days before renewal. In the Ask an Expert answer above, one expert says AOR/BOR letters “should be temporary to give you time to rewrite the account with a signed application,” so a policy rewrite often follows.
How it shows on a commission statement
A change away from you shows up as an absence. The renewal line stops, while your AMS may still list the policy as yours. That is a legitimate end to renewal commission, so rule out a broker of record change before you call a renewal missing. A change in your favor works in reverse: commission appears only after the carrier records the change. Carriers differ on the timing, and on whether the change applies to the current term or only from the next renewal.
Example
- Renewal due, per your AMS
- September 1
- Expected renewal commission, $1,900.00 at 12%
- $228.00
- Renewal line on the September statement
- None
- Carrier’s record: BOR letter for another agency
- Received July 18
- Renewal commission owed to you
- $0.00
Without that letter on the carrier’s record, the same blank line would be a missing renewal worth raising. On the statement the two cases look identical; only the carrier’s policy record tells them apart.
Common mistakes to check
- Raising a missing renewal on a policy that left by BOR letter.
- Leaving a lost policy in force in the AMS, so it comes up as missing again next year.
- On a change in your favor, expecting commission before the carrier has recorded it, or on the current term when the carrier moves only the next one.
Sources
- IA Magazine, Should a Disclaimer Be Added to an AOR Letter?, by Big “I” Virtual University faculty, August 16, 2024. Retrieved October 7, 2026.
- Big “I” Virtual University, Should We Obtain Signed Applications from Our New Insureds We Obtain Via Broker of Record?, Ask an Expert answer, February 4, 2026. Retrieved October 7, 2026.
Lapidar is commission reconciliation software for independent insurance agencies, in development. Related: how to spot missing renewal commissions.