Glossary · Insurance agency commissions
Broker of record letter (BOR letter)
A broker of record letter, or BOR letter, is a signed request from the insured asking the carrier to recognize a new agency or broker on an existing policy, without changing the carrier or the policy. Once the carrier accepts it, commission on the policy goes to the new broker of record, from a date the carrier sets.
What it means
The letter is how an insured changes agencies mid-stream. 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. The same answer notes that more markets have refused to recognize AOR letters until 30 to 45 days before renewal.
How it works: the new agency drafts the letter on the insured’s letterhead or the carrier’s form, the insured signs it, and the new agency sends it to the carrier. The carrier records the change, usually tells the current agency, and from its chosen date pays commission to the new agent of record. Carriers differ on whether that date falls in the current term or only at renewal. In a Big “I” Virtual University Ask an Expert answer, 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.
BOR and AOR letters are the same document under two names for most carriers. Where a distinction is drawn, the same Ask an Expert answer ties AOR to an agency paid commission and BOR to a broker paid a fee by the client.
How it shows on a commission statement
A BOR letter never appears on a commission statement. Its effect does: for the agency losing the policy, the renewal line stops; for the agency gaining it, a line appears only after the carrier records the change. In both cases the statement alone looks like an error, so keep the letter, the date the carrier received it and the effective date the carrier gave.
Example
- Policy term
- Jan 1 to Jan 1
- BOR letter received by carrier
- Apr 10
- Carrier’s effective date for the change
- Next renewal
- Commission on the current term
- Old agency
- First renewal commission to the new agency
- Jan 1
Commonly confused
- BOR letter vs agent of record. The letter is the request; the agent of record is the status the carrier records once it accepts it.
- BOR letter vs rewrite. The letter moves the existing policy to a new agency. A rewrite replaces it with a new policy, often after the letter.
- BOR letter vs appointment. The new agency needs an appointment with the carrier first; a letter cannot move a policy to an agency the carrier has not appointed.
Common mistakes to check
- Expecting commission from the letter’s date rather than the carrier’s effective date.
- Raising a missing renewal on a policy that left by BOR letter.
- Leaving a policy lost by letter in force in the agency management system.
- Sending a letter to a carrier that has not appointed the new agency.
Questions
What is a BOR letter in insurance?
A broker of record letter: a signed request from the insured asking the carrier to recognize a new agency or broker on an existing policy, without changing carrier or coverage.
What is the difference between AOR and BOR?
Most carriers use the terms interchangeably. Where a distinction is drawn, an agent of record (AOR) is paid commission by the carrier, while a broker of record (BOR) may be paid a fee by the client.
When does a broker of record letter take effect?
When the carrier says so. Some carriers move the current term, others only the next renewal, and some markets won’t accept a letter until 30 to 45 days before renewal, as the IA Magazine answer cited below notes.
Does the old agency keep commission after a BOR change?
Usually on the part of the term before the carrier’s effective date for the change, not after it. The carrier’s rules and your agency agreement set the details.
Sources
- IA Magazine, Should a Disclaimer Be Added to an AOR Letter?, by Big “I” Virtual University faculty, August 16, 2024. Retrieved October 13, 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 13, 2026.
Lapidar is commission reconciliation software for independent insurance agencies, in its founding pilot. Related: agent of record.