What is AOR ? Benefits of AOR

Quick Summary : In this article you will know
  • What is Aor Letter?
  • Benefits of Aor Letter.
  • Difference between Agent of record  & Broker of record

Table of Contents

What is Aor ?

Any individual or company that shows the insured person in the purchase, servicing, and insurance coverage maintenance with a designated insurer. Other than an agent of record, most insurance companies will not share any information or discuss an insured’s account with other agents. If the insured wishes to change, the insurance agents should submit a revised agent of record letter to the insurer, permitting them to release the insured’s information and discuss the insured’s coverage with the new agent.

The purpose of hiring the agent of record is that the company doesn’t have to do the work themselves of dealing with their insurance policies. This saves the time of policyholders. Insurance companies deal directly with the agent of record; they have the legal authority to act on behalf of the client. But those people who have not authorized agents of record for the initial insured party are not dealt with by the insurance companies.

An insured might change an agent of record through the official means, which most need the formal document submission that authorizes the information release and discussion about their insurance policies with the newly designated agent of record.

What is Aor Letter ?

An agent of record letter, also known as a broker of record letter or BOR letter, is a letter that tells the insurance carrier that a specific insurance broker is chosen to manage your insurance policies and manage your business insurance situation.

A business with the present insurance policies that wants to work with someone new on such policies or may need aid in finding new insurance coverage is done by an AOR letter. But not all insurance carriers deal with the broker of record letters the same way.
If and when you need to work with a new insurance broker, make a plan and develop a strategy to make the transition process as simple as possible for you and your business.

Benefits of AOR Letter

If you want to move your business insurance from one broker to another, this letter gives you control over which insurance broker you want to work with. When it comes to your insurance, don’t follow the path of mediocrity because you only have started your business with a specific broker. You must have many questions in your mind about if you are working with the best insurance broker at the moment. Not understanding the situation of your business can make the situation even worse.

There are subtle things that can take your business in the wrong direction, such as every price increase, every miscommunication with your broker about the next step, and every claim and renewal that is not handled correctly.

Only on two occasions will this letter be signed by you.

  1. When designating the agent to represent you during the quoting process.
  2. While staying in the same insurance company if you want to switch your insurance agents.

Agent of Record Vs Broker of Record

BOR stands for the broker of record, and AOR stands for the agent of record. The policyholder designates the broker of record as an agent to represent and manage the policyholder’s insurance policy. There should be a formal document stating that the broker of record begins to represent a client’s interest or manage the insurance policies on their behalf. This formal agreement must be between the broker of record, the policyholder, and the insurance company.

This letter is a formal agreement used legally to show an agreement and a relationship between the broker, policyholder, and insurance company. Sometimes the broker of record indicates that the existing agent is being replaced with a new agent by the policyholder. The broker of the letter is essential for the insurance companies because it helps to identify the agent representing the policyholder. Due to the sensitive roles of brokers in an insurance policy, this letter is also essential. Negotiations, claims, and the broker makes plan options for the clients.

A broker of record letter can be used for the following reasons:-

  1. To end the relationship between an existing agent and the policyholder.
  2. To take the ability from the broker or agent to make decisions on behalf of a client.
  3. For appointing a new broker to grant negotiation rights to a new broker.


It is a letter signed by a business owner to point out which agent they want to represent their business with one or more insurance companies.
An agent responsible for managing and representing the insurance policy of a policyholder that gets a monthly commission from an insurance company they work for. Two aspects of this job include a liaison role and communication.

Post Tags

Share This :