ACORD 36 Agent of Record Form – Fillable PDF Download
Agent/Broker of Record Change
ACORD 36 helps businesses and individuals update their insurance representation by assigning a new agent or broker with full servicing authority.
Form Type: Agency Change / BOR Letter
Edition: 2007/01
Category: Agency Management
Known As: BOR Letter
Download ACORD 36 Form
Free fillable PDF – Current edition
What is ACORD 36 Agent/Broker of Record Change?
ACORD 36 is the standardized Broker of Record (BOR) letter or Agent of Record letter used to formally transfer insurance representation from one insurance agent or broker to another. When a policyholder signs this form, they are authorizing a new insurance producer to become their exclusive representative for specified insurance policies, replacing their current agent or broker.
The agent of record change form serves as legal authorization directing insurance carriers to recognize the new agent/broker as the official representative entitled to commissions, policy servicing rights, and client communication. Once the BOR letter is processed, all future commissions on the listed policies transfer to the new agent, and the carrier redirects all correspondence and certificates to the new agency.
Approximately 2-3 million broker of record letters are processed annually in the United States. Each completed form represents a significant business transaction in the insurance industry, as it can transfer thousands to hundreds of thousands of dollars in annual commissions from one agency to another. For commercial accounts, a single transfer might move $50,000+ in annual commission revenue.
Why the BOR Letter Standard Exists
Before standardization, changing insurance agents required writing custom broker of record letters with no consistent format. This created problems:
- Unclear Authority: Carriers questioned validity of handwritten BOR letters
- Processing Delays: Each carrier required different information for agent changes
- Commission Disputes: Ambiguous language led to fights over who gets paid
- Legal Challenges: Non-standard BOR letters more easily contested in court
- Documentation Gaps: Missing policy numbers or effective dates caused confusion
The standardized broker of record letter solved these issues by creating a universally accepted format that all carriers recognize and process consistently.
Key Terminology: Agent vs Broker of Record
🏢 Agent of Record (AOR)
Definition: Insurance producer who represents the insurance carrier and has binding authority to write policies on behalf of that carrier.
Relationship: Agent works for the insurance company, represents carrier’s interests.
Authority: Can bind coverage immediately, issue policies directly.
Use When: When changing agents who work directly for carriers (captive agents).
🤝 Broker of Record (BOR)
Definition: Insurance producer who represents the policyholder’s interests and places business with multiple carriers.
Relationship: Broker works for the client, shops multiple carriers for best coverage.
Authority: Does not bind coverage directly, submits applications to carriers for approval.
Use When: When changing independent brokers (most common commercial insurance scenario).
⚠️ Important: ACORD 36 is “Exclusive” Representation
The form contains critical language: “as our exclusive representative” and “This authorization replaces any other authorization that may have been previously completed for any other insurance representative.”
What This Means: When you sign the BOR letter, you’re firing your current agent and hiring the new agent as your ONLY representative for the listed policies. You cannot have two agents on the same policy. This is a zero-sum transaction – new agent gains 100% of commissions, old agent loses 100% of commissions.
What the Form Accomplishes
💰 Commission Transfer
The document directs insurance carrier to pay all future commissions (and sometimes renewal commissions) to the new agent instead of the previous agent. This includes initial commissions and all subsequent renewals.
📋 Servicing Rights Transfer
It grants new agent the right to service the policies – process endorsements, handle claims assistance, issue certificates, make coverage changes.
📬 Communication Redirection
After processing, carrier sends all policy documents, renewal notices, invoices, and correspondence to new agent rather than old agent.
🔐 Access Rights
The transfer authorizes new agent to access policy information, request changes, and communicate with carrier on policyholder’s behalf. Old agent loses access.
✍️ Binding Authority Transfer
For agents with binding authority, the change transfers that authority to new agent (subject to carrier approval and appointment status).
📊 Reporting Relationship
It establishes new agent as the producer of record in carrier’s system, affecting how policies appear in agency management systems and commission reports.
What the Form Does NOT Do
Understanding limitations prevents misunderstandings:
- Does NOT Change Coverage: Only changes WHO represents you, not WHAT insurance you have. Coverage, limits, deductibles remain exactly the same.
- Does NOT Cancel Policies: Not a cancellation form. Policies continue in force, just under new agent.
- Does NOT Guarantee Better Service: Transfers representation but doesn’t ensure the new agent provides superior service.
- Does NOT Change Premium: Doesn’t affect what you pay for insurance. Premium stays the same regardless of agent change.
- Does NOT Automatically Transfer Agency Ownership: If you have a loss history file or claims data with old agency, it doesn’t automatically transfer those records.
- Does NOT Affect Past Commissions: Only transfers FUTURE commissions. Old agent typically keeps commissions already earned before the effective date.
The Commission Transfer Mechanism
Understanding how the change affects commissions helps clarify the financial stakes:
Before Transfer:
- Old Agent receives: 15% commission on $10,000 annual premium = $1,500/year
- At renewal: Old Agent receives another $1,500
- Over 5 years: Old Agent earns $7,500 total from this account
After Processing:
- New Agent receives: 15% commission on $10,000 annual premium = $1,500/year
- At renewal: New Agent receives $1,500 (old agent gets $0)
- Over 5 years: New Agent earns $7,500, Old Agent earns $0 from renewals
This is why BOR letters are heavily scrutinized and sometimes contested by the losing agent.
When You Need the Agent Of Record Acord Form
The agent of record change form is required in specific situations when policyholders want to change their insurance representation.
Common Reasons for Filing
😞 Dissatisfied with Current Agent Service
Poor service quality drives most broker of record changes:
- Agent doesn’t return phone calls or emails promptly
- Certificates issued incorrectly or with long delays
- Agent doesn’t proactively review coverage at renewal
- Claims assistance inadequate or non-existent
- No strategic insurance planning or risk management advice
- Agent changed jobs and new servicing agent unknown to client
💰 Better Pricing Found
New agent/broker found significantly lower premium by:
- Shopping more markets than current agent
- Finding carrier programs current agent couldn’t access
- Identifying discounts current agent missed
- Better understanding of client’s industry leading to lower rates
- Access to wholesale markets current agent doesn’t use
🏢 Business Acquisition or Merger
Company purchased or merged, new ownership has existing broker relationship:
- Acquired company wants to consolidate insurance with acquirer’s broker
- Merged entities combining insurance programs
- Private equity acquisition requiring their designated broker
- Parent company mandating use of corporate broker
🎯 Specialization Needed
Current agent lacks expertise in your industry or coverage needs:
- Construction firm needs broker specializing in contractors insurance
- Medical practice needs healthcare insurance specialist
- Manufacturer needs product liability expert
- Tech startup needs cyber insurance specialist
- Transportation company needs trucking insurance expert
🤝 Personal/Professional Relationship
Want to work with specific agent due to:
- Long-standing personal relationship and trust
- Friend/family member recently became insurance agent
- Previous agent moved to new agency and you want to follow
- Referral from trusted advisor (attorney, CPA, banker)
- Existing relationship for personal lines, now want commercial lines too
📍 Geographic Relocation
Business or operations moved to new location:
- Relocated to different state, want local broker
- Expanded to multiple states, need multi-state broker
- Current agent doesn’t have offices in new location
- Need agent familiar with local market conditions
When ACORD 36 is NOT Appropriate
Situations where agent of record change is not the right solution:
- Just Shopping Rates: If you just want quotes, don’t sign yet. Once signed, you’ve committed to new agent even if rates don’t improve.
- Policy Already Cancelled: If policy is already cancelled, there’s no need for the form. Just buy new policy with new agent.
- Policy Expiring Soon: If policy expires in 30 days, often easier to let it expire and buy new policy rather than file the change.
- Minor Service Issue: If problem is one delayed certificate, try resolving with current agent before filing.
- Agent Already Changed at Renewal: If carrier already processed agent change at renewal without the form, it’s unnecessary.
How ACORD 36 Agent of Record Changes Work
Understanding the complete process from start to finish helps policyholders and agents navigate changes smoothly.
Step 1: Client Decides to Change Agents (Day 0)
Policyholder determines current agent is not meeting needs. Contacts new agent/broker to explore working together. New agent proposes value proposition: better service, better pricing, specialized expertise, etc.
Step 2: New Agent Prepares the Form (Day 1-3)
New agent completes the document with:
- New agency information (name, address, contact)
- Client’s current policy information (policy numbers, carriers, expiration dates)
- Current agent information
- Requested effective date for agent change
Requested effective date for agent change
Step 3: Client Signs (Day 3-7)
Authorized representative of policyholder signs the broker of record letter. By signing, client authorizes new agent as exclusive representative and terminates relationship with current agent.
⚠️ Point of No Return: Signing ACORD 36 is legally binding. Once carriers process it, you cannot easily reverse the agent change.
Step 4: Submitted to Carriers (Day 7-10)
New agent submits signed form to all insurance carriers listed. Methods:
- Email submission to carrier’s agent of record change department
- Upload to carrier’s agent portal
- Fax (less common now)
- Certified mail (for documentation)
Step 5: Carrier Validates (Day 10-15)
Insurance carrier reviews the submission for:
- Valid Signature: Is signer an authorized representative?
- Policy Match: Do policy numbers and insured names match carrier records?
- New Agent Appointment: Is new agent appointed with this carrier? (If not, carrier rejects)
- Completeness: Are all required fields filled out?
- Conflicts: Are there any holds or disputes on the account?
Step 6: Old Agent Notified (Day 15-20)
Carrier notifies current agent that the change request has been received. This is typically when old agent learns they’re losing the account. Old agent may:
- Accept: Acknowledge the change and move on
- Contest: Challenge claiming signature issues, client misunderstanding, or other problems
- Negotiate: Contact client to win them back or negotiate commission split
Step 7: Commission Transfer Effective (Next Commission Date)
At next commission payment date (typically monthly), carrier pays commission to new agent instead of old agent. For renewals, commission typically transfers based on the effective date.
Step 8: Policy Servicing Begins Under New Agent (Ongoing)
New agent now handles all policy servicing:
- Issues certificates as needed
- Processes endorsements and changes
- Handles renewal negotiations and marketing
- Provides claims assistance
- Delivers risk management services
What Happens to Old Agent’s Commissions?
Commission treatment after the change varies by carrier and timing:
|
Scenario |
Old Agent Commission |
New Agent Commission |
|---|---|---|
|
ACORD 36 effective mid-term |
Keeps commission for current policy term |
Receives commission starting at renewal |
|
ACORD 36 effective at renewal |
Receives no renewal commission |
Receives full renewal commission |
|
Policy cancelled and rewritten |
May owe back unearned commission on cancelled policy |
Receives full commission on new policy |
|
Negotiated split |
Receives agreed percentage (rare) |
Receives balance of commission |
Switch Your Broker in Minutes
Get the official ACORD 36 form and change your insurance representation without delays.
Frequently Asked Questions
Can I reverse ACORD 36 after signing?
Difficult once carriers process it. If you change your mind within 1-2 days, contact new agent immediately to withdraw submission. After carrier processing (20-30 days), reversal requires new form back to original agent, which they may refuse.
Does ACORD 36 change my insurance coverage?
NO. Only changes WHO represents you, not WHAT coverage you have. Policies, limits, deductibles, exclusions all stay exactly the same. Only the agent changes.
Do I need one per policy?
You need one per carrier. If you have 5 policies with State Farm, one form covers all 5. If you have policies with State Farm AND Hartford, you need separate forms for each carrier.
What if my old agent refuses to cooperate?
Old agent cooperation is not required. You sign, new agent submits to carrier, and carrier processes it. Old agent gets notified but cannot stop a legitimate change.
Can old agent keep some commission?
Only if you negotiate that specifically. Standard transfer = 100% of future commissions to new agent. Some agents negotiate commission splits for first year, but this is rare and must be agreed in writing.
Does agent of record acord form affect my claims history?
No. Claims history stays with you and the carrier records, not with the agent. New agent will have access to your claims history once the change is processed.
What happens if I have a claim during agent transition?
Your coverage continues uninterrupted. Either agent can assist with claims. If ACORD 36 is in process, old agent typically helps until officially processed, then new agent takes over.