What is a broker of record for group health insurance? Many people are confused or suspicious of signing what is called a broker of record form to assign servicing privileges from one broker to another. This concern should not be the case and in fact this is a common transaction in the group health insurance business.
A broker of record (BOR) change is traditionally done when the original broker either no longer is actively servicing the account, the service the broker is providing is deemed unsatisfactory by the client, or if the broker is no longer in the insurance business. The BOR form assigns all servicing from the current broker to the new broker as of the following month after receipt by the insurance company. All commissions and service related work will now be entrusted to the new broker.
We have taken over many accounts this way when the current broker is either not doing their job, or when the client was not working with a broker in the first place. We usually tell the client to assign us as their broker and give it a few months to see how they like working with us. If they feel they are not getting the service they feel they are expecting, then they can assign the BOR to someone else at any time. We have yet to lose a client after taking over a Broker of Record!
A broker works for you to present to you all of the options available, and to help you narrow down your choices by asking probing questions about your company, your goals, and your needs. Having an independent broker on your side can save you thousands of dollars per year, and by law you do not pay more to use a broker than going it alone.
If you want to see how we work and give us the opportunity to service your new or existing group health insurance, give us a chance and call to set up a meeting.
or call 631-207-1800