Allows the client to change their broker with a simple letter to the insurance company.
With no charges to the client, the agent of record letter (written to the underwriter) is a device which ensures that accounts are maintained by the insurance broker and gives the client the ability to switch services. Once the letter is received there is a waiting period; to make sure it is something that the client wants to do, and then the client is committed to the new broker.
Agent of record letters have been used in situations where:
The broker continuously requests you sign the same policy with no explanation of developments in the market
Creative compromises are not developed to ensure that the insurance company endures the largest possible risk at the lowest possible premium.