An agent of record (AOR) is an individual or a legal entity with a duly executed contractual agreement with an
insurance policy
In insurance, the insurance policy is a contract (generally a standard form contract) between the insurer and the policyholder, which determines the claims which the insurer is legally required to pay. In exchange for an initial payment, known as ...
owner, in line with the prevailing legal norms and regulations of the region in which the contract was entered. The agent of record has a legal right to receive commissions from the respective insurance policy.
The individual or
legal entity
In law, a legal person is any person or 'thing' (less ambiguously, any legal entity) that can do the things a human person is usually able to do in law – such as enter into contracts, sue and be sued, own property, and so on. The reason for ...
is authorized to represent an insured party in purchasing, servicing, and maintaining insurance coverage with a designated insurer. The majority of insurance companies will not disclose information or discuss an insured party's account with an agent other than the agent of record. An insured party wishing to change
insurance agent
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...
(s) must submit a revised agent of record letter to the respective insurer authorizing said insurer to release the insured party's information and to discuss the insured party's coverage with the newly appointed agent.
Relevant documents may be executed via hard copy documents or, alternatively, electronically in jurisdictions where electronic execution is legal. Applications may be made electronically, as well as in physical form.
An agent of record letter can, in some cases, be used as an insurance sales tool, though some question its legality.
Agent of Record letters can lock in business accounts
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See also
*Insurance law Insurance law is the practice of law surrounding insurance, including insurance policies and claims. It can be broadly broken into three categories - regulation of the business of insurance; regulation of the content of insurance policies, especial ...
*Principle of legality The principle of legality in criminal law was developed in the eighteenth century by the Italian criminal lawyer Cesare Beccaria and holds that no one can only be convicted of a crime without a previously published legal text which clearly describe ...
References
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Insurance law
Legal doctrines and principles