What you authorize when you sign the letter, why an insurer may require it, and what to understand before changing brokers.
The short answer
A Broker of Record Letter is a written instruction from the insured telling an insurance company that a specific broker is authorized to represent the account. In aviation insurance, insurers commonly use the letter to decide which broker may receive underwriting information, negotiate terms, or service the policy for that account.
The letter can change who controls access to an insurer, so it should never be treated as a routine form. Before signing, understand which insurers or policies it covers, when it becomes effective, and what work the new broker will perform.
A Broker of Record Letter is often shortened to BOR Letter. The exact effect depends on the wording, the insurer’s rules, and the policy status.
Why insurers recognize one broker
Aviation insurers often receive the same account from more than one broker. Without a clear rule, underwriters could spend time reviewing duplicate submissions, release inconsistent terms, or receive conflicting instructions from the insured..
Recognizing one broker creates a clear line of communication. The underwriter knows who is authorized to discuss the account, receive quotes, answer questions, and communicate the insured’s decisions.
This is also why using several brokers at the same time does not always produce more options. Multiple brokers may compete for access to the same limited group of aviation insurers. Market access should be discussed before submissions begin.
The first broker that receives your information and submits it to underwriting on your behalf is automatically considered your formal broker of record without you signing any documents or letters.
What the letter normally authorizes
A BOR Letter normally identifies the insured, the appointed broker, and the insurer, policy, or insurance placement involved. It may authorize the new broker to obtain underwriting information, receive quotations, negotiate coverage, or service an existing policy.
Some letters apply to one insurer. Others use broader language. Some take effect immediately, while an insurer may impose a waiting period or give the current broker time to obtain a rescinding letter.
Read the document itself. Do not rely only on a verbal description of what it is supposed to do.
What the letter does not automatically do
Signing a BOR Letter does not automatically bind a new policy. It does not guarantee that an insurer will quote, change terms, or appoint the new broker. It also does not automatically improve pricing or coverage.
A BOR Letter does not cancel the current policy. Cancellation requires separate instructions and must follow the policy terms and insurer procedures. Do not assume coverage has changed until written confirmation is received.
The letter also does not create access to an insurer that the new broker is not authorized to represent.
A BOR Letter on an active policy
A BOR Letter may also transfer service responsibility during an active policy period. The new broker may then assist with endorsements, certificates, billing questions, claims communication, and renewal preparation, depending on the insurer’s acceptance and the broker’s authority.
Changing the servicing broker does not rewrite the policy. The existing insurer, limits, exclusions, pilot requirements, and other terms remain in place unless the insurer issues a change.
Ask how open endorsements, premium balances, claims, and commissions will be handled. Those details can vary and should be understood before the transfer.
Questions to ask before signing
● Which insurer or policy does this letter apply to
● When will the insurer recognize the change
● Is there a waiting or rescission period
● Will any open quote, endorsement, claim, or billing matter be affected
When a BOR Letter should raise concern
Be cautious if someone asks you to sign a broad letter before explaining which insurers will be approached or why the change is needed. Also be cautious if the letter is presented as a harmless way to obtain a second opinion.
A legitimate broker should explain the effect of the document, identify the markets involved, and give you time to read it. You should not feel pressured to sign an incomplete form or a letter that names insurers you did not discuss.
The point
TA BOR Letter gives a broker meaningful authority to represent your account with an insurer. It is useful when you have made an informed decision to change representation.
The most important questions are simple: who will control the account, which markets are affected, when the change begins, and what the new broker will do. You should know those answers before you sign.
“Considering a change in broker representation? Ryan Aviation Insurance can explain which markets are involved, what a Broker of Record Letter will authorize, and what steps should be completed before any change is made.“
This article provides general educational information and is not a coverage determination or legal advice. Coverage varies by insurer, policy form, endorsements, aircraft, pilots, and operation. The issued policy and applicable endorsements control.
