Platinum to Platinum Agent of Record (Internal BOR)

Platinum to Platinum Agent of Record ( Internal BOR ) 

Before an agent of record can take place the requesting (new) agent/agency is required to call the prior agency and discuss the reason for the agent of record change. The new agent must pay 1 year’s current term worth of commission to the prior agency. This amount is due before the agent of record can take place. Once the agent of record takes place the new agent is entitled to all new commission, as well as any charge backs. This includes all policy changes/ endorsements, rewrites, and cancellations. Note if the prior agency may waive all or part of the 1 year’s commission payment that the new agent is required to pay. This is at the sole discretion of the prior agent. Please see example below for an idea of how this works.

Customer John Doe has an Auto and Home policy with Travelers. The Auto 6-month auto premium is: $322.00 and has an effective date of 06/01/2020.  The Home 12-month premium is $725.00 and has an effective date of 12/01/2020. John Doe wants to switch his policies with you due to a disagreement or lack of service from his current agency. First you must call the current agency and inform them of what has happened. Second you need to get a signed agent of record and submit this to Platinum’s Corporate office. Platinum will then send the notice of agent of record to the prior agency and make sure the above requirements have been met and provide a 3 day waiting period that the current agency may resolve the issues and get a counter agent of record form signed. Once the 3 days are over the new agency owes the following amount to the prior agency. This can be paid directly or can go through Platinum Corporate. 

Auto: $322.00 *12% = $38.64 (This needs to be doubled because this is a 6-month policy) *2= $77.28

Home: 725*15%= $108.75

Total amount due: $186.03

Please remember that if this policy cancels you will be responsible for the charge back so this could potentially take up to almost 2 years to break even on an agent of record. Make sure you feel confident in your relationship with the client and the service you will be able to provide to them before making this switch. 

Platinum to Platinum Customer rewrite

This will be treated the same as you if you were writing to any of the clients. You are still required to gather all of the client’s information, issue the new policy, and send notice of cancellation over to the prior agency so they may handle the cancellation.