How To Win Broker of Record Nearly 100% of The Time

Learn how to win BORs and Consulting Agreements nearly 100% of the time by providing insights and massive value!

Now more than ever, employers need their benefit consultant.

Fully insured renewals will likely be increasing by double-digits.

Many consultants will survive and thrive in these challenging times by having the optics and solutions to help employers best navigate healthcare purchasing decisions.

Learn how to win BORs and Consulting Agreements nearly 100% of the time by providing insights and massive value!

Enlighten Analytics provides the optics consultants need to help employers …

better negotiate their fully insured renewal

consider alternative funded health plans (self-funded health plans)

Enlighten Analytics is a proprietary technology which provides precise medical and rx data for fully insured health plans.

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All the best!

Gary C. Becker, CEO

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INSURANCE BROKER OF RECORD

In insurance, a broker of record is an agent designated by the policyholder to represent and manage a policyholder’s insurance policy. A broker of record may receive copies of all communications to the policyholder and may receive all quotes, policies, and notices on behalf of the policyholder. They may also obtain and evaluate insurance quotes and policies and recommend changes to existing policies.

Breaking Down Broker Of Record

A broker of record can help an individual or company with, for example, handling the health insurance policies of its employees. In return, the broker of record may earn a monthly commission from the health insurance company.

Broker of Record Letters

A broker of record letter is used to legally establish the relationship between broker, policyholder, and insurance company. Such a letter can be used to designate a broker of record for the first time or to replace an existing broker of record with a new one.

Insurance companies require broker of record letters to identify whom the policyholder has selected to act on their behalf to communicate with the insurance carrier for negotiating rates, plan options, claim assistance, etc. In return, the broker of record generally receives commissions from the insurance company. A broker of record letter should include specific information, including the name of the group plan and the selected broker, effective date of the broker designation, and terms in which the broker of record designation can be terminated. Policyholders can also include specific directives regarding communication with the plan and other agencies/brokers.

In summary, a broker of record letter can accomplish the following:

  • Terminates the relationship between policyholder and broker.
  • Suspends the current broker’s ability to negotiate on the policyholder’s behalf with the insurance company.
  • Makes official the appointment of a new broker, giving that broker the sole authority to negotiate with an insurance company.
  • Grants access to underwriting information or proposals currently under consideration.
  • Allows for a transition period from one broker to another, expressed in number of days, to allow full disclosure of the letter to all relevant parties. This should allow the former broker a chance to review the implications of the letter with the employer and its desire to change brokers.
Broker of Record Letter vs. Letter of Authorization

A letter of authorization is neither as comprehensive nor as powerful as a broker of record letter. It gives the broker the authority to obtain information on insurance contracts, rates, rating schedules surveys, reserves, retentions, policies, certificates, and other financial data. Such a letter may be written to be very specific, such as naming the insurance company from which the broker may obtain information. However, a letter of authorization usually won’t include authority to negotiate on behalf of a policyholder.

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