What is a Broker of Record letter? How does it work?

A Broker of Record letter (sometimes referred to as a “BOR”) is a letter signed by a policyholder (or potential policyholder) appointing a new broker.  A BOR is typically addressed to one or more carriers or underwriting facilities.  The insurance carrier(s) receiving the BOR will typically give the incumbent broker a period of time (usually five business days) to have the letter rescinded, in case of a misunderstanding.