Broker of Record Letter

A broker of record letter is a short signed letter from an employer telling an insurance carrier which broker now represents its plan. It changes who services and is paid on your existing policy. It does not change your plan, your rates, your carrier or your renewal date, and the letter itself does not cost you anything. Most are one page, and carriers usually process them within a couple of weeks.

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What it does and does not do

A broker of record letter does	A broker of record letter does not
Name your new broker on the policy with the carrier	Change your plan, network or benefits
Move servicing rights and commissions to that broker	Change your premium or your renewal date
Get processed quickly, often within 7 to 10 business days, with the change commonly effective on the 1st of a month	Change carriers or cancel coverage
Apply per carrier, so one letter per carrier	Require you to notify or negotiate with your current broker
Cost you nothing	Create any new charge to your company

That last row on the left is the part most employers do not realize. Your current broker is already being paid, in most cases through commissions built into the premium you pay today. A broker of record letter moves that existing compensation. The letter itself does not add anything to your cost. What a broker is paid does vary by broker and arrangement, and federal law requires a broker to an ERISA group health plan to disclose that compensation to you in writing. The Department of Labor's guidance on that rule covers broker of record changes specifically.

What is actually in the letter

Carriers accept a simple format. Nearly all of them want:

Your company name, exactly as it appears on the policy, and the group or policy number
The carrier's name
The new broker's name, agency and producer identification
A requested effective date (many carriers set the actual date themselves, often the 1st of a month)
A statement that this replaces any prior broker of record
Signature of an authorized officer of the company, on company letterhead

Some carriers use their own form instead, and some accept the standard ACORD format. A broker who works with that carrier will know which.

Free broker of record letter template

A plain, carrier ready template in Word and PDF. No obligation attached to it, and you can send it naming any broker you like.

When sending one makes sense, and when it does not

It usually makes sense when

Your renewal arrived as a single number with no market comparison behind it
You asked for your claims experience and did not get a straight answer
You have not been shown alternative funding, such as level funded, in several years
Service has degraded: enrollment problems, billing errors, slow claims help for your team
You have never been shown what the PEO market would price your group at, or you are on a PEO and have never seen the open market

Wait, or think harder, when

You are inside 30 days of renewal. Some carriers restrict changes close to renewal, and even when they accept one it may not be effective until the 1st of a later month, so there may not be time to use it. Better to let the renewal pass and move immediately after.
You are mid marketing. If your current broker already has quotes in underwriting, changing now can reset that work.
The relationship is fixable. A broker who was never asked to market the renewal is a different problem from a broker who was asked and did not.

The timing question most employers get wrong

Carriers start work on renewals months ahead, and letters often reach employers 60 to 90 days out (in the small group market, federal rules require at least 60 days' notice). Employers usually start thinking about changing brokers when the renewal letter lands, which is already late. If you want a genuinely different result, the change needs to happen before your renewal is released, not after.

For a January 1 plan year, that means moving in the summer or early autumn, before the renewal letter arrives.

What should happen after you send one

A change of broker is only worth anything if the new broker does work the old one did not. Reasonable expectations in the first two weeks:

Your claims experience requested from the carrier, in writing
Your current plan documents, rates and contribution structure collected
A census assembled and cleaned
A marketing plan naming which carriers, which funding structures, and whether the PEO market is worth running in parallel
A date by which you will see options, not a promise to be in touch

Frequently asked questions

What is a broker of record letter?

A broker of record letter is a signed letter from an employer to an insurance carrier naming the broker authorized to service its policy and receive commissions on it. It transfers the broker relationship without changing the plan, the rates or the carrier.

Does a broker of record letter cost anything?

No, the letter itself carries no fee. In most cases broker commissions are already built into the premium you pay, and the letter moves who receives that existing compensation. It does not add a new charge. What a broker is paid varies by broker and arrangement, and a broker to an ERISA group health plan must disclose that compensation to you in writing.

How long does a broker of record letter take?

Carriers that publish a timeframe commonly quote 7 to 10 business days, and many make the change effective on the 1st of a month. Whether there is a waiting period, during which the prior broker may contact you, varies by carrier.

Do I have to tell my current broker?

You are not required to. The carrier usually notifies them. Many employers choose to tell them anyway, and some carriers permit the prior broker to contact you during any waiting period.

Can I send a broker of record letter at any time?

Generally yes, though some carriers restrict changes very close to renewal. If you are within 30 days of your renewal date, ask before sending.

Does it change my plan or my rates?

No. Your plan, network, rates and renewal date all stay exactly as they are. Only the broker of record changes.

Do I need a separate letter for each carrier?

Yes. A broker of record letter applies to one carrier, and to the lines of coverage you name in it, so a company with medical, dental and life with three carriers needs three letters.

Can I change back?

Yes. The employer controls the broker of record and can change it again, subject to the same carrier timing rules.

Before you sign one, get a second opinion on the renewal itself

Whether or not you change brokers, you should know where your renewal sits against the market. Send us the renewal letter and a census.

Get my renewal reviewed

Sources

Broker compensation disclosure on group health plans: ERISA section 408(b)(2)(B), 29 U.S.C. 1108(b)(2)(B), added by the Consolidated Appropriations Act, 2021 and widened on February 3, 2026 by Public Law 119-75, section 6702(c), which replaced "brokerage services" with "services (including brokerage services)"
How that rule applies to broker of record changes: U.S. Department of Labor, Field Assistance Bulletin 2021-03, Q6
Processing time of 7 to 10 business days: Blue Shield of California, broker of record change FAQ
Processing time, letter contents and 1st of the month effective dates: Kaiser Permanente (California), broker of record information
Effective date set by the carrier: Kaiser Permanente (Mid-Atlantic), broker of record change
A carrier's own form, covering several lines of coverage at once: Anthem Blue Cross and Blue Shield (Virginia), Agent/Broker of Record Change Form
Small group renewal notice of at least 60 days: 45 CFR 147.106(f)(2)