Introduction
An Insured has the exclusive right to select the Agent with whom they desire to transact business. An Agent of Record Letter, submitted to the insuring company, is evidence of this selection. Frankenmuth Mutual Insurance Company and its wholly owned subsidiaries; including but not limited to Ansur America Insurance Company or Patriot Insurance Company (hereinafter to be referred to as “The Company”) is willing to accept an Agent of Record Letter as evidence of this selection; subject however, to the following policies and procedures which are reasonable and necessary for the protection of all parties to the transaction, i.e., the Insured, the Agent and The Company. The Company reserves the right to make the final determination in Agent of Record situations.
Forms
Agent of Record Letters must be in the form of the sample letter (see pdf file at the end of this Bulletin), on the Insured’s letterhead or on an Acord Form #36 Agent/Broker of Record Change. The letter must be signed by the owner/proprietor, partner, President/CEO of a corporation. Final determination regarding acceptability of the Agent of Record Letter will be made by The Company. The Agent has the responsibility of explaining the significance of the Agent of Record Letter to the insured.
The following procedure is outlined for new and existing business, and multiple coverages.
New Business/Quotations
1. A policy underwritten through iBIS reserves the account and takes precedence over any other submission activity. The submission through iBIS must contain a valid FEIN or SSN. No other quotes will be provided to other agencies. (No telephone calls or reservation letters will be accepted.)
2. Agencies submitting a down payment (Agency Sweep, EFT, Credit card) with a completed iBIS application will be considered the Agent of Record for the insured.
3. If an agency has been previously furnished a quote prior to one accompanied by an Agent of Record Letter; the agency will be notified promptly that The Company has received an Agent of Record Letter.
a. The first agency has five (5) working days to procure a countermanding letter from the Insured in order for The Company to recognize that Agency and have the quote remain valid. Should no countermanding letter be received within five (5) working days, the agency submitting the Agent of Record Letter is then recognized and will be the recipient of the quote.
b. If a countermanding letter is received within five (5) working days, The Company will correspond; advising receipt of the countermanding letter and the policies will remain with the present agency. The Company will not accept any subsequent Agent of Record Letters under these circumstances.
4. All Agent of Record Letters must be submitted a minimum of ten (10) working days prior to the anticipated inception date of the policy (ies).
5. The Company will not allow “blockage” of its market. Agent of Record Letters will not be honored from Agents that misuse our market and the “first-in” procedure will not apply to those agents. Interpretation of this is left to the sole discretion of The Company.
Existing Business
Renewal
1. We will process the change effective on the renewal date if the Agent of Record Letter is received prior to actual issuance of the renewal policy and is accompanied by a fully underwritten IBIS submission with down payment (Agency Sweep, EFT, Credit Card). If the renewal policy has been issued to the current agency prior to an Agent of Record Letter:
a. The agency will be notified promptly that The Company has received an Agent of Record Letter. The agency has five (5) working days to procure a countermanding letter from the Insured in order for The Company to remain with the current agency.
b. The account will be re-written based on the renewal pricing and exposure considerations as provided to the current agent. No modification to Commission structure, Group Discount, Schedule Credits or Company Tier (Ansur, Frankenmuth, Patriot) will be accepted.
2. If the renewal policy has not been issued to the current agency prior to an Agent of Record Letter:
a. The agency will be notified promptly that The Company has received an Agent of Record Letter. The agency has five (5) working days to procure a countermanding letter from the Insured in order for The Company to remain with the current agency.
b. The renewal will be reviewed based on current renewal pricing and exposure considerations. Additions for improved coverage will be accepted. No modifications will be based on Commission Structure, Group Discount, or Company Tier (Ansur, Frankenmuth, Patriot).
Mid-Term
1. An agency may take over an account mid-term by submitting the following documentation:
a. An insured signed cancellation request and agent of record letter.
b. Completed and fully underwritten iBIS submission with down payment (Agency Sweep, EFT, Credit Card).
2. The account will be re-written based on the current premium unless improved coverages are requested. No modification to Commission structure, Group Discount, Schedule Credits or Company Tier (Ansur, Frankenmuth, Patriot) will be accepted.
Multiple Coverages
When an Insured has multiple coverages serviced by different Agencies, each agency is the Agent of Record for its portion of the Insured’s coverages. If the insured seeks renewal or new coverages, the above procedures apply.
Policy Information Prior to the Agent of Record
The Company is legally bound not to disclose any information or discuss an insured’s account with any agent other than the Agent of Record. An Agent of Record Letter gives the new agent rights to receive all future communication on behalf of the policy holder. Prior to the Agent of Record Letter being received and processed by the Company, non-proprietary information for an insured will only be provided to the named insured.
The Company will make every effort to make sure the above procedures are followed. If you have any questions, please contact your Field Manager or Underwriter.
SAMPLE – THIS LETTER SHOULD BE RETYPED ON COMPANY LETTERHEAD or SUPPLY ACORD FORM 36.pdf (193.79 kb)
