Agents:  Frequently Asked Questions...

An independent agent doesn’t work for any single insurance company. They represent multiple companies and have the ability to "shop" among the carriers they represent to find you the best coverage and services fit for your operations.

Agents of a direct writer are not independent; they are employees of the insurance company. They only have the products and services of the individual carrier that they are employed by. While that is not necessarily a bad thing, it can be very limiting if you don't fit into their specific underwriting criteria or have a problem with the carrier.

The "Agent of Record" is the individual or company authorized to represent an insured in the purchase, servicing, and maintenance of insurance coverage with an insurance carrier.

If an insured desires for a new agent to act as their representative, they have to execute an "Agent of Record" letter to have that new agent to be recognized by the carrier.

For a little more down to earth explanation...

The purpose behind an Agent of Record letter is sound. It allows the insured, (the customer), to appoint the agent that they want to represent them with a carrier. That is exactly the way it should be. An insured should always be able to choose which agent that they desire to represent them.

As you can imagine, agents put a lot of time and effort into designing and negotiating the best program for their customers and their prospects, which they hope will turn into customers. As a result of these efforts, agents hope and expect that if the insured chooses to go with the carrier/program that they have presented, they will be the agent that is allowed to bind the coverage with the carrier and receive the compensation for their efforts. If the agent that initially submitted the account to the carrier is able to bind the coverage for the insured, there is no need for an Agent of Record letter as they were the submitting agent. However, here is where it can get a little more complicated or confusing.

If after the account is submitted, negotiated and approved by the carrier, another agent steps in and asks for an Agent of Record prior to binding and it is signed by the customer, then that new agent will be the agent to represent the insured and will get the credit for the account. That means that the agent that submitted the account will not get paid for their efforts.

Note: WCA makes it a practice not to ask for Agent of Record letters. We believe that the agent that found the market, negotiated the program and gained the approval for the program deserves the credit for their efforts.

No, they cannot. While there are fees that insurance agents can charge under statute, charging for certificates of insurance is not one of them. It is a violation of subparagraph 626.9541(1)(o), F.S., which is illegal dealings in premium, excess or reduced charges.