5. What is a Broker of Record Letter, and how does it work? Each time an underwriter offers a quote, he or she is relying on a substantial amount of information about you, your flying experience, the airport you will be flying out of, the type of operations you will be conducting, and so forth. Change some of the information, and the quote changes. As a result, underwriters will only offer a quote to the first broker who comes to them. The company assumes that broker is acting as your designated representative, or the "broker of record." If later, you wants to change brokers, this can be done with a letter called a broker of record letter. A broker of record letter will: Allow the broker that you designate to approach all of the companies to obtain quotes that have been released, and to act as your broker negotiating and binding coverage; Terminate the ability of any other broker, including your current broker, to do the same; Provide a 5-day wait after it is presented to the underwriters. They will then call the first agent, who may call you to confirm that you wish to change agents. A broker of record will not: Allow the new broker to get you better pricing, or cause an underwriter to offer a quote if they have already declined to another broker, unless there is a substantial difference between the information presented by the first and second brokers. Be sure that you understand what the letter means before you sign it. Our recommendation is that you pick one good broker with access to all of the companies to represent you. Call around and talk to a few who have been recommended by friends. Decide who you think will do the best job for you. A good aviation insurance specialist will get you quotes from as many underwriters as possible every year, will explain the differences, and make a recommendation. Sending 2 or more brokers into the market at the same time will sometimes cause companies to lose interest and decline to offer a quote to anyone.   © 1999-2006 Sutton James, Inc. All rights reserved.