Agency Transfer

Agency transfers, also known as Agent of Record Changes (AORs) or Broker of Record Changes (BORs), occur between two agencies that write insurance for the same WYO carrier. All other policy information does not change, such as the policy number or the policyholder names. The best time for this to occur is when the policy renews, but several options exist as explained below.

What is the process?

The NFIP requires that the insured must sign a request to change the agent of record and submit it to the insurer.

B. Signatures

A signature is required for all endorsements. The policyholder must sign the General Change Endorsement Form or similar document when there is a request to reduce policy limits, increase the deductible, assign the policy, or change the agent of record. [1]

Use Equinox to submit an Agency Transfer.

Submit Change to Agent of Record

Agency Change Form

There is no specific document required to change the Agent or Agency, but an Acord Form 36 is commonly used.

Click here for a fillable version of Acord Form 36.

Timeframe for Agency Transfers

Time Frame	Details	Commissions
Renewal	The best time to change the AOR. This should be set up prior to the first billing, but can happen any time before the policy renews.	Paid to the Agency at the time of renewal
Mid-term	Uncommon and to be avoided, but still allowed with carrier authorization.	Nothing adjusted
Correction	Very rare, only used due to administrative errors and authorized by the carrier.	May be paid to the correct agency
Internal	Changing the Agent of Record within an Agency	Nothing adjusted

Renewal

The most common way to transfer a policy from one agent or agency to another is at renewal. The best practice is to have the policyholder sign a request (such as the Acord form shown above) and submit it before the first bill is sent. When the NFIP renewal bill is created, the new agency will be shown on the notice. A letter will be mailed to the prior agency stating that the policy has been moved to a new agency. After the agency transfer is processed, the prior agency will not have access to the renewal term.

Agency Transfer requests can be submitted between the first renewal bill and the issuance of the renewal term; however, in order for the new agency to be assigned to the policy, commissions must not yet be paid.

If the renewal premium was received and commissions have already been paid, then the agency transfer must be scheduled for the following term or be processed mid-term. Commissions are paid in one of two ways:

• Codified: Paid on the effective date of the policy
• Non-codified: Paid on the policy issuance (processing) date

Mid-term Agency Transfers

An agency change in the middle of the policy term is possible, but it does not pay any premium to the new agency. This must also be allowed by the WYO carrier, as any policy transactions that result in refunds (such as coverage reductions or cancellations) will be charged back to the Agent of Record.

A letter is sent to the prior agency and another letter is sent to the new agency.

Correction Transfer

This rare type of agency change may also happen due to an administrative error. If an AOR change request was not processed as expected and then later discovered, then a correction transfer may be used to fix the Agent of Record. In these cases, the WYO carrier must authorize the correction, as the commission was paid to the wrong agency and must be returned.

Internal Transfer

These changes are applied within an agency and simply replace one agent name with another, such as in the case of termination or retirement. Nothing from the insured is required; a request from the agency is all that is needed.

NFIP Protocols

Due to the manner in which NFIP policies are issued and managed, specific protocols must be followed when policies are being transferred between agencies or agents. Failure to understand and follow these protocols may cause unnecessary work and cost when managing your NFIP policies.

Policy Assignment

An agency transfer is different than transferring policies between policyholders, which is known as policy assignment. The tables below compare Policy Assignment only for the purpose of differentiation.

1. Policy Assignment		2. Policy Transfer		3. Rollover		4. Agency Transfer
Current	Any Change?	Current	Any Change?	Current	Any Change?	Current	Any Change?
Policy	Same	Policy	New	Policy	New	Policy	Same
Carrier	Same	Carrier	New	Carrier	New	Carrier	Same
Agent	Same	Agent	New	Agent	Same	Agent	New
Insured	New	Insured	Same	Insured	Same	Insured	Same
1. Policy Assignment		2. Policy Transfer		3. Rollover		4. Agency Transfer
When	Mid-term	When	RENEWAL	When	RENEWAL	When	See above

Policy Assignment

The NFIP allows policies to be assigned from the current policyholders to new policyholders as part of a transfer of ownership. In other words, if the current policyholders are deeding their property, and by extension their insurable interest in that property, then they can give ownership of the NFIP policy as well. This is known as Policy Assignment.

In section 1 of the table above, the Carrier, Policy, and Agency all stay the same; only the policyholder changes (as shown in green).

Policy Transfer

A Policy Transfer is the opposite of a Policy Assignment.

Rather than changing only the policyholder due to a transfer of ownership in the property, an NFIP Policy Transfer keeps the same policyholder but changes the WYO carrier, the agent, and the policy number. Policy Transfers are only allowed during the renewal of the policy, as the new transfer policy will take the place of the old renewal policy from the current carrier.

Policy transfers are typically done by competing agents from different carriers that result in a new policy. The policyholder must help the new agent collect all underwriting material from the previous policy.

Incorrectly processed policy transfers can result in duplicate coverage that requires cancellation.

Submit an NFIP Policy Transfer in Equinox

Rollover

Rollovers are Policy Transfers initiated by the Agency.

In other words, an agency can move some or all of their NFIP policies from one WYO carrier to another at renewal. These can be done on a case-by-case basis or for an entire book of business.

Rollovers do not usually involve the policyholder, as any additional documentation is gathered by the Agent of Record (AOR) or a designated representative.

This page contains information about the NFIP. Find more NFIP Resources.