Idaho Department of Insurance William Deal is cautioning the insurance industry on the use of producer of record letters. A producer of record letter refers to a written statement signed by an insured advising an insuerer that a particular producer has been selected to act as the insured’s representative with respect to the insurer, commonly referred to “broker of record” or “agent of record” letter, the DOI said. The letter documents an insured’s decision to replace a producer that has previously represented the insured with another producer.
Some producers have been obtaining the signatures of insureds on the producer of record letters without fullyg explaining the legal effect or intended use of the letter, according to the DOI. “In some cases, the letter may have been improperly represented as necessary simply to obtain a rate quote for comparison purposes. In other cases, key information may have been added into a letter by a producer after the isnured has signed it,” such as additional names of insruance companies including insurance comapnies the producer obtaining the letter is not appointed to represent, the DOI said.
If the DOI becomes aware of such misrepresentation, it is authorized to file an administrative action against the person who is engaging in the unfair and deceptive practice.
For guidelines for the use of the producer of record letter, visit http://www.doi.idaho.gov/laws/09_04.pdf.
Was this article valuable?
Here are more articles you may enjoy.