Agency Transfer

Agency transfers, also known as Agent of Record (AOR) Changes or Broker of Record (BOR) Changes, occur between two agencies that write insurance for the same company. 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.

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]

AOR Form

what needs to be signed?

Timeframe for Agency Transfers

Time Frame	Details	Commissions
Renewal	Some details	Paid to the Agency at the time of renewal
Mid-term	Some details	Nothing adjusted
Correction	Some details	May be paid to the correct agency
Internal	Some details	Nothing adjusted

The most common way to transfer a policy from one agent or agency to another is at renewal; however, the following options can also be used if allowed by the WYO carrier.

Mid-term AOR Change

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Correction Transfer

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Internal Transfer

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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 below

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.