Tips for Brokers About the Broker of Record Process & Letter

Note: This information is provided for reference purposes only and does not modify or otherwise alter Broker of Record Requirements.

What is a broker of record (BOR)?

1. A broker that is licensed by the State of California and has a valid broker agreement with us.
2. A broker that has a valid BOR letter from an employer appointing the broker to obtain workers’ compensation insurance from us.
3. A broker that has a contractual right to receive commissions paid by us so long as the broker is the appointed BOR for the employer/policyholder and meets the conditions specified in the Broker Agreement and Addendum.
4. A broker that is entitled to servicing information from us.
5. A broker that receives the renewal quote.
6. A broker that is copied on communications sent to the policyholder.

What constitutes a BOR letter?

The ACORD Broker of Record form (ACORD form number 36) may be used in lieu of a BOR letter.

If submitting a BOR letter, such letter received by us must meet all of the following requirements in order to be considered valid:  

• Be printed on policyholder’s letterhead.

• Express the policyholder’s intention to appoint the broker as its exclusive BOR.

• Include the State Fund Access Number, producer and/or contact name, and their active brokerage email address.

• Include the printed name and title of policyholder signatory.

• Be signed and currently dated by someone with the legal authority to do so, and such authority must be reflected in our policy records. Someone with legal authority means: a corporate officer, a partner of a partnership, a sole proprietor, the executive director (nonprofit entities only), or manager and/or managing members of limited liability companies (LLCs). If organization or corporation is nonprofit the organization may, provide board minutes as the policy records may not reflect the organizations current members.

BOR Letters for New Business Submissions

Upload an ACORD 36 or a Broker of Record letter signed by the employer in BindNow and select the legal attestation. By selecting the legal attestation, you are authenticating that the document being uploaded is a valid BOR letter signed by the employer.  

A BOR letter on a new business submission will be accepted up until 11:59 PM prior to the effective date of the submission.

If a BOR letter has been submitted on a new business submission, the BOR is determined five business days from our notification to the incumbent broker of our receipt of a BOR letter.

If a rescission letter is not received from the incumbent broker, the new broker will become the BOR based on the date we received the BOR letter.

BOR Letters for Active Policies

A BOR letter on a policy already insured with us will be accepted up until 11:59 PM prior to the renewal effective date of the policy.

For policies currently with us, an ACORD 36 or a BOR letter signed by the employer must be faxed to (888) 302-3538, or emailed to bordesk@scif.com.

If a BOR letter has been submitted on an active policy, the BOR is then determined five business days from our notification to the incumbent broker of our receipt of a BOR letter.

If a rescission letter is not received from the incumbent broker, the new broker will become the BOR based on the date we received the BOR letter, and will become the commissionable broker upon renewal.

Can the five-day rescission period be waived?

In the event a policyholder’s BOR letter contains a statement that waives the five-day rescission period for the incumbent broker to submit a rescission letter, we’ll still notify the incumbent broker that we received a new BOR letter. We’ll still allow five business days from the date we send the notification to the incumbent broker for the incumbent broker to submit a rescission letter.

However, if the incumbent broker is first to enter a new business submission in BindNow, they will have the authority to waive the five day rescission period in BindNow.

What determines the effective date of the Broker of Record (BOR) letter?

The effective date of the BOR letter is established using the date we receive the BOR letter.

The five business day rescission period expires at 11:00 PM on the rescission expiration date and a BOR letter will be considered received up until that time. If not received by then, the incumbent broker’s new submission will be closed.

BOR processing

• In the event that we receive a new business submission for which a submission that was previously submitted, a BOR letter must be uploaded to the new business submission in BindNow and the legal attestation selected.
• If a policyholder receives a direct quote and binds through our online system, it will take precedence over any broker submission that is currently being reviewed by the underwriter. The broker will receive a letter indicating that the policyholder has received and bound a direct policy and the broker submission will be closed.
• If a Policyholder receives a direct quote and binds through our online system and they currently have an active policy with us through a broker, we’ll contact the Policyholder to determine how they would like to proceed.

Common questions about our BOR policies

Who receives the commission on mid-year BOR changes?

Pursuant to the terms of the broker agreement, for mid-year BOR changes, any commission due and payable or any reimbursement of commissions due to us remains between us and the original BOR at inception or renewal of policy.

Can State Fund contact the policyholder who has assigned a BOR on his/her policy?

Pursuant to the terms of the broker agreement, we reserve the right to contact the policyholder for any reason, including ascertaining the definitive BOR designation.

How and where can BOR letters be sent?

New Business: BOR letters must be attached to new submissions and legal attestation selected via BindNow, our online submission portal.

Renewal Business: BOR letters must be sent directly from the broker to bordesk@scif.com, or faxed to 888-302-3538. A BOR letter won’t be recognized as received if sent to any other email or fax number.

How does a broker release representation on an account?

Can a broker take over a direct policy as the BOR?

Yes. If the received date of a BOR letter for a direct policy is prior to the renewal effective date, the policy will be converted to a brokered policy effective the date we received the BOR letter. The broker will be eligible for commission upon policy renewal.

It’s important to note that there is no five business day rescission period on a request that involves a direct policy, whether it’s a direct to broker request or a broker to direct request. The broker, however, may with policyholder consent, submit a new BOR letter at any time for a policy that was converted to a direct policy.

Can a broker submit a BOR letter on a cancelled/expired brokered or direct policy?

Yes, as long as the effective date of the valid BOR letter is within the original policy period. If it’s not, then the request would be considered for a broker of service and a broker of service letter would be needed.

Account Management/BOR Desk Contact Information:

Phone (888) 302-3538

Fax (888) 302-3540

Email bordesk@scif.com

Note: State Compensation Insurance Fund is not a branch of the State of California.