Decide the Effective Date
Immediate or at renewal. Your new broker can explain what each means. An immediate date gets the new team working right away.
Pick immediate or renewal.
An immediate date gets the new team working right away. A renewal date keeps the current arrangement until the plan year ends. Consider where your service issues are and how close renewal is.
Your new broker can recommend the better option for your timing.
Choosing Between Immediate and Renewal.
An immediate effective date puts the new broker in charge of service as soon as the carrier records the change. It suits an employer who wants help now, for example with open claims questions, a compliance deadline or a renewal already in progress.
A renewal effective date leaves the current broker in place until the plan year ends. It suits an employer who is comfortable with current service but wants a new team to take over at a natural break point. The trade-off is that the new broker may have less time to prepare renewal work.
Neither choice changes the plan or rates. If you are close to renewal, most employers choose an immediate change so the new team can negotiate the renewal.
A few more questions.
Which is more common?
Immediate is common when an employer wants help now, and renewal-date changes are common when a decision is made well ahead. The right choice depends on your timing.
Can the date be changed after I sign?
Sometimes, but it depends on whether the carrier has already processed the request. Tell the new broker as early as possible.
Does the date affect commissions?
The effective date decides which broker the carrier treats as servicing the account from that point. Questions about commissions are usually handled between the brokers and carriers, not by the employer.
What if the renewal is already in progress?
An immediate change usually makes sense, so the new broker can work on the renewal. Discuss the timing with them before you sign.
Can we pick a date in the future?
Many carriers accept a specified future date, such as the renewal date. The letter should state it clearly.
Related guides.
Broker of Record Change: Form, Timeline and What to Expect
The form, the timeline and what to expect.
Who signs the form?
An authorized representative of the employer, such as an owner or officer, signs and dates it.
How long does a broker of record change take?
It varies by carrier. Some process the change quickly and others take longer, so ask your new broker about each carrier on your account.
Send us your renewal.
We’ll tell you whether it looks competitive, where we see opportunity, and the five questions we’d put to your carrier. No cost, and no obligation to move anything.
The renewal letter
Your current plan summary
Contribution split by tier
Enrolled counts by tier
Four documents — two more if your group is 50 or more. Nothing else; every extra one is a reason to postpone.
An independent employee benefits consulting firm. We look at the entire benefits program: cost, plan performance, risk and administration.
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