Updated: 11.29.2023
Novum Policy for Broker of Record (BOR)/ Agent of Record (AOR)
Novum’s underlying premise, for insureds within eligible class codes, is to follow the wishes of policyholders. Novum reserves the right to make decisions on the acceptance/denial of an AOR/BOR in conjunction with the intent of the policyholder.
Best Practices
Utilize Novum Online to communicate with Novum teams, as it will provide a timestamped record of receipt and communications.
Basic Rules
The BOR/AOR must be signed/produced by an authorized officer/owner of the insured, not by the broker/agent. Signature should include the printed name, title of the authorizing party, and date signed.
The request must be on the insured’s letterhead, and signed by an officer of the insured, noting the change from their incumbent retail agent or wholesale broker in favor of the new retail agent or wholesale broker or submitted on an ACORD BOR/AOR form.
Note: An AOR/BOR in email format will be accepted on an exception basis, subject to Novum management discretion.
Responsibility for prior audits remain with the previous agent.
Novum will not accept more than 3 BORs/AORs for the same new business quote or renewal on the same policy year.
Novum management may decline any BOR/AOR received less than five (5) days prior to the policy effective date.
BORs/AORs must specify which individual lines of business are being moved.
Basic Process
Upon receipt of the BOR/AOR by Novum team members, it will immediately be forwarded to the proper designee for handling.
The designee will direct a team member to notify the incumbent agent of the receipt of the BOR/AOR and copy necessary Novum management, within 24 hours.
Note: The incumbent agent is given five (5) business days to produce a rescinding BOR/AOR. If the AOR/BOR is received by Novum within five (5) business days of the effective date, the insured will be contacted directly.
Novum does not typically accept mid-term BORs/AORs, and all are subject to management discretion.
The new agent must submit a new application and appropriate underwriting information for Novum to issue a quote or policy.
Wholesale Agents
A contracted retail agent may not move business from a wholesaler to their agency, unless circumstances exist that warrant the move and respective Novum management agree the move is appropriate. In some cases, if determined by management, a written release by the wholesaler may be required.
Acceptance of a BOR/AOR from one wholesaler to another is acceptable provided that the retail agent is different. If the retail agent is the same, acceptance will be subject to the discretion of Novum management.
State Exceptions
Louisiana – All lines of business. Per Louisiana Directive 211, Producer of Record (BOR/AOR) changes must be accepted at any time during the policy term when requested by an insured by providing ten (10) calendar days written notice to the current BOR/AOR. However, commission may not be paid to the new BOR/AOR until renewal.
