ACORD 37 (Policy Release Request)
An ACORD form used to formally release a policy from one broker's book and transfer it to another.
What It Is
The ACORD 37 is used when a policy is being transferred from one broker or agent to another. The releasing broker completes this form to formally acknowledge the transfer and release the policy from their book of business. It documents the policy number, effective date, carrier, and the new broker's information.
This form is part of the broker-of-record change process and is typically submitted after the carrier receives the Broker of Record Letter (BOR) from the insured. The ACORD 37 confirms that the prior broker has been notified and acknowledges the transfer.
The form also addresses commission adjustments, return premium entitlements, and any outstanding documentation that needs to be transferred to the new broker.
Why It Matters for Brokers
Broker-of-record changes can be contentious, and proper documentation protects all parties. The ACORD 37 creates a formal record of the transfer that prevents disputes about when the change occurred and who was responsible for the account during the transition period. For brokerages gaining new business through BOR letters, understanding the ACORD 37 process ensures a smooth transition. For brokerages losing accounts, the form protects against E&O claims related to coverage gaps during the transfer.
Real-World Example
An insured submits a Broker of Record Letter transferring their $350K commercial package from Agency A to Agency B. The carrier processes the BOR and notifies Agency A. Agency A's principal completes the ACORD 37 releasing the policy and noting that all commission earned through the transfer date has been received. Agency A retains a copy of the ACORD 37 for their files as documentation of the clean handoff.
Common Mistakes
- 1Delaying the ACORD 37 completion, which can create confusion about which broker is responsible for servicing the account.
- 2Not documenting outstanding commission owed on the release form, leading to commission disputes after the transfer.
- 3Failing to transfer all relevant documentation (loss runs, endorsements, claim files) to the new broker as part of the release process.
How brokerageaudit.com Handles This
BrokerageAudit streamlines the broker-of-record process by generating ACORD 37 forms from policy data and tracking the status of each BOR transfer through completion.