What does the term “broker of record” signify in the context of RIBO?

The term “broker of record” signifies the client’s selected representative in the context of RIBO (Registered Insurance Brokers of Ontario). This designation reflects the individual or brokerage firm that has been officially designated by the client to act on their behalf concerning insurance matters. Being the broker of record implies that this broker has the authority to manage the client’s insurance needs, provide advice, and negotiate on their behalf with insurance companies.

When a client chooses a broker of record, they typically complete a formal letter of authorization. This establishes the broker's responsibility to serve the client's interests effectively and advocate for them in the insurance market. This term is crucial as it relates to the insurance industry’s standards and practices, ensuring that clients have a clear point of contact for their insurance needs.

The other choices do not capture the essence of what a broker of record represents. For instance, while the term could imply a title for a senior broker or a temporary role for new brokers, it fundamentally denotes a specific client-broker relationship, emphasizing the broker’s role as the client’s trusted representative.