What Is Book Of Business? Definition

Why it matters

Who owns the book depends on the contract. In an independent setup, the agent often owns it, but carrier and agency terms differ. A book can grow through referrals and policy reviews. Ask what happens to it if you leave, and what vested renewal rights apply. Many agents also value the book for the relationships it holds, since satisfied customers refer others.

Source: law.cornell.edu

Where we use this term

Related terms

Vested Renewals: Vested renewals are renewal commissions an agent has the right to keep receiving, even after leaving the agency, because the contract says they have vested.
Renewal Commission: Renewal commission is the smaller commission paid in later years while a policy stays in force and the customer keeps paying. Not every product or carrier pays one.
Vesting: Vesting means an agent gains a right to something over time or on meeting conditions, such as the right to keep earning renewal commissions after leaving. The contract sets the rules.
Independent Agent: An independent agent is licensed to sell products from more than one insurance company and is not tied to a single carrier. Most independent agents are contractors, not employees.
Release: A release is a written permission from an upline or marketing organization for an agent to leave and contract elsewhere. It may also mean a release of a carrier contract.

All 241 terms

Why it matters

Where we use this term

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