Changes and Big "I" Benefit
1) What has changed with ACORD form and agent access?
ACORD has maintained a complete library of industry-specific forms for almost 50 years and beginning Jan. 1, 2020 it will implement a new fee structure for End User Licenses ('EUL'). Previously, the license fees were built into management system fees for both forms and end-user licenses. The change beginning Jan 1, 2020, is that agents will need to obtain their own license directly from ACORD, but will still access forms via their management system provider.
2) How does this affect Big "I" member agencies?
The Big "I" has worked to ensure that our members will not incur EUL fees when accessing necessary ACORD forms. All Big "I" members with less than $50 million in P&C revenue will receive a Forms End User License free of charge as part of their Big "I" membership.
NOTE: The $50 million annual revenue threshold does not include non-P&C revenue such as from Benefits and other lines of business.
3) What is the benefit to Big "I" member agencies?
The end-user license cost savings will depend upon the size of the agency - significantly less for small agencies. Based on agency size, the savings could be between $20-$2,500.
EUL (End User License)
4) What is the EUL and what does it mean to me?
This is, in essence, similar other click-through agreements you access for software and online interaction. In this case, ACORD is enacting an End User License to ensure you understand conditions such as ACORD Forms being ACORD intellectual property, rights to use, and other conditions. The great news is that our Big "I" general counsel has reviewed this EUL and worked with ACORD to ensure the conditions are not onerous on you as a Big "I" member agent!
Agency Workflow Impacts
5) How does this affect my current agency workflow?
After January 1, agents may be directed by their management system provider to navigate to the ACORD Forms License website (https://www.acord.org/FormsLicense). Agents will then need to register as a site visitor (if they are not already registered) and use a very short process to validate they are a covered Big "I" agent. Once that is completed, the agency rep goes back into your management system workflow to begin accessing forms.
NOTE: This initial validation to obtain a license will need to be done once after January 1, and then annually.
IN ADDITION, Big "I" general counsel has obtained the End User License and has negotiated changes with ACORD in order to be most balanced and fair to our agent members.
6) Does everyone in my agency need to navigate to the ACORD Forms License site to obtain a license?
ACORD confirms that qualifying agencies should obtain the license at the company level - this means one license for each agency corporate entity, so only one person from each agency company (i.e. with the same agency corporate name) would need to sign in to the ACORD Forms License website (https://www.acord.org/FormsLicense) and obtain a license for your agency name. For agencies named differently under one agency parent, each agency name will have to obtain a license.
Multiple Locations/Different Names = Each needs its own license. But remember, only one person needs to get the license for each location/name.
Multiple Locations/Same Name = Only one (1) license is needed. Again, only one (1) person needs to get a license to cover all in this scenario.
Multiple Locations/Different AMS = Each needs its own license. But remember, only one person needs to get the license for each management system under the overall agency name.