Bamboo Insurance · Project Management Office

SOP-BC-002 Broker of Record Transfers

Document ID	SOP-BC-002	Owner	Project Management Office
Version	0.1 Draft	Author	PMO, Finance
Effective date	To be set on approval	Approver	Finance, IT, Sales Management
Review cycle	Each Guidewire upgrade	System	Guidewire PolicyCenter and BillingCenter, Palisades

1.0

Purpose

This procedure governs how a broker of record change is executed across PolicyCenter and BillingCenter so that commission follows the correct agency. It exists because commission on a renewal term is assigned 90 days before that term takes effect. A request arriving after that point does not correct itself, produces no error in either system, and is typically discovered only when the incoming agency questions a short commission statement.

2.0

Scope

In scope: broker of record changes on in-force and renewing policies; the commission consequences of those changes in BillingCenter; and detection of transfers made in PolicyCenter but not completed in BillingCenter.

Out of scope: commission rate changes and subplan configuration, governed by SOP-BC-001; producer onboarding and commission plan assignment; agency bill policies, where the producer retains commission at source and no transfer of funds arises; and book of business transfers involving an entire agency, which use the PolicyCenter Bulk Producer Change utility and require a separate procedure.

3.0

Definitions

Producer of record	The agency that earns commission on a policy term. This is the code BillingCenter uses to book and pay commission.
Producer of service	The agency servicing the policy. Maintained in PolicyCenter, and becomes Producer of Record when the policy renews.
Policy Change	PolicyCenter's mid-term endorsement transaction. Can move the Producer of Service. Cannot move the Producer of Record.
Rewrite	Cancels the policy and reissues it. The only mid-term route to changing the Producer of Record, and far heavier than an endorsement.
Commission Reserve Date	90 days before the Renewal Effective Date. BillingCenter receives the renewal policy period and books the reserve to the current Producer of Record. Nothing on that term exists earlier.
Point-in-time transfer	Moves commission still in reserve to the new agency. Leaves earned commission with the outgoing agency.
Retroactive transfer	Moves everything on the periods it is scoped to, including commission already earned or paid. Scoped to the renewal, its earliest reach is the Commission Reserve Date.
Future transfer	Moves nothing on the current term. Only future charges and future terms.

4.0

Roles and Responsibilities

Role	Responsibility
Agency relations	Receives the broker of record request, records the request date, and communicates the outcome to both agencies including the prior term tail described in 8.1.
PolicyCenter administrator	Executes the policy change setting the Producer of Service.
BillingCenter administrator	Executes the transfer through the Transfer Producer Wizard, scoped to the renewal policy period, and applies the rate change on the transferred charges.
Project Management Office	Determines the routing case under 6.1 and confirms completion in both systems.
Finance operations	Handles recovery of commission already paid under 6.3, and runs the detection queries under 6.5.

To be confirmed. Role names above are placeholders pending confirmation of the correct owning teams and the approval chain for a transfer that creates a receivable.

5.0

Governing Rules

The following are properties of PolicyCenter and BillingCenter, not policy choices. Every step in section 6 follows from them. The source column distinguishes behaviour documented in the Guidewire Application Guides from Bamboo configuration values and from positions proposed by this procedure.

Ref	Rule	Source
5.1	Commission is tracked per charge, and every charge belongs to a policy period with its own Producer of Record. Renewal charges carry whichever agency holds the code when BillingCenter receives that period.	Application Guide
5.2	The renewal term exists in BillingCenter from the Commission Reserve Date, 90 days before the Renewal Effective Date. Nothing on that term exists earlier, so no transfer can reach further back than that date.	Application Guide, plus Bamboo renewal lead time
5.3	A PolicyCenter Policy Change moves the Producer of Service only. Producer of record on a term already written cannot be changed without a Rewrite.	PolicyCenter Application Guide
5.4	PolicyCenter sets the Producer of Record to the servicing producer when the renewal is written. This is what makes case 6.2 automatic.	PolicyCenter Application Guide
5.5	Changing the producer in PolicyCenter does not move commission on a term already received. That requires a BillingCenter transfer.	PolicyCenter Application Guide
5.6	Transferred commission uses the original producer code's commission plan and is not recalculated for the receiving agency. A manual rate change on the transferred charges is always required.	Application Guide
5.7	A transfer left unscoped reaches the current term. Under On Payment Received earning most of the current term is still reserve, so an unscoped transfer can move a large share of the outgoing agency's commission. Always scope to the renewal policy period.	Application Guide, risk assessed by PMO
5.8	Transfer type decides who owns commission, never when it earns. No transfer prevents commission earning before the Renewal Effective Date if premium arrives early.	Derived by PMO
5.9	A missed transfer produces no error. Its signature is a renewal where Producer of Service and Producer of Record disagree.	Proposed by PMO

6.0

Procedure

Where a request lands relative to the Commission Reserve Date decides which term the incoming agency takes.

Case	Request window	Transfer type	Outgoing agency	Incoming agency
1	Before the Commission Reserve Date	None required PolicyCenter promotes at renewal	Keeps the current term in full	Takes the renewal term from day -90, at their own rate
2	Day -90 to the renewal effective date	Retroactive scoped to the renewal period	Keeps the current term. Commission already paid on the renewal is recovered	Takes the renewal term from day -90. Rate override required
3	After the renewal effective date	Future	Keeps the term in force in full. No recovery	Takes over at the next renewal

6.1

Intake and Routing

Steps 6.1.2 to 6.1.4 are determinations made from system state, not judgements. They are the subject of change request CR-02, which would resolve the transfer type at submission. Until CR-02 is delivered they are performed manually and are the only control preventing the wrong instrument being run.

Step	Responsible	Action
6.1.1	Agency relations	Record the request date, the policy, the outgoing and incoming agencies, and the Renewal Effective Date.
6.1.2	BillingCenter administrator	Determine whether BillingCenter has received the renewal, that is whether the Commission Reserve Date has passed. Read the state; do not calculate from a day count.
6.1.3	BillingCenter administrator	Determine whether the renewal has taken effect.
6.1.4	BillingCenter administrator	Route: reserve date not yet passed to 6.2; passed but not yet effective to 6.3; already effective to 6.4.
6.1.5	Finance operations	Where the request routes to 6.3, read the outgoing producer's Summary screen to establish how much of the renewal commission is recoverable without a receivable. See the note below.

Reading the producer Summary screen. The three Status figures correspond directly to what each transfer type can reach. Total Commission Reserve is unearned and moves under any transfer with no consequence. Total Commission Payable is earned but not yet paid, and moves under a retroactive transfer without any cash changing hands. Commission Paid Year to Date has been disbursed, and recovering it creates a receivable against the outgoing agency. The three sum to Total Commission Expense.

Commission is disbursed on the Commission Day of Month shown on the same screen, currently the 1st, at the Payment Frequency shown, currently Monthly. That date is the boundary between a correction that costs nothing and one that raises a receivable.

6.2

Case 1 Request Before the Commission Reserve Date

The ideal path. Nothing has been reserved, so nothing needs correcting.

Step	Responsible	Action
6.2.1	PolicyCenter admin	Raise a Policy Change setting the Producer of Service to the incoming agency. Do not attempt to change the Producer of Record; see 5.3.
6.2.2	PMO	Confirm the change has reached BillingCenter through integration and is not sitting only in PolicyCenter.
6.2.3	BillingCenter admin	No action. PolicyCenter promotes the servicing agency to Producer of Record when the renewal is written.
6.2.4	PMO	After the reserve books, verify it sits with the incoming agency and at the incoming agency's own commission rate.

6.3

Case 2 Request Inside the 90 Day Window

The reserve is already booked to the outgoing agency. The incoming agency takes the renewal term from the Commission Reserve Date regardless of what has been earned or paid in the meantime.

Step	Responsible	Action
6.3.1	PolicyCenter admin	Raise a Policy Change setting the Producer of Service. This corrects the term after next; it cannot fix the renewal term.
6.3.2	BillingCenter admin	Run a Retroactive transfer scoped to the renewal policy period, using the Transfer Producer Wizard from the Producer tab, which carries the period selection step. Do not run it unscoped; see 5.7.
6.3.3	BillingCenter admin	Change the commission rate on the transferred charges to the incoming agency's rate. This is a required second step and there is no prompt for it; see 5.6.
6.3.4	Finance operations	Where commission on that term has already been paid to the outgoing agency, recover it. Amounts still sitting in Total Commission Payable move without a receivable; only amounts in Commission Paid create one. Recovery is subject to the materiality threshold at 10.4. Where the amount cannot be recovered from a departing agency, follow SOP-BC-001 clause 6.5 to reverse the payment or write the commission off.
6.3.5	PMO	Verify the renewal reserve now sits with the incoming agency, at the correct rate, and that the current term is untouched.

Note. PolicyCenter will continue to show the outgoing agency as Producer of Record on the renewal term while BillingCenter pays the incoming agency. This is financially correct and structurally inconsistent. It is documented as an accepted limitation at 8.2 and should not be treated as an error during reconciliation.

6.4

Case 3 Request After the Renewal Has Taken Effect

The term in force stays with the outgoing agency in full. The incoming agency takes over at the next renewal.

Step	Responsible	Action
6.4.1	PolicyCenter admin	Raise a Policy Change setting the Producer of Service to the incoming agency.
6.4.2	BillingCenter admin	Run a future transfer. No commission on the term in force is moved and no recovery arises.
6.4.3	PMO	Confirm with agency relations that both agencies understand the incoming agency earns from the next renewal, not immediately.

Rationale. Reaching back into a term already in force is not appropriate. The outgoing agency has been servicing a live policy with the insured covered under it, which is materially different from a term that has not started. This is a policy decision, not a system constraint; a retroactive transfer would be technically possible.

6.5

Detection of incomplete transfers

Step	Responsible	Action
6.5.1	Finance operations	Run weekly: renewal policy periods where the Producer of Service and the Producer of Record disagree. This is the signature of a transfer made in PolicyCenter and never completed in BillingCenter; see 5.9.
6.5.2	Finance operations	Run weekly: transferred charges whose commission rate does not match the receiving producer's plan. Under On Payment Received earning a wrong rate surfaces slowly, over months, rather than at once.
6.5.3	PMO	Work both queues as exceptions and route any confirmed miss back through 6.1.

7.0

Controls and Verification

Ref	Control	Expected result
C1	Case 1 executed, reserve inspected after booking	Reserve sits with the incoming agency at the incoming agency's rate. No BillingCenter transfer recorded.
C2	Case 2 executed with no renewal premium received	Full renewal reserve moves to the incoming agency. Current term commission unchanged. No recovery raised.
C3	Case 2 executed after renewal premium received and paid	Renewal commission moves to the incoming agency and an amount equal to the paid commission becomes owed by the outgoing agency.
C4	Rate on transferred charges inspected after any case 2 transfer	Rate matches the incoming agency's plan. If it matches the outgoing agency's plan, step 6.3.3 was missed.
C5	Case 3 executed	Term in force entirely unchanged. Incoming agency holds the following term.
C6	Detection queries run weekly	Both queues empty, or every entry traced to an open exception.

8.0

Known Limitations

8.1	The outgoing agency continues to earn on the prior term. Premium collected on the prior term after the renewal has started still earns to them, including late installments, cured delinquencies, and audit premium. No configuration removes this without taking commission earned on premium already collected. It must be stated in agency communications.
8.2	PolicyCenter and BillingCenter disagree after a case 2 or case 3 transfer. PolicyCenter shows the outgoing agency as Producer of Record while BillingCenter pays the incoming one. Accepted and documented rather than corrected, because the alternative is a Rewrite.
8.3	The commission rate does not follow a transfer. Step 6.3.3 is manual and unprompted, which is why control C4 exists.
8.4	Commission can earn before the Renewal Effective Date. If renewal premium arrives early, commission earns early regardless of transfer type; see 5.8. Addressed separately by the proposal to hold early renewal premium in unapplied funds.
8.5	Future transfer behaviour inside the window is undefined. The Application Guide does not state whether a future transfer reaches an already booked renewal reserve. This procedure therefore specifies retroactive at 6.3.2 rather than relying on it.

9.0

Change Requests

System changes arising from this procedure. These are requests against Guidewire or against our own configuration, not procedure steps, and they are tracked to their own lifecycle rather than through revisions of this document. Change requests arising from commission subplan changes are held in SOP-BC-001.

CR-02 · Internal · To be submitted

Determine the transfer type automatically at intake

When a broker of record transfer is submitted, determine whether it is a retroactive or a future transfer from the change effective date and its position relative to the Commission Reserve Date.

Clause 6.1 requires a person to read two states before choosing an instrument: whether BillingCenter has received the renewal, and whether the renewal has taken effect. Both are derivable. The renewal is received at the Commission Reserve Date and the effective date is known, so the case can be resolved from the request date without judgement.

The value is not saved effort. It is that clause 6.1.4 is currently the only thing preventing the wrong instrument being run, and a wrong instrument produces no error. A retroactive transfer run where a future transfer was intended takes commission from an agency that has been servicing a live term. A future transfer run where retroactive was intended leaves the outgoing agency holding the whole renewal.

To scope. Whether the determination surfaces as a recommendation the operator confirms, or as a constraint that limits which options are selectable. A recommendation preserves the ability to override for a documented exception; a constraint removes the failure mode entirely. Rule 5.9 argues for the constraint, since a wrong transfer produces no error and is discovered only through statements.

Raised by: PMO, Finance
Decision needed: Finance, IT
Affects: Steps 6.1.2 to 6.1.4; controls C2, C3 and C5

10.0

Open Items

10.1	Confirm that a transfer scoped to a single policy period genuinely stays within that period. Step 6.3.2 depends on it and the guide describes the period selection step without stating what it constrains.
10.2	Establish how endorsements and return premium on the current term route after a renewal-scoped transfer. The point-in-time rules state that commission for future charges added to the current policy period moves to the new producer, which would contradict the scoping.
10.3	Obtain Guidewire's position on future transfer behaviour where the renewal is already reserved. If it moves the whole renewal term, 6.3.2 could use it instead.
10.4	Set the materiality threshold below which commission already paid is written off rather than recovered under 6.3.4.
10.5	Confirm the owning teams and the approval chain in section 4.0, in particular who authorises a recovery against a departing agency.
10.6	Build the two detection queries at 6.5.1 and 6.5.2 and agree where the exception queues are worked.

11.0

Revision History

Version	Date	Author	Change
0.1 Draft	12 August 2026	PMO, Finance	Initial draft. Behaviour verified against the BillingCenter and PolicyCenter Application Guides, Palisades.

SOP-BC-001	commission subplan changes. Governs rate configuration, which is out of scope here.
Producer transfers and commission rates	Background analysis and the requirements assessment behind this procedure.
Guidewire discussion document	Transfer reach, future transfer behaviour, and the questions raised with Guidewire at 10.1 to 9.3.
BillingCenter and PolicyCenter Application Guides	Guidewire Palisades. Source for behaviour marked Application Guide in section 5.0.