Certificate of Insurance Bill Sent to Texas Governor

June 6, 2011

The Texas Legislature has passed a measure that requires regulatory approval of property and casualty certificate of insurance forms provided to insureds as proof of coverage.

Insurance agents are frequently asked to provide the certificates to commercial insureds and interested parties. As a result, agents are often brought into legal disputes because of language contained in the certificates.

Under Senate Bill 425, only approved certificate of insurance forms may be issued to an insured. It prohibits insurers and agents from issuing certificates of insurance or other documents intended as proof of coverage “if the certificate or document alters, amends, or extends the coverage or terms and conditions provided by the insurance policy referenced on the certificate or document.”

The Texas Department of Insurance may assess penalties for noncompliance and collect a form filing fee of up to $100.

Topics Texas

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