Do Certificates of Insurance Matter?

By | November 17, 2010

  • November 17, 2010 at 12:46 pm
    Margaret says:
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    Replace the words “All Risk” with “Special Causes of Loss Form.”

  • November 17, 2010 at 1:28 am
    Realist says:
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    Good idea, Margaret……….

  • November 17, 2010 at 3:02 am
    Temblor says:
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    That’s why the policy itself no longer refers to “All Risk” but instead stipulates “Special” cause of loss. The agent has been a bit sloppy here in not using policy language that was changed years ago to avoid such “confusion”.

  • November 17, 2010 at 3:34 am
    caffiend says:
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    That might get you in a bit of trouble there Margaret. Most certificates are “filed” forms, meaning that it is a specific form filed with a state’s department of insurance. Alteration of such forms has & will continue to cause insurance agents and CSRs to be arrested/fined or have their licenses revoked or suspended.

    On the old Acord 25 (2001/08) form, a large number of people wanted agents to strike out the words “endeavor to” from the line “Should any of the above described policies be cancelled before the expiration date thereof, the issuing insurer will ENDEAVOR TO mail ___ days written notice to the certificate holder named to the left….”

    Fortunately the new form removes that section but anytime someone asks you to alter a filed form, you need to ask yourself “Is this worth my job?” What is a better option is to inquire with the writing company about any special wording that needs to be shown on a certificate.

    Now if the company issued such a form with the words “All Risk” then they have only themselves to blame. Still… I have to agree with the previous court discissions, it is the resposibility of the certificate holder to verify that the coverage sought or shown does in fact exist by reading the policy.

  • November 17, 2010 at 3:56 am
    scottsdale slim says:
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    If an agent has a contract with a company, I can see where their typing of a cert might hold a carrier liable, but in the case of a broker no such relationship exists.
    Plus, that piece of paper is about as valuable as an auto insurance card. The insured can get one, then cancel his coverage, after passing the cert to the party who requested it and they will be none the wiser until the claim happens.

  • November 17, 2010 at 4:01 am
    ComradeAnon says:
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    The Supreme Court overturned a century of precedents in their Citizens United decision. Or rather 5 of them did. Guess the outcome of tis case depends on the court’s ideology, not fidelity to precedent or a particular interpretation of the Constitution.

  • November 17, 2010 at 5:08 am
    InsuranceGeek says:
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    Certificates are filed forms in a small minority of states.

  • November 18, 2010 at 12:37 pm
    Maureen says:
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    Thank goodness for certificates of insurance because they keep me employed. :)

  • November 19, 2010 at 12:10 pm
    PA says:
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    Just visited with a large group of broker, agency, and company people, on this subject (Cert’s – latest version – and their usefulness/problems). Feedback from some at the gathering: large W/C carrier who does not accept certificates any more. Period. (Not sure how they handle audits??) And interesting sidenote: another company out there is offering discount for pre-loss/lawsuit alternative dispute resolution (mediation, arbitration, appraisal) language agreed to by both parties, as a solution of sorts to the growing litigation (numbers, value) between contracting parties.

  • November 22, 2010 at 10:22 am
    Christine Andrews says:
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    Read an article last week about a NC contractor being charged with a felony obtaining property by false pretense stemming from a falsified COI. He got a contractor contingent on the fact that he had adequate insurance (as shown on COI) when in fact no coverage existed. He received $140000 in payment from the GC and that the the property obtained by false pretense. Kinda scary.

  • November 22, 2010 at 11:56 am
    BJD says:
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    Yes, why would anyone still use the term “All Risk”? It does not say in any of my policies “All Risk” (just like it does not say anywhere on my auto policies “Full Coverage”. This is an agent/broker issue and it is misleading to put this on a certificate. I will explain to clients that Broad Form is a named peril only policy and Special Form (or All Risk) covers everything except what it doesn’t cover but I would not put “All Risk” in writing anywhere.

  • November 22, 2010 at 6:19 am
    M. Prankster says:
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    I am reminded of a former employer’s shenanigans. I was told to find a carrier for an insured’s new exposure. Later that day, I walked past the CSR’s desk and spotted a certificate showing that risk had coverage in force. I said, “Oh, did you find coverage for that new location already?” The CSR wisked the cert. off her desk and said, “Don’t look at that.”

  • June 18, 2012 at 6:48 am
    Matara says:
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    YOU would be added to your dad’s policy and your dad would pay an extra pruemim for you to be able to be insured (meaning he’d pay more for his insurance quite a BIT more as you will be in a risk pool for 3 years and are a young driver) .AND, anyone who RIDES with you might not be insured depending on how your dad’s policy reads so you MAY not be able to drive with FRIENDS in the car until you are 18 at least some states have specific rules now about how many passengers young drivers are ALLOWED to have in the car with them -check this out with your department of motor vehicles .heck, that question COULD even be on your written driver’s test



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