Arkansas Warns Agents, Insurers About Certificates of Insurance

The Arkansas Department of Insurance is reminding insurance agents and insurers to take care when providing Certificates of Insurance to policyholders. The department said there have been recent instances in which policyholders have been provided with certificates “that contain additional representations that are not consistent with the language in the actual insurance policy.”

Certificates and Evidence of Coverage forms are meant to summarize policies, including liability limits, and to provide proof of coverage to policyholders or third parties, the department said.

“It is the position of this Department that a Certificate of Insurance or Evidence of Insurance form that does more than simply provide a synopsis of the underling insurance policy may cause an insurer or producer to violate” state statues that regulate the use of such certificates or forms, according to the Department’s bulletin No. 7-2010.

It reminded insurers and agents that if certificates or forms are issued or delivered that violate state statutes, “the Department may take appropriate administrative action against the insurance company or agent found to be in violation.”

Source: Arkansas Insurance Department

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Topics Carriers Agencies