Senate Bill 425 went into effect on January 1, 2012 and requires certificates to only include language which is stated in the insurance policy. The purpose of the Bill is to ensure that certificates state what risks are being transferred to an insurance carrier through leases and contracts. Unlike previously, certificates can no longer quote wording from a contract, attach to an endorsement, or quote anything which amends a policy unless the policy itself has been amended.

This new law will require enhanced communication between property managers, tenants, lenders, attorneys, contractors, and their respective insurance professionals on the insurance language in their contracts, leases, and the forms of the insurance policy.

How do you recognize a compliant certificate?

• After January 1^st 2012, a new liability certificate issued is not valid unless it is the Accord 25 (2010/05) edition.  You can easily recognize this new certificate form because of the two new columns in-between the “type of insurance” column and the “policy number” column. (EXAMPLE AT END OF ARTICLE)

• The new “additional insured” column and “waiver of subrogation” column can only be marked “Y” if the certificate holder is specifically endorsed on the policy.  There cannot be a “Y” in the column if the policy has a blanket additional insured or waiver of subrogation endorsement.

What if my certificates are not compliant with Senate Bill 425?

This new law applies to certificates of insurance issued after January 1, 2012, on operations located in Texas, regardless of where the certificate holder, policyholder, insurer, or agent is located. 

Insurance agencies are required to follow these new changes and the Texas Department of Insurance has the power to enforce violators by:

• issuing a cease and desist order
• seeking an injunction
• imposing fines up to $1,000 for each violation
• and other penalties including license revocation

Changes To Look For:

The most common areas of conflict with old insurance certificates and the new law will be with the wording for additional insured, waiver of subrogation, notice of cancellation, and primary non contributory wording.

Additional Insured and Waiver of Subrogation

In the past, attorneys have required specific wording to be placed in the general information box to deem a certificate acceptable.  The Texas Department of Insurance has now given agents recommended wording to place in “The Box” depending on the endorsements on their client’s policy.  Companies will now need to re-determine what is acceptable language based on the coverages required by their lease or contract.

Notice of Cancellation

The new certificate has changed the notice of cancellation wording to:

“Notice of Cancellation – SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THEPOLICY PROVISIONS”.

This wording cannot be legally changed on the certificate to match a contract or lease.  The certificate issuer will now need to add the appropriate endorsement to the policy to guarantee notice of cancellation will be provided to the certificate holder.  This is typically the Commercial General Liability: CG 02 05 (Amendment of Cancellation Provisions or Coverage Change).

Primary Non Contributory

Many contracts and leases request that subcontractor’s insurance be held “Primary and Non Contributory.”  This means you want the subcontractor’s policy to be the primary source of recovery so that your policy does not contribute to defense or indemnification in the event that your company is sued due to an accident caused by the subcontractor or tenant. You don’t want to tap into your own CGL policy unless and until the subcontractor’s policy limit is exhausted.

If a company’s CGL is a policy from 1998 or later edition of the ISO CGL, it will include the following wording.

This insurance is excess over any other primary insurance available to you covering liability for damages arising out of the premises or operations for which you have been added as an additional insured by attachment of an endorsement.

If this language is included in a company’s CGL policy, then it is redundant to ask for the language on your subcontractor’s the insurance certificate.  Some subcontractor’s policies though include a specific “Primary and Non-Contributory” endorsement.  The TDI recommends that agents not write “Coverage for the additional insured will be primary and non-contributory.” on the certificate but include the endorsement number or copy of the endorsement instead.

Author: Kyle Cardwell – For questions or additional information, contact Kyle at 972-387-6739 or email at Kcardwell@swinglecollins.com.

This is a great question, and one that our customers ask frequently. Whether you rent a vehicle for personal use while on vacation, or as a substitute while your vehicle is out of commission for repair or service, or for business use while out of town, there comes that time when you’re standing at the rental car counter and the agent asks the inevitable question: “Do you want to buy our loss damage waiver (or our insurance coverage)?”

Most loss damage waiver (LDW) fees are outrageous.Sometimes they cost more than the daily rental fee itself. But are they worth the additional cost? The answer may depend on your tolerance for risk and inconvenience. You must decide if the extra cost is reasonable, considering the potential for an uninsured loss should something happen to the vehicle during the term of the rental contract, and the resulting inconvenience of dealing with the rental company and your insurance company to satisfy the rental company’s demands.

First, you should know that the LDW is not actually an insurance policy. It is a waiver of the rental company’s requirement in the rental contract that you bring the vehicle back in the same condition as when it left their lot. Most rental contracts make you responsible for any damage to the vehicle, including theft and weather-related damage. When you purchase the LDW, the rental company is removing that provision from the contract on a conditional basis.

If you don’t purchase the LDW and the vehicle is damaged, here are some of the costs for which you could be held responsible under the rental contract:

• Cost to repair damage to the vehicle, or the full value of the vehicle if it is a total loss
• “Diminished value” of the vehicle – the difference between what the vehicle was worth before the accident and what it is worth after repairs have been made
• “Loss of use” – the amount of money the rental company loses on rental fees while the vehicle is out of service for repair or replacement
• Administrative or loss-related expenses incurred by the rental company, such as fees for towing, appraisal, and claims adjustment, plus general office expenses for handling the paperwork

Whether all or any of these costs are covered by your personal auto policy depends on several factors. One big factor is the type of personal auto policy you have purchased. Insurance companies sell different policies in Texas and the coverage and exclusions are not the same from one company to the next. Some companies sell a policy that covers damage to the rented vehicle in the liability section of the policy, while others sell a policy that covers damage to the rented vehicle in the physical damage section. Each type of policy is discussed separately below.

We encourage you to ask your agent which type of policy you have, because as you will see, the differences are significant.

> Reasons to purchase the Loss Damage Waiver when you have a policy that covers damage to the rental vehicle in the liability section:

1. Your limit of liability may not be sufficient to satisfy the rental company’s demands.

Coverage for damage to the rental car and related costs are provided by the property damage liability section of your personal auto policy. If the property damage limit of liability is not sufficient to cover the value of the vehicle you rent, plus pay for any other costs the rental company demands, you will be personally responsible for the costs that exceed what your insurance company has to pay.

2. Your policy may exclude rented pickups and vans used for business purposes.

If you rent a pickup or van for business purposes, your personal auto policy may not provide coverage at all. Some insurance companies consider an SUV to be a pickup or van, and may therefore not cover any damages arising out of the use of an SUV rented for business purposes.

3. Your premium may go up or your policy may not be renewed if you have an at-fault accident.

You are driving an unfamiliar vehicle in unfamiliar territory. If you have an at-fault accident while driving the rented vehicle, your insurance company may hold it against you – with a premium surcharge or perhaps even non-renewal.

4. Your line of credit may be adversely affected.

If you don’t buy the LDW, the rental company will probably ring up an estimated damage amount on your credit card, pending notification to and settlement by your insurance company.

5. You may suffer a huge inconvenience.

When you have purchased the LDW, you can bring a damaged vehicle back to the rental company, throw the keys on the counter, and walk away. When you haven’t purchased the LDW, you may have to spend a significant amount of time dealing with the rental company and your insurance company.

> Reasons to purchase the Loss Damage Waiver when you have policy that covers damage to the rental vehicle in the physical damage section:

1. Your policy may not cover damage to the rental vehicle at all.

Coverage for damage to the rental vehicle and related costs are provided by the physical damage section of your personal auto policy – IF your policy provides physical damage coverage on at least one of your covered vehicles.

2. Your insurance company may not pay the entire amount demanded by the rental company.

When your policy provides physical damage coverage on one of your covered vehicles, the policy covers damage to a rented vehicle. The amount payable by the insurance company is the lesser of the “actual cash value” of the vehicle or the amount “necessary” to repair or replace the vehicle, minus your deductible. In addition, the policy covers “loss of use” with a daily limit (usually as low as $20 per day) and a maximum limit (usually $600), and there is usually a 1- or 2-day waiting period before the policy will begin to pay these expenses. Because of all these limitations, you may become personally responsible for:

• The amount demanded by the rental company to repair or replace the vehicle in excess of “actual cash value” or the amount “necessary” to repair or replace;
• The amount of your deductible;
• The amount demanded by the rental company for “loss of use” in excess of the daily and maximum limits payable by your insurance company;
• The amount demanded by the rental company for “diminished value” of the vehicle, even after the repairs are complete;
• The amount demanded by the rental company for administrative or other loss-related expenses.

3. Your policy may exclude some electronic equipment.

Your policy may exclude loss to some electronic equipment that receives or transmits audio, visual or data signals. If you rent a vehicle equipped with a GPS receiver, for example, your policy may not cover it.

4. Your premium may go up or your policy may not be renewed if you have an at-fault accident.

You are driving an unfamiliar vehicle in unfamiliar territory. If you have an at-fault accident while driving the rented vehicle, your insurance company may hold it against you – with a premium surcharge or perhaps even non-renewal.

5. Your line of credit may be adversely affected.

If you don’t buy the LDW, the rental company will probably ring up an estimated damage amount on your credit card, pending notification to and settlement by your insurance company.

6. You may suffer a huge inconvenience.

When you have purchased the LDW, you can bring a damaged vehicle back to the rental company, throw the keys on the counter, and walk away. When you haven’t purchased the LDW, you may have to spend a significant amount of time dealing with the rental company and your insurance company.

Bottom Line

We recommend that you buy the Loss Damage Waiver from the rental company.

For more information, here is a helpful article from the Insurance Information Institute, Do I Need Separate Rental Car Insurance?

Download the pdf version of this article here: What should our employees do when they rent a car for a company trip.pdf

I certainly appreciate the reduction in my annual premiums with additional coverage.  I am looking forward to the personable service you have offered concerningclaim, service, or just a questions regarding my coverage or future coverage.

I have had a 24 year relationship with my past Insurance Carrier who have served me very well and I am looking for the same long relationship with Swingle Collins & Associates.

Gus K.

I have been a client of Swingle Collins for years for all of my business and personal coverage needs.  I have worked with the Swingle Collins team for business along with for my home and auto; as well as several people on their support team.)  Their complete expertise and professionalism, have always been unmatched.

In 20 years of buying coverage, I have never had a claim before but I have heard many stories of difficulties and red tape that friends and associates have been through.  After having significant damage to my home in a hail storm last month, I have filed my first claim.  Swingle Collins handled everything from the scheduling of the claims agents, to the recommendation of a professional and reputable contractor.  Our claim was settled, and checks were cut for both the structural damage and personal property within three days.  It was fast, more than fair, and actually a pleasurable experience.  While most people in my neighborhood are still wrestling with their providers and spending days researching contractors, my family and I have moved on and life is good.

My highest recommendations for the Swingle Collins team; They are the absolutely outstanding!

This is a great question, and one that our customers ask frequently.  Whether you rent a vehicle for personal use while on vacation, or as a substitute while your vehicle is out of commission for repair or service, or for business use while out of town, there comes that time when you’re standing at the rental car counter and the agent asks the inevitable question:  “Do you want to buy our loss damage waiver (or our insurance coverage)?”

Most loss damage waiver (LDW) fees are outrageous.  Sometimes they cost more than the daily rental fee itself.  But are they worth the additional cost?  The answer may depend on your tolerance for risk and inconvenience.  You must decide if the extra cost is reasonable, considering the potential for an uninsured loss should something happen to the vehicle during the term of the rental contract, and the resulting inconvenience of dealing with the rental company and your insurance company to satisfy the rental company’s demands.

First, you should know that the LDW is not actually an insurance policy.  It is a waiver of the rental company’s requirement in the rental contract that you bring the vehicle back in the same condition as when it left their lot.  Most rental contracts make you responsible for any damage to the vehicle, including theft and weather-related damage.  When you purchase the LDW, the rental company is removing that provision from the contract on a conditional basis.

If you don’t purchase the LDW and the vehicle is damaged, here are some of the costs for which you could be held responsible under the rental contract:

1.  Cost to repair damage to the vehicle, or the full value of the vehicle if it is a total loss

2.   “Diminished value” of the vehicle – the difference between what the vehicle was worth before the accident and what it is worth after repairs have been made

3.   “Loss of use” – the amount of money the rental company loses on rental fees while the vehicle is out of service for repair or replacement

4.   Administrative or loss-related expenses incurred by the rental company, such as fees for towing, appraisal, and claims adjustment, plus general office expenses for handling the paperwork

Whether all or any of these costs are covered by your personal auto policy depends on several factors.

Reasons to purchase the Loss Damage Waiver:

1.  Your limit of liability may not be sufficient to satisfy the rental company’s demands.

Coverage for damage to the rental car and related costs are provided by the property damage liability section of your personal auto policy.  If the property damage limit of liability is not sufficient to cover the value of the vehicle you rent, plus pay for any other costs the rental company demands, you will be personally responsible for the costs that exceed what your insurance company has to pay.

2.  Your policy may exclude rented pickups and vans used for business purposes.

If you rent a pickup or van for business purposes, your personal auto policy may not provide coverage at all.  Some insurance companies consider an SUV to be a pickup or van, and may therefore not cover any damages arising out of the use of an SUV rented for business purposes.

3.  Your premium may go up or your policy may not be renewed if you have an at-fault accident.

You are driving an unfamiliar vehicle in unfamiliar territory.  If you have an at-fault accident while driving the rented vehicle, your insurance company may hold it against you – with a premium surcharge or perhaps even non-renewal.

4.  Your line of credit may be adversely affected.

If you don’t buy the LDW, the rental company will probably ring up an estimated damage amount on your credit card, pending notification to and settlement by your insurance company.

5.  You may suffer a huge inconvenience.

When you have purchased the LDW, you can bring a damaged vehicle back to the rental company, throw the keys on the counter, and walk away.  When you haven’t purchased the LDW, you may have to spend a significant amount of time dealing with the rental company and your insurance company.

Bottom Line

We recommend that you buy the Loss Damage Waiver from the rental company.

Download the pdf version of this article here: Rental Car Coverage – TX Personal Auto Policy.pdf

This is a great question, and one that our customers ask frequently.

Americans have developed a love affair with their electronic toys.  TVs, DVD players, GPS devices, satellite radio receivers, VCRs, CD players, computers, tape decks, and stereos (and more) have all multiplied and spread from the home to the automobile, where there is a much greater chance for these items to be stolen or damaged in an accident.  For that reason, some insurance companies have developed special ways to either cover or not cover electronic devices on the standard auto insurance policy, or charge an extra premium for covering them.

Your personal auto policy covers equipment designed for use with an automobile and attached to it or normally carried in it, but some exclusions and limitations apply, including:

• No coverage for stereos, radios or other sound reproducing equipment(such as tape decks, CD players, DVD players, video cassette recorders and players, and audio cassette recorders and players), unless these items are permanently installed in your vehicle.  An item is permanently installed when it is at least bolted or attached to the vehicle in some way to prevent easy removal. When these items are covered because they are permanently installed, the most the insurance company will pay for loss of or damage to the items is $1,500 less your deductible.  A higher amount of coverage may be available for an additional premium.
• No coverage for CB radios, 2-way radios, telephones, or scanning monitor receivers, or any accessories related to these devices (such as antennas), unless these items are permanently installed in the opening of the dash or console normally used by the auto manufacturer for the installation of a radio.  Coverage on these items may be available for an additional premium.
• No coverage for radar detectors or other speed measuring equipment.
• No coverage for televisions in a pickup or van.  Coverage is available for an additional premium.
• No coverage for tapes, CDs, DVDsor other devices used with equipment designed for the reproduction of sound.  Coverage may be available for an additional premium.

If you use or carry electronic equipment in your vehicle, call your agent and ask him or her to help you complete an Electronic Equipment Checklist.  The checklist will help your agent determine if additional coverage is needed and available.

Download the pdf version of this article here: Texas Electronic.pdf

The futility of depending on certificates of insurance was highlighted by the Texas Supreme Court in its recent decision in Via Net, et al v. TIG Insurance Company, et al., wherein the Court said: “Given the numerous limitations and exclusions that often encumber such policies, those who take such certificates at face value do so at their own risk.”

As a utility contractor, you are no doubt often asked to sign construction or service contracts that include certain insurance requirements that must be evidenced by a certificate of insurance. If the certificate holder desires status as an additional insured under a policy, this can only be done by endorsement to the policy, not by issuance of the certificate alone.

Problems often arise when a contract makes demands that are, for all practical purposes, virtually impossible to meet. Examples include requests for insurance for losses or damages that are uninsurable, requests that agents cannot legally comply with, requests that require inappropriate certificate wording, and requests that are impractical from a market standpoint.

As a result, insurance agents are sometimes asked to provide a certificate of insurance that cannot comply with the contract you may have already signed. In fact, you may have already completed the job and need the certificate in order to get paid. The purpose of this article is to illustrate how such problems can arise and what solutions are available, if any, to address the most common problems.

UNINSURABLE REQUESTS

Sometimes contracts will attempt to transfer risks and liabilities that are largely uninsurable. For example, the contract may require you to be responsible for “ANY negligent acts, errors or omissions” or “any and all liabilities” that result in “ANY claim, cost, expense, liability, penalty, or fine.” A commercial general liability (CGL) policy typically does not cover “errors and omissions” or fines and penalties, nor will it pay for damages other than those arising from bodily injury, property damage, and personal and advertising injury liability. In addition, the word “any” implies there are no exclusions when, in fact, the policy has many exclusions ranging from pollution liability to faulty workmanship.

Needless to say, it is advisable to have an attorney review contracts on your behalf. In addition, prior to signing any contract, have your insurance agent review the insurance specifications, preferably in conjunction with your attorney. He or she can advise what requirements may be impossible or difficult to insure. It is important to know the costs before bidding on the contract and it’s possible that truly onerous insurance requirements can be deleted from the contract.

Often contracts will require your insurance to be “primary and noncontributory.” The “ISO standard” CGL policy does say that it is primary with regard to the certificate holder’s general liability policy IF the certificate holder is an additional insured on your policy. So, the first order of business is to make sure that the appropriate additional insured endorsement is attached to your CGL policy.

However, the undefined term “noncontributory” is meaningless on its own. The term may just be used to reemphasize that your insurance is primary, which is fine. Or the intended meaning may be that a waiver of subrogation endorsement is desired. However, often it means that the certificate holder’s CGL policy will not contribute in any way to a loss even if that policy otherwise covers it. This means that you will have to pay out of your own pocket any claim that exceeds the limit of your CGL policy without contribution from the certificate holder’s CGL policy.

It is in your best interest to attempt to clarify and, if necessary, strike the “noncontributory” wording from the contract. If that’s impossible, consider increasing your own policy limits or be prepared to assume a potentially large uninsured loss.

ILLEGAL REQUESTS

Construction contracts sometimes require that the certificate holder be given additional insured status under a specific endorsement number and edition date. It is not uncommon for a contract to request an “ISO standard” policy form such as the CG 20 10 11 85 additional insured endorsement. Note that “11 85″ refers to the November 1985 edition of this form. These forms typically must be filed with and approved by the Texas Department of Insurance before they can be used. Since later editions may have superseded earlier editions, it could be impossible for the insurer to provide a form that is 20+ years old and is no longer approved by the Texas Department of Insurance.  This is also the case in most other states where you might be working.

Your insurance agent can often provide a later edition form with comparable coverage. In some cases, two endorsements might be necessary to replace a single older form, one providing ongoing operations coverage and the other completed operations coverage.

The latter form, however, might not be available or only available at significant cost. Your insurance agent may represent more than one insurance company, making it more likely that your account can be shopped to another insurer who is better able to meet your needs. In any event, you will want to price this coverage before submitting your bid since completed operations insurance, if available, can be substantial in price.

Also, contracts frequently mandate that coverage be extended to the additional insured’s sole negligence. In some states, sole negligence cannot legally be transferred to another party. Increasingly, even where insurance transfer is permitted, insurers are using additional insured endorsements that prohibit assuming the additional insured’s sole negligence. The current “ISO standard” endorsements do just that.

If you are working in a state that has anti-indemnity statutes or case law, then this should not be an issue. Otherwise, you will want your insurance agent to determine if the insurer is still willing to assume sole negligence under an additional insured endorsement. If not, the contract will need to be modified or compliance will be impossible.

INAPPROPRIATE REQUESTS

Contracts often specify that the certificate of insurance provide for notice of cancellation to the certificate holder. The problem is that all “ISO standard” additional insured endorsements make no provision for cancellation notice to an additional insured. Perhaps acknowledging this, some contracts settle for the more hopeful “endeavor to” provide notice of cancellation provision.

Keep in mind that, unless the policy specifically provides for cancellation notice to the additional insured, the insurer is usually under no contractual obligation to provide such notice. Even if an attempt is voluntarily made, mistakes happen. In some cases, due to regulatory decree by the state department of insurance (New York is an example), a certificate of insurance cannot make a promise of notification unless notice of cancellation is provided for in the policy or endorsement.

Some organizations and government entities use their own certificates of insurance instead of the more standardized ACORD 25 – Certificate of Liability Insurance form. These may create problems for insurance agents because some states have laws or regulations prohibiting the use of such forms unless approved by the state department of insurance.

These forms may include wording implying coverages or rights that don’t actually exist under the policy, again violating the law in many states. These certificates may sometimes be almost exact duplicates of the “ACORD standard” form(s), creating copyright violation possibilities. They may also lack disclaimers designed to protect you and the issuer.

Be very wary of these non-ACORD certificates of insurance. Rely on your insurance agent for guidance on how to handle these forms. In many cases, they can be issued, but require referral to the insurance company which can cause delays. Again, it is important to involve your insurance agent in the process as soon as possible.

IMPRACTICAL REQUESTS

The construction contract may specify that certain coverages (e.g., completed operations) be provided or that certain exclusions (e.g., pollution liability) be removed. Because of the proliferation of defective workmanship claims in the construction industry, completed operations coverage may be difficult to procure at a reasonable cost. Most insurers are unwilling to remove certain exclusions such as pollution liability and the cost to purchase the coverage separately may be prohibitive.

Be sure to give your insurance agent ample time to search for the coverages required by your construction contracts. If coverage is available, you will want to include the premium costs in your contract bid. If coverages are not available, you may be able to negotiate such requirements from the contract or pursue another source of coverage.

It is not uncommon for your insurance agent to be unable to meet every requirement of the contract you’re being asked to sign, from the standpoint of coverages, policy rights, or completion of a certificate of insurance. The other party to the contract may then inform you that they can provide a list of agents who claim they can comply with the contractual requirements in full.

While it’s possible that the person requesting the certificate is aware of agents who are better able to comply with their requests, be cognizant that fraud and misrepresentation with regard to certificates is not unheard of. If you are requiring certificates from subcontractors, be aware that bogus certificates do exist.

While it is rare, there are unfortunately some insurance agents who will issue certificates that do not accurately reflect coverages and policy terms just to allow a contractor to get a job and for them to keep their business. Since certificates are rarely legally enforceable against insurers or agents, you may be incurring significant liability if an inaccurate certificate is issued. It is important that you do business with insurance professionals in which you have great trust or that you verify the accuracy of the certificate.

As outlined in this discussion, the single best thing you can do in dealing with certificate of insurance requirements is to involve your insurance agent in the process as soon as possible. He or she can counsel you on how to best meet your insurance requirements and, if not possible in some instances, provide an explanation as to why something is difficult or impossible, often to the satisfaction of the requestor.

Download the pdf version of this article here: COI – You Can’t get what you want.pdf

In September 2009, ACORD revised the ACORD 25 Certificate of Insurance form. One of the major changes was the removal of the cancellation notice provision. We are unable to issue an older edition of this form, modify the current form, or complete a proprietary form you provide.

Notice of cancellation is a policy right, not an unregulated service. No insurer shown on this certificate is able to provide the cancellation notice you desire by endorsement. For example, the insured can cancel immediately, so it would be impossible for the insurer to give you the notice you request. State law also grants the insurer the right to cancel for reasons such as nonpayment with less notice than you require.

For the reason just cited, if our agency was to issue a certificate that provides the cancellation notice you request, we would do so with the full knowledge that it would be impossible to actually give that amount of notice under certain circumstances. As such, the certificate could be alleged to constitute a misrepresentation or fraud which could subject our agency and staff to serious civil and criminal penalties.

If a certificate purports to provide a policy right different from that provided by the policy itself, then the certificate effectively purports to be a policy form. Policy forms must be filed and approved by our state department of insurance. Use of nonfiled policy forms is illegal and could result in legal sanctions distinct from the assertion that the certificate is fraudulent.

We cannot use an older edition of the ACORD 25. Under the ACORD Corporation’s licensing agreement, the prior editions of superseded forms can be used for one year from the time the new forms are introduced. Using a prior edition would violate ACORD’s licensing agreement and, as a copyrighted document, federal copyright law.

Likewise, we are unable to modify the new certificate to add a notice of cancellation. ACORD forms are designed to be completed, not altered. Our insurance company contracts only allow us to issue unaltered ACORD forms.

We are often asked to issue proprietary certificates provided by the certificate holder. Again, our insurance company contracts only allow us to issue unaltered ACORD forms. Many proprietary certificates include broad, vague or ambiguous language that may or may not be incompliance with state laws, regulations, and insurance department directives.

You may be interested in how the City of Atlanta, Georgia is now reportedly dealing with this issue based on a very detailed study they conducted in 2008.

http://tinyurl.com/26guax8

We appreciate your understanding of the legal restrictions on our ability to fully comply with your request.

Download the pdf version of this article here: COI – Notice of Cancellation.pdf