1. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Certificates and Additional Insureds - The Five Key Issues You Must Know 1

2. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Your Instructor Today Marjorie L. Segale, AFIS, CISC, RPLU, CIC, CRIS, ACSR, CISR Insurance Community Center, LLC Director of Education 2

3. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! What this class will cover 1.Course overview on available forms and their applicability 2.Completing documents correctly 3.Additional Insureds added to liability policies 4.Common requirements found in business contracts 5.Common AI endorsements 3

4. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! 4 Certificate Basics

5. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! What Is A Certificate? A certificate of insurance is a document issued by or on behalf of an insurance company to a third party who has not contracted with the insurer to purchase an insurance policy 5

6. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! What Is A Certificate? A business agrees to provide evidence of certain coverages, such as General Liability, Business Auto Liability or Workers’ Compensation due to a business agreement between themselves and another party 6

7. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Why Are Certificates Used? Certificates of insurance are crucial to transacting business Many types of situations: Leases Vendor agreements Construction contracts 7

8. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! ACORD Certificate of Liability Insurance This form is used as the insurance industry standard form Accepted by most entities Insurance companies typically do not create their own Certificates Insurance agents cannot create their own 8

9. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Policy: Contract Between Insurer and Insured Insured Enters Into Business Contract Agrees to Certain Insurance Requirements The Insurer Did NOT Enter Into That Other Contract Agent Issues Cert – NOT Company 9

10. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Primary Areas of Concern Changing the cancellation provision Listing parties on the Certificate as Additional Insured Waiver of Subrogation / Primary, Non-contributory 10

11. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! ACORD Forms Instruction Guide Agents or brokers should not change any provision on this form without prior consent of the issuing company. The ACORD Certificate should be issued only in compliance with company instructions. 11

12. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Results of Improper Issuance Substantial litigation for decades Recipient / insurance company / agent Insurance company / agent State Insurance Departments are beginning to regulate use of Certificates ACORD company has revised the form 12

13. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! 13 Who Should Issue Certificates?

14. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Retailers Represents Insurance Company May issue Certificates Does NOT authorize the agent to change the insurance policy without an endorsement from insurer Agents Represents Insured NOT authorized to issue Certificates Authorization in writing from SL Broker or Insurance Company Brokers 14

15. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Why Change the COI? To keep you out of trouble and to comply with various state laws and court decisions 15

16. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! ACORD 25 Concerns 3 major problems with Certificates Insurers unwilling to provide cancellation notice to AI Improper issuance by insurance agents Onerous requirements from recipients 16

17. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! ACORD Concerns The insurance policy cannot be changed with words on a COI The First Named Insured receives notice of cancellation If the AI requires notice, the policy must be endorsed There will be a premium charge for this 17

18. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! ACORD Forms Instruction Guide (FIG) “Agents or brokers should not change any provision son this form without prior consent of the issuing company. The ACORD Certificate should be issued only in compliance with company instructions. ACORD recommends that the Certificate NOT be used in the following situations: to waive rights; to quote wording from a contract: to attach to an endorsement; to quote any wording which amends a policy unless the policy itself has been amended.” 18

19. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Intellectual Property Issue The forms are under copyright protection Fill in NO changes Licensing agreement rules 19

20. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! State Regulation of Certificates Some states expressly prohibit modification of certificates as they are filed with the state In these states, any modifications must be filed 20

21. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! State Regulation of Certificates Almost all states will not allow any change in a certificate of insurance that would attempt to modify a policy unless the revised certificate is filed and approved. In these states, this form can only be changed to reflect the terms and conditions of the policy on which it is reporting. Such change(s) must be approved in advance by the insurance carrier that issued such policy. 21

22. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Florida: Memorandum OIR-03-003M The purpose of this Memorandum is to address the improper practice of modifying certificates of insurance. It has been brought to the attention of the Office of Insurance Regulation that some individuals or entities may be printing or altering certificates of insurance to incorporate ‘hold harmless’ agreements or other types of clauses in an attempt to modify the terms or conditions of the underlying insurance policy. 22

23. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Florida: Memorandum OIR-03-003M Certificates of insurance generally serve only as evidence of insurance in lieu of an actual copy of an insurance policy. An insurer is under no obligation to abide by any certificate of insurance which has been modified by any person or entity which does not have actual or apparent authority to do so. 23

24. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Florida: Memorandum OIR-03-003M Distribution of a certificate of insurance which has been modified without authorization and which purports to alter the provisions of the underlying policy, misrepresents the conditions or terms of the insurance policy in violation of Section 626.9541(1)(a)1, Florida Statutes, thereby subjecting the person or entity modifying the certificate to license discipline and administrative fines. 24

25. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Georgia: Directive 11-EX-2 For purposes of this Directive, “certificate” or “certificate of insurance” means any document or instrument, no matter how titled or described, which is prepared or issued by an insurer or insurance agent as evidence of property or casualty insurance coverage but does not include an actual copy of the insurance policy or insurance binder. 25

26. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Georgia: Directive 11-EX-2 In short, a certificate of insurance is a summary of the referenced insurance policy and does not, and cannot, modify or amend the referenced insurance policy or confer any right upon the certificate holder. 26

27. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Georgia: Directive 11-EX-2 The issuance or modification of a certificate of insurance that in any way misrepresents any material term, condition, coverage, or other provision as set forth in the underlying policy, or purports to amend or alter the underlying insurance policy -- or assisting in such issuance or modification -- violates Georgia law and subjects the violator to civil and criminal penalties. 27

28. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! New Hampshire: Bulletin No. 09-048-AB Issuing a Certificate of Insurance or other evidence of insurance coverage that misrepresents the policy terms, conditions or coverage is a violation of producer licensing laws and may subject the producer to license revocation. 28

29. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Oregon 29

30. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Oregon 30

31. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Indiana: Bulletin # 170 31

32. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Indiana: Bulletin # 170 32

33. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Massachusetts - Bulletin 2011-07 Certificates of insurance, evidence of coverage forms and binders (collectively hereafter referred to as “certificates of insurance”) are intended to summarize insurance policies, including liability limits, in lieu of providing the actual polices to insureds or third parties as proof of coverage. The Massachusetts Division of Insurance (“Division”) has been informed, however, that some insurance companies and insurance producers are being asked to provide certificates of insurance that purport to amend, extend or otherwise alter the terms of insurance provided by the underlying policy. The purpose of this Bulletin is to advise insurers and insurance producers that certificates of insurance are not the proper method by which to amend a policy, that amending such certificates of insurance may create an errors and omissions exposure, and that this activity may violate the Massachusetts insurance laws. 33

34. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Massachusetts - Bulletin 2011-07 Certificates of insurance are not actual policies of insurance, and as certificates of insurance, they do not and cannot be used to amend, extend, or alter insurance coverage afforded by the underlying policies. 34

35. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Massachusetts - Bulletin 2011-07 Massachusetts law, specifically M.G.L. c. 175, §§ 2B and 192, requires that all insurance policy forms, as well as riders, endorsements and applications designed to be attached to such policy forms, be filed with the Division. 35

36. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Massachusetts - Bulletin 2011-07 When an insurer or insurance producer executes a certificate of insurance that attempts to do more than merely offer a synopsis or summary of the policy, the insurer or producer risks the creation of obligations that are not payable by the underlying policy. 36

37. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Massachusetts - Bulletin 2011-07 This action may violate M.G.L. c. 175, § 181 and M.G.L. c. 176D, § 3(1)(a) which prohibit the misrepresentation of the terms or benefits of any insurance policy. This action also may violate M.G.L. c. 176D, § 3(9)(a), which makes it an unfair claim settlement practice to misrepresent the “pertinent facts or insurance policy provisions relating to coverages at issue.” 37

38. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Massachusetts - Bulletin 2011-07 Moreover, should the additional terms and conditions contained in the certificate of insurance be in conflict with, or otherwise alter, the policy forms, riders, endorsements or applications the insurer has filed with the Division, the insurer and/or insurance producer may have violated M.G.L. c. 175, § 2B by issuing, delivering or otherwise using a policy form that has not been filed with the Division. 38

39. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Texas: Bulletin #B-0035-06 The Department reminds all carriers and agents that a certificate of insurance must clearly and accurately state the insurance coverage provided. A certificate of insurance that obscures or misrepresents the insurance coverage provided under the insurance policy is a violation of the Insurance Code, including §§541.051, 541.061, and 4005.101(b)(5) and (6). 39

40. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Texas: Bulletin #B-0035-06 Additionally, agents are reminded that they are prohibited from altering the terms or conditions of a policy under Insurance Code §§4001.051(c) and 4001.052(b). Violation of the provisions of Chapter 541, 4001, or 4005 may result in administrative penalties and/or license revocation. 40

41. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! State Bulletins For current state bulletins: http://www.iiaba.net/eprise/main/VU/ NonMember/WilsonCertLawsRegs.htm 41

42. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Common Errors Information not supported by policy Wrong insurance company listed Broker placed business no prior written approval Changing cancellation provision Primary, Non- Contributory End. Omitted 42

43. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Common Errors Waiver of Subrogation End. Omitted Altering Certificate Stating wrong edition date of AI endorsement Using Non-ACORD Certificates 43

44. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Possible Consequences Denial of coverage by insurer or Cross-complaint from insurer Suit From Certificate Holder Liability for Uncovered Loss to Third Party Risking suit from insurance company Risking your future Denial of Coverage Under E & O policy 44

45. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Agents Are Very Vulnerable The large companies receiving many of the Certificates are very aware that you and your E & O coverage is the last resort Information not verified Your problem if coverage is not in place 45

46. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Certificate of Liability Insurance Have your reference materials at hand 46

47. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Form Changes Many agencies have been suppressing the second page One page – not two More visibility Redundancy removed Disclaimers are at the top of the page Columns Expanded for Additional Insured and Subrogation Waivers 47

48. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Form Changes “Special Provisions” Block Revised Description Of Operations / Locations / Vehicles “Exclusions Added By Endorsement” language removed Notice of Cancellation Revised 48

49. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! New Cancellation Language SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. 49

50. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Notice of Cancellation Notice of cancellation is a POLICY right, not a voluntary service  The policy determines who gets notice of cancellation for what reason(s), and with how much advance notice NONE of the ISO additional insured endorsements provide for any notice of cancellation to the AI AND restrict notice to the First Named Insured 50

51. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Policy Cancellation Language A.Cancellation 1.The first Named Insured shown in the Declarations may cancel this policy by mailing or delivering to us advance written notice of cancellation. 2.We may cancel this policy by mailing or delivering to the first Named Insured written notice of cancellation at least: 51

52. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Policy Cancellation Language a.10 days before the effective date of cancellation if we cancel for nonpayment of premium; or b.30 days before the effective date of cancellation if we cancel for any other reason. 52

53. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Effect of Change Follows policy language Reduces improper issuance by agents Complies with state regulations Business contracts need to be reviewed by both contractual parties  The contract could require that the other contractual party be required to notify in the event of coverage cancellation 53

54. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! What Are Insurance Companies Doing? Will not review certificates MGAs / Wholesalers being more careful about reviewing certificates 54

55. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Information About Limits of Liability

56. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Impairment of Aggregate The ACORD Certificate is introduced with the following lead in language: “This is to certify that the policies of insurance listed below have been issued to the insured named above for the policy period indicated. Notwithstanding any requirement, term or condition of any contract or other document with respect to which this certificate may be issued or may pertain, the insurance afforded by the policies described herein is subject to all the terms, exclusions, and conditions of such policies. Limits may have been reduced by paid claims.” 56

57. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Impairment of Aggregate Claim Submitted Reserved Paid Show original limits on the Certificate 57

58. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Related Issues Standard Policies Contract requires “standard” occurrence CGL Insured has modified Must advise insured in writing Defense Costs “Standard” liability policies defense is in addition to limit Policy has defense inside the limit Must advise insured in writing Notification Does NOT belong on the Certificate of Liability Insurance Letter (or email) to insured 58

59. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Guidelines Deductibles True Deductible Named Insured Reimburses No Need to Show Retentions Applies to Damages and Defense Costs Named Insured Pays Show on Certificate 59

60. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Related Issues Additional Insured Requirements Primary, Non-contributory wording Waiver of Subrogation 60

61. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Additional Insured Requirements Language on a Certificate was NEVER binding upon the insurance company The party requesting this coverage MUST have an endorsement to the policy Wording on a Certificate is irrelevant 61

62. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Primary, Non-Contributory Wording Language on a Certificate was NEVER binding upon the insurance company The party requesting this coverage MUST have an endorsement to the policy Wording on a Certificate is irrelevant 62

63. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Waiver of Subrogation Policyholder is allowed to waive subrogation in General Liability and Business Auto policies An endorsement is available with both of these policies for express agreement if desired Waiver of subrogation is not generally allowed on Workers’ Compensation policies 63

64. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Business Contract vs. Insurance Certificate of Liability Insurance May Not Match Requirements Must Match Insurance Policies Insurance Policies Often Do Not Match Requirements Business Contract Requires InsuranceRequires a Certificate 64

65. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Coverage Confirmation Help Your Client With Their Business Practices, Contracts and Agreements 65

66. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Receiving Coverage Confirmation Make sure the Certificate is unaltered Request copy of policy language to support insurance requirements  Policy  Endorsements  Additional Insured Endorsement  Waiver of Subrogation  Primary, Non-Contributory 66

67. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Receiving Coverage Confirmation Verify limits of liability insurance are at least equal those required by the contract Verify that any names shown on the endorsements are correct 67

68. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Match Contract With Coverage Check contracts for appropriate and available insurance requirements The agent/broker needs to educate their clients about these issues  Will not eliminate the push-back on these changes but may help going forward  Watch out for new language in contracts that the 2009 edition of the ACORD is no longer acceptable 68

69. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Match Contract With Coverage Insurance buyers will need to  Submit proper RFP identifying insurance specifications that will be provided  Teach your clients to review contract language before signing 69

70. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Additional Insureds

71. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Types of Insureds Named insureds – usually referred to as “you” or “your” Automatic insureds Additional insureds – non-automatic must be added by endorsement 71

72. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! What is an Additional Insured? A person or organization, other than the named insured, who is protected by the terms of the policy as an insured These are in addition to those who have insured status within the standard policy. 72

73. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! What is an Additional Insured? Typically required in a business contract of which the Named Insured is a party These parties have full rights to the policy protection, to the extent of the wording on the additional insured endorsement 73

74. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! What is an Additional Insured? Generally added by endorsement or included by a company specific provision that is triggered by some requirement for this status by a written contract or agreement entered into by a named insured 74

75. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Additional Insureds Determine Interest Before Adding Endorsement Required and Attach Endorsement Available (Type / Edition) 75

76. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Additional Insureds Additional Insured Verify no language implying on WC Primary Automatic follow form? Form allow changes to primary? Excess / Umbrella Do NOT automatically add Primary / Excess 76

77. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Basic Considerations Regarding Additional Insureds When does the coverage requirement end in the business contract? Additional insured status can provide better response for the additional insured rather than just contractual liability 77

78. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Basic Considerations Regarding Additional Insureds Can better protect Named Insured’s coverage as defense costs are in addition to the limit for the Additional Insured, rather than within the limits under contractual Additional Insureds are not granted automatic notice of cancellation or non- renewal 78

79. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Basic Considerations Regarding Additional Insureds Blanket additional insured Used on accounts where a significant number of Additional Insureds are needed Review the language for applicability When required by contract To the extent required by contract Can provide broader coverage than the business contract requires 79

80. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Reasons for Requesting Additional Insured Status It may assure greater safety in a risk transfer - a “safety net" for a hold harmless agreement It can give direct rights under the other party's insurance to those parties who attempt to transfer potential risk 80

81. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Reasons for Requesting Additional Insured Status It may protect the party/ies who attempt the transfer of potential risk from subrogation Potential for higher total limits available Potential reduction of insurance cost 81

82. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Why Would an Insured Want to Add an Additional Insured? Relationship with the named insured  Example:  Members - Clubs & Churches  CG 20 22 - Additional Insured - Church Members and Officers 82

83. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Why Would an Insured Want to Add an Additional Insured? People or organizations with which the named insured has a business relationship and, typically, a contractual relationship  Example:  Project owners on the policies of general contractors  CG 20 10 - Additional Insured - Owners, Lessees or Contractors – Scheduled Person or Organization  CG 20 11- Additional Insured-Managers or Lessors of Premises 83

84. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Problems Associated with Additional Insureds Problems for named insured  Diminution of policy limits  Adverse affect on insured’s experience modification, renewability  Unintended coverage provided  Named Insured pays retention/deductible on behalf of the AI, in addition to paying on their own behalf  Defense conflicts 84

85. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Problems Associated with Additional Insureds Problems for the additional insured  Loss of defense control  "Other Insurance" conflicts  Increased probability of disputes over coverage  Limited coverage under current forms 85

86. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Problems Associated with Additional Insureds  Loss of immunity – political subdivision (e.g. city or county) may be granted immunity or provided limitation to liability by statute. Being added to another’s policy may waive such immunity.  Depending on someone else’s insurance program can be dangerous 86

87. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! 87 Significant Changes by ISO Affected Many Endorsements

88. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Changes in Additional Insured endorsement wording CGL AI endorsements were revised in 2004 – restrictive language AI is covered as long as the loss occurred caused at least in part by the Named Insured Contractual obligations will likely be broader than the insurance coverages available 88

89. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! CG 2010 – Owners, Lessees or Contractors Provides coverage for persons or organizations involved in construction projects 1985 edition  No scheduled person or organization  AI covered for sole negligence  Ongoing AND completed operations  Limited availability in the marketplace 89

90. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! CG 2010 – Owners, Lessees or Contractors Various editions since 1985 changed the endorsement significantly The current 2004 edition  Scheduled persons or organizations  Ongoing operations  Loss must be caused, at least in part, by the named insured 90

91. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! CG 20 37 - Owners, Lessees or Contractors–Completed Operations Used with or without CG 2010 AI covered for completed operations Provides an opportunity for an additional premium charge Triggered if the Named Insured contributes in some way to the loss (or a party acting on their behalf) 91

92. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! CG 20 11 – Managers or Lessors of Premises Scheduled manager or landlord of the premises leased to the Named Insured Applies to ownership, maintenance or use of the leased premises Applies as long as the Named Insured is actually a tenant Does NOT apply if the loss arises out of construction or alterations by or behalf of the landlord 92

93. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! CG 20 28 - Lessor of Leased Equipment Scheduled owner If the insured has leased “mobile equipment” you may need to endorse the BAP (CA 20 01 Additional Insured and Loss Payee ) AND the CGL 93

94. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! CG 20 15 – Vendors Scheduled person or organization Must be a vendor of the Named Insured’s product Used in manufacturing or distribution relationships No coverage if the vendor modifies the product or re-labels the product 94

95. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Commonly Used Blanket Additional Insured Endorsements Additional Insured – Owners, Lessees, or Contractors – Automatic Status When Required in Construction CG 20 33  Essentially the same as CG 20 10 but does not require scheduling the person or organization  Triggered when required by written contract or agreement 95

96. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Commonly Used Blanket Additional Insured Endorsements Additional Insured – Lessor of Leased Equipment – Automatic Status When Required in Lease Agreement with You CG 20 34  Essentially the same as CG 20 28 but does not require scheduling the person or organization  Triggered when required in a written contract or agreement 96

97. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! “Additional Insured” Endorsements Used in Other Coverage Lines Even though the title of most of these endorsements do not say “Additional Insured” the end result is that additional parties are added as insureds 97

98. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Business Auto Designated Insured – CA 20 48 Lessor – Additional Insured and Loss Payee – CA 20 01 Employees As Insureds – CA 99 33 Employee As Lessor – CA 99 47 Individual Named Insured – CA 99 17 98

99. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Business Auto Drive Other Car Coverage – Broadened Coverage for Named Individuals – CA 99 10 Hired Autos Specified As Covered Autos You Own CA 99 16 99

100. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Workers’ Compensation Alternate Employer Endorsement – WC 00 03 01A 100

101. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Solutions for Avoiding the E&O Exposure inherent in COI issuance and AI endorsements 101

102. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Avoiding E&O Train all staff on Certificate issuance Do NOT assume everyone knows Only use licensed staff issue Certificates Show the limits as provided on the policyPromptly request appropriate endorsements 102

103. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Avoiding E&O Use care when setting up “master” certificates Use the proper form/edition date Get carrier approval to use non-ACORD forms 103

104. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Avoiding E&O Make sure the agency is the “authorized representati ve” of all carriers on the certificate Document who requested the certificate and how it was transmitted Don’t alter certificate wording without insurer authorizatio n in writing and by endorsemen t to the policy 104

105. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Avoiding E&O Review your agency management system authorization levels and limit access to the certificate function to specific users Customize the level of access to specific functions in order to minimize the risk of unauthorized access and use 105

106. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Avoiding E&O Alert the insured to charges for A/I, Primary or Waiver of Subrogation endorsements Be careful when reviewing contracts on behalf of the insured – stick with insurance issues Promptly request appropriate endorsements 106

107. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Certificate Procedures Accuracy is key Verify accuracy of “master” certificates Audit Certificates quarterly Show retentions as provided on the policy 107

108. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Certificate Procedures When renewing coverage, request your insured (in writing) to update the Certificate holder and Additional Insured list with the parties they are required by contract to leave on the policy 108

109. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Certificate Procedures Advise the insured of certificate procedures  Educate your customers before they sign the business contract  Alert the insured to A/P requirements for Additional Insured endorsements  Work with your customers to determine their responsibility to receive certificates (particularly when there is policy language addressing their responsibility) 109

110. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Basics to Review With Your Customer When asked to use the old or change the language on the forms, explain that they no authority to revise the documents Explain that certificates are filed forms and using old edition dates may violate state law 110

111. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Summary Verify you are using the most current version of the ACORD COI Advise your customers of the changes Do NOT continue to use the older version of the COI – the only reason you would do so would be to add inappropriate wording and changing the cancellation notice  Could result in spending thousands of dollars in legal fees to pursue litigation or to defend oneself from litigation 111