It's a start. Certificates of Insurance are one of the most misleading documents in the insurance industry. As the attached article reflects, some states are addressing these pesky items and enforcing change. I hope that the trend catches on!
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Connecticut Gov. Dannel P. Malloy recently signed into law H.B.5248 that prohibits the inappropriate use and issuance of certificates of insurance.
The Professional Insurance Agents of Connecticut Inc., an industry association which has been an active supporter of H.B.5248, applauded the bill’s signing. The association said insurance producers in Connecticut have often been pressed by third parties to issue certificates of insurance that seem to expand or amend the policy or make representations about the policy’s fitness for specific contracts, or issue non-certificate advisory documents attempting to make similar statements.......
The article goes on to say: “PIACT applauds Gov. Malloy for his leadership in recognizing the importance of this law,” said Professional Insurance Agents of Connecticut President Peter Frascarelli. “It allows diligent and responsible professional, independent insurance agents to refuse to issue inaccurate certificates of insurance without being put in an awkward position in which they may be perceived as not helping out their clients.”
To read the article by Insurance Journal in its entirety and to learn more about this trailblazing bill, click here.
Contributed by:
Brian Single
Sr. Claim Examiner
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