Certificates of Insurance

The Culmination of the Underwriting Process.

Part of the underwriting process is providing evidence of insurance to customers in order to establish the existence of a policy of insurance.

Certificates of insurance, evidences of insurance, and similar insurance policy-related documents (“certificates”) provide a courtesy summary of the terms of an insurance policy to an insured or third party.

It is improper and an act of fraud for an insurer, agent or broker to issue a certificate of insurance that obscures or misrepresents the insurance coverage provided under the insurance policy and may be subject to administrative penalties and/or license suspension or revocation.

For example, Alabama statute, Chapter 482-1-062, General Property/Casualty Binders, Certificates of Insurance or Indemnity Agreements that went into effect on June 5, 2004, prohibits insurers and agents from issuing binders, certificates, indemnity agreements, or any other type of instrument which amends, extends, or alters the coverage provided by approved policy forms and endorsements without the written approval of the Commissioner of Insurance.