ATTENTION: It's No Longer JUST the COI that Gets You in Trouble -
There's a New Monster in Town
July 26, 2017
1:00 p.m. to 2:30 p.m. Eastern Time
- Stuart Powell, Jr., MA CPCU, CIC, CLU, ChFC, ARM, AMIM, AAI, ARe, CRIS
- Christopher J. Boggs, CPCU, ARM, ALCM, LPCS, AAI, APA, CWCA, CRIS, AINS
Without using hyperbole, thousands of certificates of insurance (COIs) are issued every day, and again without hyperbole, most of them are issued improperly. In fact, your agency may have issued an improper certificate as recently as this morning.
What is it about certificates of insurance that can get an agency in trouble? If there were just one or two things, it would make your job a whole lot easier. But in reality, there are about 27 different ways a COI can get you in trouble. OK, so 27 isn't an exact number, but you get the idea. A "simple" COI is a potentially dangerous weapon against your agency.
Now, as if the COI problem wasn't enough, there's a NEW monster or "gotcha" in town, the memoranda of coverage or memoranda of insurance (or something like that). Upper tier contractors have or are beginning to discover that the COI is what the COI is and not much can be done to or with a COI to give them comfort about the coverage in the referenced polices; thus, they have created this new monster to get YOU in trouble. What agents are now being asked to do is complete a separate document regarding what is and is not covered in the certificated insurance policies. Departments of Insurance don't seem to have acted on these yet – so the agent is being forced (by their own clients) to reduce the policy to a bunch of check boxes. Do you see a problem here? I bet your E&O carrier will.
There are a lot of rules, statutes, and theories swirling around COIs so you have to be sure you're dotting all the "i"s and crossing all the "t"s. If you're not, go ahead and call your E&O carrier – they'll want to be at the ready. And this new abomination you are being asked to complete should truly raise concerns.
We look forward to discussing the traps and dangers in COIs and extra-COI documents.
Please note that CE will not be offered for this webinar.
*Webinar transcript will be emailed to all registrants within four weeks of the live event.