CPCU eJournal Article

Insurance agents have become increasingly burdened with third-party requests for certificates of insurance, additional insured status, agent coverage “affidavits” or compliance checklists, and other sometimes onerous demands. Those that are cost accounting these demands are learning that they are operating at a loss for many insureds. In addition, regulators are imposing constraints on what agents can legally do in fulfilling these requests. As a result, agents are having to increasingly decline many of them. This article examines the nature of these increasing costs and identifies four basic reasons why agents may be unable to comply with requests from third parties.