PIANY's Certificates of Insurance law takes effect today

PIANY provides members with resources, reminds solicitors of the new rules.

PIA is celebrating the enactment of its top-priority legislative achievement of 2015, which takes effect today. Your association also issued information warning those who make demands for now-illegal Certificates of Insurance that they may now be subject to fines.

The law clarifies that certificate forms must accurately reflect the coverages in the insurance policy and prohibits any person from "willfully requiring" a certificate of insurance that contains false or misleading information. It also authorizes the New York State Department of Financial Services to impose penalties for violations, and it is now illegal to require a certificate of insurance that includes language of any kind, including warranties of coverage, that is not expressly found in the underlying policy. The new law also restricts the types of certificate forms that may be used. Certificate holders may require only certificates that are issued by the insurer providing the coverage; issued by an insurance industry standard-setting organization (such as ISO or ACORD) and approved by the NYDFS; or other certificates approved by the NYDFS.

PIANY President Anthony A. Kubera, CIC, praised PIA members and policymakers who worked with PIA to achieve the law. He also noted that only PIA members have unparalleled access to insurance experts and attorneys to guide them on this and any other issue affecting their businesses, in addition to the following member-exclusive benefits:

		Materials for you and your clients (use PIANY's advisory to respond to inappropriate requests)

		Education (through PIA Webinars)

		Compiled information and resources

		List of approved certificate forms

"PIA is delighted to have helped insurance agents and their clients fight back against improper requirements by contractors, banks and municipalities, which put them in the impossible position of being unable to provide the documentation those parties demanded in order to do business with them," said Kubera.

PIANY is providing its members with information and materials to share with clients; education and resources about the proper use of certificates of insurance; and person-to-person advice available through its Industry Resource Center at (800) 424-4244, or email resourcecenter@pia.org.

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