Assembly Majority Leader reintroduces certificate legislation, PIANY's top-priority
January 25, 2013
Assembly Majority Leader Joseph Morelle, D-132, reintroduced legislation yesterday at the request of PIANY. This bill would prevent certificate holders from seeking the illegal creation of unique and highly improper certificates.
This legislation would require that only certificates filed with and approved by the superintendent would be permissible for use. PIANY applauds Morelle’s consistent support of independent insurance agents who are burdened daily by requests to issue certificates that, if honored, would violate the law. This occurs when licensed producers are asked to complete certificate of insurance forms on behalf of their clients that add terms or clauses that a public entity or other third-party certificate holder requires, but are not contained in the insurance policy.
The Department of Financial Services has issued at least three regulatory directives dealing with certificates of insurance, reciting its position (with which PIANY agrees) that certificates of insurance should be used only to provide evidence of insurance in lieu of an actual copy of the applicable insurance policy and should not be used to amend, expand or otherwise alter the terms of the actual policy. Yet, the problem for producers continues. PIANY will use all available resources to pass this bill this session.
Stay tuned to learn how you can help.