Certificate of Insurance

Why We Are Using the Latest ACORD 25 Certificate of Insurance

In September 2009, ACORD revised the ACORD 25 Certificate of Insurance form. One of the major changes was the removal of the cancellation notice provision. For the following reasons, we are unable to issue an older edition of this form, modify the current form, or complete a proprietary form you provide:

1. On November 9, 2010 the Connecticut Insurance Department issued Bulletin S-14 notifying all producers licensed with the State of Connecticut "that the improper modification of certificates of insurance is an unacceptable business practice". The Insurance Commission's Bulletin goes further and states that "Providing a certificate of insurance that misrepresents policy terms or conditions would violate Connecticut law and subject the insurance producer to penalties that may include suspension or revocation of the producers license".
2. Notice of cancellation is a policy right, not an unregulated service. No insurer shown on this certificate is able to provide the cancellation notice you desire by endorsement. For example, the insured can cancel immediately, so it would be impossible for the insurer to give you the notice you request. State law also grants the insurer the right to cancel for reasons such as nonpayment with less notice than you require.
3. For the reasons cited above, if our agency were to issue a certificate that provides a cancellation notice, we would do so with the full knowledge that it would be impossible to actually give cancellation notice under certain circumstances. As such, the certificate could be alleged to constitute a misrepresentation or fraud which could subject our agency and staff to serious civil and criminal penalties.
4. If a certificate purports to provide a policy right different from that provided by the policy itself, then the certificate effectively purports to be a policy form. Policy forms must be filed and approved by our state department of insurance. Use of non-filed policy forms is illegal and could result in legal sanctions distinct from the assertion that the certificate is fraudulent.
5. Under the ACORD Corporation’s licensing agreement, the prior editions of superseded forms can be used for one year from the time the new forms are introduced. Doing so would violate ACORD's licensing agreement and, as a copyrighted document, federal copyright law.
6. Likewise, we are unable to modify the new certificate to add a notice of cancellation. ACORD forms are designed to be completed, not altered. ACORD's Forms Instruction Guide says that a certificate should not be used "To waive rights...To quote wording from a contract...To quote any wording which amends a policy unless the policy itself has been amended."

We appreciate your understanding of the legal restrictions on our ability to fully comply with your request. Copies of the Insurance Department's Bulletin and ACORD Form Notice issued June 28, 2010 are available below. Please contact your Account Executive or our Department Managers if you have any additional questions.

Accord form notice

Connecticut Insurance Bulletin