ESTABLISHING BOUNDARIES

The Independent Insurance Agents & Brokers of America Inc. recommends in a recent white paper that an insurance agent take these steps to help decrease his or her legal liability related to certificates of insurance:

• Provide the client with information or a disclaimer that indicates you will only provide current, accurate information on certificates.

• Provide appropriate legal or contractual authority; never exceed it.

• Minimize the review of contracts for insureds and use a disclaimer.

• Refuse to modify an ACORD contract.

• Refuse to issue a non-ACORD certificate without insurer approval.

• Proofread all certificates and perform periodic quality control checks.

• Establish a procedure for handling certificates.

• Send a certificate holder the entire certificate.

• Send copies of all issued certificates to the identified carrier(s).

• Use the correct coverage form to fulfill certificates requests.

• Refuse to certify coverages that do not exist.