TECHNICAL ISSUES in the grant of protection offered by the automatic endorsement , no , you shouldn ’ t need to send the information to the carrier .
However , some additional insureds want to “ see their name in lights ” and asked to be specifically listed . If this is the case , use the CG 20 10 ( or proprietary equivalent ) and specifically list that AI , if the underwriter understands the reason and then allows it .
Keep the key difference between these forms in mind . The CG 20 33 requires privity of contract . Only the party on page one of the contract is granted additional insured status . Conversely , the CG 20 38 grants additional insured status to any party required by the contract to be extended additional insured status .
Q : How should we cancel a COI ?
A : COIs don ’ t have to be cancelled because they are snapshots of coverage on the day the COI is issued . However , if you have made it a regular practice of issuing “ updated ” COIs when a policy cancels , you have to continue that practice and issue a new COI with updated information ( but only if you have set this expectation historically ). If you haven ’ t done this in the past , don ’ t start .
Q : What Accord version should be used . Our management system , Applied TAM , allows for three different options . Should the newest version always be used ? Some like the wording of the older versions and think we should use them . What ’ s your opinion and why ?
A : That ’ s an interesting question , but more from the point that some folks prefer the older versions . I guess my question in response to your question is why the older version is preferred by some .
In looking at the changes to the ACORD 25 over the last few editions , it seems to me each change has been for the benefit of the agent . The most current version , to me , does the best job explaining the intent and purpose of the COI . I would be interested to hear the dissenting opinions ; maybe that would be fodder for a ( further discussion ).
And lastly , some states don ’ t allow the use of an older form when a new one is filed and approved . Check with your state to see if you have options for using older forms .
Q : In regard to eroding aggregate limits , what do you recommend for open claim reserves ?
A : Claim reserves are just estimations made by the adjuster . Basically , for COI purposes , ignore them . Nothing has been paid and thus no limits have been reduced .
Q : We are beginning to receive requests / requirements from certificate management companies for copies of the insurance declaration page and even the entire policy . This does not seem like a request with which we should comply . This seems to border on breach of client confidentiality . What do you think ?
A : You ask a great question . Because the release of an entire policy may potentially violate privacy laws , you have to get the insured ’ s permission . I would recommend that permission be obtained in writing and kept in the file .
In regard to what you tell the certificate company , you have to explain to them that the policy is actually not your information to give . Remember , the policy is a contract between the insured and the insurance carrier – the agency is not a party to the contract . Only the insured can give permission to provide the policy .
Remember , if you have technical questions you need assistance on , you have access through your KAIA membership to the Big I Virtual University faculty . Just visit iiaba . net / vu and select the “ Ask an Expert ” option from the menu to submit your question to their team . •
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