Certificate holders certainly wish that the insurance industry

Certificate holders certainly wish that the insurance industry would find a way to notify them when an insurance policy is cancelled. But in reality, they may not have lost much in this change besides the illusion that the insurer would notify them. Many insureds have a “blanket additional insured” endorsement on their liability policies.

That means that anyone that the insured agrees to name as an additional insured in a contract is automatically given that status in its insurance policy. But that also means that the insurance company does not obtain the names and addresses of those additional insureds, so the insurer does not know who they are or how to notify them. Certificate holders would reasonably assume that as a matter of good faith.

Insurers would require that the agents/brokers send them a list of all of the certificates that they issued so that the insurer could “endeavor” to give notice of cancellation. Incredibly, that is not the case. Many carriers have explicitly told the agents/brokers not to send them copies of the certificates. Since many insurance carriers have not made the good faith effort to comply with the notice requirements of the old certificate forms, not much is lost by eliminating the notice requirements altogether. At least false promises are no longer being made.

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