Why not just require the old insurance form?

You may ask, “Why doesn’t the certificate holder simply require the insured and its insurance agent to provide the old certificate of insurance form?” What certificate holders and insureds should know is that if an agent does modify a standard certificate or signs a custom one that provides notice of cancellation, it is almost certainly doing so against the explicit direction of the insurance company. So while the certificate holder may have a paper in its hand which states that the insurance company will provide notice of cancellation, the insurer will not stand behind it. If coverage is cancelled, all that the certificate holder has probably gained is the right to sue the agent and its errors and omissions carrier.

Since the agent is probably executing the modified certificate with the full knowledge that it is not authorized to do so, coverage under its errors and omissions policy is suspect. For a fuller understanding of why an agent executing modified certificates is engaging in a practice which may be unauthorized, deceptive and potentially illegal, please see the article written by Bill Wilson of the Independent Insurance Agents and Brokers of America. I am aware of about 20 different vendors who provide some form of insurance certificate and verification service. I have found only one vendor that provides a certificate service that completely bypasses ACORD certificates and their problems.

I pass on their information as a service to readers. Their name is Ins-Cert Corporation, and information on their services can be found by doing an Internet search under that name. Their system is Web-based and requires the agent/broker to agree to make a “good faith effort” to enter notices of cancellation into their system. The system then automatically sends cancellation notices to all certificate holders by email. Their system appears to offer a solution to both the problem of cancellation notices and also the problem of fraudulent ACORD certificates. From my investigation I believe they offer a legitimate service and are worthy of consideration. Readers of this paper who have found other workable solutions to this problem are asked to contact me.

Article Source: http://EzineArticles.com/6065794

VIDEO LINK: http://hoteldict.com/2017/11/28/if-we-cancel-or-elect-not-to-renew-this-insurance-policy/