COI's
Posted: Mon Oct 08, 2007 10:12 am
hello, etimer. What I have personally seen with regards to AI's and the requirement to have a written contract is that my carriers have denied coverage to the AI if there is no Written Contract in place. (meaning the AI was not entitled to defense) The carrier isn't going to deny coverage to the insured if the job is covered, but the AI is not valid. That's a subtle difference, but a huge point. If there is no contract, how do you know what the client was expected to do, and what the AI expected of them? I should also add I am in California, so perhaps our laws are different here (that wouldn't surprise me...).
The biggest issue I see with the AI's and Certificates is that the carrier is NOT obligated to do anything just because the agent issued the certificate incorrectly. If you check the $1/2/2/1 limits with a per occurrence deductible, and the policy really only has $1/2/1/1 limits with a per claim deductible, then the policy rules. It doesn't matter who has the cert (the wholesaler, the carrier, the MGU), the policy form cant' be changed by a certificate. At least not yet...
Always enjoy your posts! Have a great rest of your day.
The biggest issue I see with the AI's and Certificates is that the carrier is NOT obligated to do anything just because the agent issued the certificate incorrectly. If you check the $1/2/2/1 limits with a per occurrence deductible, and the policy really only has $1/2/1/1 limits with a per claim deductible, then the policy rules. It doesn't matter who has the cert (the wholesaler, the carrier, the MGU), the policy form cant' be changed by a certificate. At least not yet...
Always enjoy your posts! Have a great rest of your day.