Is there responsibility to inform a non AI entity

[Rob]

I did request it from UW.

Then maybe you'd like to speak to The Hartford underwriter and set him straight. I'm sure the UW department would appreciate it. I can't exactly get the UW to do something they won't do or can I? Here was the final e-mail: "Per the attached GL form, additional insured's are automatically covered in Hartford's form."

The potential problem here is that the agent gave incorrect information regarding the Additional insured. Had he correctly requested the endorsement from the carrier, this wouldn't be a question. However, the Agent told the property manager it wasn't required. This is not true. Thus, as the agent directly (and against conventional wisdom) spoke to the property manager, I am going with 'yes, he must advise coverage has been terminated'.

This is a good lesson on two fronts:

1. Know your policy forms
2. Don't ever give policy information to anyone other than the Insured.

I knew it! I experience the same thing with Hartford. JSJAG, who issues the certificates for Hartford?

[JSJAG]

A name? I don't give out names, departments, locations, etc. Sorry.

I did sound a bit testy in my response but it had been a long day. Plus here on the east coast we were getting another snow storm and about 50% more snow than predicted. Sooooo I wasn't in a good mood when I read that I gave incorrect information but I had already tried to get the endorsement from the ins co.

<<who issues the certificates for Hartford?>>

I did request it from UW.

Then maybe you'd like to speak to The Hartford underwriter and set him straight. I'm sure the UW department would appreciate it. I can't exactly get the UW to do something they won't do or can I? Here was the final e-mail: "Per the attached GL form, additional insured's are automatically covered in Hartford's form."

The potential problem here is that the agent gave incorrect information regarding the Additional insured. Had he correctly requested the endorsement from the carrier, this wouldn't be a question. However, the Agent told the property manager it wasn't required. This is not true. Thus, as the agent directly (and against conventional wisdom) spoke to the property manager, I am going with 'yes, he must advise coverage has been terminated'.

This is a good lesson on two fronts:

1. Know your policy forms
2. Don't ever give policy information to anyone other than the Insured.

I knew it! I experience the same thing with Hartford. JSJAG, who issues the certificates for Hartford?

[Rob]

A name? I don't give out names, departments, locations, etc. Sorry.

I did sound a bit testy in my response but it had been a long day. Plus here on the east coast we were getting another snow storm and about 50% more snow than predicted. Sooooo I wasn't in a good mood when I read that I gave incorrect information but I had already tried to get the endorsement from the ins co.

<<who issues the certificates for Hartford?>>

I did request it from UW.

Then maybe you'd like to speak to The Hartford underwriter and set him straight. I'm sure the UW department would appreciate it. I can't exactly get the UW to do something they won't do or can I? Here was the final e-mail: "Per the attached GL form, additional insured's are automatically covered in Hartford's form."

I knew it! I experience the same thing with Hartford. JSJAG, who issues the certificates for Hartford?

No I didn't mean a name. I meant when someone requests a certificate, do you do it yourself, the company issues it, or an intermediary?

[JSJAG]

Ah...I see.

Depending on the situation it can be any of the three.

<<No I didn't mean a name. I meant when someone requests a certificate, do you do it yourself, the company issues it, or an intermediary?>>

A name? I don't give out names, departments, locations, etc. Sorry.

I did sound a bit testy in my response but it had been a long day. Plus here on the east coast we were getting another snow storm and about 50% more snow than predicted. Sooooo I wasn't in a good mood when I read that I gave incorrect information but I had already tried to get the endorsement from the ins co.

<<who issues the certificates for Hartford?>>

I knew it! I experience the same thing with Hartford. JSJAG, who issues the certificates for Hartford?

No I didn't mean a name. I meant when someone requests a certificate, do you do it yourself, the company issues it, or an intermediary?

[LadyBroker]

Where's the language in the policy that gives an additional insured (presuming one were named) a right to receive notice of cancellation? The last time I looked, the insurer is required to provide such notice only to the First Named Insured.

This question never received an answer, as far as I saw, and they raise a valid point.

I looked at the Certificates of Insurance that I typically receive from a retail broker, and it's on the cert that Notice of Cancellation will be provided in the event the policy cancels. If your client has a blanket additional insured endorsement, and the carrier doesn't require copies of the AI certificates, then I am thinking that the retail broker has assumed the responsibility of notifying the AI's of a cancellation. What do you all think?

[JSJAG]

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL ____ DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES.

A lot of parsing in the above notification. Yes it does say, "will" but you left out the next word "endeavour". Who can agree on endeavour? Is an endeavour one or two times. One person's endeavour may be well in excess of another persons endeavour.

On top of there is the statement "failure to do so shall, etc."

Would it not be the duty of the insurer to notify the Additional Insured that has been added to the policy? Hm...I'm thinking?

Where's the language in the policy that gives an additional insured (presuming one were named) a right to receive notice of cancellation? The last time I looked, the insurer is required to provide such notice only to the First Named Insured.

This question never received an answer, as far as I saw, and they raise a valid point.

I looked at the Certificates of Insurance that I typically receive from a retail broker, and it's on the cert that Notice of Cancellation will be provided in the event the policy cancels. If your client has a blanket additional insured endorsement, and the carrier doesn't require copies of the AI certificates, then I am thinking that the retail broker has assumed the responsibility of notifying the AI's of a cancellation. What do you all think?

[LadyBroker]

But that language is on the certificate of insurance, not in the policy.

[JSJAG]

Oh I just went back to the question. I thought we were talking about language on the COI but you were questioning the policy language.

But that language is on the certificate of insurance, not in the policy.

[gregcw]

Is there responsibility to inform a non AI entity. I have a client that is about to be cancelled for non-payment. The policy is in mid term, three different times (e-mail, phone call and in person) I have communicated to my client that his policy will be cancelled if he doesn't pay buy the drop dead date.

When this policy was issued, my clients landlord management company called me requesting an AI status. After communicating to the management company that the new ISO Form in the policy already addresses his concern. The management company was fine with the policy language and didn't continue their request for AI status.

Here's the question:

Because I have had previous communication with the management company:

They initially informed me by e-mail that my client will be in breach of his lease if he doesn't carry insurance.

They have made me aware of their concern of or the lack of an insurance policy.

They didn't continue with their AI request.

They do have a copy of the policy Dec. pages but no cert was issued to them.

If this policy cancels must I contact the management company to make them aware of the lack of coverage? Surely if I do they will start action on breaching the requirements of the lease. That will make my client (previous if it lapses) find himself in the financial situation of having his operation come to a halt.

If and when the policy lapses under laws of agency does my responsibility of agent/client end? Although there is no written contractual agreement with the management company do I then gain some form of responsibility to the management firm?

I have my idea but what say ye?

JSJAG,

I feel that you have a responsibilty to name the landlord as an AI because he has requested it. It is immaterial that he is already an AI because of the policy language. His intent may have been to have the coverage provided by being an AI but it was also to ensure that he recieves notice of cancellation. You said he is a non-AI Entity but say that the policy language automatically says he an AI. What he is not is a certificate holder.

Regarding your obligation to the insured terminating when he no longer becomes a client, the error did occur while he was still an inforce client. this makes your question moot. You did have the legal obligation and failed to perform.

If you do not add the landlord as an AI you will need to be CERTAIN that the landlord recieves notice of the cancellation. Since you have indicated that the client has been lax in making payments, do you want to take full responsiblity for something that you could easily have shifted to the company?

You did not say that your insured requested this coverage but the landlord. If he has provided you with evidence of the lease (knowing that you are the agent of record is evidence of his realtionship with your client and could be construed as evidence of the lease) I believe you are obligated to put him in a position to know that your customer has coverage.

GREGCW, CIC

[AVATAR]

Hey, JSJAG! I think your instincts are correct to tell the property management company. I also believe it's smart to do as one other person suggested - - not to go into specifics about the reasons, just inform them coverage is no longer in force.

But that's not why I'm writing this response. It's tough when you get conflicting information to know what you should do. However, you've demonstrated an important attribute for long-term success - - integrity. Don't ever lose that.

[JSJAG]

Please view the post where I requested UW add as AI but was turned down because the policy form already addressed the AI issue.

Is there responsibility to inform a non AI entity. I have a client that is about to be cancelled for non-payment. The policy is in mid term, three different times (e-mail, phone call and in person) I have communicated to my client that his policy will be cancelled if he doesn't pay buy the drop dead date.

When this policy was issued, my clients landlord management company called me requesting an AI status. After communicating to the management company that the new ISO Form in the policy already addresses his concern. The management company was fine with the policy language and didn't continue their request for AI status.

Here's the question:

Because I have had previous communication with the management company:

They initially informed me by e-mail that my client will be in breach of his lease if he doesn't carry insurance.

They have made me aware of their concern of or the lack of an insurance policy.

They didn't continue with their AI request.

They do have a copy of the policy Dec. pages but no cert was issued to them.

If this policy cancels must I contact the management company to make them aware of the lack of coverage? Surely if I do they will start action on breaching the requirements of the lease. That will make my client (previous if it lapses) find himself in the financial situation of having his operation come to a halt.

If and when the policy lapses under laws of agency does my responsibility of agent/client end? Although there is no written contractual agreement with the management company do I then gain some form of responsibility to the management firm?

I have my idea but what say ye?

JSJAG,

I feel that you have a responsibilty to name the landlord as an AI because he has requested it. It is immaterial that he is already an AI because of the policy language. His intent may have been to have the coverage provided by being an AI but it was also to ensure that he recieves notice of cancellation. You said he is a non-AI Entity but say that the policy language automatically says he an AI. What he is not is a certificate holder.

Regarding your obligation to the insured terminating when he no longer becomes a client, the error did occur while he was still an inforce client. this makes your question moot. You did have the legal obligation and failed to perform.

If you do not add the landlord as an AI you will need to be CERTAIN that the landlord recieves notice of the cancellation. Since you have indicated that the client has been lax in making payments, do you want to take full responsiblity for something that you could easily have shifted to the company?

You did not say that your insured requested this coverage but the landlord. If he has provided you with evidence of the lease (knowing that you are the agent of record is evidence of his realtionship with your client and could be construed as evidence of the lease) I believe you are obligated to put him in a position to know that your customer has coverage.

GREGCW, CIC