NY Legislation to Prevent Misuse of COIs

Bulletin – Tuesday, December 2, 2014

The Excess Line Association of New York (ELANY) has written a letter to Governor Cuomo in support of bill A09590 Morelle  designed to prevent third parties from demanding terms and conditions in a certificate of insurance that a producer is not in a position to represent. 

According to the PIA, the legislation  "requires the use of an ACORD certificate form (with limited exceptions) and provides that no person or governmental entity shall request or require, prepare or issue a certificate of insurance that such person knows does not accurately state the terms of coverage provided by the policy; or purports to alter, amend, extend or misrepresent the terms of coverage to which the certificate makes reference; or purports to confer to any person new or additional rights beyond what the referenced policy of insurance expressly provides. Essentially, the bill requires a certificate to be a true and accurate representation of the policy."

If you are a licensed New York agent or broker, the PIA is encouraging you to also write the Governor to express your support for this bill.

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