You are likely aware by now that ACORD revised forms during the last couple years, most notably the certificate of liability insurance (ACORD-25).  Numerous important changes were made to that form which generated questions and concern.

ACORD and legal counsel remind us of the following:

•       The license agreement to use ACORD forms is between the agency and ACORD, not the carrier and ACORD. Therefore, any decision pertaining to the use or alteration of a form, whether ‘approved’ by a carrier or not, is ultimately the responsibility of the agency with respect to that licensing agreement.
•       ACORD emphasizes a certificate should not be used to vary policy terms and conditions. Such activity violates the ACORD licensing agreement as well as many state regulatory requirements.
•       ACORD indicates it is ‘imperative’ that all ACORD forms users use the most current versions of their forms.
•       Underwriters are discouraged from providing opinions on what can and can’t be typed on an ACORD form.  The underwriter is not party to the licensing agreement with ACORD and the agency’s E & O insurance is often the first line of defense on certificate errors.
•       Underwriters can advise of existing coverage on a policy and suggest coverage for specific requests but are discouraged from evaluating contract language.  Most underwriters do not possess the background to provide opinions on legal documents.  When in doubt, seek proper legal advice!

ACORD has a comprehensive website for its clients and the public—www.ACORD.org—that contains a wealth of information.  They provide important notices on certain forms, live help from 9am-4pm EST, and more.  If you are unsure of something pertaining to a certificate, you may want to start here.

Your Frankenmuth Insurance Commercial Lines underwriter is always ready to determine what coverage is on your client’s policy and what is available, but contract analysis and certificate advice should be left to the experts on those subjects.