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Bankers Press for Membership Vote on New ACORD 875 Binder Form

ACORD held a plenary session on Oct. 15 to discuss among other issues the Maintenance Request submitted by the Mortgage Bankers Association...
October 18, 2012

ACORD (the Association for Cooperative Operations Research and Development) held a plenary session on Oct. 15 to discuss among other issues the Maintenance Request (MR) submitted by the Mortgage Bankers Association (MBA). The MBA had proposed combining the ACORD 75 Insurance Binder with the ACORD 28 Evidence of Commercial Property Insurance to create a new commercial property binder form that contains more coverage details.

In response to the MR submitted by the MBA, ACORD staff drafted an ACORD 875 Commercial Property Insurance Binder for the Property and Casualty Certificate Forms Working Group to consider during a Sept. 25 conference call. While not necessarily opposed to this form in principle, producer and insurer groups were not ready to sign off on the draft without feedback from their respective constituents. ACORD gave interested parties an opportunity to gather and submit feedback prior to the plenary session on Oct. 15.

Participants on the Oct. 15 call overwhelmingly opposed (19 to 7) bringing the draft version of the ACORD 875 form to vote on the fall 2012 ballot. PIA was represented on the call by Dan Corbin, who was among those who opposed placing the draft form on the ballot, but also submitted comments on improving the content of the form for future consideration. Nevertheless, the MBA insisted on placing the draft form on the ballot.

ACORD’s Standards Development Organization governance rules state that an MR author is entitled to have their request submitted to membership vote, irrespective of any working group input or feedback. Given that voting members are insurers, it is unlikely that the current version of the ACORD 875 will be approved. PIA is a member of ACORD and supports their efforts to foster uniformity and efficiency.