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PIA National Participates in ACORD Session on Certs and ACORD-25

Changes to the cancellation wording on all of ACORD's certificates - most notably the ACORD 25 Certificate of Liability Insurance released in September...
December 14, 2010

Changes to the cancellation wording on all of ACORD's certificates - most notably the ACORD 25 Certificate of Liability Insurance released in September 2009 - were the focus of a discussion at an ACORD-hosted industry gathering in New York last week. PIA National participated in the discussions.

The current edition of the ACORD 25 certificate removed wording that had been on the form for many years which stated that carriers would "endeavor to" notify certificate holders of policy cancellations. The new language provides increased clarity by stating that notifications will be made in accordance with policy provisions.

The issue at hand was that some insurance industry participants have experienced difficulties with certificate holders from outside the insurance industry who will not accept the new language and therefore will not accept the certificate. After defining the issue and scope, the group then focused on some potential actions that they believe may help in resolving the issue, particularly through education. PIA National Senior Vice President Patricia A. Borowski shared PIA's perspective on the issue as defined by the PIA National Business Issues Committee (BIC). PIA will continue to work with ACORD to continue to educate all parties. Following the meeting, BIC issued a guidance memo.

Click here to read PIA National Business Issues Committee guidance memo - "Current Challenges Surrounding Certificates of Insurance" (12/13/10)

Click here to access Certificate Language Discussed at Focus Group (ACORD update 12/13/10)