Certificates of Insurance

Department of Business Regulation Insurance Division 1511 Pontiac Avenue, Bldg. 69-2 Cranston, Rhode Island 02920 Insurance Bulletin Number 2011-1 Certificates of Insurance The purpose of this Bulletin is to establish that the improper modification of certificates of insurance is an unacceptable business practice. A certificate of insurance is not a form which requires Department approval nor is it filed with the Department. It has come to the attention of the Department that some third parties may be requesting that insurance producers issue certificates of insurance that evidence terms or conditions of coverage that may be inconsistent with the underlying insurance policy or contract. The Department wishes to inform insurance producers and all other individuals that certificates of insurance cannot be used to amend, expand or alter the terms of the underlying insurance policy. Insurers and producers are reminded of the provisions of the Rhode Island Unfair Competition and Practices Act, R.I. Gen. Laws § 27-29-4, that provides in relevant part that it is a violation to: (1) Misrepresentations and false advertising of policies or contracts. Making, issuing, circulating, or causing to be made, issued, or circulated, any estimate, illustration, circular, or statement, sales presentation, omission, or comparison misrepresenting the terms of any policy issued or to be issued or the benefits, conditions, or advantages promised by any policy or the dividends or share of the surplus to be received on any policy… Providing a certificate of insurance that misrepresents policy terms or conditions violates Rhode Island law and subjects the insurance producer to penalties that may include suspension or revocation of the producer’s license. The Department urges all insurers to review their oversight procedures regarding the issuance of certificates of insurance in order to avoid misrepresentations of the terms and conditions of their policies and to periodically remind their producers about the consequences of providing improper certificates of insurance to the public. Questions regarding this Bulletin may be directed to Beth Vollucci at Beth.Vollucci@dbr.ri.gov Joseph Torti III Superintendent of Insurance March 4, 2011