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PIANY insurance council issues reminder about new state law regarding Certificates of Insurance.
NYSNYS News
Text of press release.


CONTACT: Darel Cramer
or Mary E. Christiano
(800) 424-4244
Fax: (888) 225-6935
Email: publications@pia.org
Website: www.pia.org/NY



FOR RELEASE: July 27, 2015

As new law takes effect, PIANY reminds Certificates of Insurance solicitors
of the rules

Glenmont, N.Y.-The Professional Insurance Agents of New York State
celebrated the passage of its top-priority law
in January, but the
rules, addressing a long-growing problem for construction and insurance
businesses, will take effect tomorrow, July 28. PIANY is taking this
landmark date to remind those who demand Certificates of Insurance from
parties wishing to do business with them that they are now subject to fines
and regulations against inappropriate requests for false documentation.



"PIA is delighted to have helped insurance agents and their clients fight
back against improper requirements by contractors, banks, municipalities and
other potential clients, which put them in the impossible position of being
unable to provide the documentation those parties demanded in order to do
business with them," said PIANY President Anthony A. Kubera, CIC. "PIA has
worked relentlessly to lead this initiative and we are grateful to the
lawmakers and regulators who took action to protect New York's businesses
and to the PIA members who reached out to their representatives, to get this
law passed."



The law clarifies that certificate forms must accurately reflect the
coverages in the insurance policy and prohibits any person from "willfully
requiring" a certificate of insurance that contains false or misleading
information. It also authorizes the New York State Department of Financial
Services to impose penalties for violations, and it is now inappropriate to
require a certificate of insurance that includes language of any kind,
including warranties of coverage, that is not expressly found in the
underlying policy.



The new law also restricts the types of certificate forms that may be used.
Certificate holders may require only certificates that are issued by the
insurer providing the coverage; issued by an insurance industry
standard-setting organization (such as ISO or ACORD) and approved by the
NYDFS; or other certificates approved by the NYDFS (found at:
http://www.dfs.ny.gov/insurance/insurers/cert_ins_approved.htm).



Now that it has achieved legislative and regulatory success regulating
misuse of certificates of insurance, PIANY is providing its members with
information and materials to share with clients; education and resources
about the proper use certificates of insurance; and person-to-person advice
available through its Industry Resource Center at (800) 424-4244, or pia.org
.



"We are committed to ensuring that professional, independent insurance
agents are no longer placed in the precarious position in which the requests
for improper certificates has put them," said Kubera. "We will continue to
provide PIA members with support and resources to keep their businesses
healthy."



PIANY is a trade association
representing professional, independent insurance agencies, brokerages and
their employees throughout the state.

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