Report: Chubb 'Re-Evaluating' Position on
Certificates of Insurance
(Dec. 16, 2010) — IIABNY has learned that Chubb Group is reconsidering its recently-announced position on the sending of cancellation notices to holders of certificates of insurance. In a Dec. 15 e-mail sent to its producer force, the company said it had received "constructive feedback" from many of them. Consequently, Chubb is "re-evaluating" its position on notices of cancellation, based on the feedback and "ongoing industry developments with Certificates of Insurance."
IIABNY received complaints from many members about this and quickly began working with IIABA to see what could be done. IIABA senior staff discussed the issue in a conference call two weeks ago, and the group's general counsel has had discussions with the carrier. The announcement in Chubb's Dec. 15 e-mail is the first indication that it may reverse its position.
IIABNY will report future developments in The Situation Room and in the IIABNY Insider.
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IIABNY and IIABA Addressing Chubb Action on Certificates of Insurance
(Dec. 2, 2010) — Responding to an outcry from members, IIABNY and IIABA are examining possible responses to Chubb Group's recent announcement that places new, uncompensated burdens on insurance producers. The carrier sent e-mails to its producer force on Nov. 29 stating that it is giving producers responsibility for sending notices of cancellation to third-party certificate holders. Several IIABNY members, including members of the board of directors, have contacted us out of concern for the additional work it will entail and the heightened exposure to errors and omissions claims.
The IIABA became aware of this issue late last week and was scheduled to have a conference call today to discuss what action to take. The IIABA general counsel has informed us that they hope to have a strategy in place shortly. Discussions with Chubb, by IIABA, IIABNY or both, will take place. We will provide an update to members as soon as we have something to report.
In the mean time, we advise Chubb producers to make no changes to their procedures with regard to certificates of insurance, despite the carrier's instructions.
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New Resources are Posted to Address Certificate Issue
(June 26, 2006) — Following negotiations led by IIABNY and including other insurance producer groups, the New York City Department of Transportation has agreed to modify its requirements for certificates of insurance. The action will allow agents and brokers to issue certificates that the DOT will accept, enabling insured contractors to obtain sidewalk and roadways construction permits. While the certificate form may satisfy the requirement for a permit to be issued, most insurance policies may not provide all of the coverage terms required, opening up the potential for an errors and omissions exposure to the agent.
James C. Keidel, the association's general counsel from the law firm of Keidel, Weldon & Cunningham, LLP, has developed a sample confirming letter and acknowledgement form that can be used to advise your clients of a possible coverage gap. IIABNY is continuing to work with the NYC DOT to recommend changes to the existing regulation.
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IIABNY, NYC DOT Reach Agreement
on Certificates of Insurance
(May 16, 2006) — Following negotiations led by IIABNY and including other insurance producer groups, the New York City Department of Transportation has agreed to modify its requirements for certificates of insurance. The action will allow agents and brokers to issue certificates that the DOT will accept, enabling insured contractors to obtain sidewalk and roadways construction permits.
Under the agreement, each certificate of insurance will state that the contractor’s liability policy names the City of New York as additional insured and provides completed operations coverage. A notarized statement, signed by the producer or insurer, that the certificate is accurate in all material respects and that the insurance was in effect on the date of certification must accompany each certificate. These requirements are much easier for agents and brokers to meet than those previously in effect.
IIABNY Chair of the Board Sharon Emek, CIC, Ph.D., managing director for CBS Coverage Group in Manhattan, praised the DOT for its flexibility and practical approach. “This is a great result for insurance agents and brokers. More importantly, it will enable our clients to obtain the permits they need and focus on their businesses.
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Industrywide Resolution to Certificate Issue is Sought in Scheduled Wed. Meeting with NYC DOT
(May 2, 2006) — IIABNY will pursue a resolution to remaining issues surrounding the New York City Department of Transportation certification requirements when the association's representatives and legal counsel meet with DOT officials. IIABNY, which will represent its members and those of three other producer trade groups at the meeting, is attempting to work out a final agreement over the department's requirement that agents file its Certificate by Broker or Insurer form when submitting a Certificate of Insurance.
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