The Department reminds all carriers and agents that a certificate of insurance must clearly and accurately state the insurance coverage provided. A certificate of insurance that obscures or misrepresents the insurance coverage provided under the insurance policy is a violation of the Insurance Code, including §§541.051, 541.061, and 4005.101(b)(5) and (6). Additionally, agents are reminded that they are prohibited from altering the terms or conditions of a policy under Insurance Code §§4001.051(c) and 4001.052(b). Violation of the provisions of Chapter 541, 4001, or 4005 may result in administrative penalties and/or license revocation.
The Department is issuing this bulletin because it has received information that indicates some certificates of insurance provided to contractors are either obscure as to the types of coverage contained in the policy or misrepresent the coverage under the policy.
As provided in the Department's previously issued General Casualty Bulletin No. 369, Automobile Series No. 417, and W.C. Circular Letter No. 392, dated February 1, 1968, the Department again highlights sample language that may be used on each certificate of insurance issued:
In compliance with Texas law, this Certificate of Insurance
neither amends, extends, or alters any term or condition of the
coverage afforded by Policy No. _______ issued by
_______________ on __________(date).
Instances of a company or agent issuing or executing a certificate of insurance that obscures or misrepresents coverage under the insurance policy should be reported to the Consumer Protection Division of the Texas Department of Insurance at 800-252-3439 or ConsumerProtection@tdi.state.tx.us.
Questions regarding this bulletin may be directed to David Nardecchia, CPCU, Director, Personal and Commercial Lines Division at David.Nardecchia@tdi.state.tx.us.
Link for: General Casualty Bulletin No. 369
Mike Geeslin
Commissioner of Insurance