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Texas Department of Insurance
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Certificates of Insurance Frequently Asked Questions

Chapter 1811, Texas Insurance Code
[added by Senate Bill 425 (82nd Regular Session) 2011]

  1. A certificate holder requests that the certificate of insurance name the holder as an additional insured, but the policy contains only a Blanket Additional Insured endorsement. May the certificate name the holder as an additional insured?

    No, though the certificate can state that the policy contains a Blanket Additional Insured endorsement. See Insurance Code Sections 1811.051(a), 1811.054, and 1811.152.

  2. A certificate holder requests that the certificate of insurance state that the policy contains a waiver of subrogation in the holder’s favor, but the policy contains only a Blanket Waiver of Subrogation endorsement. May the certificate state that the policy contains a waiver of subrogation in the holder’s favor?

    No, though the certificate can state that the policy contains a Blanket Waiver of Subrogation endorsement. See Insurance Code Sections 1811.051(a) and (b), 1811.054, and 1811.152.

  3. Does Insurance Code Chapter 1811 prohibit an agent or insurer from providing a copy of the policy or endorsements?

    No. Chapter 1811 does not prohibit an agent or insurer from providing a copy of the policy or endorsements.

  4. May a certificate of insurance refer to the insurance requirements of another contract, such as a construction contract?

    No. Insurance Code Section 1811.154 states, “A certificate of insurance may not contain a reference to a legal or insurance requirement contained in a contract other than the underlying contract of insurance, including a contract for construction or services.”

  5. A certificate holder requests that the certificate of insurance state that the holder will receive 30 days’ notice of cancellation, nonrenewal, or material change in coverage. May the certificate contain this provision?

    Yes, as long as the provision mirrors the requirements in the insurance policy. The certificate cannot go beyond the policy’s requirements. Insurance Code Section 1811.155 states:

    (a) A person may have a legal right to notice of cancellation, nonrenewal, or material change or any similar notice concerning a policy of insurance only if:

    (1) the person is named within the policy or an endorsement to the policy; and

    (2) the policy or endorsement or a law, including a rule, of this state requires notice to be provided.

    (b) A certificate of insurance may not alter the terms and conditions of the notice required by a policy of insurance or the law of this state.

    As a result, if the certificate holder is named within the policy or an endorsement to the policy, and the policy or endorsement or a Texas law or rule grants the certificate holder the right to receive notice of cancellation, nonrenewal, or material change, or any similar notice concerning the insurance policy, then the certificate may contain that information. The certificate may cite the applicable statute or rule.

  6. I have an insured headquartered in Texas with operations in another state. When I issue a certificate of insurance to a certificate holder in another state for the operations in that state, do I have to use a certificate of insurance form approved by TDI?

    No, because the risk is in another state, and you are issuing the certificate to a certificate holder in that state. See Insurance Code Section 1811.052(b).

  7. I have an insured headquartered in another state with operations in Texas. When I issue a certificate of insurance for the operations in Texas, do I have to use a certificate of insurance form approved by TDI?

    Yes. Regardless of where the certificate holder is located, you must use a certificate of insurance approved by TDI for a risk located in Texas. See Insurance Code Section 1811.052(b).

  8. I have a risk in Texas and an insured in Texas, but the certificate holder is in another state. When I issue a certificate of insurance for the risk in Texas to the certificate holder in another state, do I have to use a certificate of insurance form approved by TDI?

    Yes. Regardless of where the certificate holder is located, you must use a certificate of insurance approved by TDI for a risk located in Texas. See Insurance Code Section 1811.052(b).

  9. Must a property and casualty agent or a surplus lines agent have an appointment with a managing general agent (MGA) or a property and casualty insurer to execute or issue a certificate of insurance?

    Yes. A property and casualty agent or a surplus lines agent must hold an appointment with the MGA or insurance company that issues the policy to deliver a certificate of insurance to a customer. See Insurance Code Section 4001.201 and 28 Texas Administrative Code Section 19.905.

  10. May a certificate of insurance include a job number or contract number for identification purposes?

    Yes, if you are listing the job number or contract number for identification purposes only. The certificate may not, however, contain language such as “the insurer provides coverage in accordance with the terms of contract number _______” or similar language that would reference an insurance requirement in a contract other than the contract of insurance. See Insurance Code Section 1811.154.

  11. What are the penalties for violating Insurance Code Chapter 1811?

    The possible penalties for noncompliance include cease and desist orders, injunctive relief, administrative penalties, civil penalties of up to $1,000 for each infraction, or any combination of these actions. See Insurance Code Sections 1811.201–204. These penalties can apply to certificate holders, agents, insurers, and any entities defined under Insurance Code Section 1811.001(8).

  12. May a certificate holder require that a certificate of insurance include a broad statement that there are no limitations or exclusions for residential construction exposure?

    No. A certificate cannot say anything that is not the same as what is stated in the insurance policy. A statement such as “there are no limitations or exclusions for residential construction exposure” would have to be stated exactly like that in the policy in order to be added to certificate. The insurer would then need to have that addition on the certificate filed with and approved by TDI.

    Section 5.9376(b)(4)(A), Title 28 of the Texas Administrative Code states that an insurer’s request for information on the certificate of insurance form must be “specific, clear, and reasonable.” No certificate filed with TDI can say more than what’s in the related policy, according to Insurance Code Section 1811.051. However, a certificate holder may ask the agent whether the policy contains specific language or a specific exclusion, or may request a copy of the policy.

  13. Does Insurance Code Chapter 1811 apply to a statement, summary, or evidence of property insurance required by a lender in a lending transaction involving a mortgage, lien, deed of trust, or any other security interest in real or personal property as security for a loan?

    No. See Insurance Code Section 1811.002(b).

  14. Should an association or entity file its industry-specific certificate of insurance form with TDI for approval?

    Yes, if the certificate of insurance is for risks located in this state. A person, including an association or entity, may not issue a certificate of insurance for risks located in this state unless the certificate of insurance form has been filed with and approved by TDI. See Insurance Code Sections 1811.001(8) and Section 1811.052(b).

  15. When should I check the box for “Additional Insured” on the ACORD certificate of insurance form?

    You should check the “Additional Insured” box if the policy includes an endorsement that names the certificate holder as an additional insured.

  16. When should I check the box for “Waiver of Subrogation” on the ACORD certificate of insurance form?

    You should check the “Waiver of Subrogation” box if the policy includes a Waiver of Subrogation endorsement that names the certificate holder.

  17. A certificate holder requests that I complete a supplemental questionnaire in addition to the certificate of insurance form. Does Insurance Code Chapter 1811 allow an agent to provide a supplemental questionnaire?

    No. Chapter 1811 allows only TDI approved certificates of insurance.  Any form that falls under the definition of “certificate of insurance” in Insurance Code, Section 1811.001(3) must comply with Chapter 1811. Insurance Code Section 1811.055 and Title 28 Texas Administrative Code, Section 5.9371(b)(2) list other types of documents that Chapter 1811 prohibits. You may show the relevant policy language to the certificate holder.

  18. My agent has been asked to complete an affidavit on behalf of an insured that addresses insurance requirements in connection with a contract. Does Insurance Code Chapter 1811 allow an agent to complete such an affidavit?

    No. Chapter 1811 allows only approved certificates of insurance. Any form that falls under the definition of “certificate of insurance” under Insurance Code, Section 1811.001(3) must comply with Chapter 1811. Insurance Code Section 1811.055 and Title 28 Texas Administrative Code, Section 5.9371(b)(2) list other types of documents that Chapter 1811 prohibits. You may show the relevant policy language to the certificate holder.

  19. A certificate holder asks to add more than the name of a person or the company to the “Certificate Holder“ box on the ACORD 25 form. The certificate holder would like to list—in addition to the specific certificate holder name—individuals such as the corporate officers and employees of the certificate holder; all subsidiaries, affiliated entities, and assigns with the certificate holder; and all corporate officers and employees of the subsidiaries, affiliates, and assigns. Must the policyholder and agent comply with this request?

    A certificate holder may not use the “Certificate Holder” box to imply or confer any new or additional rights beyond what the policy or any executed endorsement of insurance provides. See Insurance Code Section 1811.153. The certificate holder may not rely on the naming requirements of another legal contract beyond the underlying contract of insurance to compel an insurer or agent to comply with the other contract. See Insurance Code Section 1811.154.

    In addition, Insurance Code Section 1811.054 states that a person may not require the issuance of a certificate of insurance from an insurer, agent, or policyholder that contains any false or misleading information concerning the policy of insurance to which the certificate refers. Violation of this chapter by a person, including an insurer or agent, is subject to a civil penalty and possible injunction. See FAQ #11.

  20. May the auto portion on a certificate of insurance include the term Basic Automobile or Comprehensive Auto?

    No. These terms are not common to Business Auto or Commercial Auto policies. Per Insurance Code Section 1811.102, a certificate holder cannot require an agent to provide certification of insurance coverage that is not available in the line or type of insurance coverage referenced on the form.

  21. May the general liability portion on a certificate of insurance include the term Broad Form–Property Damage or Comprehensive General Liability?

    No. These terms are not common to General Liability policies. Per Insurance Code Section 1811.102, a certificate cannot require an agent to provide certification of insurance coverage that is not available in the line or type of insurance coverage referenced on the form.

  22. May the Workers’ Compensation portion on a certificate of insurance include reference to Stop Gap liability?

    No. This coverage does not apply to Texas Workers’ Compensation insurance policies.

  23. May a certificate of insurance form include the following question, “Does the policy cover all premises and operations?”

    No, unless the policy covers all premises and operations.  A certificate may not use terms that would alter, amend, or extend coverage that is provided in the insurance policy. Insurance Code Section 1811.055.

    An approved certificate form could provide a section to list the covered premises and operations. See Title 28 Texas Administrative Code, Sections 5.9376(b)(4)(A) and (B), which requires that a request for information on the certificate of insurance be specific, clear, and reasonable. A certificate holder may ask the agent if the policy contains specific language or a specific exclusion.

  24. May a certificate of insurance refer to explosion, collapse, and underground (x, c, u) all together?

    No, each peril should be listed separately unless the coverage in the policy is provided on a combined basis.

    A certificate may not use terms that would alter, amend, or extend coverage that is provided in the insurance policy. Insurance Code Section 1811.055. Some approved certificate forms may contain a schedule or supplement to list the covered perils. See Title 28 Texas Administrative Code, Section 5.9376(b)(4)(A).

  25. May a certificate of insurance include any of the following terms?
    • independent contractors’ coverage;
    • blowout and cratering;
    • bodily injury and property damage due to explosion;
    • bodily injury and property damage due to collapse; and
    • underground property damage.

    None of these terms may be in a certificate unless the exact terms are in the policy.  A certificate may only include terms that are in the policy. Under Insurance Code Section 1811.102, an agent may not provide a certification of insurance coverage describing coverage that is not available in the line or type of insurance coverage referenced on the form.

  26. Are certificates of insurance required to be filed with TDI?

    Yes, certificates of insurance are required to be filed with TDI. Insurance Code Section 1811.052. They cannot say anything on them that is not the same as what is stated in the insurance policy. See Insurance Code Section 1811.051.

For more information, contact: Accessibility@tdi.texas.gov

Last updated: 12/2/2021