Immediate Change to the ACORD 25 Certificate of Insurance
Monday, August 30, 2010
The ACORD 25 Certificate of Insurance has undergone a major change. Beginning immediately, it is mandatory to use the updated version of the ACORD 25 Certificate. In particular, the updated certificate alters the previous cancellation provision into a more generic form. Cancellation provisions that once allowed modification for items such as 1) number of days to notify, and 2) deletion of the word “endeavor”, will no longer be able to be changed. The new generic wording for the provision reads as follows – “SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS”. Absolutely no modifications and no use of prior ACORD editions are allowed! The change comes in response to pressure from several state regulators who hold the position that the notice of cancellation is a policy right governed only by the policy, not a voluntary service.
How Will This Change Impact You?
- If you are doing work for someone that requires you to provide a certificate of insurance, more than likely that third party does not yet know of this change and will continue to require you to modify the cancellation provision on the certificate. Horst Insurance will do everything it can to educate third parties about the new rules in order to prevent any delays.
- If you require certificates from those who supply services or materials to you, more than likely your own requirements have not yet been updated to reflect the new ACORD certificate form. Horst Insurance will be providing guidance shortly on how you should modify your own certificate requirements.
