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The Alabama Department of Insurance has issued a revision of Regulation 62 dealing with Certificates of Insurance, Agent’s Letters of Opinion and Indemnity Agreements. The new revision will be effective June 5th as per the Insurance Commissioner’s order for approval dated May 25th. The revision implements strict requirements related to the issue of “special certificates” sent to the agent for his/her signature. All certificates must be issued on a standard Acord or ISO Certificate of Insurance Form. All others must be filed with the Alabama Department of Insurance for approval. Certificates can no longer refer to construction or service contracts or insurance requirements for the purpose of amending coverage afforded by the policies. No licensed insurer or producer licensed to do business in Alabama shall have the authority to issue an “Agent’s Opinion Letter” or any other correspondence purporting an insurance policy provides coverages which the policy does not provide. “Our members have been battling this issue for years, and we are very pleased to see these new certificate and opinion letter revisions come about,” said AIIA EVP Vic McCarley. AIIA EVP Vic McCarley worked closely with Deputy Insurance Commissioner Johnny Johnson to obtain these needed revisions. “The intent of the revision is to return to the original purpose the Certificate of Insurance was intended to serve, that of a notice to a certificate holder of the existence of coverage, and to reiterate that the intent was never to amend or alter the coverage provided by the insurance company,” states Deputy Commissioner Johnson. For a complete copy of the newly revised regulation, logon to the AIIA website and click Current News to view the revised regulation.
Below is a copy of the regulation:
482-1-062-.01 Authority. This chapter is adopted pursuant to Sections 27-2-17 and 27-14-8, et seq., Code of Alabama 1975.
482-1-062-.02 Purpose. The purpose of this chapter is intended to clarify and set out the basic responsibilities of producers and licensed insurers as to extension or restriction of property and casualty insurance coverages by use of a binder, certificate of insurance, indemnity agreement or any other type of instrument.
482-1-062-.05 Effective Date. This chapter shall become effective upon its approval by the Commissioner of Insurance and upon its having been on file as a public document in the office of the Secretary of State for ten days.
Author: Commissioner of Insurance
Statutory Authority: Code of Alabama 1975, §§ 27-2-17 & 27-14-8, et seq.
History: New February 28, 1977, Effective March 10, 1977; Revised May 25, 2004, Effective June 5, 2004
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