NCOIL Insurance Certificate Law May Aid Carriers In Court

Larry Golub was quoted in a Nov. 20, 2012, Law360 article (subscription required) about the National Conference of Insurance Legislators' (NCOIL) new model act to prevent the use of false and misleading certificates of insurance. The Certificate of Insurance Model Act allows state departments of insurance to fine and issue cease-and-desist orders to companies that ask insurance brokers and agents to provide false certificates.

Golub, who represents insurance companies and their agents, said the model act should help resolve problems that arise in litigation when insurance certificates contain information that conflicts with the associated policies.

In a lot of coverage cases I handle, certificates say things that are different from what the policy says, and people try to use the certificates to supplant the policy,” he said. “Having a statute on the books in various jurisdictions would be very helpful.”

Virginia has passed legislation to curb the use of erroneous insurance certificates. Whether other states will follow Virginia's lead depends on how big of a problem they are experiencing, Golub said.