Certificates and The Agents Dilemma

It happens every day in the agent broker world. A client has signed a contract that requires terms and condition changes that the contract holder would like to see reflected on the certificate of insurance. The client tells the agent that he must provide the updated cert in order to get paid. The agent tells the client that he cannot make the changes because of a littany of reasons. Now you have a dilemma. This has become a universal problem for agents. Some States have enacted laws that prohibit changes to certificates of insurance. However most states have yet to address it. ACCORD, the entity that produces the certificates has made it clear that no changes should be made to their 2010 edition. So how are agents & brokers going to help their clients who continually get themselves into these contractual situations? The first remedy is education. Agents must educate their clients and make them aware of the problems surrounding certificates. The other thought would be to get rid of certificates and send copies of the policies. Years ago this would be very expensive and cumbersome, however in the electronic world, emailing policies is easy. The future surrounding certificate issuance is still cloudy. My thought is to get rid of certificates all together as they are only a representation of coverage not actual policies. Some courts have even ruled that certificates are actual policy language. So lets just stop all the madness and get rid of certificates. Let certificate holders get copies of the policies and read through them to determine if contract coverage and terms are met. Until next time be careful out there and know your risks. K

Popular posts from this blog

Delaware Business Insurance Update from CNC Insurance Associates, " Personalization of Auto Insurance Could Reduce Rates !" 12-25-18

Insurance rates may go down in the future because of "auto personalization". What is this you ask? Imagine being charged insurance rates based on your personalized use of your auto. If you drive very little next week, then your rates go down. If you drive the speed limit most of the time, your rates go down. If you avoid hard braking and tailgating, your rates go down. Get the picture?  The use of telematics has given the insurance industry a chance to personalize insurance costs directly to the users' driving habits. Gone may be the days of surcharging a male driver under the age of 24 just because they are young. If the telematics show that he can drive as safe and responsible as a 40 year old, then his insurance premiums should be comparable. If you go on vacation and park the car for two weeks, telematics will inform the insurance company that there has been no risk, and your insurance premiums will reflect that. Now as good as this sounds it will work the other wa
Read more

Get employees back to work quickly to keep work comp costs down

Image
In the past I have spoken to clients regarding a particular workers compensation claim affecting them and have asked if they have brought the employee back to work yet. Too many times the answer is no, they have nothing for that employee to do since said employee is not 100% and unable to perform their specific job prior to their workers compensation injury/claim. The problem with this is that too often employers miss the point that even though an employee can't perform in the position they were in prior to their injury, it behooves the employer to create some type of alternative task/job the employee can do until such time they are able to resume their normal duties. Bringing that employee back to work means that work comp benefits /payments in that particular claim are being curtailed, thereby saving the employer potentially more being paid out, while adding to their experience mod and driving their overall work comp expenses up.
Read more

Delaware Business Insurance Update from CNC Insurance Associates. " Mental Health Issues in the Workplace Needs Risk Management" 12-2-18

Employees with depression and severe anxiety are very common in the work place today. Studies have shown that close to 50% of all who suffer mental health issues at work are not being treated effectively. Mental health disorders do not discriminate, as it affects all employees even in the C Suite. So what is the employers' responsibility for dealing with this issue? It definitely requires risk management.  Employers can begin by making sure the health insurance that is offered to employees has mental health coverage. Many plans do not carry this coverage even though the ACA requires it. More importantly employers should create a culture of conversation which can allow employees to openly discuss their mental issues. Employee Assistant Programs set up by employers can offer education and services to help employees improve their wellness and sleep. Also employees abuse of prescription medications , need employers attention to make sure doctors and counselors are part of the assistant
Read more