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Finance Insurance Ltd to begin using new ACORD 25 Certificate of Insurance

January, 2011

In September 2009, ACORD revised the ACORD 25 Certificate of Insurance form. Finance Insurance will begin using this new form in the near future.

Prior versions of the ACORD 25 Certificate of Insurance form contained a section stating that the insurance carrier will endeavor to give the certificate holder a certain number of days notice in event of policy cancellation. The notice of cancellation provision in your policy is a provision given to you, the first named insured. Your policy does not contain any provisions to notify certificate holders that your policy has been cancelled, therefore in response to pressure from several state regulators, ACORD has modified its certificate to coincide with policy provisions.

A certificate of insurance must, by Hawaii state law, be a true and accurate representation of policy coverage. However, many certificate holders have required our policyholders to ask their agents to furnish them with certificates that cite verbiage that doesnít exist in the policy, or to reference indemnity clauses. A January 2009 Memorandum 2009-3A from the State Insurance Commissioner reminds producers of the law in Hawaii.
(Certificates of Insurance for Property and Casualty Insurance Policies)

Additionally, the State of Hawaii in December of 2010 issued notice to departments through the Comptroller's Memorandum 2010-39 to accept the new Acord 25 forms that omit the Notice provision and waive the requirement for such Notice on both existing and future contracts.
(Certificate of Insurance Requirements For Contractors)

It is our practice at Finance Insurance to be in full compliance with state statutes and our licensing agreement with ACORD. We will not be able to issue an older version of the ACORD 25, although the certificate holder will likely request it. Likewise, we cannot alter the Certificate of Insurance to add the cancellation language requested by the certificate holder due to the ACORD formís federal copyright protection as well as Hawaii Statues.
(ACORD Certificates FAQ, ACORD Certificate Notice)

If you have any questions or concerns regarding the new certificate, we are here to help you and happy to answer your questions.

(Click here for a sample of the new ACORD 25 Certificate of Insurance (09/2009))

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