print

email

Download Briefing

Minnesota bans amending or modifying coverage on certificates

Certificates of insurance forms can no longer be modified to comply with contract terms.

On August 1, 2009, two new laws banning the ability to alter or amend certificates of insurance will go into effect.

A certificate of insurance is a document that provides evidence of insurance coverage. Until now, many certificate holders would require agents to modify the Certificate of Insurance to comply with contract terms.  The new law provides clarification of what can and can not be done to a Certificate of Insurance. 

What are the new laws?
Minnesota State House File 1853 Section 60A.39 lays out the steps in which certificates of insurance may be issued, canceled, and how they must be filed. It stipulates that all certificates of insurance must carry the statement: “This certificate or memorandum of insurance does not affirmatively or negatively amend, extend, or alter the coverage afforded by the insurance policy.”

The House File also prohibits agents from issuing a separate opinion letter or correspondence that alters coverage or provides different notice than that allowed under the statute.

Minnesota Statute 2008 section 60K.46 was amended to prohibit an insurance agent from providing a document that changes the policy or provides notice of cancellation to a certificate holder that exceed the level of notification that the policy holder receives. It also addresses the wide variety of certificate forms available in the marketplace. Going forward, all certificates that are not ACORD or ISO forms will need to be filed with the Commissioner before using them. Therefore, in effect, certain forms from certain third parties will no longer be allowed.

Failure to comply
If an agent violates these new laws, they could face suspension or termination of their agent’s license and civil penalties.

Quick Links
• MN Statute
• House File 1853

For More Info
Contact your commercial insurance service team at 763-746-8000.

Disclaimer
This document is provided for informational and educational purposes only. It is not intended to, nor does it, provide any form of legal advice regarding the subject matter of the documents. You should not take any actions on the basis of this document, but instead should seek legal advice regarding your issues.

See more Legal Updates