It\’s about time that retailers are held accountable for unauthorized issuance of certificates, whether they are additional insureds or not.
As an MGA we see this happen all the time. Understand that any carrier we MGA\’s deal with usually has a very specific contractual clause requiring we as the MGA are the only ones to issue any and all certificates for that carrier. And by your issuing the certificates in house you are jepordizing our contract with that carrier.
In addition, the retailer as above puts their own E & O insurance on the line when you don\’t check with the MGA or carrier to see if this is something you can do in your office. Also bear in mind additional insured certificates usually incur an additional premium and by issuing the certificate without our knowledge or consent you are obligating your insured as well as your office to pay those additional premiums due.
Mark your files clearly for those carrier\’s that require the MGA to issue all certificates. Note on your request, clearly that you need issued urgently, if we don\’t know we can\’t help you. It\’s that simple and maybe you won\’t get your agency in the same hot water that AJG has.
I understand that Certs are tedious but too many top notch agencies are pushing the issuance of Certs to personnel with no insurance knowledge and this is the result. I would love to tell them \”I told you so!\” Every E & O class I ever took warned about errors with Certs and Additional Insured Endorsements but they always poo poo\’d my objections to letting clerical take this job over.
With all due respect MGA, most MGA\’s pass this responsibility onto the retailer and the retailer does it and sends copies to the MGA. The MGA probably does not check certificates as closely as they should. However the MGA should forward them onto the carrier and the MGA should document this is being done. I hope MGA\’s do not take over this duty, most of my contractors would lose their jobs because of the delay and poor service MGA\’s have a reputation for. Don\’t blame retailers, MGA\’s get the certificates and the A/I\’s they just don\’t review them.
It is about time that a broker was held responsible for careless Certificates. The majority of the people in brokerage houses all care about new business, and could care less about how well the certs are done.
Good, I hope more brokers get nailed, maybe they will spend more time on clients and less on greed.
Retailer- why in heavens name would you deal with a MGA with such poor customer service and who is willing to let your agency take the fall for an improperly issued certificate? Our office has a 24 hour turnaround time if not otherwise requested sooner. The only time we are unable to meet this time frame is when the insured\’s request is something we have no authority to commit the carrier to. We review any and all certificates issued by our retailers- then issue one (and a bill if there is a carrier charge) that will supersede the one issued by the retailer.
I guess I have to wonder why the insured isn\’t being warned ahead of time that some requests have to be submitted so allow for an extra day or so for a response up front. Have them sign a disclosure stating this fact incase you get hit with something along the lines of costing them a contract because you didn\’t tell them it was going to take the time frame outlined.
Again I have re-itterate- A/I endorsements usually generate an additional premium- if you don\’t get the insureds written authorization to charge then issue with our authorization an additional premium endorsement or certificate- open up wide cause your agency is eating that cost.
I still am seriously wondering why any retail agency unless specifically contracted to do so would jeopordize their E & O just to satisfy one or two clients. If your MGA\’S service sucks-go up the chain of command or go to another one- there are at least two authorized wholesalers in each state per carrier, very few have captive programs. You can always contact the company directly for the name of another MGA, trust me they don\’t want to hear that a rep of theirs isn\’t servicing the insureds properly.
It is true that when a retailer and an MGA have well established relationship, many MGAs have and continue to allow retailers to issue certificates for blanket endt. As the previous retailer stated, the certificates are forwarded to the MGA for their records and the MGA should then be held responsible for those certificates especially if there is proof of the retailer sending the certificate to the MGA and a written understanding between the retailer and the MGA that this procedure will be followed for each certificate issued for policies written thru the MGA.
However, the MGA gives this responsibility to the retailer in good faith that the retailer is diligently confirming that the insured and the additional insured are adhering to the requirements of the blanket endt. Each certificate issued should be requested in writing from the insured with a copy of the additional insured\’s certificate requirements. Certificates should only be issued at the request of the insured and no one else. A questionnaire is another device that can be utilized by the retailer for additional insureds that do not have specific certificate requirements. The retailer\’s questionnaire should include a question that asks whether or not there is a written contract between the insured and the additional insured. Each questionnaire should be completed and signed by the insured and kept on file with the certificate that was issued.
This may seem tedious and inconvenient, but so is a lawsuit. Also, certificate should be approved and endorsed by a licensed and bonded producer/agent. Clerical staff should never be given the authority to endorse a certificate.
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It\’s about time that retailers are held accountable for unauthorized issuance of certificates, whether they are additional insureds or not.
As an MGA we see this happen all the time. Understand that any carrier we MGA\’s deal with usually has a very specific contractual clause requiring we as the MGA are the only ones to issue any and all certificates for that carrier. And by your issuing the certificates in house you are jepordizing our contract with that carrier.
In addition, the retailer as above puts their own E & O insurance on the line when you don\’t check with the MGA or carrier to see if this is something you can do in your office. Also bear in mind additional insured certificates usually incur an additional premium and by issuing the certificate without our knowledge or consent you are obligating your insured as well as your office to pay those additional premiums due.
Mark your files clearly for those carrier\’s that require the MGA to issue all certificates. Note on your request, clearly that you need issued urgently, if we don\’t know we can\’t help you. It\’s that simple and maybe you won\’t get your agency in the same hot water that AJG has.
I understand that Certs are tedious but too many top notch agencies are pushing the issuance of Certs to personnel with no insurance knowledge and this is the result. I would love to tell them \”I told you so!\” Every E & O class I ever took warned about errors with Certs and Additional Insured Endorsements but they always poo poo\’d my objections to letting clerical take this job over.
With all due respect MGA, most MGA\’s pass this responsibility onto the retailer and the retailer does it and sends copies to the MGA. The MGA probably does not check certificates as closely as they should. However the MGA should forward them onto the carrier and the MGA should document this is being done. I hope MGA\’s do not take over this duty, most of my contractors would lose their jobs because of the delay and poor service MGA\’s have a reputation for. Don\’t blame retailers, MGA\’s get the certificates and the A/I\’s they just don\’t review them.
It is about time that a broker was held responsible for careless Certificates. The majority of the people in brokerage houses all care about new business, and could care less about how well the certs are done.
Good, I hope more brokers get nailed, maybe they will spend more time on clients and less on greed.
Retailer- why in heavens name would you deal with a MGA with such poor customer service and who is willing to let your agency take the fall for an improperly issued certificate? Our office has a 24 hour turnaround time if not otherwise requested sooner. The only time we are unable to meet this time frame is when the insured\’s request is something we have no authority to commit the carrier to. We review any and all certificates issued by our retailers- then issue one (and a bill if there is a carrier charge) that will supersede the one issued by the retailer.
I guess I have to wonder why the insured isn\’t being warned ahead of time that some requests have to be submitted so allow for an extra day or so for a response up front. Have them sign a disclosure stating this fact incase you get hit with something along the lines of costing them a contract because you didn\’t tell them it was going to take the time frame outlined.
Again I have re-itterate- A/I endorsements usually generate an additional premium- if you don\’t get the insureds written authorization to charge then issue with our authorization an additional premium endorsement or certificate- open up wide cause your agency is eating that cost.
I still am seriously wondering why any retail agency unless specifically contracted to do so would jeopordize their E & O just to satisfy one or two clients. If your MGA\’S service sucks-go up the chain of command or go to another one- there are at least two authorized wholesalers in each state per carrier, very few have captive programs. You can always contact the company directly for the name of another MGA, trust me they don\’t want to hear that a rep of theirs isn\’t servicing the insureds properly.
It is true that when a retailer and an MGA have well established relationship, many MGAs have and continue to allow retailers to issue certificates for blanket endt. As the previous retailer stated, the certificates are forwarded to the MGA for their records and the MGA should then be held responsible for those certificates especially if there is proof of the retailer sending the certificate to the MGA and a written understanding between the retailer and the MGA that this procedure will be followed for each certificate issued for policies written thru the MGA.
However, the MGA gives this responsibility to the retailer in good faith that the retailer is diligently confirming that the insured and the additional insured are adhering to the requirements of the blanket endt. Each certificate issued should be requested in writing from the insured with a copy of the additional insured\’s certificate requirements. Certificates should only be issued at the request of the insured and no one else. A questionnaire is another device that can be utilized by the retailer for additional insureds that do not have specific certificate requirements. The retailer\’s questionnaire should include a question that asks whether or not there is a written contract between the insured and the additional insured. Each questionnaire should be completed and signed by the insured and kept on file with the certificate that was issued.
This may seem tedious and inconvenient, but so is a lawsuit. Also, certificate should be approved and endorsed by a licensed and bonded producer/agent. Clerical staff should never be given the authority to endorse a certificate.