Both forms now state that they are issued as matter of information only and confer no rights upon the additional interest named therein. In 2006, the two distinctive characteristics of ACORD Forms 27 and 28 were eliminated. An example of someone in this category is the issuer of a manuscript certificate, without a disclaimer, who states that contractual liability coverage encompasses all liability assumed in the indemnification clause of the contract between the certificate holder and the named insured. This created an opportunity for those who unscrupulously try to obtain coverage concessions in whatever way possible. Requests that these forms, particularly Form 27, confirm coverages for liability, auto, and other coverages began to increase. This is where producers’ nightmares began. Then someone developed the bright idea that with both ACORD Forms 27 and 28 not being subject to a disclaimer, they could possibly control the policy’s provisions. Both also stated that in the event of cancellation, nonrenewal, or material change, the insurer would notify the holder of such forms within a certain number of days. The reason was that neither Form 27 nor 28 contained a disclaimer stating that they were being issued for informational purposes only and did not amend, extend, or alter the coverages provided. Within this category are mortgagees, loss payees, and other lienholders.įor a number of years, those to whom the ACORD Forms 27 and 28 were issued had the best of both worlds, unlike, for example, holders of Certificate of Liability Insurance Form 25 for use in confirming various commercial liability coverages. On the other hand, ACORD Form 28 is designed to give persons and organizations that have a financial interest in the property of others a comprehensive view of the property coverages being provided. What was developing as a nightmare for producers having to issue Evidence of Property Insurance ACORD 27 and Evidence of Commercial Property Insurance ACORD Form 28 has now become more of a problem to the certificate holders themselves.įorm 27 is designed for someone, other than a party having an insurable interest in property, who wants to know the types of property coverages being maintained by the party being requested to confirm its property coverages. Risk Management-Evidence of property insurance changes 01/07ĪCORD makes it clear that the forms are for informational purposes only
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