Alabama Administrative Code Chapter 482-1-062 — General Property/Casualty Binders, Certificates of Insurance or Indemnity Agreements

482 Alabama Department of Insurance

Ala. Admin. Code r. 482-1-062-.01 Authority

This chapter is adopted pursuant to Sections 27-2-17 and 27-14-8, et seq., Code of Ala. 1975.

History

• Author: Commissioner of Insurance
• Authority: Code of Ala. 1975, §§27-2-17, 27-14-8, et seq.
• New Rule: Filed February 28, 1977; effective March 10, 1977. Revised: Filed May 26, 2004; effective June 5, 2004. Filed with LRS May 26, 2004. Rule is not subject to the Alabama Administrative Procedure Act.

Ala. Admin. Code r. 482-1-062-.02 Purpose

The purpose of this chapter is intended to clarify and set out the basic responsibilities of producers and licensed insurers as to extension or restriction of property and casualty insurance coverages by use of a binder, certificate of insurance, indemnity agreement or any other type of instrument.

History

• Author: Commissioner of Insurance
• Authority: Code of Ala. 1975, §§27-2-17, 27-14-8, et seq.
• New Rule: Filed February 28, 1977; effective March 10, 1977. Revised: Filed May 25, 2004; effective June 5, 2004. Filed with LRS May 26, 2004. Rule is not subject to the Alabama Administrative Procedure Act.

Ala. Admin. Code r. 482-1-062-.03 Requirement

(1) As used in this rule, a “certificate of insurance” is an instrument, however titled and in any format, which provides summary information about an insurance policy or evidence of the existence of insurance coverage in specified amounts and with specified terms, conditions, and limitations.

(2) Certificate forms shall not be filed with the Commissioner. A person shall not represent or imply that a certificate form has been approved or required by the Commissioner or the Department.

(3) No person may prepare, issue request, or require a certificate of insurance which purports to affirmatively or negatively amend, extend or alter the coverage provided by an insurer’s approved policy forms and endorsements.

(4) Each certificate or memorandum of property or casualty insurance when issued to any person other than the policyholder shall contain the following or similar statement: "This certificate or memorandum of insurance neither affirmatively nor negatively amends, extends, or alters the coverage afforded by policy number ________ issued by ____________."

(5) No certificate of insurance shall contain references to construction or service contracts or insurance requirements for the purpose of amending coverage afforded by the policies to which the certificate makes reference. No certificate of insurance may be used to amend, extend, restrict or alter coverage afforded by the policies to which the certificate of insurance makes reference.

(6) No licensed insurer or its producer licensed to do business in Alabama shall have the authority to issue an “Agent’s Opinion Letter” or any other correspondence purporting an insurance policy provides coverages which the policy does not provide.

History

• Author: Commissioner of Insurance
• Authority: Code of Ala. 1975, §§27-2-17, 27-14-8, et seq.
• New Rule: Filed February 28, 1977; effective March 10, 1977. Amended: Filed May 25, 2004; effective June 5, 2004. Filed with LRS May 26, 2004. Rule is not subject to the Alabama Administrative Procedure Act. Amended: Filed August 6, 2014; effective August 16, 2014. Filed with LRS August 6, 2014. Rule is not subject to the Alabama Administrative Procedure Act.

Ala. Admin. Code r. 482-1-062-.04 Severability

If any provision of this chapter, or its application to any person or circumstance, is held invalid, such determination shall not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to that end the provisions of this chapter are separable.

History

• Author: Commissioner of Insurance
• Authority: Code of Ala. 1975, §§27-2-17, 27-14-8, et seq.
• New Rule: Filed February 28, 1977; effective March 10, 1977. Revised: Filed May 25, 2004; effective June 5, 2004. Filed with LRS May 26, 2004. Rule is not subject to the Alabama Administrative Procedure Act.

Ala. Admin. Code r. 482-1-062-.05 Effective Date

This chapter shall become effective upon its approval by the Commissioner of Insurance and upon its having been on file as a public document in the office of the Secretary of State for ten days.

History

• Author: Commissioner of Insurance
• Authority: Code of Ala. 1975, §§27-2-17, 27-14-8, et seq.
• New Rule: Filed February 28, 1977; effective March 10, 1977. Revised: Filed May 25, 2004; effective June 5, 2004. Filed with LRS May 26, 2004. Rule is not subject to the Alabama Administrative Procedure Act.