ACORD 24 Instructions

ACORD 24 (1/95) Certificate of Property Insurance

Certificate of Property Insurance vs. Evidence of Property Insurance

An important distinction exists between the Certificate of Property Insurance (ACORD 24) and the Evidence of Personal Property Insurance (ACORD 27) or the Evidence of Commercial Property Insurance (ACORD 28.) This distinction is outlined in the opening statements of each form.

Certificate of Property Insurance

"This Certificate is issued as a matter of information only and confers no rights upon the certificate holder. It does not amend, extend, or alter the coverage afforded by the policies below."

Both Evidence of Property Insurance forms

"This is evidence that insurance as identified below has been issued, is in force, and conveys all the rights and privileges afforded under the policy."

If the receiver of the form wants to verify that coverage exists on a policy and has no direct interest in the policy, use the Certificate of Property Insurance. However, if the receiver of the form does have a verifiable insurable interest in the policy, such as a mortgagee or a lender, use the Evidence of Personal Property Insurance when the property is insured under a Personal Lines policy. When the property is insured under a Commercial Lines policy, use the Evidence of Commercial Property Insurance. .

Purpose of the Certificate of Insurance

The purpose of the Certificate of Insurance has been the topic of frequent discussions throughout the industry. Attention centers around the true purpose of a certificate and the rights, if any, it conveys to a certificate holder. This is particularly important when the difference between a certificate holder and lien holder, loss payee, or mortgagee is considered.

In 1974, the Court of Appeals, Fifth District ruled that a certificate is not a contract between the holder and the insurer. It only provides information to an interested third party that insurance is in force at the time of issuance. The court also stated: "The provision regarding notification in the event of cancellation is a mere promise, unsupported by any consideration." Although some companies provide notice of cancellation to certificate holders, they are not obliged to do so, since the holder is not a party to the contract. Agents or brokers should not change any provisions on this form without prior consent of the issuing company.

The Certificate of Property Insurance is used for most property situations in which the insured has requested certification to a third party of issued property coverages. The uses of this Certificate can include parties involved in condominium association agreements, lessor/lessee agreements, or other areas of certification. The ACORD Certificate should be issued only in compliance with company instructions. ACORD recommends that the Certificate NOT be used in the following situations:

To satisfy a mortgagee or lienholder (ACORD 27, Evidence of PersonalProperty Insurance or ACORD28, Evidence of Commercial Property Insurance should be used for this)

To provide information to the owner of a leased motor vehicle or the lender about both liability and physical damage coverages applying to the vehicle (ACORD 23, Leased Auto Certificate of Insurance, should be used for this)

To quote wording from a contract
To waive rights
To attach to an endorsement
To quote any wording which amends a policy unless the policy itself has been amended.

Important

Kentucky, Minnesota, North Carolina and Wisconsin require the filing of certificate of insurance forms. ACORD has filed all of its certificates in these states. In these states, the text of ACORD's certificates cannot be modified, unless the modified form is filed for approval by the respective state Departments of Insurance. Additionally, virtually every other state will not allow any change in a certificate of insurance that would attempt to modify a policy unless the revised certificate is filed and approved.

IDENTIFICATION SECTION

Date
Month/day/year on which the form is completed.

Producer
Name, address and phone number of the producer or broker issuing this form.

Insured
Insured's name and address as they appear on the policy declarations page. The line within this field is a margin setting for window envelopes.

COMPANIES AFFORDING COVERAGE

Company Letter A Through D

This section is designed for use in certifying coverage issued by as many as four companies. Enter only full legal company name(s) as found on the file copy of the policy. Do not enter group or trade names.

COVERAGES

Co Ltr
Enter the Company Letter of the company, as identified in the Companies Affording Coverage section, next to the appropriate coverage(s).

Type of Insurance
Check the appropriate box(es) to indicate the coverage afforded by the policy. For Inland Marine, describe the type of policy (e.g., Equipment Floater, EDP, etc.). Also, check the appropriate box to indicate if "Named Perils" or "Other" causes of loss apply. If necessary, describe under "Special Conditions/Other Coverages". If crime coverage applies, describe the type of policy (e.g., Forgery, Money and Securities, Premises Safe, etc.).

Policy Number
Show the number exactly as it appears on the policy, including prefix and suffix symbols for each "Type of Insurance".

Policy Effective Date
Date on which the terms and conditions of the policy commenced.

Policy Expiration Date
Date on which the terms and conditions of the policy expire.

Covered Property
Describe the property covered.

Limits
All limits should be listed as whole dollar amounts. Enter limits corresponding to those found on the policy declarations page.

LOCATION OF PREMISES

Location/Description
For buildings, provide the street address and a brief description of the occupancy of the building (e.g., 123 Johnstone Ave, Endicott - Grocery Store with Apartments, or Route 66, five miles south of intersection with I99 - Tobacco Barn).

For other property items, such as inland marine equipment (for lessor information), describe the item along with any available vehicle identification number or serial number (e.g., 82 Case Backhoe Model H-15, Ser # G5963a57).

SPECIAL CONDITIONS/OTHER COVERAGES

Record any special policy conditions or coverages not fully explained in the Coverages section.

Certificate Holder
Name and mailing address of the individual or entity for whom the certificate is being prepared. The line within this field is a margin setting for window envelopes.

Cancellation
Number of days in which the company will endeavor to mail a written cancellation notice. This amount is subject to approval by the company(ies).

Authorized Representative
Form must be signed by an agent, broker, or other representative authorized by all companies to issue Certificates.