A new executive report from RIMS
The changes to ACORD’s Certificate forms have been the source of much debate in the risk management community and have raised questions regarding the use of or even the validity of Certificates of Insurance. RIMS aims to ease this confusion by offering a step by step process for understanding the changes and why they occurred, as well as how to use the current forms to satisfy lenders, mortgage holders and/or contracted parties. In Recent Changes to the ACORD Form – Cause and Effect, RIMS also provides general guidance on using Certificates of Insurance, as well as a definitions section for reference and an appendix that includes the modified forms.
"In conjunction with the release of this executive report, we would like to encourage risk managers to review and reassess their contract language to accommodate these changes in the ACORD form," says Deborah Tauro, senior manager- risk management services, Regency Centers. "Risk managers should also keep in mind that the Certificate does not convey any rights so they need to ensure that they obtain copies of policy endorsements where necessary."
"ACORD is grateful to RIMS for helping spread the word to the risk management community on these important changes to the certificates family of standard forms, which align with insurance regulatory requirements and practices," says Ann Henstrand, chief compliance officer, government and industry affairs, ACORD. "We appreciate that any change requires an adjustment, and our carrier and producer members are pleased too that RIMS is helping to educate the community."
Recent Changes to the ACORD Form – Cause and Effect can be downloaded at no charge by clicking here.