On March 11th, 2021 the Georgia Department of Insurance issued Bulletin 21-EX-5 to provide some clarifying guidance relating to Certificates of Insurance in Georgia. The law governing certificates and relevant regulations applies to all certificate holders.
Certificates of Insurance in Georgia must comply with the provisions of OCGA § 33-24-19. A certificate is not an insurance policy and cannot be used to alter or expand coverage. As defined by the statute, a ‘certificate’ or ‘certificate of insurance’ shall not include a policy of insurance or insurance binder, including any policy of insurance which may be referred to as a certificate issued in conjunction with a motor vehicle insurance policy OCGA § 33-24- 19.1 (a) (1).
Certificates must be issued on either ACORD or ISO forms, or on other forms approved explicitly by the Commissioner of Insurance. Additionally, they must contain the following disclaimer language:
“This certificate of insurance is issued as a matter of information only and confers no rights upon the certificate holder. This certificate does not amend, extend or alter the coverage, terms exclusions and conditions afforded by the policies referenced herein.”
It is a violation to issue a certificate on an unapproved form, or to include information on a certificate that purports to alter or expand coverage. It is also a violation of the law to request such a certificate. Fines can be up to $5,000 for each violation.
For more details relating to these extension periods, please review the downloadable Bulletin HERE.
For more information on this Bulletin, or any other regulatory compliance matter, please contact Westmont Associates, Inc.
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