Res 2012-095 - Laserfiche WebLink

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Wor ®ham TO CERTIFICATE HOLDER Our agency has issued the enclosed certificate of insurance on behalf of our client. We want to share with you some important information regarding certificates of insurance. The Texas Legislature passed and Governor Perry signed Senate Bill 425 to become effective January 1, 2012. After this date it will be illegal for an agent or insurance company to issue evidence of insurance on a certificate form that has not been approved by the Texas Department of Insurance (TDI). It is also illegal for anyone to require an agent or insurance company to use a certificate form that has not been approved by the State. The law provides some guidance on the content and limitations of certificates, as follows: • A certificate is not an insurance policy and does not amend, extend, or alter the coverage afforded by the referenced insurance policy. • A certificate shall not confer to a certificate holder new or additional rights beyond what the policy and endorsements provide. • A certificate may not contain a reference to a legal or insurance requirement contained in a contract other than the underlying contract of insurance or endorsement to the insurance policy. • A person may have a legal right to notice of cancellation, nonrenewal or material change or any similar notice only if (1) the person is named within the policy or an endorsement to the policy, and (2) the policy or endorsement, or a state or rule, requires notice to be provided. • The law confirms that "a certificate of insurance that is executed, issued, or required and that is in violation with this chapter is void and has no effect." Additional information concerning the new law may be obtained by contacting the TDI (800) 252 -3439 or visiting the web site http: / /www.tdi. texas. gov /rules /infoi-mal l 216.htm1. For this reason, we may not be able to provide some of the specific certificate holder requested information which is outside the scope of the approved document. We are willing to explain each of these items and provide policy endorsements or other information subject to our client's approval. We hope you will understand our position and ask that you give us a call if you have any questions or comments. CERT NO.: 13894650 CLIENT CODE: 22RABAKCON (SA) Cindy Rains 8/20/2012 9:08:16 AM Paqe 3 of 3