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Certificates of insurance can create a lot of headaches for insurance agents particularly in New York where clients are constantly asking agents to make changes to a certificate that may have technical violations of the law this issue is one that I Anna really has spearheaded in New York and let me describe the problem first and then the solution the problem is that while there is very clear regulatory direction on certificates of insurance you can't alter them they can't be used to be an endorsement to a policy and that kind of thing there are just a number of public sector entities that are asking agents to in essence use fraudulent certificates of insurance and when we've gone to the Department of Insurance about that they have told us they're not sure if they have the regulatory authority to enforce insurance regulations on other government entities, and I'll tell you who some of the worst offenders are the Thruway Authority the dormitory authority these are groups that just the railroad the Long Island Railroad they just kind of flaunt the issue and so what it does is it puts the independent agent in a position that they either choose to follow the law or they and in doing that very well may lose a customer, or they choose to kind of skirt the law a little and keep a customer and as a result of that it just puts the independent agent in a no-win situation one solution being offered in New York is to install penalties for those clients who ask insurance agents to make changes that are technically fraudulent what will happen under the legislation is it will in essence create a penalty for someone who asked for a certificate in violation of the law, and then it will also require that the certificate forms be approved by the Department unless it's an accord form and what that means is if there are departments whether it's long island rail-road authority or the dorm tour authority or whoever it may be that believes they need some kind of certificate for whatever reason at least in this situation then that will have to be approved by the Department, so the department is going to be in essence saying that this certificate comports with the law and the regulation and then the agent in filling that certificate out is not going to be violating anything they're going to be following the law because it's been approved and so it puts independent agents and brokers in a much better situation than they currently are one of the things our association does is provide our members with errors and omissions insurance and almost fifty percent of the claims that come through our End program are related to certificates of insurance it's just it's a huge problem for independent agents, and you know in the long run it's a huge problem for the client because you can alter a certificate in violation of law, but you can alter certificate and save it okay there's going to be 30 30 days notice of non-renewal or whatever it is that doesn't change the underlying policy...
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