Certificate of Insurance Texas SB 425

Certificate of Insurance Form Approval

Certificates of Insurance are used to provide evidence of policy information and are commonly used for business purposes. Insurance agents are often asked to fill out certificate of insurance forms that have not been approved by the Texas Department of Insurance or are not industry standard forms. In some cases these certificates require the agent to certify coverages and make interpretations of coverage that are vague or impossible to interpret with certainty. Making false or deceptive statements on certificates can be deemed to be a violation of Sec. 541.051 and Sec. 541.061 of the Texas Insurance Code.

Key provisions of legislation

  • Requires all certificate of insurance forms be approved by the Texas Department of Insurance (TDI).
  • Nationally standard ACORD, AAIS and ISO forms are deemed approved when filed with TDI.
  • The department may charge a filing fee of not more than $100 at the time the form is filed with TDI.
  • In insurance company or an agent who attempts to alter or amend an approved certificate of insurance form for any reason will be subject to a civil penalty.
  • Any person or entity who requires the issuance of a certificate on any form that has not been approved by TDI will be subject to a civil penalty.
  • All forms must be approved or disapproved within 60 days of filing or will be deemed approved.
  • The commissioner may examine and investigate any complaint or allegation of violations and to assess fines for violations.