ENROLLED
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ACT No. 1017
Regular Session, 2010
HOUSE BILL NO. 447
BY REPRESENTATIVE PEARSON
AN ACT1
To amend and reenact R.S. 22:881.1, relative to certificates of insurance; to define such2
certificates and otherwise provide with respect to their issuance and effect; to3
provide for the responsibilities of the commissioner of insurance relative to such4
certificates, including approval of forms and enforcement; to provide for prohibitions5
and penalties; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 22:881.1 is hereby amended and reenacted to read as follows: 8
ยง881.1. Certificates of insurance9
A. For the purposes of this Section:10
(1) "Certificate of insurance", as used by property and casualty insurers, shall11
mean any document issued by or on behalf of an insurer to a third party who has not12
contracted with the insurer to purchase an insurance policy and is provided for13
informational purposes only to advise a third party of the existence and limits of14
insurance coverage issued to the named insured.15
(1) "Certificate" or "certificate of insurance" means any document,16
instrument, or record, including an electronic record, no matter how titled or17
described, which is prepared by an insurer or insurance producer and issued to a third18
person not a party to the subject insurance contract, as evidence of property and19
casualty insurance coverage. "Certificate" or "certificate of insurance" shall not20
mean an insurance binder.21 ENROLLEDHB NO. 447
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(2) "Certificate holder" means any person, other than a policyholder, that is1
designated on a certificate of insurance as a "certificate holder" or any person, other2
than a policyholder, to whom a certificate of insurance has been issued by an insurer3
or insurance producer at the request of the policyholder.4
(3) "Electronic record" shall have the meaning defined in R.S. 9:2602(7). 5
(4) "Insurance" shall have the meaning defined in R.S. 22:46(9).6
(2) (5) "Insurance producer" shall have the same definition as set forth in7
R.S. 22:1542.8
(6) "Insurer" means an insurer as defined in R.S. 22:46(10) and any other9
person engaged in the business of making property and casualty insurance contracts,10
including but not limited to self-insurers, syndicates, risk purchasing groups, and11
similar risk transfer entities. "Insurer" shall not mean any person self-insured for12
purposes of workers' compensation, including any group self-insurance fund13
authorized pursuant to R.S. 23:1195 et seq., any interlocal risk management agency14
authorized pursuant to R.S. 33:1341 et seq., or any self-insured employer authorized15
pursuant to R.S. 23:1168 et seq.16
(7) "Person" means any individual, company, insurer, organization,17
reciprocal or inter-insurance exchange, business, partnership, corporation, limited18
liability company, association, trust, or other legal entity, including any government19
or governmental subdivision or agency.20
(8) "Policyholder" means a person who has contracted with a property or21
casualty insurer for insurance coverage.22
(9) "Record" shall have the meaning defined in R.S. 9:2602(13).23
(10) "Self-insurer" means any individual business or group of businesses24
which have created a risk purchasing group, risk retention plan, syndicate, or other25
form of self-insurance covering property or casualty risk exposures. "Self-insurer"26
shall not mean any person self-insured for purposes of workers' compensation,27
including any group self-insurance fund authorized pursuant to R.S. 23:1195 et seq.,28
any interlocal risk management agency authorized pursuant to R.S. 33:1341 et seq.,29
or any self-insured employer authorized pursuant to R.S. 23:1168 et seq.30 ENROLLEDHB NO. 447
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B. No property or casualty insurer or insurance producer may issue a1
certificate of insurance or any other type of document purporting to be a certificate2
of insurance that will affirmatively or negatively alter, amend, or extend the3
coverage provided by the referenced insurance policy. A certificate of insurance4
shall also not convey any contractual rights to the certificate holder.5
C. Any insurer or insurance producer acting on behalf of the insurer issuing6
a certificate of insurance shall be authorized to use only the standard ACORD or ISO7
Form "Certificate of Insurance" or other form filed with and approved by the8
commissioner of insurance. No person, wherever located, may prepare, issue, or9
request the issuance of a certificate of insurance for risks located in this state unless10
the form has been filed with and approved by the commissioner of insurance. No11
person, wherever located, may alter or modify an approved certificate of insurance12
form unless the alteration or modification has been approved by the commissioner13
of insurance.14
D. The commissioner of insurance shall disapprove a form filed under this15
Section or withdraw approval of a form if that form:16
(1) Is unfair, misleading, or deceptive, or violates public policy.17
(2) Violates any state statute or regulation validly promulgated by the18
commissioner of insurance.19
(3) Requires certification of insurance coverages that are not available.20
E. The commissioner may approve a certificate of insurance form that does21
not state that the form is provided for information only or similar language, provided22
that the form states that the certificate of insurance does not confer any rights or23
obligations other than those conveyed by the policy and that the terms of the policy24
control. Further, use of such a form shall not be, in and of itself, cause for25
disapproval by the commissioner under the provisions of Subsection D of this26
Section.27
F.(1) The commissioner of insurance shall approve or disapprove certificate28
of insurance forms filed pursuant to this Section in writing within forty-five days of29
receipt of the form.30 ENROLLEDHB NO. 447
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(2) Standard certificate of insurance forms promulgated by the Association1
for Cooperative Operations Research and Development (ACORD), the American2
Association of Insurance Services (AAIS), or the Insurance Services Office (ISO)3
shall be filed, but are deemed approved by the commissioner of insurance, provided4
these forms comply with the provisions of this Section.5
G. No person shall demand or request the issuance of a certificate of6
insurance from an insurer, insurance producer, or policyholder that contains any false7
or misleading information concerning the policy of insurance to which the certificate8
makes reference.9
H. No person may prepare, issue, or request, either in addition to or in lieu10
of a certificate of insurance, an opinion letter or other document or correspondence,11
instrument, or record, including an electronic record, that is inconsistent with this12
Section; however, an insurer or insurance producer may prepare or issue an13
addendum that clarifies, explains, summarizes, or provides a statement of the14
coverages provided by a policy of insurance and otherwise complies with the15
requirements of this Section.16
I. The provisions of this Section shall apply to all certificate holders,17
policyholders, insurers, insurance producers, and certificate of insurance forms18
issued as a statement or evidence of insurance coverages on property, operations, or19
risks located in this state, regardless of where the certificate holder, policyholder,20
insurer, or insurance producer is located.21
J. A certificate of insurance form which has been approved by the22
commissioner and properly executed and issued by a property and casualty insurer23
or an insurance producer, shall constitute a confirmation that the referenced24
insurance policy has been issued or that coverage has been bound notwithstanding25
the inclusion of "for information purposes only" or similar language on the face of26
the certificate. A certificate of insurance is not a policy of insurance and does not27
affirmatively or negatively amend, extend, or alter the coverage afforded by the28
policy to which the certificate of insurance makes reference. A certificate of29
insurance shall not confer to a certificate holder new or additional rights beyond30 ENROLLEDHB NO. 447
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what the referenced policy or any validly executed endorsements of insurance1
provides.2
K. No certificate of insurance shall contain references to legal or insurance3
requirements contained in any contracts other than the underlying contracts of4
insurance, including construction or service contracts.5
L. A person shall have a legal right to notice of cancellation, nonrenewal, or6
any material change, or any similar notice concerning a policy of insurance only if7
the person is named within the policy or any endorsement and the policy or8
endorsement, law, or regulation of this state requires notice to be provided. The9
terms and conditions of the notice, including the required timing of the notice, are10
governed by the policy of insurance in accordance with the laws and regulations of11
this state and cannot be altered by a certificate of insurance.12
M. Any certificate of insurance and any attached addendum prepared, issued,13
or requested in violation of this Section shall be null and void and of no force and14
effect.15
N. Any person who willfully violates this Section may be fined not more16
than one thousand dollars per violation.17
O. The commissioner of insurance shall have the power to examine and18
investigate any complaint or allegation of specific violations by any person who has19
allegedly engaged in an act or practice prohibited by this Section and to enforce the20
provisions of this Section. Examinations or complaint investigations conducted by21
the commissioner under this Subsection shall be subject to the provisions of R.S.22
22:1983(J).23
D.P. Pursuant to the Administrative Procedure Act, the commissioner of24
insurance may adopt reasonable rules and regulations as are necessary or proper to25
carry out the purposes of this Section.26
Section 2. The provisions of this Act amending Subsections A and C of this Section27
and the provisions of this Act enacting Subsections D and E of this Section shall become28
effective on August 15, 2010.29 ENROLLEDHB NO. 447
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Section 3. Except as otherwise provided in Section 2 of this Act, the provisions of1
this Act shall become effective on January 1, 2011.2
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: