In the recent case of Sauer v. Crews, 2014-Ohio-3655, an insurance company asked the Ohio Supreme Court to affirm that when determining whether a policy provision is ambiguous, courts must consider the context of the provision and should not isolate the provision or weigh ambiguity in the abstract. The court agreed with the insurer and ruled that “courts must look at the provision in the overall context of the policy in determining whether the provision is ambiguous.”
It’s a start. Certificates of Insurance are one of the most misleading documents in the insurance industry. As the attached article reflects, some states are addressing these pesky items and enforcing change. I hope that the trend catches on!
Connecticut Gov. Dannel P. Malloy recently signed into law H.B.5248 that prohibits the inappropriate use and issuance of certificates of insurance.
The Professional Insurance Agents of Connecticut Inc., an industry association which has been an active supporter of H.B.5248, applauded the bill’s signing. The association said insurance producers in Connecticut have often been pressed by third parties to issue certificates of insurance that seem to expand or amend the policy or make representations about the policy’s fitness for specific contracts, or issue non-certificate advisory documents attempting to make similar statements…….
The article goes on to say: “PIACT applauds Gov. Malloy for his leadership in recognizing the importance of this law,” said Professional Insurance Agents of Connecticut President Peter Frascarelli. “It allows diligent and responsible professional, independent insurance agents to refuse to issue inaccurate certificates of insurance without being put in an awkward position in which they may be perceived as not helping out their clients.”
To read the article by Insurance Journal in its entirety and to learn more about this trailblazing bill, click here.
Sr. Claim Examiner
Remember the story of the ant and the grasshopper? The ant worked hard all summer, gathering wheat grains to store for winter. And the grasshopper? He just hopped around, enjoying the sunshine and laughing at that sweaty ant. Well, once winter hit, the grasshopper wasn’t laughing, but was cold and miserable and hungry. And the ant? He had plenty of food and could now toast his toes in front of his warm fire.