That being said, a certificate of insurance does not establish that the insurance referenced in it actually provides the necessary coverage only the policy itself governs coverage, and any representations on the certificate of insurance as to the scope or existence of coverage are generally unenforceable. The certificate should also state that the lender is entitled to rely on the certificate by stating that 'the certificate holder is an additional insured.' If in the form of a certificate (usually an ACORD 25 in New York) the certificate should be signed by an insurance company representative, and show the date of the certificate, correct legal name and address of the insured, type of coverage, property covered, issuing insurance company, amount of insurance and expiration date of insurance. Many parties provide proof of liability insurance in the form of a certificate, insurance binder or policy. For example, liability insurance can be required to cover a lender as an 'additional insured.' Casualty insurance can be required to cover a lender as a 'loss payee' or 'mortgagee.' Where the lending relation is ongoing, the lender may also require notification of any cancellation (usually 30 days prior notice, but some insurance companies will provide shorter notice periods, sometimes as short as 10 days). Such insurance coverages are often required to be extended to the lender. A borrower is frequently asked to provide proof of various insurance coverages (in amounts which the lender deems adequate).

White Collar & Government InvestigationsĪ common requirement for loan closings is the production of proof of insurance.

Restructuring, Bankruptcy & Creditors' Rights.

Acord insurance binder