Insurance Companies, Not Insurance Agents Should Issue Cancellation Notifications

Wednesday’s Post 1/11/12 –   The Independent Insurance Agents Association & Brokers feel it should be the responsibility of Insurance Carriers and not the Insurance Agents to tell their customers their insurance policy is being cancelled.  These notifications of cancellation affect Certificates of Insurance (COI’s), which are documents issued to both an insurance client and the clients customer which contain information on that client’s coverage amounts and abilities. Companies that work with the clients in their business dealings will keep a copy of the certificates on file for their records. In most cases, the two entities agree that the insurance company will make proper notification should there be any change in the status of the insurance coverage. Many companies were making changes to their operations to support this new practice. Other carriers have been passing the responsibility to the agents offices, making them responsible for issuing notices of cancellation to clients. This shifting of burden is an aspect of the reporting the agent should not have to deal with.  This could leave the agents open to lawsuits if a policy is cancelled, a claim is filed and notification was not provided.

 The IIA&B  feels the insurance carrier is the only entity which should be responsible for both issuing and rescinding Certificates of Insurance . While it is up to the agents to create their own outlines for customer care standards, insurer who should be in charge of cancellation and policy notifications. For agents that take this responsibility and the associated risk willingly, the IIA&B recommended compensation as consideration for that extra risk.


Michael E. Dortch
President &  Managing Agent
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602