A subcontract requires insurance certificates before work starts. What does a certificate of insurance normally evidence?
Correct Answer
C) Specified insurance coverage information as of the certificate date
A certificate summarizes identified insurance coverage and policy information. It does not itself amend the policy, guarantee payment of every claim or constitute acceptance of the construction work. The Texas insurance regulator’s FAQ illustrates this distinction; policy terms and endorsements determine the actual coverage. Source: https://www.tdi.texas.gov/certificates/faq.html
Why This Is the Correct Answer
A certificate summarizes identified insurance coverage and policy information. It does not itself amend the policy, guarantee payment of every claim or constitute acceptance of the construction work. The Texas insurance regulator’s FAQ illustrates this distinction; policy terms and endorsements determine the actual coverage. Source: https://www.tdi.texas.gov/certificates/faq.html
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