What does a certificate of insurance usually provide?
Correct Answer
A) Evidence of insurance coverage in place, subject to the policy terms.
A certificate evidences coverage but does not replace or rewrite the policy.
Why This Is the Correct Answer
A certificate evidences coverage but does not replace or rewrite the policy.
Why the Other Options Are Wrong
Option B: Classify the condition as a guarantee that every claim will be paid
Choice B (A guarantee that every claim will be paid.) is rejected because it leaves out the controlling Certificate of insurance evidence result: Evidence of insurance coverage in place, subject to the policy terms.
Option C: Classify the condition as a substitute for the insurance policy itself
In procurement and contracting, A substitute for the insurance policy itself. is the wrong selection for Certificate of insurance evidence: the option tries to substitute, waive, or delete the Certificate of insurance evidence control; the item instead requires Evidence of insurance coverage in place, subject to the policy terms.
Option D: Classify the condition as a change order increasing the contract sum
The trap in D is A change order increasing the contract sum. That selection is wrong because it shifts the question into contract administration money flow.
Memory Technique
Link certificate of insurance evidence to its book condition; a different condition means a different answer than Evidence of insurance coverage in place, subject to the policy terms.
Reference Hint
Open NASCLA Contractors Guide to Business, Law and Project Management, 14th Ed.; use the index entry or section for "Insurance certificates" to confirm that A certificate evidences coverage but does not replace or rewrite the policy.
More NASCLA Questions
Bid instructions require bid security with each sealed bid. Which purpose should the estimator associate with that requirement?
A wood deck surface has 320 sf of coverage. Boards have a 5-1/2 in. actual face width, and the order includes an 8 percent cutting allowance. What linear footage is closest?
Using the dimensions shown for the stabilized construction entrance, what is the plan area?
A reroof area requires 14,720 sf of rigid insulation. Boards are 4 ft by 8 ft, and the order includes 5 percent waste. How many boards are needed?
Two addenda revise the drawings before bid day. What must a responsive bidder normally do with those addenda?
A utility trench is 180 ft long, 3 ft wide, and 7 ft deep with vertical sides inside a trench shield. What excavation volume is required?
A 120 ft long Type C trench is cut with a 4 ft bottom width and a 6 ft depth. If side slopes are 1-1/2 horizontal to 1 vertical, what excavation volume is closest?
A storm pipe run needs 240 ft of bedding, 4 ft wide and 6 in. thick. Including a 10 percent ordering allowance, how many cubic yards of bedding aggregate are needed?
A mass excavation produces 1,180 loose cubic yards of material for off-site disposal. End-dump trucks can haul 18 loose cubic yards per trip. What truck count is required?
An asphalt-shingle roof has a slope of 3:12. Under the IBC low-slope asphalt-shingle provisions, what underlayment arrangement is required?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass