Spotting Insurance Monitoring: What To Look For

Insurance monitoring is becoming increasingly common, with many car insurance companies now using monitoring devices to track driving habits such as speed, acceleration, braking, cornering, phone usage, and more. This data is then used to adjust insurance rates, with safe driving behaviour rewarded with lower premiums and reckless driving behaviour potentially leading to higher premiums. These devices are typically small data transmitters hardwired into your vehicle or, more commonly, a smartphone app that uses GPS or an accelerometer to collect data. While insurance monitoring can lead to savings on premiums, there are also privacy concerns and the potential for higher premiums if driving habits are recorded as poor. In this article, we will explore the pros and cons of insurance monitoring and provide tips on how to spot insurance monitoring and how it may impact your insurance rates.

Check for the Acord 25 certificate

An ACORD 25 Certificate of Liability Insurance is a document that proves you have liability insurance coverage. It is typically a one-page document that summarises key information about your business insurance policy. It is also known as an ACORD 25 form, a certificate of insurance (COI), or a certificate of liability insurance. This form proves that business owners have general liability insurance coverage and is usually provided by your insurance company when you buy a business insurance policy.

The ACORD 25 certificate includes essential information about your business insurance policy, such as the types of insurance coverage, the issuing insurance company, the policy effective date, and the policy expiration date. It may also include the name and address of the policyholder, the name of the agent and insurance company, the coverage limits, and a description of operations.

The ACORD 25 certificate is designed to minimise confusion and unify the approach to liability insurance policy forms. It is developed by the Association for Cooperative Operations Research and Development (ACORD), which was formed by insurance companies in the 1970s to standardise insurance forms and make them more usable and readable for all parties involved in the insurance industry.

As a business owner, you may be asked to provide an ACORD 25 certificate to prove that your business has the necessary insurance coverage in the event of claims related to property damage, personal injury, or substandard work performed by your company. By providing this certificate, you can assure your clients and partners that your business is protected from common risks and can meet the conditions of contracts that require insurance coverage.

To obtain an ACORD 25 certificate, you can start by requesting a business insurance quote and purchasing a business insurance policy. Once you have a policy in place, you can contact your insurance company or agent to request a certificate of insurance. In some cases, you may be able to access your certificate of insurance online or through a mobile app provided by your insurance company.

Look for consistent handwriting and font

When it comes to handwriting and font, consistency is key. This is especially true when creating handwritten notes as an insurance agent to build relationships and stand out from the competition. Here are some tips to achieve this:

Use a Consistent Handwriting Style:

Decide on a handwriting style that represents your brand and stick to it. This could be a traditional cursive style or a more modern printed style. Whichever you choose, ensure it is legible and easy to read.

Maintain Uniformity in Font Size and Spacing:

Pay attention to the size of your letters and the spacing between them. Consistency in font size ensures your notes look neat and professional. Maintain even spacing between words and lines to create a balanced appearance.

Standardize Letter Formation:

Be consistent in the way you form each letter. For example, ensure your "a" and "g" are always written in the same way. This attention to detail will give your notes a polished look.

Use the Same Writing Instrument:

Choose a high-quality writing instrument, such as a pen or pencil, and use it for all your handwritten correspondence. This helps to achieve a uniform look across your notes.

Opt for Standardized Stationery:

Select premium paper or stationery that complements your handwriting style and font. Using the same type of paper for all your notes creates a sense of cohesion and adds to the overall professional appearance.

By following these tips, you can achieve consistent handwriting and font in your insurance-related handwritten notes. This consistency will help you establish a recognizable style that reflects your brand and leaves a lasting impression on your clients.

Verify the insurance company

Verifying the insurance company is a crucial step in spotting insurance monitoring. Here are some detailed steps to help you verify the legitimacy of an insurance company:

Check the Insurance Company's Authorisation:

Before purchasing insurance, it is essential to verify that the company is authorised to conduct business in your state or country. In California, for example, you can search for insurance company profiles to confirm their legitimacy. This step ensures that the company is operating within the legal framework and is subject to regulatory oversight.

Review the National Association of Insurance Commissioners' Data:

The National Association of Insurance Commissioners (NAIC) provides valuable information for consumers. You can look up an insurer's complaint record, market share, resolved complaints, and auto premium data. This information is available through the NAIC's Consumer Information Source. By comparing the complaint ratio to the national median, you can assess the company's track record relative to its size.

Utilise State Insurance Department Resources:

Most state insurance departments maintain websites with helpful resources for consumers. These sites often include auto insurance buyer's guides, state-specific insurance laws, and types of coverage available. Additionally, you can check for any enforcement actions taken against the insurer. These websites may also provide premium comparisons, allowing you to see how different insurers' rates stack up for someone with your profile.

Analyse the Company's Financial Strength:

It is crucial to assess the financial strength of an insurance company to ensure they have the capacity to pay out claims. Tools like A.M. Best's financial-strength ratings can be used to evaluate this aspect. These ratings provide insight into the insurer's financial health and their ability to meet their financial obligations.

Scrutinise Certificates of Insurance (COIs):

When dealing with contractors or businesses, it is essential to verify the authenticity of their COIs. Look for the standard "Acord 25" form, which trustworthy insurance agencies commonly use. Check for the Acord logo in the upper right corner and the text "Acord 25" in the bottom left. Be vigilant for inconsistencies in handwriting or font, especially regarding expiration dates and policy numbers. Contact the insurance company directly if you have any doubts.

Understand the Layout of COIs:

COIs have a complex layout, and fraudulent forms may have missing or incorrect sections. Familiarise yourself with the standard sections, such as Worker's Compensation and Automobile Liability. Be cautious if you see unusual coverage listed on the COI that is not included in the insurance policy. Additionally, look for blank boxes indicating limits instead of zeroes or "N/A" when coverage is not included in the policy.

Verify the Insured Box:

On an insurance certificate, the "Insured Box" should contain the name and address of the business, not an individual. This is an important check to ensure that coverage applies when a claim is made and to reduce the risk of an inexperienced person filling out the form incorrectly.

Check Contact Information:

The contact information on an insurance certificate should belong to the insurance agent or broker who issued the form. If it instead belongs to the person covered by the certificate, it may be a red flag. Ensure that the signature at the bottom matches the name in the contact information box. Also, verify that the email domain matches the name of the Producer or insurance company.

By following these steps, you can verify the legitimacy of an insurance company and reduce the risk of dealing with unauthorised or fraudulent entities.

Understand the layout of the certificate

Understanding the layout of an insurance certificate is crucial, as it provides proof of insurance and summarises your coverage in one document. Here's a detailed breakdown of the sections typically found in an insurance certificate:

Date:

This is the date when the insurance certificate was issued. It's important to note that the coverage is only valid during the policy period specified.

Disclaimer:

This section includes legal wording stating that the certificate is a representation of your coverage and not the actual insurance policy. It clarifies that the certificate is issued as a matter of information and doesn't confer any rights to the certificate holder beyond what is stated in the insurance policy.

Producer:

This section identifies the insurance agent, broker, or insurer who issued the certificate. It includes the name and business address of the entity that handled the insurance purchase and provided the certificate.

Insured:

This field refers to the policyholder or the primary insured. It should state the name and address of the individual or business entity holding the policy. It's crucial to ensure that the insured name matches the name on the contract, as discrepancies can lead to issues with coverage.

Insurer(s) Affording Coverage:

This section lists the insurance companies or carriers providing the specified coverages to the insured. If multiple insurers are involved, their names and relevant details are listed separately.

Type of Insurance:

This section outlines the type of insurance coverage, such as general liability, professional liability, commercial auto, excess liability, or workers' compensation. It may also include policy numbers and the effective and expiration dates of the policy.

Policy Effective Date:

This field specifies the date when the insurance coverage begins or becomes effective. It's important to note that the coverage is not active before this date.

Policy Expiration Date:

This section states the date when the insurance coverage ends or expires. After this date, the policy is no longer valid, and a new certificate or renewal is required.

Policy Limits:

Policy limits refer to the maximum coverage provided by the insurance policy for each incident or claim. It specifies the financial limits of the policy for different types of coverage.

Description of Operations/Locations/Vehicles:

This section serves as a catch-all space for additional information. It may include specific requests, such as being listed as an additional insured, or details about the operations, locations, or vehicles covered by the policy.

Certificate Holder:

The certificate holder is the person or entity to whom the certificate of insurance is issued. It's important to note that being a certificate holder doesn't confer any rights beyond those specified in the insurance policy.

Cancellation:

This section includes a statement regarding cancellation. It states that the insurance company or broker will notify the certificate holder if the policy is cancelled before its expiration date.

Authorized Representative:

This is the section where an authorised representative of the insurance company, agent, or broker signs the certificate. The signature can be electronic or handwritten, but it is essential for the certificate to be valid.

It's important to carefully review all the sections of an insurance certificate to ensure that the information is accurate and up to date. This includes verifying the insured's name, policy dates, coverage type, policy limits, and other relevant details. By understanding the layout and content of an insurance certificate, you can make informed decisions about your insurance coverage and ensure compliance with any requirements.

Check the insured box is filled out correctly

Checking that the insured box is filled out correctly is a crucial step in spotting a fake Certificate of Insurance (COI). This is because, if an inexperienced person has filled out the form, they may have put their own name in this section, rather than the name of the business, which is what should be there. The business address should also be included in the insured box.

If the name in the insured box is incorrect, then coverage may not be applied in the event of a claim being made. Therefore, it is important to check this section carefully. If you are unsure about the name of the business, you can always call your insurance agent to double-check.

Another way to spot a fake COI is to look for consistent handwriting and font. If the expiration dates are not in the centre of the box, or are in a different font to the policy number, this is a good indicator that the certificate is not legitimate.

It is also important to look out for things like zeroes, 'N/A', or 'None' listed when there is coverage that is not included in the policy but is present on the COI. On a legitimate insurance certificate, these boxes will be left blank to state the limit.

Frequently asked questions