Q: "Can we place property insurance information on the ACORD 25 to avoid issuing two documents?"

A: “It is not uncommon to see property—most often inland marine and builders risk—information on an ACORD 25. For general guidance on what is appropriate on various ACORD certificate forms, visit the Big ‘I’ Virtual University’s dedicated Certificates of insurance Resources area.

But the ACORD 25 should not show property policies. The title of this form is ‘Certificate of Liability Insurance.’ Since the certificate clearly states it’s a liability form, what you’re doing by adding property policy information is representing that the property policy provides liability coverage of some kind.

While issuing a separate form undeniably requires extra work, you don’t want to misrepresent policy coverages. Even if your state has no certificate-specific laws, regulations or DOI directives, it probably has general insurance laws that make it illegal to misrepresent any insurance form. For example, here is an excerpt from my state’s unfair trade practices law:

‘UNFAIR TRADE PRACTICES

Misrepresentations and False Advertising of Insurance Policies. Making, issuing, circulating, or causing to be made, issued or circulated, any estimate, illustration, circular or statement, sales presentation, omission or comparison that…

• Misrepresents the benefits, advantages, conditions or terms of any policy…
• Uses any name or title of any policy or class of policies misrepresenting the true nature of the policy or class of policies…

False Information and Advertising Generally. Making, publishing, disseminating, circulating or placing before the public, or causing, directly or indirectly to be made, published disseminated, circulated, or placed before the public…an advertisement, announcement or statement containing any assertion, representation or statement with respect to the business of insurance…that is untrue, deceptive or misleading.’

So the short answer is no—do not use the ACORD 25 for anything other than liability/casualty information.”

Bill Wilson is director of the Big “I” Virtual University.

This question was originally submitted by an agent through the VU’s Ask an Expert Service. Answers to other coverage questions are available on the VU website. If you need help accessing the website, email logon@iiaba.net to request login information.