I have heard from more than one public adjuster that insurance companies are refusing to give certified copies of the policy to both the insured, and the public adjuster. That, to me, is astounding. This article is to describe why that is so outrageous.
First, certification means that the insurance company is verifying, under oath, that it is conveying all forms and endorsements that constitute the policy. That is very important. When I receive insurance policies that are not certified there are often policy forms missing. Missing forms/endorsements can include the critical policy forms that modify policy language to Minnesota legal requirements, hail endorsements, cosmetic exclusions, and other important language. I am currently attempting to calculate interest on a policy, but all we have is the main policy form used throughout the country. Important language specific to Minnesota legal requirements is missing which is why we need certification from the insurer it is sending us all the important forms.
I regularly ask new clients for a certified copy of the policy. Some new clients are confused why the policy they were given is not enough. The policy given to an insured, if incomplete, may be useful for certain cases. Yet in the end, “the policy” property owners pay for with premiums must include all forms that constitute the policy, not just one or two forms.
Insurance law is a derivative of contract law unless modified by statute. Basic contract law throughout the country requires the parties understand their obligations to perform. How does the insured understand those obligations when he, she or it (commercial or townhome property owner) cannot read them?
When a property owner is working with an insurer to adjust the claim, it is simply inconceivable that the insured property owner would not have access to the contract. Yet that is what happens when an insurance company refuses to give a certified copy of the policy. This scenario simply should not happen. Both parties to a contract need access to the contract to understand true obligations and privileges held by both. Insurance companies simply have no basis to withhold the entire policy.
Public adjusters are representatives of the property owner by operation of statute. See Minn. Stat. § 72B.03. If an insurance company refuses to give a certified copy of the insurance policy to the public adjuster, it effectively refuses to give a copy of the contract to the insured property owner.
If your insurer refuses to give a certified copy of the policy, you should react as follows: 1) the insurance company is wrong, period; 2) stand your ground and insist on the policy; 3) document the date you asked for a certified copy of the policy and the response; and 4) if the insurer still refuses, the matter may require assistance from a court of law. In court, ambiguous insurance policies should be construed against the insurer that wrote it. In my view, that is doubly true if the insurer refuses to give you important forms and endorsements that constitute the policy.
If you are in this scenario, let me know if you have any questions. You can email me at ed@beckmannlawfirm.com.