DON'S DISCUSSION
DON'S DISCUSSION IA&B Legal & Corporate Affairs Director Don Bankus
Are you a member with a question? Contact Don at 717-918-9204 or DonB@IABforME.com.
occasion, lenders demand that I include the phrase “Replacement cost” in the “Remarks” QUESTION: On section of the ACORD 27. Do the ACORD 27 form instructions provide any guidance?
ANSWER: Great question. As you’re well aware, agents are often asked to include extraneous information on the Evidence of Property Insurance form. It’s generally recommended the information an agent adds in the “Remarks” box be limited as per the ACORD 27 instructions guide. The current ACORD 27 Instructions for the “REMARKS (Including Special Conditions)” box provide as follows: Enter text: The additional comments or special conditions that may exist upon the policy. ACORD 101, Additional Remarks Schedule, may be attached if more space is required. As long as the information you include, or are being asked to include, in the “Remarks” box isn’t illegal (meaning that it’s not a violation of an insurance or other law, regulation, etc.), and the information you include is not a misrepresentation of any policy terms or conditions, inclusion of such information is not expressly prohibited. To assist in limiting the agency’s exposure – and as an added precaution if it becomes necessary to include information in the “Remarks” section – it may be prudent to add a statement thereafter that the information you included is “to the extent provided in the attached/ enclosed policy forms,” and then provide copies of the applicable policy forms/endorsements. Given policy language may differ from carrier to carrier, and possible issues associated with co-insurance penalties, etc., simply typing a generic phrase such as “Replacement cost” on the form – with nothing more – could be ambiguous in context and subject to interpretation. As a rule of thumb, if the information/coverage references you intend or are requested to add to the “Remarks” section fall outside the four corners of the IABforME.com |
policy and/or applicable endorsements, you should refrain from including such language. This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice. Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Insurance Agents & Brokers nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.
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