Insurance & LiensQuestion 1483 of 1605
A 'certificate of insurance' (COI) provided by a subcontractor to a prime contractor:
a.Automatically makes the prime an additional insured
b.Guarantees the coverage cannot be canceled
c.Is itself the insurance policy and creates coverage
d.Is only evidence that a policy exists as of the certificate date; it does not by itself alter or grant coverage
Explanation
A certificate of insurance is merely evidence that coverage exists on the date issued. It does not amend the policy, guarantee future coverage, or by itself confer additional insured status. To be an additional insured, the prime must be named by policy endorsement.
Practice all 1605 questions free — no signup required.
Related questions on this topic
- A licensed contractor who has NO employees but holds a C-10 electrical, C-8 concrete, C-20 HVAC, C-22 asbestos, or D-49 tree service classification must:
- The main purpose of a contractor's Commercial General Liability (CGL) insurance policy is to cover:
- 'Builder's risk' insurance (also called course-of-construction insurance) primarily protects:
- When a prime contractor is named as an 'additional insured' on a subcontractor's CGL policy, the practical benefit to the prime is that:
- Which statement best distinguishes a SURETY BOND from an INSURANCE policy?
- An indemnity (hold-harmless) clause in a construction subcontract typically operates to:
Last reviewed: · editorial process
Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)