Glossary · Insurance agency commissions
Certificate of insurance
A certificate of insurance (COI) is a document an agency or carrier issues to show that a client has a policy in force. It is evidence of coverage, not the policy itself, and laws in many states, including New York, say a certificate cannot change the coverage. Certificates earn no commission but often reveal policies missing from statements.
What it means
New York’s Department of Financial Services quotes Insurance Law § 501(a), which defines a certificate of insurance as “any document or instrument, or addendum thereto no matter how titled or described, prepared or issued by an insurer or insurance producer as evidence of property/casualty insurance coverage” (source). The same page adds: “The definition does not include an insurance policy or insurance binder.”
How it works: a client’s customer, landlord or general contractor asks for proof of insurance. The agency issues a certificate naming the certificate holder and listing the policies. New York, for example, bars requiring certificate wording the policy does not contain (Insurance Law § 502). Additional insured status has to be added to the policy by endorsement, not just written on the certificate.
How it shows on a commission statement
Certificates do not appear on commission statements. They are still a useful cross-check: every policy you certify should be in force and paying commission. A certificate issued on a policy that is missing from the carrier’s statement points to a policy that never issued, cancelled, or is being paid under another agency code.
Example
| Policy | Certificates issued | On statement | Action |
|---|---|---|---|
| EX-51004 | 6 | yes | none |
| EX-51019 | 2 | no | confirm in force |
| EX-51027 | 1 | yes, cancelled | stop certifying |
The highlighted lines matter for commission and for the client: a certificate on a cancelled policy shows coverage that is no longer there.
Commonly confused
- An insurance binder is temporary coverage; a certificate only evidences coverage. See insurance binder.
- An endorsement changes the policy; a certificate cannot. See endorsement.
- Being a certificate holder does not make someone an additional insured.
Common mistakes to check
- Issuing certificates on a policy that the carrier’s statement shows as cancelled.
- Writing coverage onto a certificate that the policy does not provide.
- Not checking that every certified policy is paying commission.
Questions
Does a certificate of insurance prove coverage?
It shows coverage as of the date issued. It does not change the policy, and the policy can still cancel later. For certainty, the holder can ask for the endorsement or the policy itself.
Do agents get paid for issuing certificates?
Not through carrier commission. Certificates are a service cost; commission comes only from the premium on the underlying policy.
What is an ACORD 25?
It is a widely used standard form for a certificate of liability insurance, published by ACORD, an industry standards organization.
Sources
- New York State Department of Financial Services, Certificates of Insurance. Retrieved October 13, 2026.
Lapidar is commission reconciliation software for independent insurance agencies, in its founding pilot. Related: missing renewal commissions.