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Second Circuit Certifies Acord Certificate Question to NY Court of Appeals.

February 10, 2011

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In the declaratory judgment case of <em>10 Ellicott Square v. Mountain Valley Indemnity</em>, the Second Circuit was confronted with two issues: (a) if a contract is partially performed, must it be signed to be “executed”; and (b) is a certificate of insurance sufficient to afford coverage -- <a href=""></a>
In respect of the first question, the Second Circuit ruled in the negative. It held that under New York law, a contract must be either fully performed or signed to be deemed “executed.”
In respect of the second question, the Second Circuit noted the divergence of case law in New York. It has therefore certified the following question to New York’s Court of Appeals:
<em>In a case brought against an insurer in which a plaintiff seeks a declaration that it is covered under an insurance policy issued by that insurer, does a certificate of insurance by an agent of the insurer that states that the policy is in force but also bears language that the certificate is not evidence of coverage, is for informational purposes only, or other similar disclaimers, estop the nsurer from denying coverage under the policy?</em>
The ball is now squarely in New York’s highest court to resolve this Acord issue that consistently arises —particularly in construction accident cases. We will continue to monitor.
For more information about this post, please contact Bob Cosgrove at <a href=""></a>.
t appears that the certificate of insurance issue will remain, for the time being, unresolved.
The Second Circuit recently amended its decision, and in a footnote on page 5, has indicated that the matter has been settled and that the certification to the Court of Appeals has been withdrawn.
The decision on the "execution" issue, however, will stand.
If you have any questions or would like further information, please contact <a href=""></a> or <a href=""></a>
<a href="">January 31, 2011 Amended Decision</a>


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