WO2000070494A2

WO2000070494A2 - Method and system for issuing and managing certificates of insurance

Info

Publication number: WO2000070494A2
Application number: PCT/US2000/013512
Authority: WO
Inventors: Rolland C. Bates, Iii; William R. Gist; Lester S. Crouch; Michael D. Prengler; Eugene J. Eisenmann, Jr.
Original assignee: Vericert, Inc.
Priority date: 1999-05-17
Filing date: 2000-05-17
Publication date: 2000-11-23
Also published as: AU5272900A; WO2000070494A3

Abstract

A certificate exchange network (10) includes a server network (40) that integrates an insured (14), an insurance agent (12), an insurance company (11), a certificate holder (16), a risk manager (15), and a professional employee organization (13), all involved in the certificate of insurance process. The server network (40) includes a communication server (42), a processing server (44), and a data server (46). The communication server (42) provides an interface between the entities of the certificate exchange network (10) and the server network (40). The processing server (44) generates certificates of insurance requested by the insured (14), processes setup information provided by the insurance agent (12), and establishes certificate profiles as determined by the certificate holder (16). The data server (46) stores all the information used in generating the certificates of insurance and information associated with the various entities. Certificates of insurance can be electronically generated and delivered by the server network (40) and can be tracked and verified as needed.

Description

METHOD AND SYSTEM FOR ISSUING AND MANAGING CERTIFICATES OF INSURANCE

TECHNICAL FIELD OF THE INVENTION

The present invention relates in general to the insurance industry and more particularly to a method and system for issuing, managing, delivering and verifying certificates of insurance.

BACKGROUND OF THE INVENTION

Risk transfers are almost always accompanied by insurance requirements that attempt to ensure the indemnitor's ability to meet its assumed obligations. Since these insurance policies represent an indemnitee ' s best chance of recovery for liabilities falling within the purview of a hold harmless agreement, verifying that the required coverages are in force and monitoring ongoing compliance are critical steps in a comprehensive risk transfer program. Maintaining a permanent record of these coverages is also highly important, especially when claims payable under these policies surface after the underlying contract has been fulfilled. In that circumstance, the probability of positively identifying the policy that applies to the claim is remote without written documentation of the coverage.

Unfortunately, verifying compliance with insurance requirements can be a labor-intensive task. Maintaining a record of indemnitors ' policies is not as easy as simply entering policy numbers into a database. Someone must verify that the coverages actually exist and that they conform to the insurance requirements with respect to such concerns as limits, scope of coverage, and insurers' financial ratings. Further, when policies expire or are canceled, documentation of the replacement policies must be obtained and added to the record. This all amounts to a mountain of paperwork and a high potential of error and oversight.

The most common method of verifying compliance is to require a certificate of insurance. The certificate of insurance provides limited information regarding the indemnitor's insurance coverage, including the name of the insurer (s), policy numbers (s), types of coverage provided, and coverage limits. Certificates of insurance are not part of the policy but merely representations of the coverages in force on the date the certificate is issued. The most common form of a certificate of insurance is the ACORD form.

The traditional process for obtaining a certificate of insurance begins when the certificate holder, the entity requiring the certificate, requests it from an insured doing the work. The insured then requests the certificate of insurance from its insurance agent and that it be sent to the certificate holder. In order to complete the certificate of insurance, the insurance agent must confirm which coverages are to be certified, determine whether the insured has those coverages in force, request that coverages be added, manually create the certificate of insurance form, and send it to the certificate holder. All of these steps take time, time that the certificate holder deems unnecessary in order to get the project rolling. Therefore, it is desirable to reduce or eliminate the inefficiencies inherent in the traditional process of obtaining a certificate of insurance .

SUMMARY OF THE INVENTION From the foregoing, it may be appreciated by those skilled in the art that a need has arisen for a technique to simplify the issuance of, eliminate the wait period, and verify certificates of insurance. In accordance with the present invention, a method and system for issuing and managing certificates of insurance are provided that substantially eliminate and reduce disadvantages and problems associated with traditional techniques for obtaining certificates of insurance.

According to an embodiment of the present invention, there is provided a method for issuing and managing certificates of insurance that includes receiving an electronic request for a certificate of insurance. Upon such a request, a link with a server is established. Information associated with the certificate of insurance is accessed through the link. An electronic version of the certificate of insurance is generated according to the accessed information. The certificate of insurance may then be printed or delivered such as by electronic mail or facsimile transmission. The present invention provides various technical advantages over conventional certificate issuance processes. For example, one technical advantage is to eliminate the reliance of hard copy handling of certificates of insurance. Another technical advantage is to efficiently verify and track generated certificates of insurance. Yet another technical advantage is to automatically deliver generated certificates of insurance. Still another technical advantage is to automatically update and cancel renewed and invalid certificates. Other technical advantages may be readily apparent to those skilled in the art from the following figures, description, and claims.

BRIEF DESCRIPTION OF THE DRAWINGS

For a more complete understanding of the present invention and the advantages thereof, reference is now made to the following description taken in conjunction with the accompanying drawings, wherein like reference numerals represent like parts, in which:

FIGURE 1 illustrates a block diagram of a certificate exchange network;

FIGURES 2A-H illustrate program steps to obtain a certificate of insurance;

FIGURES 3A-K illustrate program steps to set up information for an insured; FIGURES 4A-H illustrate program steps to establish profile requirements for certificates;

FIGURES 5A-B illustrate program steps to verify a certificate of insurance; and

FIGURES 6A-C illustrate an example of an electronic certificate of insurance.

DETAILED DESCRIPTION OF THE INVENTION

FIGURE 1 is a block diagram of a certificate exchange network 10. Certificate exchange network 10 uses a global communication link, such as the Internet, as well as software applications to interconnect and integrate all of the players in the insurance industry, including an insurance company 11, an insurance agent 12, an insured 14, a certificate holder 16, professional employee organizations 13, and risk managers 15. This global interconnection capability provides each entity access to insurance information at any time without interruption with a capability to handle a large number of users and transactions as required. Certificate exchange network 10 operates through a server network 40 that may include a communications server 42, a processing server 44, and a data server 46. Communication server 42 acts as a communication interface to and from all of the players in the insurance industry and provides the ability to connect each of the entities for mutual communication among them. Processing server 44 performs all of the processing involved with the issuance and management of certificates of insurance. Data server 46 stores and manages the insurance information in certificate exchange network 10. Though server network 40 is shown and described using three servers, any number or combination of servers may be used to perform the desired certificate handling capability.

Certificate exchange network 10 includes various modules to allow entities to navigate through the certificate process. A certificate issuance and management (CIM) module 32 allows insurance agent 12 to establish coverage and user parameters for each of its insureds 14 and fulfill and manage their certificate needs. A company certificate program (CCP) module 33 allows insurance company 11 to establish user parameters for each of its insurance agents 12, monitor and manage certificates of insurance created by their insurance agents 12, and full database functionality access to certificate exchange network 10. A certificate request program (CRP) module 34 allows insured 14 to electronically request, fulfill, and deliver a certificate. A certificate management program (CMP) module 36 provides for the creation of individual profiles for comparison during certificate requests. This capability insures that certificates do not get issued if they do not meet the requirements established for the appropriate profile. Verification, management, reporting, and data access capabilities are also provided through this module. A user interface 38 provides anyone a capability to verify a certificate over a connection link such as through the Internet. A professional employee organization (PEO) module 39 provides professional employee organizations access to certificate exchange network 10.

Certificate exchange network 10 provides a fast cost effective automated certificate issuance and management system. Insurance agent 12 sets up an account for insured 14 and enters the required insurance information. Insured 14 does not have access and cannot modify this insurance information. The insurance information for each insured 14 is maintained in data server 46 of the certificate provider. Upon agreeing to provide a certificate of insurance to a third party, such as certificate holder 16, insured 14 logs into its account with server network 40 and submits a request for a certificate. Insured 14 enters information associated with certificate holder 16 such as its name and address and the fax number, email, or other information with which to send the certificate. Alternatively, information concerning certificate holder 16 may be stored in data server 46 at initialization and installation or from a previous input by insured 14 for selection associated with a later certificate request. Server network 40 generates the certificate of insurance and automatically delivers it to certificate holder 16 via fax, email, or through other means provided according to the request.

Once the insurance information is set up, insurance agent 12 may be taken out of the certificate issuance loop entirely unless special requirements require its attention, such as confirming additional insured status or acquiring a waiver of subrogation. For these special requirements, insurance agent 12 may only need to enter additional insurance information into data server 46. It is the responsibility of insurance agent 12 to make sure the information on the certificate accurately reflects the terms and provisions of the insurance policies. While language cannot be stricken in a similar way it can on a manual paper certificate, omitted phrases or replacement language can be noted in a special considerations field of the certificate in a same manner additional insured status and waivers of subrogation can be evidenced on the certificate. Certificates are intended to merely be representations of coverage and may not be legally binding on insurance company 11. However, to such extent that modifications and statements are useful on a manual paper certificate, they can be equally useful on the electronic certificate. Certificate exchange network 10 provides an online certificate issuance, delivery, and tracking system that ties together all of the parties of the certificate process. Insurance agent 12 uses certificate issuance and management (CIM) module 32 to set up coverages for insured 14 and to establish various levels of permissive actions for insured 14. Insured 14 uses certificate request program (CRP) module 34 to request a certificate in the name of certificate holder 16 and set up its delivery. Certificate management program (CMP) module 36 allows certificate holder 16 to view, verify, sort, and track certificates issued to certificate holder 16 through certificate exchange network 10.

CRP module 34 and CMP module 36 may be browser based so that no additional software is needed for insured 14 and certificate holder 16 to use certificate exchange network 10. CRP module 34 and CMP module 36 may be locally resident at insured 14 and certificate holder 16 or may be resident at server network 40 and remotely accessed by insured 14 and certificate holder 16. Similarly, insurance agent 14 may be provided with CIM module 32 either locally or through remote access. CCP module 33 and PEO module 39 may also be locally available to insurance company 11 and professional employee organization 13 locally or remotely accessible at server network 40.

Certificate management functions of certificate exchange network 10 allow certificate holder 16 to set up any number of insurance profiles containing insurance requirements for different categories. For example, different profiles can be established for each project, for different types and sizes of projects, or for different types of indemnitors. Indemnitors may include general contractors, maintenance and janitorial contractors, tenants, vendors, and suppliers. These profiles, which cannot be modified by insurance agent 12, set forth the information that a certificate issued on behalf of an indemnitor in a category must contain. This information may include types and limits of coverage, minimum insurance company financial ratings, and additional requirements such as additional insured wording and waivers of subrogation. Special addendums can also be required.

Once profiles are established, certificate holder 16 merely gives its indemnitors a tracking number to reference in the certificate request that tells certificate exchange network 10 which profile the requested certificate must satisfy. If the information on a certificate does not meet the requirements in the specified profile, insured 14 receives an error message during the request indicating the deficiency. In such a situation, the certificate will not be issued until the deficiency is remedied. A notice of this deficiency may be automatically sent to insurance agent 12. Coverage information cannot be changed by insured 14 as that information is input and controlled by insurance agent 12. However, insured 14 can control which coverages to include on a given certificate based on requirements of certificate holder 16. For special requests that require the attention of insurance agent 12, insured 14 contacts insurance agent 12 who enters certificate exchange network 10 and enables an option for adding the special request. Commonly requested language, such as additional insured wording, can be pre-entered and stored in data server 46 for selective enabling at the discretion of insurance agent 12. Certificates issued through certificate exchange network 10 are preferably standard ACORD certificates. However, manuscript certificates nay also be accommodated. Certificates include a digitized signature of the authorized representative. Expiring coverages are tracked by server network 40 and renewal certificates may be automatically generated and delivered to certificate holder 16 once insurance agent 12 updates server network 40 with the new coverage information. Certificate exchange network 10 also helps insurance agent 12 meet obligations to provide notice of cancellations to certificate holder 16. Insurance agent 12 updates server network 40 with a cancellation of coverage. Server network 40 sends out a notice to every certificate holder 16 who has received a certificate associated with the cancelled coverage. Preferably, this notice is the issuance of a certificate marked cancelled and is delivered in the same manner as the originally issued certificate .

Server network 40 generates various outputs for use by the various entities. The certificate of insurance is preferably generated in an Adobe portable document format

(PDF) . Customized reports may be generated in ASCII or rich text formats that can be sent via electronic mail and viewed and/or printed using an email application. Reports provide concise information to the user in order to make operating decisions. Outputs may also be placed in an ASCII delimited file to export data for use in another software application. Other conventional output formats may equally be generated as desired by a user of certificate exchange network 10. Certificate exchange network 10 can track those certificates that it issues. Its value as a primary certificate tracking system is determined by how many of a company's certificates are issued using the system. There may be situations where a company may issue a certificate outside of certificate exchange network 10. Certificate exchange network 10 may interface with other certificate systems databases or a variety of other systems outside of its control in order to provide a complete tracking capability. Certificate exchange network 10 may be used to provide various reports, either in standard or custom formats. Automatic generation of letters or other information may be accomplished and delivered to insured 14 in order to provide notification of various issues involved with coverage and certificate issuance.

Certificate exchange network 10 has the ability to sort data by various fields, customize insurance requirements, verify compliance with specific requirements, generate follow up correspondence when a requirement is not met or when coverages are due to expire, and prepare various reports. Certificate data can be sorted in several categories including by job, by location, by insured, by expiration date, or by status. Tracking can be done for both incoming and outgoing certificates. An electronic image of the certificate capable of having information recorded therein may be stored for viewing and to provide a paperless permanent record of each certificate.

Each entity user of certificate exchange network 10 has instant unique access rights to insurance information and the ability to perform different actions therein. Access rights may include the ability to modify and manage entity information and view all entity accounts, access all entity accounts and manage entity representative users, and access only those accounts represented for the entity. When a user logs onto certificate exchange network 10, determination is made as to the user type and associated entity and the user rights are established for the logon session. For example, an insurance agent 12 will set up policy information and add insureds 12 as users to allow login capability for creation of certificates based on the established policy information. Insureds 12 will not have the right to modify this policy information.

Each entity preferably connects to server network 40 via the Internet. As a result, most connections are assumed to be at a 56k rate or slower. In order to provide high performance, data transfers should be kept to a minimum. To allow users to process advanced tasks that manipulate large amounts of data, validation and semi static data storage is preferably performed at the user before communicating with server network 40 and performing updates. Server network 40 performs the more complex processing tasks for the certificate process. Automatic updates are performed upon logging into server network 40 so that users have the most current version of the appropriate application and the data. For compatibility purposes, the modules operate on a wide variety of hardware and software. For example, certificate exchange network 10 takes advantage of Microsoft^® technologies including COM, DCOM, MTS , C0M+, ActiveX, and Active Server Pages. Certificate exchange may be developed using Microsoft^® products such as Windows NT Server 4.0, Windows 2000 Advanced Server, SQL Server 7.0, Internet Information Server 4.0, Visual C++ 6.0, Visual Basic 6.0, Visual Interdev 6.0, Access FrontPage. The architecture is a two-tiered and three- tiered client server taking advantage of stored procedures and server side agents to process requests for interfaces written in Microsoft^® Visual Basic 6.0 and Active Server Pages written in Visual Interdev 6.0. The modules use Microsoft^® SQL Server 7.0 for data server 46 running on a Microsoft^® Windows NT 4,0 server network 4.0. The modules take advantage of many SQL Server features including relationships, stored procedures, triggers, and views to maintain data integrity, isolate the business rules from the user interface, and increase performance. Though a specific implementation has been described above, certificate exchange network 10 may be constructed using any known software and hardware techniques . FIGURES 2A-H show the step by step process provided by CRP module 34 for requesting a certificate of insurance. At Figure 2A, insured 14 is selected by entering its name or searching through a list. At FIGURE 2B, once the appropriate insured 14 is found, information pertaining to insured 14 may be confirmed and, if necessary, edited. At FIGURE 2C, the policies associated with insured 14 can be viewed in order to select desired policies for listing on the certificate. At FIGURE 2D, certificate holder 16 is to which the certificate is to be issued is located. If the desired certificate holder 16 cannot be found, it can be added into the system. At FIGURE 2E, the information associated with certificate holder 16 may be confirmed and, if necessary, edited. At FIGURE 2F, special instructions required by certificate holder 16 and authorized by insurance agent 12 are selected. Addendums to the certificate may also be selected inclusion thereon. At FIGURE 2G, a summary of the information to appear on the certificate is provided for confirmation. At FIGURE 2H, the actual certificate of insurance as created can be previewed. The certificate has a unique number for tracking and verification purposes. The certificate is then delivered to certificate holder 16 by the preselected delivery method .

FIGURES 3A-K show the step by step process provided by CIM module 32 for insurance agent 12 to set up a database of information for each insured 14. At FIGURE 3A, insurance agent 12 can search for an existing insured 14 or add a new one to its database. At FIGURE 3B, insurance agent 12 can select one of the insureds 14 discovered in the search. At FIGURE 3C, the general details for insured 14 can be entered and edited. At Figure 3D, an account tab allows the association of insureds 14 to various user groups. At FIGURE 3E, all names of insured 14 can be provided as desired. At FIGURE 3F, the current coverages for insured 14 are displayed with the ability to add new coverages insured 14 has with insurance agent 12. At FIGURE 3G, a dialog box allows for the entering of new coverages or the editing of existing coverages. At FIGURE 3H, the special instructions for insured 12 are provided with the capability to add new instructions or edit existing instructions. At FIGURE 31, a listing of certificates created for insured 14 is provided with access to each certificate and the ability to create a new certificate for insured 14. At FIGURE 3J, a users tab shows all of the associations to insured 14. At FIGURE 3K, insurance agent 12 can determine the access rights for insured 14 and in what manner certificates are to be delivered.

FIGURES 4A-H show the step by step process provided by CMP module 36 for certificate holders 16 to set up certificate profiles. At FIGURE 4A, the program allows certificate holder 16 to enter a certificate profile option. At FIGURE 4B, a current list of profiles is provided with an option to enter an existing profile or add a new profile. At FIGURE 4C, a name and description for a new profile can be entered. At FIGURE 4D, the coverages associated with the new profile can be selected. At FIGURE 4E, the coverage requirements for the selected coverages may be established. At FIGURE 4F, special instructions associated with the certificate may be added and/or selected. At FIGURE 4G, addendums to be included on the certificate may be added and/or selected. At FIGURE 4H, the certificate profile is completed and may be selected for creation.

FIGURES 5A-B show the step by step process provided by user interface 38 for verifying a certificate of insurance. Through user interface 38, any party can access a web site for certificate verification. At FIGURE 5A, the certificate number and issue date may be entered. At FIGURE 5B, information concerning the certificate may be displayed for verification. FIGURES 6A-C show an example of an electronic certificate of insurance form in a printable form that may be obtained during the verification process.

Thus, it is apparent that there has been provided, in accordance with the present invention, a method and system for issuing and managing certificates of insurance that satisfies the advantages set forth above. Although the present invention has been described in detail, it should be understood that various changes, substitutions, and alterations may be readily ascertainable by those skilled in the art and may be made herein without departing from the spirit and scope of the present invention as defined by the following claims.

Claims

WHAT IS CLAIMED IS:

1. A method for issuing and managing certificates of insurance, comprising: receiving an electronic request for a certificate of insurance; establishing a link with a server in response to the request ; accessing information associated with the certificate of insurance; generating an electronic version of the certificate of insurance; delivering the certificate of insurance; and verifying the authenticity and status of the certificate of insurance.

2. The method of Claim 1, wherein the certificate of insurance is delivered by electronic mail transmission.

3. The method of Claim 1, wherein the certificate of insurance is delivered by facsimile transmission.

4. The method of Claim 1, further comprising: receiving information associated with an insured requesting the certificate of insurance.

5. The method of Claim 1, further comprising: receiving information associated with requirements necessary for the generation of the certificate of insurance .

6. The method of Claim 1, further comprising: receiving information to update a generated certificate of insurance; and automatically generating a replacement certificate of insurance in response to the updated information.

7. The method of Claim 1, further comprising: selecting information for inclusion in the certificate of insurance.

8. The method of Claim 1, further comprising: receiving an electronic request to verify generation of a particular certificate of insurance; and verifying the generation of the particular certificate of insurance in response to the request.

9. The method of Claim 1, further comprising: maintaining a database of all generated certificates of insurance .

10. The method of Claim 1, further comprising: providing selective access to a capability to receive an electronic request .

11. A system for issuing certificates of insurance, comprising : a certificate request program module operable to initiate an electronic request for a certificate of insurance; and a server network operable to generate a certificate of insurance upon the request from the certificate request program module, the server network operable to electronically deliver the certificate of insurance upon generation.

12. The system of Claim 11, wherein the server network includes a communication server operable to provide a communication interface with the insured module, a processing server operable to process the request for the certificate of insurance, and a data server operable to store and provide information associated with the generation of the certificate of insurance .

13. The system of Claim 11, further comprising: a certificate issuance and management module operable to establish and setup information associated with the certificate of insurance.

14. The system of Claim 11, further comprising: a certificate management program module operable to established desired profiles for the certificate of insurance .

15. The system of Claim 11, further comprising: a browser operable to perform verification of certificate issuance with the server network.

16. The system of Claim 11, wherein the server network electronically delivers the certificate of insurance by electronic mail or facsimile transmission.

17. The system of Claim 11, wherein the server network maintains a record and status of all generated certificates of insurance.

18. The system of Claim 11, wherein the server network continuously monitors each generated certificate of insurance.

19. The system of Claim 18, wherein the server network generates an alert upon identifying a certificate of insurance that is no longer valid.

20. The system of Claim 11, wherein the server network limits access to information used in generating the certificate of insurance for the certificate request program module .