Author: VU Faculty

When proof of insurance is requested, which is most appropriate, the ACORD 27 - Evidence of Property Insurance or the ACORD 75 - Insurance Binder?

"We use the ACORD 27 - Evidence of Property Insurance almost exclusively since most mortgagees and/or title companies want one year's worth of insurance proof. My concern is the language on the evidence form that states:

"THIS IS EVIDENCE THAT INSURANCE AS IDENTIFIED BELOW HAS BEEN ISSUED, IS IN FORCE, AND CONVEYS ALL THE RIGHTS AND PRIVILEGES AFFORDED UNDER THE POLICY.

"I am much more comfortable with the ACORD 75 - Insurance Binder wording that says:

"THIS BINDER IS A TEMPORARY INSURANCE CONTRACT, SUBJECT TO THE CONDITIONS SHOWN ON THE REVERSE SIDE OF THIS FORM.

"I am concerned with the wording on the ACORD 27 that states that the policy is 'issued and in force.' We use an evidence form when the policy is actually issued, like when a mortgagee change is made mid-term on the policy and the new mortgagee needs proof. But we also use it when we bind an application and set it up for billing. We then fax evidence over to the title company so the loan closes and we get our premium from the escrow account (fairly common occurrence in our insurance world).

"In the latter example, the insurance company and its underwriters have not had a chance to review or underwrite the risk. We typically have 30 days binding authority with our carriers, which allows us to bind coverage, bill the insured, collect the premium, and then upload the policy to the insurance company within 30 days via internet or remote terminal.

"Would a binder be more appropriate or am I worrying about nothing? Or am I misinterpreting the ACORD language? What was ACORD's intent...use the binder if the policy is not issued or no policy number yet and use the evidence for when the policy is in force and policy number in hand?"

We ran this by our faculty and got the responses below. We always encourage every agency to maintain a copy of the ACORD Forms Instruction Guide. This is an invaluable tool for determining how ACORD forms should be used and completed.

The evidence form conveys all the rights and conditions of the policy and should be used with caution. It is designed to satisfy the needs of mortgagees, additional insureds, and loss payees in lieu of a copy of the policy itself.

The binder is a temporary insurance contract which provides coverage and must be underwritten as an insurance policy. Both the binder and evidence form should be used with caution since they differ materially from a certificate. The ACORD Forms Instruction Guide provides some excellent information on all of these forms.


The evidence form should only be used if the policy has been issued or has been accepted by the underwriter. If it is being used in a binding situation, I would recommend the binder be used. When using either form, remember that there is effectively a contract issued (unlike the certificate of insurance debate) and must be legally cancelled if the policy is not issued or the underwriter takes advantage of the normal 60-day cancellation period.


I do a Certificates of Insurance seminar that goes into these issues. I think you should use the binder until the policy has been accepted and issued. I would only use the evidence form when I have reviewed the policy and know what we do have on it. The evidence form legally changes the policy. I do not want to put anything on an evidence form that is not already on the policy. The Certificate of Property Insurance is another matter. As it does not make any changes, you could be much more open to using it. But if I were the mortgagee, I would not accept it (condos excluded).