What is the purpose of a Certificate of Insurance showing Additional Insured status?

• A. It changes who is covered under the policy
• B. It provides evidence that the additional insured exists and that coverage is in force; it does not create or modify coverage
• C. It increases defense obligation
• D. It shortens policy period

Answer: (B)

A Certificate of Insurance showing Additional Insured status is a proof document. It confirms that the insured has active coverage and, because of a contract, another party is listed as an additional insured on that policy. The key point is that the certificate provides evidence of coverage and the existence of the additional insured, not a change to what the policy covers or how it works. The actual terms, limits, exclusions, and who must defend whom come from the policy language and endorsements, not from the certificate itself. So the certificate helps the other party verify compliance with contract insurance requirements, while the policy remains the source of coverage. It doesn’t create or broaden coverage, it doesn’t alter defense obligations by itself, and it doesn’t shorten the policy period.