What does a Certificate of Insurance indicate?

A Certificate of Insurance serves as a legal document that confirms the existence of an insurance policy and outlines the specific types of coverage provided, as well as the amounts of insurance that are in effect. This certificate is often required to prove compliance with state or provincial regulations, and it's essential for various situations, such as registering a vehicle or obtaining financing. The details included in this document allow third parties to understand the extent of coverage, including liability limits and any additional endorsements.

This Certificate is not a record of accidents, nor does it serve as a guarantee for payment of claims. It also does not summarize a driver's history; rather, it focuses exclusively on the insurance coverage provided to the policyholder. Thus, option A accurately captures the primary purpose and contents of the Certificate of Insurance.