What should a policyholder expect from a certificate of authority?

A certificate of authority serves as an important document that signifies that an insurance agent or agency is legally authorized to conduct business within a specific jurisdiction. This certification ensures that the agent meets the regulatory requirements established by the state or governing body, which typically includes qualifications, licensing, and adherence to legal obligations in the insurance industry.

By holding a certificate of authority, the agent provides reassurance to policyholders that they are dealing with a validated professional who is permitted to act on behalf of an insurance company. This legal authorization is critical for maintaining trust and accountability within the insurance market. It does not act as proof of insurance coverage, financial capability, or guarantees of service quality; those aspects are related to different documents and evaluations that pertain more specifically to the policies themselves or the agent's overall performance and financial standing.