Never Lie on a COI

The Kentucky Court of Appeal concludes that an affirmative misrepresentation on the face of a Certificate Of Insurance (COI) can give rise to a claim of negligent misrepresentation in Kentucky (Western Leasing Inc. v. Acordia of Kentucky Inc., No. 2008-CA-002237-MR [Ky.App. 05/07/2010]).

Western Leasing Inc. appealed from the entry of an October 2008 summary judgment order in favor of Acordia of Kentucky Inc. which dismissed all of Western Leasing’s claims against Acordia. At issue was whether Acordia was subject to any liability for the production and issuance of a COI to Western Leasing’s predecessor-in-interest, Senstar Finance Co., which contained affirmative misrepresentations on the face of the document.