MBA: Members Back New CRE Insurance Form

The members of the Mortgage Bankers Association of America have endorsed MBA-recommended changes to a standardized commercial insurance form aimed at providing more accurate property coverage information, according to the MBA.A new form, Evidence of Commercial Property Insurance (ACORD Form 28), would take a "checklist" approach that provides "a clear and concise description" of property insurance, including types of coverage, limits, deductible amounts, and exclusions, the MBA said. Uncertainty surrounding terrorism insurance is one factor contributing to the move for a new form. "Mortgage servicers and lenders should be notified as to whether borrowers have accepted or rejected terrorism insurance on a property, which is key to ensuring clarity of information and would avoid chaos, confusion, and huge cost inefficiencies in the event of a future terrorist attack," said Kathleen Dufraine, vice president for insurance at CapMark Services. Ms. Dufraine, a member of the MBA's newly formed Certificate of Insurance Working Group, is working with ACORD to promote the new form, the MBA said. ACORD, the Association for Cooperative Operations Research and Development, is a global association focused on developing standards for the insurance and related financial services industries.