How does a certificate of insurance relate to the policy it references?

A certificate of insurance is primarily a document that provides evidence that a specific insurance policy exists and outlines essential details about that policy, such as the type of coverage, policy number, and effective dates. The function of the certificate is to inform third parties (like clients or contractors) of the coverage in place without altering the terms of the original insurance policy itself.

The certificate does not modify or influence the policy's coverage limits, conditions, or any legal obligations outlined in the policy. It simply acts as verification that such a policy has been issued and remains in force at the time the certificate is created. Therefore, the choice indicating that it serves as proof of coverage but does not change the policy accurately captures the role of a certificate of insurance in relation to the policy it references.

In contrast, options suggesting that it changes the coverage limits, serves as a legal extension of the policy, or replaces the need for an actual policy misinterpret the function of the certificate, as they imply a level of authority or impact on the actual insurance contract, which is not the case.