Which of the following statements about contracts and certificates of insurance is accurate?

A certificate of insurance is indeed a document that serves as evidence of the existence and terms of an underlying insurance policy. It outlines key information such as the types of coverage, limits, and the policy period, providing third parties with verification that certain insurance coverage is in place. However, it does not act as a substitute for the actual policy itself; rather, it summarizes or certifies that the policy exists.

The accuracy of this statement lies in its role as documentation for stakeholders who may require proof of insurance, such as clients, partners, or regulatory agencies. The certificate does not alter the terms of the actual insurance policy nor does it replace any contractual obligations established in the policy itself.

In contrast, other statements either misrepresent the function of a certificate of insurance or misunderstand its legal standing. A certificate is certainly not a substitute for a policy, nor does it replace any contractual requirements established in the policy. Furthermore, while both insurance policies and certificates do have legal significance—particularly in terms of liability and coverage verifications—the statement suggesting that neither bears legal weight is incorrect.