The Ninth Circuit, relying upon the Washington Supreme Court's response to a certified question (prior post here] found that the insurer was bound by the agent's certificate of insurance identifying an additional insured. T-Mobile USA Inc. v. Selective Ins. Co of Am., 787 Fed. Appx. 395 (9th Cir. Dec. 9, 2019).
Selective issued a policy to a contractor of T-Mobile Northeast, LLC (T-Mobile NE), a wholly owned subsidiary of T-Mobile USA. The policy included an Additional Insured Endorsement that extended "additional insured" status to any entity which whom the contractor entered a written contract that required the contractor to add that entity as an additional insured under the policy. The endorsement extended coverage to T-Mobile NE but not T-Mobile USA. In 2012, the Vany Dyk Group, Inc. - Selective's authorized agent acting with apparent authority - issued a certificate of insurance (COI) to T-Mobile USA. The COI stated that T-Mobile USA "is included was an additional insured even though it also expressly stated that the COI could not extend or alter the coverage afforded by the policy.
Under Washington law, an insurer was bound by all acts, contracts, or representations of its agent which were within the scope of the agent's real or apparent authority. But the purpose of a COI was to inform the recipient that insurance had been obtained. Under Washington law, a COI was not the functional equivalent of an insurance policy, and it therefore could not be used to amend, extend, or alter the coverage provisions of a policy.
The Ninth Circuit, therefore, certified a question to the Washington Supreme Court, asking whether an insurer bound by representations made by its agent in a COI with respect to a party's status as an additional insured when the certificate included language disclaiming its authority and ability to expand coverage. The Washington Supreme Court responded, "The answer is yes: an insurer is bound by the representation of its agent in those circumstances. Otherwise, an insurance company/s representations would be meaningless and it cold mislead without consequence."
Given this response, the Ninth Circuit reversed the district court's orders granting summary judgment and dismissal on the grounds that Selective was bound by the agent's representations that T-Mobiie USA was not an additional insured under the policy.