American Land Title Association (ALTA) Practice Exam

When asked about professional liability insurance, providing a certificate of insurance is essential as it serves as an official document verifying that the policy is in effect. This certificate contains crucial information, such as the policyholder's name, the type of coverage, the policy limits, the effective dates, and the name of the insurance company. It is a quick and straightforward way for clients or stakeholders to confirm that the individual or business has the necessary insurance coverage to protect against claims of negligence or malpractice.

The other options do not serve the same purpose. An agreement document may outline terms but does not prove current coverage. Proof of payment indicates that a premium has been paid but does not demonstrate that the insurance is active or provides coverage. An endorsement modifies the policy and may not reflect the overall coverage status or validity, making it less suitable for someone seeking confirmation of insurance coverage. Thus, the certificate of insurance is the most effective way to show proof of professional liability insurance.