An event venue requires food vendors to provide certificates of insurance before serving. One vendor delivers a certificate that expired last month. What should the risk control conclusion be?
Select an answer to reveal the explanation.
Short Explanation
A COI is proof that the transfer/insurance control is alive — like a passport that still has to be unexpired. Last month's stamp does not get the vendor through the gate today.
Full Explanation
Certificates of insurance (COIs) evidence that a counterparty carries required coverage supporting transferred or shared risk. An expired certificate does not demonstrate current insurance, so the control fails until a valid COI (and any required endorsements) is obtained. Collecting paper without checking dates creates a false sense of transfer.