ISBP 745 Section E6: Insurance Certificate Under an Open Policy — Countersignature Requirements

Introduction

When a documentary credit requires an insurance document and the beneficiary presents an insurance certificate or declaration under an open policy, the certificate must carry a countersignature from the insurer. ISBP 745 Paragraph E6 codifies this requirement. Without the countersignature, the certificate is not evidence of coverage under the open policy — it is a piece of paper that the bank cannot treat as an insurance document for purposes of the credit.

The sources available for this guide are a contextual reference from ICC Academy educational materials. No direct article text was extracted. The authority is the published text of UCP 600 and ISBP 745.

Failure Mode Analysis

FM1: Certificate Not Countersigned

The most frequent failure under E6 is presenting an insurance certificate without the insurer's countersignature. The certificate may be signed by the beneficiary or by the beneficiary's broker, but without the insurer's countersignature, it does not constitute evidence of coverage under the open policy. The bank refuses the presentation under Article 28(a).

FM2: Countersignature by an Unauthorized Agent

If the countersignature is by an agent, the agent must identify the capacity in which it signs. An agent's signature without a stated capacity (e.g., "as agent for [insurer]") does not satisfy Article 28(a). The bank cannot verify the agent's authority from an anonymous signature.

FM3: Certificate References a Non-Existent Open Policy

A certificate that references an open policy number must correspond to a valid open policy. While the bank does not verify the existence of the underlying policy, a certificate that is internally inconsistent (e.g., different policy numbers on different pages) raises questions about authenticity.

FM4: Certificate Is a Copy, Not an Original

Under ISBP 745 E2, the insurance document must appear to be the original. A photocopy of a countersigned certificate does not satisfy this requirement. The countersignature must appear on the original document presented to the bank.

FM5: Certificate Covers a Different Shipment Than the Credit

The certificate must cover the goods described in the credit. If the certificate references a different shipment, different goods, or different parties than the credit, the presentation fails under Article 14(d) — data in the document conflicts with the credit.

Deterministic Resolution Architecture

Step 1: Identify the Document Type

Determine whether the presented insurance document is a policy, a certificate, or a declaration under an open policy. Read the document's title and content. A document titled "Insurance Certificate" that references an underlying open policy number is a certificate under an open policy.

Step 2: Check for Countersignature

Under ISBP 745 E6, verify that the certificate carries the countersignature of the insurer or its authorized agent. The countersignature must be distinct from the beneficiary's or broker's signature. Look for a stamp, signature, or endorsement by the insurer.

Step 3: Verify Agent Capacity (If Signed by Agent)

If the countersignature is by an agent, confirm that the agent identifies the capacity in which it signs. The signature must indicate agency for the insurer (e.g., "signed as agent for [insurer name]"). An anonymous agent signature does not satisfy Article 28(a).

Step 4: Confirm the Certificate References a Valid Open Policy

Check that the certificate references an open policy number or other identifier. The reference must be consistent throughout the document. If the certificate references multiple policy numbers or shows inconsistent data, the bank may refuse.

Step 5: Verify the Certificate Is an Original

Under ISBP 745 E2, confirm that the document presented is the original countersigned certificate. A photocopy, scan, or facsimile of the countersigned certificate does not constitute an original insurance document.

Step 6: Match the Certificate to the Credit's Requirements

Compare the certificate's coverage (goods description, amount, currency, route, date) against the credit's requirements. A certificate that covers different goods, a different shipment, or a different amount is discrepant.

Step 7: Document Any Discrepancies

If the certificate lacks a countersignature, references a non-existent or inconsistent policy, or is not an original, record the discrepancy with reference to ISBP 745 E6, E2, and Article 28(a).

Conclusion

An insurance certificate under an open policy is not evidence of coverage until it is countersigned by the insurer. ISBP 745 E6 makes this countersignature a mandatory element. The countersignature changes the certificate from a reference document into an enforceable evidence of insurance. Without it, the bank treats the certificate as a non-compliant insurance document and refuses the presentation. The beneficiary must ensure the certificate is countersigned, original, and references a valid open policy before presenting it under the credit.

FAQ

Q1: Can a beneficiary present a certificate without a countersignature if the credit does not mention E6?

ISBP 745 applies automatically to all credits subject to UCP 600. The beneficiary need not see E6 referenced in the credit for the countersignature requirement to apply. The requirement is a practice standard, not a credit condition.

Q2: What if the insurer's countersignature is a rubber stamp?

A rubber stamp is acceptable if it identifies the insurer and appears to be an official endorsement. The examining bank assesses whether the stamp constitutes a signature under Article 28(a). A legible stamp that identifies the insurer is routinely accepted.

Q3: Can the countersignature be on a separate page stapled to the certificate?

ISBP 745 E6 requires the countersignature on the certificate itself. A separate, stapled page is not part of the original document. The countersignature must appear on the face of the certificate or on an attached schedule that is clearly part of the same document.

Q4: Does the countersignature need to be dated?

UCP 600 does not require the countersignature to be dated separately. The insurance document's overall date (the date of the certificate or the date of issuance) is what matters for the Article 28(c) compliance check.

Q5: Can the beneficiary present a declaration under an open policy instead of a certificate?

Yes, if the credit accepts declarations. Article 28(b) permits a declaration when the credit is silent on the form. A declaration under an open policy must also be countersigned under ISBP 745 E6.

Q6: What if the countersignature is illegible?

An illegible countersignature may be refused under Article 28(a) — the bank must be able to determine that the document appears to have been signed by the insurer. If the signature is accompanied by a clear insurer stamp, the bank may accept it.

Source Notes

Context only — no direct article text was extracted from these sources during research:

• ICC Academy — Certified UCP 600 Specialist (CUCP) (ICC Academy, 2025)
• UCP 600 — Uniform Customs and Practice for Documentary Credits (ICC, 2007)
• ISBP 745 — International Standard Banking Practice (ICC, 2013, updated 2020)