What is a Certificate of Financial Responsibility (CFR)? - Insurance Navy. A Certificate of Financial Responsibility (CFR) is a document that serves as proof that an individual or business has the necessary amount of insurance coverage or assets to meet financial obligations imposed by state or federal law.
This certificate is often required in situations where there is a high risk of environmental damage, such as in the oil and gas industry, or in cases where an individual has been involved in legal issues such as driving under the influence (DUI). In auto insurance, a CFR, or SR-22 or FR-44 in some states, is a document filed by the insurance company to the state’s Department of Motor Vehicles (DMV) on behalf of the insured individual. It certifies that the individual carries the minimum required liability insurance. This is often required after certain traffic-related offenses such as DUI, reckless driving, or driving without insurance. The CFR is not an insurance policy itself.