ISO COMMERCIAL CRIME COVERAGE FORMS AND POLICIES DECLARATIONS
(July 2019)
|
|
INTRODUCTION
The Insurance Services Office (ISO) developed a number of advisory declarations to use with the various ISO Commercial Crime Coverage Forms and Government Crime Coverage Forms. Most insurance companies modify them to meet their specific needs. There are eight different declarations:
- CR DS 01–Crime and Fidelity Coverage Part Declarations (Commercial Entities)
- CR DS 02–Commercial Crime Policy Declarations
- CR DS 03–Crime and Fidelity Coverage Part Declarations (Governmental Entities)
Related Article: ISO Government Crime Coverage Forms and Policies
- CR DS 04–Government Crime Policy Declarations
- CR DS 05–Employee Theft and Forgery Policy Declarations
Related Article: CR 00 28–Employee Theft and Forgery Policy (Discovery Form) and CR 00 29–Employee Theft and Forgery Policy (Loss Sustained Form)
- CR DS 06–Crime and Fidelity Coverage Part Declarations (Kidnap/Ransom and Extortion Coverage)
Related Article: CR 00 40–Kidnap/Ransom and Extortion Coverage Form and CR 00 41–Kidnap/Ransom and Extortion Coverage Form Policy
- CR DS 07–Kidnap/Ransom and Extortion Policy Declarations
- CR DS 08–Government Employee Theft and Forgery Policy Declarations
The following analyses are of the ISO advisory CR DS 01–Crime and Fidelity Coverage Part Declarations (Commercial Entitles) and CR DS 02–Commercial Crime Policy Declarations.
CR DS 01–CRIME AND FIDELITY COVERAGE PART DECLARATIONS (COMMERCIAL ENTITIES)
Header
This section has a space to enter the policy number and the type of coverage provided. The choices are:
- Primary
- Excess
- Co-indemnity
- Concurrent
Employee Benefit Plan
Many insureds offer employee benefit plans to their employees. That plan is often added to the crime coverage because the Insuring Agreement 1.A can satisfy the ERISA insurance requirements. However coverage applies only if the plan is named as an insured. However, there are no such coverage requirements on the rest of the coverages under a package. If the plan is added to the common declarations, the plan would be a named insured on all coverage parts which could be cumbersome or open the insurance carrier to unexpected loss.
In order to keep coverage as narrow as possible, when required, the employee benefit plan is added to this portion of the crime declarations.
Insuring Agreements, Limits of Insurance, and Deductible Amounts
This section has spaces to enter the limits of insurance per occurrence and the deductible amounts per occurrence for the following insuring agreements:
1. Employee Theft
2. Forgery or Alteration
3. Inside the Premises–Theft of Money and Securities
4. Inside the Premises–Robbery or Safe Burglary of Other Property
5. Outside the Premises
6. Computer and Funds Transfer Fraud
7. Money Orders and Counterfeit Money
Entering “Not Covered” next to any insuring agreement deletes that insuring agreement and any reference to it in the coverage form.
Endorsements and Insuring Agreements
This section has spaces to enter the following:
- Insuring agreements that are not part of the coverage form that must be added by endorsement. Their limits of insurance per occurrence and their deductible amounts per occurrence are entered beside the insuring agreement name.
- Endorsements attached to the policy when it is issued
Cancellation of Prior Insurance by Us
This unique part of the declarations requires the listing of prior crime policies for the named insured issued by this insurance company. When the named insured accepts this policy, those prior policies are canceled as of the effective date of this policy.
Countersignature of Authorized Representative
This section has spaces to enter the following information on the countersigning authorized representative:
- Name
- Title
- Signature
- Date countersigned
CR DS 02–COMMERCIAL CRIME POLICY DECLARATIONS
Header
This section has a space to enter the policy number and the type of coverage provided. The choices are:
- Primary
- Excess
- Co-indemnity
- Concurrent
This section also has spaces to enter the following
- Name of the Insurance Company that provides coverage
- Name of the Producer that places the insurance
- Named Insured
This also includes the name or names of Employee Benefit Plans to be included as insureds.
- Named Insured’s Mailing Address
- Policy period start and end dates
The policy period begins at 12:01 a.m. at the named insured’s mailing address.
Insuring Agreements, Limits of Insurance, and Deductible Amounts
This section has spaces to enter the limits of insurance per occurrence and the deductible amounts per occurrence for the following insuring agreements:
1. Employee Theft
2. Forgery or Alteration
3. Inside the Premises–Theft of Money and Securities
4. Inside the Premises–Robbery or Safe Burglary of Other Property5. Outside the Premises
6. Computer and Funds Transfer Fraud
7. Money Orders and Counterfeit Money
Entering “Not Covered” next to any insuring agreement deletes that insuring agreement and any reference to it in the coverage form.
Endorsements and Insuring Agreements
This section has spaces to enter the following:
- Insuring agreements that are not part of the coverage form that must be added by endorsement. Their limits of insurance per occurrence and their deductible amounts per occurrence are entered beside the insuring agreement name.
- Endorsements attached to the policy when it was issued
Cancellation of Prior Insurance by Us
This unique part of the declarations requires the listing of prior crime policies for the named insured issued by this insurance company. When the named insured accepts this policy, those prior policies are canceled as of the effective date of this policy.
Countersignature of Authorized Representative
This section has spaces to enter the following information on the countersigning authorized representative:
- Name
- Title
- Signature
- Date countersigned
DIFFERENCES BETWEEN THE TWO DECLARATIONS
CR DS 02–Commercial Crime Policy Declarations is identical to CR DS 01 with two exceptions:
- The information usually on the Common Policy Declarations is moved to the Crime Policy Declarations.
- The section on employee benefit plans is removed. This is because the employee benefit plan is listed as one of the policy named insureds if it is to be covered.