May 2008

Summary: These amendatory endorsements are used to modify the coverages afforded by the commercial crime and government crime insurance forms. Most of the endorsement titles describe their intent, but an explanatory paragraph accompanies each endorsement title. The endorsements are presented in numerical order. Forms that had been omitted from the previous discussion are included here. Those forms are CR 35 04, 08, 10, 12, 13, 14, 18, 23, 26, 29, 30, 31, 33, 34, 36, 37, 38, 39, and 40. Many forms have had minor editorial or format changes that do not change the nature of the endorsement, so they will not be discussed. Many of the endorsements that allow scheduling of coverages have added the robbery of a custodian to the Inside the Premises of Money and Securities agreement in order to match the policy language. Forms with changes that will be discussed are CR 35 03, 17, 19, 21, 24, 25, 27, and 28.

Topics covered: Exclude Specified Property Include Robbery of a Janitor Include Vandalism Increase Limit for Specified Property Subject to Special Limit of Insurance Include Loss During Fire Inside the Premises Limit Coverage to Office Equipment Include Automotive Products in Outside Containers Limit Coverage to Specified Portions of Premises Add Protective Devices or Services Forcible Entry Into Premises Requirement Include Outside Showcases or Show Windows as Premises Convert to Schedule Coverage Exclude Designated Premises Reduce Limit of Insurance for Designated Premises Decrease Limit of Insurance While Premises not Open Exclude From Extortion Coverage Persons or Property Include Personal Extortion for Named Individuals Change Schedule Coverage Limit Coverage to Fixtures, Fittings, or Appliances Add Property of Others Include Theft of Outdoor Signs Require Record of Checks Extend Definition of Premises to Include Portion of Grounds Enclosed by Fence or Wall Increase Limit of Insurance for Specified Periods Include Selling Price or Processing Charge Extend Premises to Entire Plot of Ground Under Your Control Include Covered Property in Custody of Designated Agents Include Guests' Property Accepted for Safekeeping Include Securities Held by a Depository in Trust Include Bulky Property Provide Sublimits for Money, Securities or Checks Limit Coverage for Money and Securities Outside the Premises to Robbery Only Increase Limit of Insurance Per Guest Increase Damage from Food or Liquid Include Property in Custody of Laundry or Cleaner Include Property of Guests Occupying Leased Lodging Accommodations Include Samples or Articles Carried or Held for Sale or Delivery Include Money for Full or Partial Limit of Insurance Reduce Limit for Specified Premises Safe Deposit Box Transfer

Exclude Specified Property, CR 35 01 08 07

This endorsement affects the commercial crime coverage form and policy and the government crime coverage form and policy. CR 35 01 allows the insured to exclude specifically identified property under certain insuring agreements.

Include Robbery of a Janitor, CR 35 02 03 00

A “watchperson” is defined on the crime forms as any person that the named insured retains specifically to have care and custody of property inside the premises, but without any other duties. An insured may have a janitor working for him whom he wishes to double as a watchperson. This endorsement expands the definition of a watchperson to include a janitor employed by the named insured, a janitor that has care and custody of covered property.

Include Vandalism, CR 35 03 07 02

This endorsement applies to the inside the premises insuring agreements. The insurer agrees to pay for loss from damage to covered property or to the premises by vandalism committed on the same occasion as a covered loss. Note that the vandalism has to occur on the same occasion as a covered loss or the endorsement does not apply. The 2007 revision deletes 2 exclusions; B.5 and B.8- inside the premises-robbery or burglary of other property insuring agreement and inside the premises-theft of other property insuring agreement respectively.

Increase Limit for Specified Property Subject to Special Limit of Insurance, CR 35 04 08 07

Endorsement CR 35 04 allows the insured to increase the special limits of insurance for specified property. The endorsement states that the increased limit is part of, and not in addition to the limits applicable to the insuring agreement.

Include Loss During Fire Inside the Premises, CR 35 05 07 02

Endorsement CR 35 05 deletes the inventory shortages exclusion on the computer fraud insuring agreement of the crime policies, and requires the insurer to pay for loss caused by theft that occurs during a fire inside the premises. This endorsement thus gives the insured two additional covered causes of loss for covered property.

Limit Coverage to Office Equipment, CR 35 06 03 00

The inside the premises insuring agreements are modified by this endorsement. Covered property is limited to furniture, fixtures, and equipment used for clerical or administrative purposes. CR 35 06 makes it clear that stock in trade, personal effects, and postage stamps are not considered covered property.

Include Automotive Products in Outside Containers, CR 35 07 08 07

CR 35 07 has a schedule in which the insured can choose to have automotive supplies and equipment, and gasoline and oil as covered property. This coverage applies to loss resulting directly from the taking of the covered property from within a fully enclosed and locked outside container adjacent to the premises shown in the schedule.

Limit Coverage to Specified Portion of Premises , CR 35 08 08 07

This endorsement allows the insured to limit coverage to specified portions of the premises. The schedule provides the address of the premise and then a description section of the portion of the premises to be covered. So for example, if the insured wants to limit the covered portion to the 20 by 25 foot vault area, it can be scheduled here. The endorsement also allows for scheduling of robbery of a watchperson or burglary of other property.

Add Protective Devices or Services, CR 35 09 03 00

This endorsement lists seven different protective devices that the insured can agree to maintain at all times during the policy period; if the devices are not maintained, the insurance ceases. The devices are: a burglar alarm system; a private watchperson; a bullet resisting enclosure; a bullet resisting enclosure with an alarm system; a holdup alarm; and, if the covered property is carried outside the premises, a locked safe bolted inside a vehicle or a UL approved messenger bag to carry the property. The insured would receive premium reductions if he chooses to have such devices protecting his property.

Forcible Entry into Premises Requirement, CR 35 10 08 07

CR 35 10 adds a requirement to the policy that in cases of “safe burglary” ,a person must make forcible and unlawful entry into the premises. This requirement can be applied to the insuring agreements for Inside the Premises – Robbery or Safe Burglary of Other Property or Inside the Premises – Robbery of a Custodian or Safe Burglary of Money and Securities.

Include Outside Showcases or Show Windows as Premises, CR 35 11 08 07

The definition of premises is amended to include any showcase or show window at a location in the schedule. The named insured must use the location, and it must be inside the building line of the building containing the premises, or attached to the building listed in the schedule — no open air kiosks or stands located in the middle of the parking lot.

Convert To Schedule Coverage, CR 35 12 08 07

CR 35 12 allows the insured to schedule certain insuring agreements to designated premises as listed in the schedule. The endorsement defines premises and the interior of the building listed on the schedule, and limits newly acquired premises to coverage for sixty days. The endorsement also removes the consolidation-merger and the additional premises or employees conditions.

Exclude Designated Premises, CR 35 13 08 07

This endorsement allows the insured to exclude certain designated premises under certain insuring agreements.

Reduce Limit of Insurance for Designated Premises, CR 35 14 08 07

Similar to the CR 35 13 endorsement, the 35 14 allows the insured to reduce the limit of insurance for certain designated premises. The premises are not excluded, just lower limits are applicable for certain premises.

Decrease Limit of Insurance While Premises Not Open, CR 35 15 08 07

For the premises shown in the schedule, the limit of insurance in the declarations is reduced to the limit shown in the schedule while the premises are not open for business, and a custodian is not on duty. This is something the insured can utilize if he removes money and securities and other property from his business over night, thus reducing the exposure to loss, and the premium.

Exclude From Extortion Coverage Persons or Property, CR 35 16 08 07

The insurer declares that it will not pay for loss resulting from threats communicated to the named insured to do bodily harm to persons who perform duties for the named insured in, at, or out of the premises shown in the schedule. The insurer also declines in this endorsement to pay for loss resulting from threats to do damage to the premises or property located in the premises shown in the schedule.

Include Personal Extortion for Named Individuals, CR 35 17 08 07

Through this endorsement, any person shown in the schedule is added as an insured, but only as respects the extortion coverage insuring agreement. Communication of a threat to an associate or relative of any insured shown in the schedule is considered communication to that insured. Two clauses have been removed from the 2007 form. The clause stating that the most the carrier will pay is the limit of insurance shown opposite the name of such insured , and the clause stating that any limit is part of and not in addition to the limit of insurance shown in the Declarations. Therefore, it is possible for the insured to obtain larger settlements when this endorsement is in place.

Change Schedule Coverage, CR 35 18 08 07

This endorsement makes modifications to another endorsement, the convert to schedule coverage endorsement CR 35 12. CR 35 12 allows the insured to schedule certain insuring agreements to designated premises; 35 18 changes those limits that apply to 35 12.

Limit Coverage to Fixtures, Fittings, or Appliances, CR 35 19 08 07

This endorsement limits covered property to that listed in the schedule of the endorsement. The address of the premises, the limit of insurance, and a choice of covered property has to be noted. Covered property can be fixtures, fittings, and appliances that the named insured owns within a dwelling at the premises; and the insured can also name property that he owns or for which he is legally liable while it is in public entrances, hallways, or storerooms. CR 35 19 applies to inside the premises insuring agreements.

Add Property of Others, CR 35 20 08 07

CR 35 20 has a schedule in which the insured can identify a class of persons whose property will be considered covered property. The classes are: customers, business guests, employees, students, and visitors. If any of these classes are selected and designated by the insured, loss to their property is covered through the endorsement. The limit of insurance for covered property of any one person will not exceed 10 percent of the limit of insurance shown in the schedule.

Include Theft of Outdoor Signs, CR 35 21 08 07

The insurer agrees to pay for loss of or damage to outdoor signs and bulletin boards resulting from actual or attempted theft as indicated in the schedule. Loss of or damage to glass is not covered by CR 35 21. The 2007 revision removed vandalism as a covered cause of loss and now states that the limit of insurance shown in the schedule is part of, and not in addition to, the limit of insurance shown in the declarations.

Require Record of Checks, CR 35 22 08 07

The insured is required to make either a photograph or a descriptive record of checks that he accepts because of this endorsement. If a photo is made, both the front and the back must be copied. If a descriptive record is made, the record must be made immediately upon the check being presented to the named insured; and, the record must include the names of the maker, the payee, the bank on which the check is drawn, and the date and amount of the check. The photo and record are to be kept separate from the checks. If the insured fails to produce these records when making a claim, coverage can be denied by the insurer. The exception to this is if the named insured can not produce a photo of a check because of equipment failure or error by an employee.

Extend Definition of Premises to Include Portion of Grounds Enclosed by Fence or Wall, CR 35 23 08 07

Two insuring agreements can be affected by this endorsement, inside the premises-theft of other property and inside the premises – robbery of a watchperson or burglary of other property. The insured can extend the coverage in these insuring agreements to premises that are entirely enclosed by a fence or wall.

Increase Limit of Insurance for Specified Periods, CR 35 24 08 07

The limit of insurance for the chosen insuring agreements is increased for the designated period shown in the schedule. However, the amount by which the limit is increased applies only to loss discovered by the named insured before the end of the period of time provided in the extended period to discover loss condition, after the designated period shown in the schedule. So, if the designated period in the schedule is May 1, 2007 to May 1, 2008, and the extended period to report a loss is ninety days, in order for a loss to be covered at the increased limits it must be discovered before August 1, 2008.

Include Selling Price or Processing Charge, CR 35 25 08 07

CR 35 25 affects the replacement cost value of covered property. As respects the valuation-settlement condition found on the commercial crime coverage form and policy, the replacement cost value of raw material or material being processed will include the processing charge less unincurred expenses. The replacement cost value of finished merchandise that the named insured owns that is ready for sale will be the selling price of the merchandise less any discounts and unincurred expenses. Expenses that have not been incurred are just that, expenses that the insured has not had to outlay any funds for. Therefore, they cannot be counted as part of the loss, even though they may have been planned, for example shipping or advertising expenses.

Extend Premises to Entire Plot of Ground Under Your Control, CR 35 26 08 07

This endorsement allows the insured to include the entire plot of ground in his control under the following three inside the premises insuring agreements: theft of money and securities, robbery or safe burglary of other property, and robbery or safe burglary of money and securities.

Include Covered Property in Custody of Designated Agents, CR 35 27 08 07

Through this endorsement, the definition of premises is amended to include the interior of that portion of any building occupied by an agent shown in the schedule. Also, the definition of messenger is amended to include any agent shown in the schedule. An armored motor vehicle company is not considered to be an agent for this endorsement. The most the insurer will pay for loss caused by a designated agent is the limit shown in the schedule; this limit is part of, not in addition to, the limit of insurance shown in the declarations.

Include Guests' Property Accepted for Safekeeping, CR 35 28 08 07

CR 35 28 notes that the records condition of the crime policies does not apply to loss of guests' property that the named insured accepts for safekeeping that results from robbery or safe burglary. This means that the insured does not have to keep a record of each and every piece of property it accepts from guests for safekeeping in order for the insurer to verify the amount of loss. However, in exchange for this paperwork reduction, the limit of insurance for property for any one guest will not exceed 10 percent of the limit of insurance shown in the declarations. In case of loss guests are required to provide a description of the item and evidence of its value.

Include Securities Held by a Depository in Trust, CR 35 29 08 07

Securities in safe deposit boxes shown in the schedule and under dual control by the “depository” and a co-fiduciary with the “depository” are covered for loss. The securities must be held in trust and not as collateral.

Include Bulky Property, CR 35 30 08 07

Bulky property that is described on the schedule is covered while the property is in a vault in the “depository premises”. The most payable for any one occurrence is the limit of occurrence as shown in the schedule, and the limit is part of and not an addition to the limits of insurance shown in the declarations.

Provide Sublimits for Money, Securities or Checks, CR 35 31 08 07

This endorsement allows for the specification of sublimits for money, securities, or checks in any one occurrence under certain insuring conditions. The limit is part of, and not an addition to the limit of insurance as listed in the declarations.

Limit Coverage for Money and Securities Outside the Premises to Robbery Only, CR 35 32 08 07

Paragraph a. of the outside the premises insuring agreement on the crime coverage forms and policies is replaced by the following: the insurer agrees to pay for loss of or damage to money and securities outside the premises in the care and custody of a messenger or an armored motor vehicle company resulting directly from an actual or attempted robbery. Remember that the original paragraph a. covered loss resulting directly from theft, disappearance, or destruction. The only change to this endorsement is the title.

Increase Limit of Insurance Per Guest CR, CR 35 33 08 07

The amount of insurance per guest can be increased by using the schedule provided in this endorsement.

Include Damage From Flood or Liquid, CR 35 34 08 07

Damage to property of guest that results from spilling, upsetting or leaking of any food or liquid is covered when this endorsement is added to the policy. Exclusion 4.b.(3) of the guests' property insuring agreement is deleted.

Include Property in Custody of laundry or Cleaner, CR 35 35 08 07

Damage to property of guests while in the insured's care for cleaning or laundering is covered when this endorsement is added to the policy. Exclusion 4.b.(5) of the guests' property insuring agreement is deleted.

Include Property of Guests Occupying Leased Lodging Accommodations, CR 35 36 08 07

This endorsement provides coverage for loss of or damage to guests' belongings while they are occupying or leasing lodging accommodations at the premises. An exception is for the use of the premises for business or professional purposes, or activities related to the insured's employment of such persons.

Include Samples or Articles Carried or Held for Sale or Delivery, CR 35 37 08 07

Samples or articles carried or held for sale or delivery by the insured's guests are covered from loss in this endorsement.

Include Money for Full or Partial Limit of Insurance, CR 35 38 08 07

This endorsement revises the definition of “customers' property” to mean “money”, “securities”, and “other property” belonging to the insured's customer. The limit listed in the endorsement is part of, and not in addition to the limit of insurance shown in the declarations.

Reduce Limit of Insurance for Specified Premises, CR 35 39 03 00

Coverage for specified premises can be reduced by the use of this endorsement. This applies to the safe deposit insuring agreement.

Safe Deposit Box Transfer, CR 35 40 08 07

Property covered under the safe depository insuring agreement can be scheduled under this endorsement to be covered while it is being transferred from one location to another. The property is covered only during the time specified.