INTRODUCTION

The 11 15 edition of the Insurance Services Office (ISO) CR 00 21–Commercial Crime Coverage Form (Loss Sustained Form) is unusual because of the few number of changes. The importance of each change will depend on the specific insured and its business operations.

Related Article: Commercial Crime Coverage Analysis

CR 00 21–COMMERCIAL CRIME COVERAGE FORM (LOSS SUSTAINED FORM)

Note: The changes described below apply to CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 24, CR 00 25, CR 00 26 and CR 00 27. All of the changes that are applicable to only the Employee Theft and Forgery insuring agreements also apply to CR 00 28, CR 00 29, CR 00 30 and CR 00 31.

Additions to Exclusions

The following exclusion is added:

k. Virtual Currency

All coverage for virtual currency is eliminated. The exclusion also provides a definition of virtual currency.

Changes to Exclusions

The following exclusion is amended

1. d. Confidential or Personal Information

This exclusion was substantially changed in the 08 13 edition and this 11 15 change appears to be more of a consolidation of understanding or correction than an actual change. The exclusion is now divided into two parts. The first part addresses the exclusion as it relates to other persons' or organizations' information while the second part addresses the named insured’s information.

The change in this exclusion is in regards to only the named insured’s information. The disclosure of the information remains excluded but a loss resulting from the use of such information is not.

Changes to Conditions

1.h. Joint Insured is changed to add the positions of manager, director or trustee to the list of positions whose knowledge is considered shared knowledge to all within the joint insured.

Changes to Definitions

The 11 15 edition changed the following definitions:

9. Financial Institution is revised to add an additional paragraph that the definition of financial institution is an open-ended “any” financial institution for all insuring agreements except for A.3. Inside the Premises–Theft of Money and Securities and A.6. Computer and Funds Transfer Fraud.

10. Financial institutions premises is revised to emphasis that it applies only to insuring agreement A.3.

24. Transfer account is revised to eliminate telegraphic, cable and teletype of modes of transfer because they are no longer used.

ENDORSEMENT ADDITIONS

The following endorsements are added:

CR 04 17–Fraudulent Impersonation is a new insuring agreement. It fills a significant coverage gap that is created by the Transfer or Surrender of Property exclusion. Coverage is available when a loss occurs because property is transfer outside the premises based on transfer instructions that were not authorized.

CR 25 45–Include Virtual Currency as Money is a new endorsement that can be used with only the Employee Theft and Computer and Funds Transfer Fraud insuring agreements to cover loss of virtual currency. The endorsement rewrites the virtual currency exclusion, explains how a loss will be valued and revised certain definitions.

CR 25 46–Include Virtual Currency as Money is very similar to CR 25 45 except that it applies to only the Employee Theft insuring agreement.