What it does
CM 66 01 modifies the Accounts Receivable Coverage Form (CM 00 66). The insurer will not pay for loss of or damage to records of accounts receivable of the customers listed in the endorsement schedule, by name and address.
Who needs it
Used when particular customer balances are excluded, for example accounts that are separately insured or guaranteed, intercompany receivables, or large accounts the underwriter does not want to cover.
Quoting and selling notes
Ask the underwriter why each customer is excluded and whether the exclusion affects the coinsurance calculation. If a major customer is excluded, the insured may want trade credit insurance for that account. Explain that losses tied to excluded customers are uninsured even if the records are destroyed by an otherwise covered fire.
