What the form is
The CR 02 02 Illinois Changes endorsement is a state-specific endorsement used with Commercial Crime insurance policies. Its primary purpose is to amend the standard policy language of Commercial Crime coverage forms and policies to conform with Illinois laws, regulations, or specific requirements. This ensures that the crime coverage provided to an insured in Illinois is compliant with the state's legal framework. For example, it has been used to clarify the "Legal Action Against Us" condition in the Crime General Provisions for certain coverages.
Classes of business it applies to
This endorsement applies to any commercial or governmental entity purchasing ISO-based Commercial Crime insurance that operates in or is subject to Illinois insurance regulations. Examples include:
- Businesses of all sizes that require coverage for employee dishonesty, forgery, theft, or other crime-related perils.
- Governmental entities seeking crime coverage.
- Financial institutions, particularly concerning coverages like Safe Depository Direct Loss.
Essentially, if a standard Commercial Crime policy is being issued in Illinois, this endorsement is likely necessary to modify it appropriately for the state.
Special considerations
The use of this endorsement is critical for policies written in Illinois to ensure compliance with state-specific insurance mandates. Failure to attach this endorsement when required could lead to policy interpretation issues, coverage disputes, or non-compliance with Illinois insurance regulations. It highlights the importance of tailoring national or standard insurance programs to the specific legal environment of individual states. Agents and insurers must stay updated on the latest versions of this endorsement as Illinois laws and regulations evolve.
Key information for agents and underwriters
For Agents: It is crucial for Illinois-based agents to understand when and how to apply this endorsement to Commercial Crime policies. They must ensure that their clients' policies are correctly modified to reflect Illinois requirements, thereby avoiding potential gaps in coverage or compliance issues. They should verify the correct edition date of the endorsement is used.
For Underwriters: Underwriters need to be aware of the specific modifications this endorsement makes to the standard crime policy provisions. This understanding is essential for accurate risk assessment and pricing for Illinois-based insureds. They must ensure that the policy, as amended by CR 02 02, accurately reflects the intended coverage and complies with all applicable Illinois insurance laws. Knowledge of how this endorsement interacts with various crime coverage forms (e.g., Employee Dishonesty, Forgery or Alteration, Theft, Disappearance and Destruction) is also important.