1. Forms
2. CR
3. CR-02-08

What the Form Is

The CR 02 08 is an endorsement specifically designed for use with commercial crime insurance policies in South Dakota. Its main function is to amend the policy's terms to align with South Dakota's insurance laws and regulations. In particular, this endorsement modifies provisions related to policy cancellation by the insurer and clarifies the conditions and limitations for the insured to bring legal action against the insurance company, such as the timeframe for filing a lawsuit after a loss. It often amends the standard "Legal Action Against Us" clause found in commercial crime policies.

Classes of Business It Applies To

This endorsement is applicable to any commercial entity or government body in South Dakota that has purchased a commercial crime insurance policy which is subject to South Dakota insurance regulations. This includes a wide range of businesses such as:

• Financial institutions (banks, credit unions)
• Retail stores
• Manufacturing companies
• Service-based businesses
• Healthcare facilities
• Governmental entities

For example, a retail business in Rapid City with a commercial crime policy covering employee theft and forgery would have the CR 02 08 endorsement attached to ensure its policy's cancellation and legal action clauses meet South Dakota's legal standards.

Special Considerations

The CR 02 08 is typically a mandatory endorsement in South Dakota for insurers using standard industry commercial crime forms that require such state-specific modifications. Its application ensures that the policy adheres to state law, which takes precedence over any conflicting standard policy language. Agents should clearly communicate to insureds that this endorsement alters certain policy conditions, which could impact their rights, especially concerning how disputes are resolved or when a policy can be terminated by the insurer. For instance, if a standard policy allows a two-year window to sue after a loss, this endorsement might adjust that period based on South Dakota statutes.

Key Information for Agents and Underwriters

• Compliance: Attaching this endorsement is crucial for regulatory compliance in South Dakota for commercial crime policies. Underwriters must ensure it is included when issuing or renewing relevant policies in the state.
• Risk Assessment/Pricing: The CR 02 08 endorsement itself generally does not have a separate premium charge, as it's a compliance form. The premium is determined by the underlying commercial crime coverages and the insured's specific risk profile.
• Policy Interpretation: This endorsement modifies key procedural aspects of the policy, such as the terms for policy cancellation and the process for legal recourse. It is vital for both agents and underwriters to understand these changes to accurately advise clients and manage policies.
• Coverage Impact: It's important to note that while the CR 02 08 amends policy conditions, it does not typically broaden or restrict the scope of crime coverages themselves. Its focus is on legal and regulatory conformity within South Dakota.