What the form is
The CR 02 10 08 10 endorsement, titled WASHINGTON CHANGES, is a state-specific endorsement designed to modify the terms of various commercial crime insurance policies to align with Washington state regulations or common practices, particularly concerning policy cancellation and nonrenewal. It replaces the standard cancellation condition found in the base policy with language specific to Washington.
Classes of business it applies to
This endorsement applies to businesses and government entities in Washington that have purchased one of the following ISO commercial crime policies:
- Commercial Crime Policy
- Employee Theft and Forgery Policy
- Government Crime Policy
- Kidnap/Ransom and Extortion Policy
Real-world example: A retail store in Seattle with a Commercial Crime Policy would have the CR 02 10 endorsement attached to ensure its policy's cancellation terms comply with Washington's requirements.
Special considerations
The primary function of this endorsement is to ensure compliance with Washington state's specific requirements for policy cancellation. The key change introduced by this endorsement is the replacement of the policy's standard Cancellation Condition. The new condition outlines how the first Named Insured can cancel the policy (e.g., written notice, surrender of policy, verbal notice) and when such cancellation becomes effective. It also details the insurer's obligations if they decide to cancel the policy, including providing written notice to the first Named Insured and specifying the reasons for cancellation if it's for nonpayment of premium or other allowed reasons after the policy has been in effect for a certain period. The endorsement also addresses nonrenewal, requiring the insurer to mail written notice of nonrenewal to the first Named Insured and their agent within a specified timeframe before the policy's expiration.
Real-world example: If an insurer decides not to renew a Washington-based county government's Crime Policy, the CR 02 10 endorsement would dictate the notice period and method of communication for this nonrenewal.
Key information for agents and underwriters
For Agents: It is crucial for agents in Washington to understand that this endorsement supersedes the standard cancellation provisions of the crime policies it's attached to. They must clearly explain these Washington-specific terms to their clients, particularly regarding how cancellations by either the insured or insurer are handled, and the notice requirements for nonrenewal. This ensures transparency and manages client expectations.
For Underwriters: Underwriters need to be aware that the CR 02 10 modifies the insurer's rights and obligations concerning policy termination in Washington. Risk assessment and pricing should not be directly impacted by this endorsement, as it primarily addresses procedural and regulatory compliance for cancellation and nonrenewal. However, adherence to these state-specific rules is mandatory to avoid regulatory issues. They should ensure all cancellation and nonrenewal notices for policies with this endorsement strictly follow the outlined procedures and timelines.