1. Forms
2. CR
3. CR-02-35

What the form is

The CR 02 35 "North Carolina Changes" endorsement is an amendatory endorsement used with Commercial Crime and Government Crime insurance policies. Its primary purpose is to modify the standard policy language to align with specific statutory requirements, regulations, or established insurance practices within the state of North Carolina. By attaching this endorsement, insurers ensure that their crime coverage offerings in North Carolina are compliant and tailored to the state's legal environment.

Classes of business it applies to

This endorsement applies to any commercial or governmental entity purchasing crime insurance that is subject to North Carolina regulations. Examples include:

• Governmental Entities: Such as counties, municipalities, and other public entities in North Carolina requiring government crime coverage. Cleveland County, NC, for instance, has this form listed in their Government Crime Policy.
• Commercial Businesses: Any private business operating in North Carolina that has purchased a commercial crime policy where state-specific modifications are necessary.

Special considerations

• State-Specific Application: This form is specifically for use in North Carolina and addresses unique requirements of that state.
• Amendatory Nature: As an endorsement, CR 02 35 does not provide coverage on its own but rather alters the terms and conditions of the base crime policy to which it is attached.
• Mandatory vs. Optional: Depending on the nature of the changes it introduces, its use might be mandatory for all crime policies written in North Carolina by participating insurers to ensure compliance with state laws or ISO filings.
• Edition Dates: It's important to use the correct edition date of the endorsement (e.g., 03 00, 10 10) that corresponds with the policy period and the edition of the base crime form being used.

Key information for agents and underwriters

• Ensuring Compliance: Agents and underwriters must ensure this endorsement is included when writing applicable crime policies in North Carolina to maintain compliance with state-specific provisions.
• Understanding Modifications: It is crucial to understand the specific modifications this endorsement makes to the standard crime policy. These changes could pertain to various aspects, such as conditions for legal action against the insurer, cancellation provisions, or other policy terms.
• Risk Assessment: Underwriters should be aware of how these North Carolina-specific changes might affect the scope of coverage and the insurer's potential exposure.
• Client Communication: Agents should explain to their North Carolina clients how this endorsement impacts their crime coverage, ensuring clarity on any deviations from standard policy language.
• Related Forms: This endorsement would be used in conjunction with base crime coverage forms, such as the Government Crime Policy (e.g., CR 00 26). It may also interact with other state-specific endorsements like the North Carolina Changes-Legal Action Against Us (CR 01 01).