1. Forms
2. CR
3. CR-10-00

What the form is

The Crime General Provisions Form CR 10 00 is a cornerstone of the ISO Commercial Crime insurance program. Its primary purpose is to set forth the general rules of the road for crime policies written on a "loss sustained" basis. This means it contains standard definitions of terms used throughout the policy, the conditions that both the insured and insurer must adhere to (such as duties in the event of a loss, how cancellations are handled, and the process for legal action against the insurer), and general exclusions that apply across the various crime coverages that may be attached. Essentially, it ensures consistency and clarity for the foundational aspects of the crime coverage part. After 1998 revisions, this form became known as the "Crime General Provisions (Loss Sustained Form)" to distinguish it from the newly introduced "Discovery Form" (CR 11 00).

Classes of business it applies to

The CR 10 00 is not specific to any single industry but is broadly applicable to most commercial and governmental entities that purchase crime insurance. Any organization that needs coverage for exposures like employee theft, forgery or alteration, theft of money and securities, or robbery and safe burglary would typically have their policy built using this form as a base, in conjunction with specific coverage forms. Real-world examples include:

• Financial institutions (though some may use more specialized forms)
• Retail businesses handling cash and negotiable instruments
• Manufacturing companies concerned about employee dishonesty
• Non-profit organizations
• Governmental entities like school districts or municipalities.

It is used when the policy is structured to cover losses that are both sustained during the policy period and discovered either during that period or within a specified timeframe after its expiration (typically one year).

Special considerations

• Loss Sustained Basis: This is a critical aspect. The CR 10 00 is designed for policies where the criminal act causing the loss must occur during the policy period, and the loss must be discovered during that same policy period or an extended reporting period (e.g., one year after policy termination). This differs significantly from a "discovery basis" policy (which would use a form like CR 11 00), where coverage is triggered when a loss is discovered during the policy period, regardless of when the act occurred (subject to a retroactive date).
• Exclusions: The form contains general exclusions such as those for governmental actions (e.g., seizure of property) and indirect losses (e.g., business interruption resulting from a covered crime, unless specifically added by another form).
• Non-Applicability: It's important to note that the CR 10 00 does not apply to all crime coverage forms. Specifically, ISO forms like K, L, M, and N (which deal with Guests' Property and Safe Depository coverages) have their own integrated provisions.
• Duties of the Insured: The form clearly outlines the insured's responsibilities in the event of a loss, such as providing prompt notice to the insurer, cooperating with the investigation, and submitting a proof of loss.
• Cancellation and Policy Changes: It details the conditions under which the policy can be cancelled by either the insured or the insurer and how changes to the policy are made.

Key information for agents and underwriters

• Choosing the Right Basis: Agents must clearly explain the difference between "loss sustained" (CR 10 00) and "discovery" (CR 11 00) coverage to clients, as this is a fundamental coverage trigger difference with significant implications at the time of a claim.
• Foundation, Not Full Coverage: Remind clients that CR 10 00 provides the general terms and conditions. The actual scope of what is insured (e.g., employee theft, computer fraud) is determined by the specific crime coverage forms attached to the policy.
• Risk Assessment: Underwriters rely on the conditions in CR 10 00 (e.g., cooperation in investigations, examination of books and records ) to manage risk. The general exclusions also help define the boundaries of the policy's intent.
• Newly Acquired Entities: Revisions to the loss sustained form, like increasing automatic coverage for newly acquired entities to 60 days (contingent on notice and premium payment), are important for underwriters to track and for agents to advise clients on, especially those involved in mergers or acquisitions.
• Policy Structure: The CR 10 00 is a component of a Commercial Crime Coverage Part, which also includes declarations pages, common policy conditions (if part of a package policy), and the specific crime coverage forms and endorsements.