1. Forms
2. CR
3. CR-15-22

What the form is

The CR 15 22 "Require Record Of Checks" endorsement is a modification to a commercial crime insurance policy. Its primary purpose is to impose a condition on the insured to keep and maintain an accurate record of checks that they issue or receive. Failure to comply with this requirement could potentially impact coverage in the event of a loss involving checks, such as forgery or theft.

Classes of business it applies to

This endorsement would typically apply to any business that handles a notable volume of checks, whether incoming or outgoing. Examples include:

• Retail stores
• Wholesale distributors
• Service providers
• Manufacturing companies
• Non-profit organizations

Essentially, any commercial entity with an exposure to check fraud or theft could see this endorsement on their crime policy.

Special considerations

A key consideration for this endorsement is that compliance with the record-keeping requirement is crucial. If a claim arises from a check-related loss, the insurer will likely verify if the insured has maintained the records as stipulated by the endorsement. The search result indicated "RATES: No premium credit," which means this endorsement does not provide a discount on the premium; rather, it establishes a requirement for the insured.

Key information for agents and underwriters

For Agents:

• It is important to clearly explain the record-keeping obligations to the insured when this endorsement is part of their policy.
• Advise clients on what constitutes an adequate record of checks to ensure compliance.
• Highlight the potential coverage implications if these records are not properly maintained.

For Underwriters:

• This endorsement helps mitigate risk by ensuring the insured follows basic loss control procedures related to check handling.
• When this endorsement is in place, underwriters can have a reasonable expectation that the insured has a system for tracking checks, which can be valuable in investigating any future claims.
• The absence of a premium credit suggests this is considered a baseline expectation for certain risks or coverages.