1. Forms
2. CR
3. CR-50-07

What the Form Is

The CR 50 07 "Include Retroactive Date For Specified Joint Insured" endorsement is designed for use with Commercial Crime insurance policies that are written on a "discovery" basis. Its primary function is to allow the insurer and insured to set a specific retroactive date for a particular joint insured listed in the policy declarations. This retroactive date dictates how far back in time a loss could have occurred for it to be covered under the current policy, provided it is discovered during the current policy period. This endorsement provides flexibility when a joint insured has a different history or needs a different period of prior acts coverage than the primary named insured.

Classes of Business It Applies To

This endorsement is applicable to any commercial entity that obtains crime coverage on a discovery form and has one or more joint insureds. Examples include:

• Businesses with subsidiaries or affiliated companies that are added as joint insureds at different times or have different historical insurance coverage.
• Joint ventures where participating entities have varying prior risk exposures or insurance histories.
• Organizations that have recently brought a new entity under their crime coverage where that entity requires a specific retroactive date due to its past operations.

For instance, if Company A (the named insured) has a retroactive date of January 1, 2020, and later acquires Company B, making it a joint insured, Company B might have had its own prior crime coverage or a different risk profile. The CR 50 07 could be used to set a retroactive date for Company B, perhaps to align with the expiry of its previous policy or its date of acquisition, which might be different from Company A's retroactive date.

Special Considerations

• Discovery vs. Loss Sustained: This form is specifically for crime policies on a "discovery" basis, which cover losses discovered during the policy period, regardless of when they were sustained, as long as they occurred after the retroactive date. This differs from "loss sustained" policies, which cover losses sustained during the policy period and discovered during that period or a limited time after.
• Continuity of Coverage: When adding a new joint insured or transitioning coverage, careful attention must be paid to the retroactive date to avoid unintended coverage gaps. If the specified joint insured had prior crime coverage, this endorsement helps in potentially aligning the new retroactive date with the termination of their old policy.
• Impact of Retroactive Date: Any loss sustained by the specified joint insured before the date shown in this endorsement will not be covered, even if discovered during the current policy period.

Key Information for Agents and Underwriters

• Risk Assessment: Underwriters must thoroughly evaluate the loss history and potential exposures of the specified joint insured for the period prior to the proposed retroactive date. This is crucial for understanding the risk being assumed.
• Pricing Implications: The selection of a retroactive date can influence the premium. A more distant retroactive date (providing more coverage for past acts) for a joint insured might lead to a higher premium, reflecting the increased exposure.
• Clear Communication: Agents should clearly explain to the insured the significance of the retroactive date for the specified joint insured, particularly what is and isn't covered concerning prior acts.
• Documentation: The specific joint insured and their unique retroactive date must be clearly scheduled on the endorsement and in the policy declarations.
• Relation to Other Endorsements: This endorsement is part of a suite of forms introduced in the 1998 ISO Commercial Crime Revisions, which aimed to provide more options in structuring crime coverage, particularly regarding the discovery vs. loss sustained basis and the treatment of retroactive dates for various insured entities (e.g., CR 50 06 for the Named Insured, CR 50 08 for acquired entities).