1. Forms
2. CR
3. CR-DS-03

What the Form Is

The CR DS 03, titled "Crime and Fidelity Coverage Part Declarations (Government Entities)," is an Insurance Services Office (ISO) declarations page. It is not a coverage form itself, but rather a crucial component that personalizes and outlines the specifics of a government crime insurance policy. It works in conjunction with government crime coverage forms (like CR 00 24 or CR 00 25) to detail the named insured, policy period, coverage limits, deductibles, and the specific insuring agreements selected by the governmental entity.

Classes of Business It Applies To

This form is specifically designed for government entities. This can include various public entities such as:

• Municipalities (cities, towns, villages)
• Counties
• State agencies or departments
• Public school districts
• Special purpose districts (e.g., water districts, park districts)

For example, a city government seeking coverage for potential employee theft or forgery would use this declarations page in conjunction with a government crime coverage form.

Special Considerations

A key distinguishing feature of the CR DS 03, when compared to its commercial counterpart (CR DS 01), is the option for Employee Theft coverage. Government entities can choose between:

• Per-Loss Basis: The policy limit applies to each single loss, regardless of how many employees are involved.
• Per-Employee Basis: The full limit of insurance is available for each employee involved in a dishonest act, even if multiple employees collude in a single scheme. This can be a significant advantage for the insured in situations involving widespread internal fraud.

Additionally, government crime forms and their declarations may differ from commercial versions in areas like mergers and acquisitions (less relevant for government entities) and provisions related to employee benefit plans. The form also includes a section for listing prior crime policies issued by the current insurer, which are canceled upon acceptance of the new policy.

Key Information for Agents and Underwriters

For Agents:

• Clearly explain the two Employee Theft coverage options (per-loss vs. per-employee) to government clients, highlighting the implications of each.
• Ensure all applicable insuring agreements (e.g., Forgery or Alteration, Inside the Premises – Theft of Money and Securities, Computer and Funds Transfer Fraud) are correctly selected and limits/deductibles are accurately documented.
• Verify that the prior insurance cancellation clause is understood by the insured.

For Underwriters:

• Risk assessment should consider the chosen Employee Theft option. The per-employee option presents a potentially higher exposure in collusion scenarios.
• Review the entity's internal controls and loss history, especially concerning employee dishonesty and money handling procedures.
• Be aware that definitions and conditions in government crime forms may be streamlined or differ from commercial crime forms due to the unique nature of public entities. For instance, terms like 'partners' or 'members' found in commercial forms are replaced with 'officials' in government forms.