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

What the form is

The CR DS 07 Kidnap/Ransom and Extortion Policy Declarations is a crucial component of a Kidnap/Ransom and Extortion Policy. It is not a coverage form itself, but rather the document that personalizes the policy by detailing specific information agreed upon by the insurer and the insured. This includes the named insured, policy number, policy period, the insuring agreements that apply, the limits of insurance for each, applicable deductibles, and a list of all endorsements that are part of the policy. It essentially provides a snapshot of the specific terms and conditions of the kidnap and ransom coverage in force.

Classes of business it applies to

This declarations form is used for policies issued to a wide range of entities facing kidnap, ransom, or extortion risks. Generally, any commercial entity is eligible for this type of coverage, with the notable exception of financial institutions (which typically have specialized coverage). Most state and local governmental units and entities are also eligible. Real-world examples include:

• Multinational corporations with employees traveling to or located in high-risk countries.
• High-net-worth individuals and their families who may be targets.
• Companies handling sensitive information or valuable intellectual property that could be subject to extortion threats (e.g., cyber extortion where data is held ransom).
• Organizations whose executives or key personnel have a high public profile.

Special considerations

The CR DS 07 is an integral part of the Kidnap/Ransom and Extortion Policy and must be issued with the corresponding coverage form (e.g., CR 00 41 Kidnap/Ransom and Extortion Policy). It often works in conjunction with the Common Policy Declarations (IL DS 00) and Common Policy Conditions (IL 00 17). An important change occurred with the 08 07 edition, which eliminated the 'Include Foreign Countries Section,' making the unendorsed policy provide worldwide coverage. The declarations will specify the name and address of any security firm designated to negotiate with kidnappers. It's important to note that losses typically must be sustained before the policy expiration date and reported to the insurance company or the scheduled security firm during the policy period or within a specified time after cancellation (e.g., 30 days as mentioned in relation to the coverage form).

Key information for agents and underwriters

For agents and underwriters, the CR DS 07 is a critical document for defining the precise scope of coverage:

• Limits and Deductibles: It clearly states the maximum amount the insurer will pay for a covered loss and the amount the insured must bear (deductible) for each insuring agreement.
• Endorsements: All applicable endorsements that modify the standard coverage form are listed, which is essential for understanding any alterations to the base policy.
• Risk Assessment: Information on the declarations, combined with the application, helps underwriters assess the specific risks faced by the insured. This includes the nature of their business, travel patterns, existing security measures, and public profile of potential targets.
• Coverage Clarity: This form helps ensure clarity for both the insured and the insurer regarding what is covered, for how much, and under what specific policy terms. It is a key reference point in the event of a claim.
• Prior Insurance: The declarations may include a section for listing prior policies that are cancelled when the new policy takes effect.