What it does
The crime forms exclude loss caused by an employee or ERISA plan official who committed theft or another dishonest act before the policy period that a designated person knew about, and coverage for an employee ends once a designated person learns of a dishonest act. CR 20 36 waives those provisions for prior acts below the dollar amount in the schedule. It is used with the commercial forms; CR 20 37 is the government version.
Who needs it
Employers that keep an employee after a small, known incident (for example a minor cash shortage) and want the person to remain covered.
How it fits the policy
This endorsement changes the base crime or fidelity form it is attached to and is listed with the other endorsements on the declarations. Schedules in the endorsement (names, positions, amounts or dates) control how it applies, so confirm the schedule is complete before binding. ISO's forms index lists the current edition for 52 jurisdictions.
Quoting and selling notes
- Ask the insured whether any employee has a known history of dishonesty; failing to address it can void coverage for that employee.
