What it does
Under the 06 22 forms, before acting on a change-of-account request or a transfer instruction, the insured must make a reasonable effort to authenticate its authenticity, not through email, with the client or vendor or with an authorized person other than the purported sender, and contemporaneously document the result. CR 25 55 (05 23) amends that condition; read its schedule to see how verification is changed.
Who needs it
Insureds whose payment procedures do not match the base verification wording, for example businesses that authenticate through a secure portal or a bank's validation service.
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 51 jurisdictions.
Quoting and selling notes
- Have the client's accounts payable lead read the verification condition; a claim can fail if the steps were not followed and documented.
