1. . www.InsuranceCommunityUniversity.com Commercial Crime Insurance The webinar will begin shortly. There is no audio at this time. This presentation is being recorded for your viewing pleasure at a future date. The attendance and proctor forms are available under ‘Materials’ in the Webinar’s Console to the right. The PowerPoint presentation is also available under ‘Materials’. You will receive the course number for your state near the end of class. Use the ‘chat’ window for questions on the content. Good things you should know…

2. . www.InsuranceCommunityUniversity.com Welcome to your Insurance Community University  All of you are currently on mute  Un-mute your own system  Telephone Option  Select Telephone on your screen  Dial in the PIN number so that your number becomes active  Microphone and/or Speaker Option  You can use this option if you have a headset that you use with your computer 2 Audio

3. . www.InsuranceCommunityUniversity.com Participation & Chat Window  You will receive information from the monitor via the ‘Chat’ window.  Please locate window in the control panel  Q & A is welcomed during the presentation and at the end of the presentation  You will find the question box on your control panel  Write your question in that box and send it to the presenter/organizer  The presenter will take those  questions in the order submitted 3

4. . www.InsuranceCommunityUniversity.com DOI Requirements  When you see a slide with the hand up symbol, touch the “hand” icon on your control panel  Click ONCE only  If you do not raise your hand, the monitor will be in contact with you in the chat box  If you are in a group, the designated proctor is responsible to make certain you are all in attendance at all times 4 = Hand is down

5. . www.InsuranceCommunityUniversity.com Polling  Throughout the class we will be conducting periodic polls  We need 100% participation on the polls  The polls are intended to check participation but also to create discussion topics throughout the presentation 5

6. . www.InsuranceCommunityUniversity.com Forms To Complete for CE  After class ends  Return attendance form  Proctors – return your form to email address  Email address is in chat window or in email sent to you today 6

7. . www.InsuranceCommunityUniversity.com DOI Requirements  We will file your hours with the DOI after the completion of this webinar and we have received the attendance form.  You have 48 hours to return the form  You will be sent a Certificate of Attendance/Completion by email. Please retain this for your records for five years. 7

8. . www.InsuranceCommunityUniversity.com Internet Disruption  If the presenter looses internet connection STAY ON THE LINE  The administrators will communicate with you

9. . www.InsuranceCommunityUniversity.com Internet Failure  If the internet fails and all participants are kicked off line by Go To Training or other source then the seminar will be terminated  You will receive instructions by email as to how we will proceed  This is a precautionary notice, only 9

10. . www.InsuranceCommunityUniversity.com Disclaimer Insurance forms and endorsements vary based on insurance company; changes in edition dates; regulations; court decisions; and state jurisdiction. This instructional material provided by Insight Insurance Consulting and the Insurance Community Center is intended as a general guideline and any interpretations provided by Insight, Insurance Community or presenters do not modify or revise insurance policy language. When ISO language is included in the materials, all ISO content is protected by the ISO copyright. All parties to this presentation and creation of materials assume neither liability nor responsibility to any person or business with respect to any loss that is alleged to be caused directly or indirectly as a result of the instructional materials provided. Copyright 2010 – 2013 All Rights Reserved www.insurancecommunitycenter.com 10

11. . www.InsuranceCommunityUniversity.com Your Instructor Today Al Parizo AFIS ACSR 11 Looking For Coverage!

12. . www.InsuranceCommunityUniversity.com What this course will cover  Identifying the need for crime insurance and the purpose of the crime coverage forms.  Ways to Write Crime Insurance  The Policy Format  The difference between the Discovery and Loss Sustained Forms.  The endorsements available in the Crime Series will be reviewed in detail in terms of applicability and coverage language. 12

13. . www.InsuranceCommunityUniversity.com Need for Crime Insurance  Money and securities are excluded from coverage in standard commercial property forms.  Theft coverage on business property is usually available only when coverage is written on a risk of direct physical loss form, such as the ISO Causes of Loss-Special Form. 13

14. . www.InsuranceCommunityUniversity.com Crime Background Who done it? If an “employee”… who covers it? 14

15. . www.InsuranceCommunityUniversity.com Need for Crime Insurance  Only a limited amount of coverage is provided on other categories of personal property insured against theft, such as: jewelry, precious metals, furs, stamps, letters of credit, patterns, dies, etc.  Dishonest or criminal acts committed by employees or others involved in the insured business are excluded from standard property coverage. 15

16. . www.InsuranceCommunityUniversity.com Ways to write Crime Insurance Always make an offer! 16 “I made him an offer he couldn’t refuse” Vito Corleone (1885-1948)

17. . www.InsuranceCommunityUniversity.com Polling Question #1 17

18. . www.InsuranceCommunityUniversity.com Ways to write crime insurance Monoline  Higher limits needed than the package u/w can provide.  Different named insured than the CP or CGL.  Crime underwriters understand the exposures and needs of the insured. 18

19. . www.InsuranceCommunityUniversity.com Ways to write crime insurance  Crime underwriters may be willing and able to modify policy language to fit those needs.  The client may need to have coverages that are not standard in the industry.  E.g.: Product Extortion, Kidnap And Ransom, Wire Transfer Coverage. 19

20. . www.InsuranceCommunityUniversity.com Ways to write crime insurance Part of a Package Policy  The crime coverage may be offered as an automatic coverage if the insured is unwilling to accept the necessity of the coverage as a separate premium charge  The coverage response might be better than that offered on a separate policy (the BOP may be an example 20

21. . www.InsuranceCommunityUniversity.com Coverage Format The contract and how to read it 21

22. . www.InsuranceCommunityUniversity.com Coverage Format  Coverage may be provided as a Coverage Part on a Package Policy or as a mono-line policy  Forms  Common Policy Declarations (IL DS 00)  Common Policy Conditions (IL 00 17)  Crime & Fidelity Coverage Part Declarations (CR DS 01) 22

23. . www.InsuranceCommunityUniversity.com Coverage Format  Commercial Crime Policy Declarations (CR DS 02)  Commercial Crime Coverage Forms  Discovery Form (CR 00 20)  Loss Sustained Form (CR 00 21)  Endorsements 23

24. . www.InsuranceCommunityUniversity.com Commercial Crime Coverage Part Declarations (CR DS 01)  Each coverage selected must have a limit and deductible shown on the Declarations Page  Insurance company issuing the policy should show “Not Covered” in each section where coverage has not been selected  Employee Benefit Plans are provided coverage only when the name of the Plan is shown in the Declarations Page 24

25. . www.InsuranceCommunityUniversity.com Selected Commercial Crime Coverage Form Definitions: Words mean what they say? 25

26. . www.InsuranceCommunityUniversity.com Employee 1.A person the insured directs, controls and compensates directly by salary, wages or commissions. Considered an employee for 30 days after termination. 2.A person employed by an employment contractor while performing service for the insured under the insured's direction and control.* This does not include such a person having care and custody of property off premises. 26

27. . www.InsuranceCommunityUniversity.com Employee An employee does not mean: a.Agent, broker, independent contractor, etc. b.Director or trustee except while in the scope of the usual duties of an employee 27

28. . www.InsuranceCommunityUniversity.com Polling Question #2 28

29. . www.InsuranceCommunityUniversity.com Leased Employees*  Risk management tip. Is the Labor Contractor obligated to indemnify for employee theft?  If so, inform the underwriter with the application and “head count”.  Get a Certificate from the contractor and be sure it includes endorsement for “client’s property” CR 04-01. 29

30. . www.InsuranceCommunityUniversity.com Employee benefit plan Any welfare or pension benefit plan shown in the Declarations that you sponsor and subject to the Employee Retirement Income Security Act of 1974 (ERISA) Money Currency, coins, bank notes, travelers checks, money orders, etc. Valued at face value or at the U.S. dollar equivalent determined by the rate of exchange on the day the loss was discovered 30

31. . www.InsuranceCommunityUniversity.com Bond or Insurance?  The Federal Code refers to the necessity of a bond  It is Employee Dishonesty Insurance that has been provided to insure against theft loss of employee’s money or other assets  Do not confuse this with EBLI or EPLI.

32. . www.InsuranceCommunityUniversity.com ERISA Obligations  Federal law requires the Plan Sponsor to carry employee dishonesty coverage that extends to protect the plan assets from any person handling the plan assets  A TPA providing employee dishonesty coverage for their employees is fulfilling a contractual obligation and does not satisfy the law

33. . www.InsuranceCommunityUniversity.com ERISA Requirements  If the client has a retirement plan governed by ERISA  Federal statute requires 10% of plan assets, subject to a minimum of $1,000 limit and stops the requirement at $500,000 (note, these are minimums!)  If the plan contains stock of the Plan Sponsor, that maximum increases to $1,000,000 33

34. . www.InsuranceCommunityUniversity.com ERISA Coverage  Include in the Employee Dishonesty coverage  The plan(s) must be named on the Declarations page with a limit of insurance  It can also be provided by an ERISA bond, separate from the Employee Dishonesty coverage

35. . www.InsuranceCommunityUniversity.com Other Property Any tangible property other than money and securities. Does not include property excluded in the Commercial Crime Coverage Form. Valued at the lesser of RC or cost to repair or replace. Robbery The taking of property from a person by bodily harm, the threat of bodily harm, or an obviously unlawful act witnessed by that person 35

36. . www.InsuranceCommunityUniversity.com Other Property  This is an important point – the employee steals data, such as customer lists, formulas, etc.  Your insured is out a significant amount of assets  The coverage under Employee Dishonesty will not pay  Seek Intellectual Property Coverage. 36

37. . www.InsuranceCommunityUniversity.com Securities Negotiable and nonnegotiable instruments or contracts representing either "money" or property and includes: Tokens, tickets, revenue and other stamps (actual or meter value) in current use; and Evidences of debt issued in connection with credit or charge cards, which cards are not issued by you; but does not include "money". 37

38. . www.InsuranceCommunityUniversity.com Theft The unlawful taking of property to the deprivation of the Insured Older forms referred to “employee dishonesty”. “Theft” is deemed a broader definition since no or motive needs to be demonstrated. 38

39. . www.InsuranceCommunityUniversity.com Commercial Crime Insuring Agreements  Employee Theft  Forgery or Alteration  Inside the Premises – Theft of Money and Securities  Inside the Premises – Robbery or Safe Burglary of Other Property  Outside the Premises  Computer Fraud  Funds Transfer Fraud  Money Orders and Counterfeit Money 39

40. . www.InsuranceCommunityUniversity.com Polling Question #3 40

41. . www.InsuranceCommunityUniversity.com Commercial Crime Coverage Forms Discovery Form (CR 00 20) Coverage for loss occurring at any time and discovered by the named insured during the policy period or the Extended Period to Discover Loss (60 days) This form is more commonly issued than the Loss Sustained Form CR 00 21 41

42. . www.InsuranceCommunityUniversity.com Discovery Form Insurance Agreement A. Insuring Agreement Coverage is provided under the following Insuring Agreements for which a Limit of Insurance is shown in the Declarations and applies to loss that you sustain resulting directly from an "occurrence" taking place at any time which is "discovered" by you during the Policy Period shown in the Declarations or during the period of time provided in the Extended Period To Discover Loss Condition E.1.g.: 42

43. . www.InsuranceCommunityUniversity.com Commercial Crime Coverage Forms Loss Sustained Form (CR 00 21) Coverage for loss that occurs during the policy period and discovered by the named insured during the policy period or the Extended Period to Discover Loss (1 yr.) The Loss Sustained during Prior Insurance Condition allows the current policy to cover a loss occurring prior to the policy period under certain circumstances. 43

44. . www.InsuranceCommunityUniversity.com Loss Sustained Insuring Agreement A.Insuring Agreements Coverage is provided under the following Insuring Agreements for which a Limit of Insurance is shown in the Declarations and applies to loss that you sustain resulting directly from an "occurrence" taking place during the Policy Period shown in the Declarations, except as provided in Condition E.1.k. or E.1.l., which is "discovered" by you during the Policy Period shown in the Declarations or during the period of time provided in the Extended Period To Discover Loss Condition E.1.g.: 44

45. . www.InsuranceCommunityUniversity.com Form Differences  Discovery Form  Pays all loss as of the date the loss is discovered  Easier to explain to the client  Whatever loss you have, such as an Employee Dishonesty loss, is covered up to the limit of insurance on the policy you have in place at the time of discover 45

46. . www.InsuranceCommunityUniversity.com Form Differences  Loss Sustained Form  Pays FIRST all loss that occurs during the policy period and then any other loss that occurred prior to the policy period under certain conditions  Client must demonstrate that they had uninterrupted coverage during the “occurrence” 46

47. . www.InsuranceCommunityUniversity.com Policy Bridge – Discovery Replacing Loss Sustained  This language is included in the coverage form  If the current policy replaces insurance that contained a discovery period, no coverage unless loss exceeds prior policy limit  Deductible applies 47

48. . www.InsuranceCommunityUniversity.com Commercial Crime Insuring Agreements Any number need apply 48

49. . www.InsuranceCommunityUniversity.com Employee Theft We will pay for loss of or damage to "money", "securities" and "other property" resulting directly from "theft" committed by an "employee", whether identified or not, acting alone or in collusion with other persons. For the purposes of this Insuring Agreement, "theft" shall also include forgery. 49

50. . www.InsuranceCommunityUniversity.com Forgery Or Alteration a.We will pay for loss resulting directly from "forgery" or alteration of checks, drafts, promissory notes, or similar written promises, orders or directions to pay a sum certain in "money" that are: (1)Made or drawn by or drawn upon you; or (2)Made or drawn by one acting as your agent; or that are purported to have been so made or drawn. 50

51. . www.InsuranceCommunityUniversity.com Forgery Or Alteration For the purposes of this Insuring Agreement, a substitute check as defined in the Check Clearing for the 21st Century Act shall be treated the same as the original it replaced. b.If you are sued for refusing to pay any instrument covered in Paragraph 2.a., on the basis that it has been forged or altered, and you have our written consent to defend against the suit, we will pay for any reasonable legal expenses that you incur and pay in that defense. The amount that we will pay is in addition to the Limit of Insurance applicable to this Insuring Agreement. 51

52. . www.InsuranceCommunityUniversity.com Inside The Premises – Theft Of Money And Securities a.We will pay for loss of "money" and "securities" inside the "premises" or "banking premises": (1)Resulting directly from "theft" committed by a person present inside such "premises" or "banking premises"; or (2)Resulting directly from disappearance or destruction. b.We will pay for loss from damage to the "premises" or its exterior resulting directly from an actual or attempted "theft" of "money" and "securities", if you are the owner of the "premises" or are liable for damage to it. c.We will pay for loss of or damage to a locked safe, vault, cash register, cash box or cash drawer located inside the "premises" resulting directly from an actual or attempted "theft" of or unlawful entry into those containers. 52

53. . www.InsuranceCommunityUniversity.com Outside The Premises a. We will pay for loss of "money" and "securities" outside the "premises" in the care and custody of a "messenger" or an armored motor vehicle company resulting directly from "theft", disappearance or destruction. b. We will pay for loss of or damage to "other property" outside the "premises" in the care and custody of a "messenger" or an armored motor vehicle company* resulting directly from an actual or attempted "robbery". 53

54. . www.InsuranceCommunityUniversity.com Armored Vehicle Condition  Loss Outside Premises A.5 pays only excess over armored vehicle’s contract of indemnity and:  From any insurance or indemnity carried by or for the benefit of armored carrier’s customers. 54

55. . www.InsuranceCommunityUniversity.com Computer Fraud We will pay for loss of or damage to "money", "securities" and "other property" resulting directly from the use of any computer to fraudulently cause a transfer of that property from inside the "premises" or "banking premises": a.To a person (other than a "messenger") outside those "premises"; or b.To a place outside those "premises". 55

56. . www.InsuranceCommunityUniversity.com Funds Transfer Fraud We will pay for loss of "funds" resulting directly from a "fraudulent instruction" directing a financial institution to transfer, pay or deliver "funds" from your "transfer account". 56

57. . www.InsuranceCommunityUniversity.com Exclusions That Apply to All Insuring Agreements  Dishonest or criminal acts committed by the insured or any partner  Acts of employees you learn of prior to the beginning of the policy  Acts of employees, managers, directors, trustees, or representatives except when covered under “Employee Theft” insuring agreement  Confidential Information  Governmental Action 57

58. . www.InsuranceCommunityUniversity.com Exclusions That Apply to All Insuring Agreements  Indirect Loss  Legal Fees, Costs and Expenses  Nuclear Hazard  Pollution  War and Military Actions 58

59. . www.InsuranceCommunityUniversity.com Exclusions That Apply Only to Specific Insuring Agreements  Employee Dishonesty Exclusions  Inventory Shortages  An exception applies if loss can be established independently of the inventory shortage  Trading 59

60. . www.InsuranceCommunityUniversity.com Exclusions (cont.)  Warehouse Receipts  Inside and Outside Premises Exclusions  Accounting Or Arithmetical Errors Or Omissions  Exchanges Or Purchases 60

61. . www.InsuranceCommunityUniversity.com Exclusions That Apply Only to Specific Insuring Agreements  Fire  An exception applies for damage to money, securities, from damage to safe or vault  Money Operated Devices  Motor Vehicles Or Equipment And Accessories  Transfer Or Surrender Of Property  Exception applies for loss outside premises  Vandalism  Voluntary Parting Of Title To Or Possession Of Property 61

62. . www.InsuranceCommunityUniversity.com Exclusions That Apply Only to Specific Insuring Agreements  Computer Fraud Exclusions  Credit Card Transactions  Funds Transfer Fraud  Inventory Shortages  Fund Transfer Fraud Exclusions  Computer Fraud 62

63. . www.InsuranceCommunityUniversity.com Conditions Applicable to All Insuring Agreements Every contract has conditions 63

64. . www.InsuranceCommunityUniversity.com Additional Premises or Employees  Automatically covered for policy period  Does not apply if acquired through consolidation, merger or acquisition of assets or liabilities. See elsewhere. 64

65. . www.InsuranceCommunityUniversity.com Conditions  Concealment, Misrepresentation Or Fraud  Consolidation – Merger Or Acquisition  90 days automatic coverage for occurrences after acquisition date  Written notice required and written consent from insurance company  Cooperation with company following loss. 65

66. . www.InsuranceCommunityUniversity.com Duties In The Event Of Loss  Notify as soon as possible  Notify policy of violation of law  Submit to examination under oath  Produce all pertinent records  Sworn proof of loss within 120 days 66

67. . www.InsuranceCommunityUniversity.com Employee Benefit Plans  Must be shown in the Declarations for coverage to apply.  If more than one, the Limit must be sufficient to cover each plan  No deductible applies to this coverage  One year discovery period.  Think twice before adding plan and diluting limit. May be better off with separate ERISA policy. 67

68. . www.InsuranceCommunityUniversity.com Extended Period to Discover Loss  Loss Sustained Form - Limited to one year from the date of cancellation if coverage is not replaced  Discovery Form - 60 days after the date of cancellation if coverage not replaced  Under both forms, coverage for Employee Benefit Plan(s) continues for one year after cancellation (it’s the law!) 68

69. . www.InsuranceCommunityUniversity.com Joint Insured  First Named Insured acts for all others  An employee of one is an employee of all  Loss covered only if discovered within 60 days after the end of the policy period  This extension terminates at end of policy period upon effective date of new coverage  Loss amount is paid to all insureds at the same amount if sustained by one insured 69

70. . www.InsuranceCommunityUniversity.com Conditions  Legal Action Against Us  Liberalization  Broadened coverage applies if no additional premium if expanded within 45 days of inception or during the policy period 70

71. . www.InsuranceCommunityUniversity.com Loss Sustained During Prior Insurance Not Issued by Your Insurance Company or One of Their Affiliates  Loss Sustained Form  Covered if policy became effective at expiration of prior policy and if it would have been covered under prior policy and limited to lesser of current limit or prior limit  Discovery Form  Not in this form 71

72. . www.InsuranceCommunityUniversity.com Conditions  Other Insurance  Share with other primary coverage  Excess if coverage is written as layered coverage  Ownership Of Property; Interests Covered  Owned, leased or property of others held by the named insured, whether or not legally liable 72

73. . www.InsuranceCommunityUniversity.com Policy Bridge – Discovery Replacing Loss Sustained  If the current policy replaces insurance that contained a discovery period, no coverage unless loss exceeds prior policy limit  Deductible applies 73

74. . www.InsuranceCommunityUniversity.com Conditions  Records  Named insured records must be maintained  Recoveries  Order of repayment applies  first to insured for loss in excess of limit  second to insurance company for loss payment amount  last to insured for Deductible 74

75. . www.InsuranceCommunityUniversity.com Conditions  Territory  USA, including territories and possessions  Puerto Rico  Canada  Transfer Of Your Rights Of Recovery Against Others To Us (unlike CGL and Property forms)  No waiver of subrogation allowed 75

76. . www.InsuranceCommunityUniversity.com Valuation – Settlement  Money up to face value (other country’s currency paid at face value or USA equivalent  Securities up to market value at close of business on day loss was discovered at market value or cost of bond  Other property at RCV. Note: “Selling Price” not available nor is “consequential” loss. 76

77. . www.InsuranceCommunityUniversity.com Conditions/Territory  Employee Dishonesty Conditions  Termination As To Any Employee  Immediately upon discovery of theft act, before or after becoming an employee of the Named Insured or date specified in notice to the Named Insured (at least 30 days)  Territory  Employee outside of territory up to 90 days 77

78. . www.InsuranceCommunityUniversity.com Conditions That Apply Only to Specific Insuring Agreements  Forgery or Alteration Conditions  Deductible does not apply to legal expenses  Electronic signatures same as handwritten  Proof of loss must include the instrument involved in the loss or affidavit  Worldwide territory  Outside Premises Conditions  Excess of Armored Motor Vehicle insurance or contractual obligation 78

79. . www.InsuranceCommunityUniversity.com Conditions That Apply Only to Specific Insuring Agreements  Specified Property Limits  $5,000 for any one “occurrence” for precious metals, stones, pearls, furs, manuscripts, drawings or records  Special Limit Of Insurance For Specified Property  Computer Fraud Conditions  Specified Property Limits  $5,000 for any one “occurrence” for manuscripts, drawings or records  Worldwide Territory 79

80. . www.InsuranceCommunityUniversity.com Common Endorsements Modify or eliminates exclusions 80

81. . www.InsuranceCommunityUniversity.com 81 Name: Add Credit, Debit or Charge Card Forgery Number: CR 25 20 Issues:  Insured has persons with credit, debit or charge cards within the organization  Insured could incur loss as a result of forgery or misuse by a third party Solution:  This endorsement creates coverage for forgery of the defined documents

82. . www.InsuranceCommunityUniversity.com 82 Name: Add Trading CoverageNumber: CR 25 16 Issues:  Insured has employees involved in trading Solution:  This endorsement removes the exclusion contained in the policy

83. . www.InsuranceCommunityUniversity.com 83 Name: Add Warehouse Receipts Coverage Number: CR 25 17 Issues:  Insured has “employees” in a warehouse  Exposure to loss by “employees” of property in the insured’s warehouse Solution:  This endorsement removes the exclusion for loss of warehouse receipts and covers both theft and forgery  There is a second endorsement that provides coverage only for forgery and not theft (this other endorsement has a lower premium charge)

84. . www.InsuranceCommunityUniversity.com 84 Name: Add Client’s PropertyNumber: CR 04 01 Issues:  Insured has “employees” work on client’s premises  Exposure to loss by “employees” taking customer’s property. Solution:  This endorsement modifies coverage to include client’s property as well as their own.

85. . www.InsuranceCommunityUniversity.com 85 Name: Include Designated Agents as Employees Number: CR 25 02 Issues:  Insured uses outside persons or organizations to handle money, such as payroll services Solution:  Provides “theft” coverage and includes a described person as an “employee”  The capacity of the party being included should be carefully and fully described

86. . www.InsuranceCommunityUniversity.com 86 Name: Employee Theft Name or Position Schedule Number: CR 04 08 Issues:  Insured wants to cover only specifically described person by name or by their position in the company rather than all “employees” Solution:  This endorsement can lead to adverse selection and caution should be used  Should a non-scheduled person collude with a scheduled person, the policy will not respond correctly to the loss

87. . www.InsuranceCommunityUniversity.com 87 Name: Include Designated Persons or Classes of Persons as Employees Number: CR 25 41 Issues:  Insured has a group of persons for which an appropriate specific endorsement is not available Solution:  This endorsement allows the insured and the insurance company to clarify and provide coverage for unusual situations

88. . www.InsuranceCommunityUniversity.com 88 Name: Include Chairpersons and Members of Specified Committees as Employees Number: CR 25 06 Issues:  The insured has non-compensated chairpersons or committee members Solution: The endorsement changes the definition of “employee” to include these categories

89. . www.InsuranceCommunityUniversity.com 89 Name: Include Members of a Limited Liability Company as Employees Number: CR 25 04 Issues:  The Named Insured includes an LLC  Members of an LLC are not covered in any of the coverage forms Solution:  This endorsement removes the exclusion and redefines the “messenger” definition as needed

90. . www.InsuranceCommunityUniversity.com 90 Name: Include Specified Non-Compensated Officers as Employees Number: CR 25 08 Issues:  The insured has officers of their corporation (or association) that are unpaid Solution:  The Crime Coverage Forms require that “employees” are paid directly by the Named Insured  This endorsement changes the policy language to provide coverage, but only for the officers that are specifically shown in the endorsement

91. . www.InsuranceCommunityUniversity.com 91 Name: Include Partners as Employees Number: CR 25 03 Issues:  The Named Insured includes a partnership Solution:  This endorsement removes the exclusion for partners of a partnership and redefines “employees’ to include partners but only as specifically scheduled partners

92. . www.InsuranceCommunityUniversity.com 92 Name: Include Volunteer Workers as Employees Number: CR 25 09 Issues:  The insured has unpaid workers Solution:  This endorsement revises the “employee” definition to include volunteers  This endorsement includes those volunteers that are soliciting funds

93. . www.InsuranceCommunityUniversity.com 93 NAME: Include Volunteer Workers Other Than Fund Solicitors As Employees Number: CR 25 10 Issues:  The insured has unpaid workers Solution:  This endorsement revises the “employee” definition to include volunteers  This endorsement does NOT include those volunteers that are soliciting funds  The charge for this endorsement is less than CR 25 09 for that reason

94. . www.InsuranceCommunityUniversity.com Summary  Crime is a critical coverage component and should NEVER be left off of the producer/client discussion list  The “gift” of various crime coverages in package policies may not be adequate coverage  Be sure that the client really understands that the limit purchased this year covers all loss caused by an employee(s) 94

95. . www.InsuranceCommunityUniversity.com Upcoming Classes Upcoming University/Paid CE Classes FREE to University Members $50.00/charge for non university members 5/9Insight on Foreign Insurance 5/14Condominium—5 key issues 5/16Workers Compensation 5 key issues 5/23Construction Liability 95 Upcoming Community ClassesFREE to University Members $25.00/charge for non university members 5/7Update on Terrorism 5/16Revise your Contracts or Risk Losing Additional Insured Status Join the University TODAY. www.insurancecommunitycenter.comwww.insurancecommunitycenter.com Click Join University at the top of the bar