Summary: Category 25 of ISO crime forms consists of forty-nine various endorsements that change certain crime policy provisions. The endorsements have been developed to modify provisions in the crime and fidelity forms and policies. Most of the endorsements were revised in June 2022, a few were revised in 2010 or earlier, and a new endorsement was added in May 2023. The endorsements are presented in numerical order. In many of the updates minor formatting or editorial changes have been made, while others have more significant changes. Because there are so many endorsements, we have broken them into sections as follows: 

Fidelity Amendatory Endorsements Part III – CR 25 21 through CR 25 30

Fidelity Amendatory Endorsements Part IV – CR 25 31 through CR 25 40

Fidelity Amendatory Endorsements Part V – CR 25 41 through CR 25 55

CR 25 21 adds coverage for warehouse receipts and withdrawal orders. Although the crime policy excludes warehouse receipts, the term is not defined in the policy. Under the Forgery or Alteration insuring agreement, the terms "warehouse receipts" and "withdrawal orders" are added as covered instruments. The endorsement then defines these terms as follows.  A "warehouse receipt" is an instrument that the insured issued or purported to issue at any of the insured's offices that evidences or purports receipt by or deposit with the insured of goods, wares, merchandise or commodities. A "withdrawal order" is defined as a written order directed to the insured that the insured receives at any of their offices that is drawn by or under authority from the owner, assignee or transferee of any "warehouse receipt". A Schedule is provided for a Limit Of Insurance, which is the most the insurer will pay for loss resulting directly from an occurrence.

The form can be used with the Commercial Crime Coverage Form, the Commercial Crime Policy, and the Commercial Fidelity and Forgery Policy. 

This endorsement allows the insured to include the personal accounts of named individuals under the forgery or alteration insuring agreement. It has a Schedule for the names and the amount of insurance to apply to each person's accounts. Named persons are covered for loss involving covered instruments of that person's personal account. The Limit of Insurance is part of, not in addition to, the Limit shown in the Declarations.

This endorsement can be used with the Commercial Crime Coverage Form, the Commercial Crime Policy and the Commercial Fidelity and Forgery Policy. 

CR 25 23 excludes losses that result from insurance operations. An exclusion is added stating there is no coverage for contractual or extra-contractual liability arising out of the insured's issuance of insurance, indemnity, or surety contracts. This exclusion is added to the Additional Exclusions Applicable to Specific Insurance Agreements: Contractual Liability clause.

The endorsement can be used with the Commercial Crime Coverage Form, the Commercial Crime Policy and the Commercial Fidelity and Forgery Policy. 

CR 25 24 adds an exclusion which eliminates from covered property any precious metals, precious stones, or ores containing those materials that were not received by an authorized employee and placed in a safe or vault for safekeeping. This exclusion is added to the Additional Exclusions Applicable To Specific Insuring Agreement: Precious Metals and Stones.

The endorsement can be used with the Commercial Crime Coverage Form, the Commercial Crime Policy, and the Commercial Fidelity and Forgery Policy.

In this endorsement, an exclusion is added for coverage for unauthorized advances made by an insured's employee for delinquent dues or assessments. It also adds a condition that requires the insured to consent to an audit of their books and accounts at least once a year.

This endorsement can be used with the Commercial Crime Coverage Form, the Commercial Crime Policy, and the Commercial Fidelity and Forgery Policy.

The amount covered when loss is caused by any collection agent who is included as an employee is limited to the amount shown in the Schedule of this endorsement. The limit is part of, not in addition to, the Limit shown in the Declarations. The endorsement applies to the employee theft insuring agreement. So a theft committed by a collection agent must fit the parameters of the employee theft agreement in order for there to be coverage.

This endorsement can be used with the Commercial Crime Coverage Form, the Commercial Crime Policy, and the Commercial Fidelity and Forgery Policy.

The Joint Insured Condition of the Conditions Applicable To All Insuring Agreements section is modified so that the first Named Insured will act for itself and for every other Insured for all purposes of this endorsement. Payment will be made to the first named insured for the use and benefit of the insured sustaining the loss. If a named insured has a loss, the payment will be made to the first named insured; it is up to the first named insured to provide the funds to the named insured who sustained the loss. Knowledge of any insured partner is considered knowledge of every insured. This endorsement provides an exception to that clause for a borrowing company from the Rural Utilities Services. In such a situation, knowledge of information relevant to this insurance is considered knowledge by the insured sustaining the loss. 

The Cancellation Or Termination Condition is modified as well. The policy is considered terminated as soon as the Rural Utilities Service, the borrowing corporation employing such employee, or any designated person of the Rural Utilities Service learns of theft or any other fraudulent or dishonest acts by an employee. The acts can be before or after the individual became an employee of the borrowing corporation.

This endorsement can be used with the Commercial Crime Coverage Form, the Commercial Crime Policy, and the Commercial Fidelity and Forgery Policy.

The Rural Utilities Service is a government program that provides infrastructure to rural communities, including water and waste treatment, electric power, and telecommunications services.

This endorsement adds a Notices section to the policy which states that settlement of any claim under this insurance shall not be made without prior written approval of the Rural Utilities Services, and cancellation of the policy by the insured can also be negated by the Rural Utilities Service.

The definition of "discovery" is modified to include discovery by an employee, agent, or attorney of the Rural Utilities Service not in collusion with the "employee" responsible for the loss. The definition of "employee" is modified to include any natural person who is a non-salaried officer or collection agent in the service of the insured. 

This endorsement also modifies the following sections of the policy: Cancellation or Termination Condition, Duties In The Event Of  Loss, and Legal Action Against Us. This insurance terminates when certain listed persons learn of theft or any other fraudulent act committed by an employee. 

Upon discovery of loss, the insured or the Rural Utilities Service must notify the insurer as soon as possible, as well as other duties that are typically expected of an insured. If a deductible amount applies to a loss, but the loss does not exceed a certain threshold, the insured does not have to notify the insurer. However, if the loss later exceeds that threshold, then notification requirements and other duties still apply. 

The insured or the Rural Utilities Service may not bring legal action against the insurer unless all the terms of this insurance have been complied with; until 60 days after proof of loss has been filed with the insurer; and unless brought within two years from the date the loss was discovered by a designated person or the Rural Utilities Service.

This endorsement can be used with the Commercial Crime Coverage Form, the Commercial Crime Policy, and the Commercial Fidelity and Forgery Policy.

This endorsement amends the definition of "employee" to include any personnel of the United States military or of any department of the United States Government when they are performing duties of the insured. The endorsement reserves the right of the carrier to make its own claim investigation except to matters of national security. When a proof of loss is submitted, any information involving national security is not required. The report of a board of officers, appointed in accordance with regulations, will be binding in the settlement of any claim unless the insurer notifies the insured within ten days of receipt of the board's report that it wants its own investigation. 

This endorsement can be used with the Commercial Crime Coverage Form, the Commercial Crime Policy, and the Commercial Fidelity and Forgery Policy.

CR 25 30 modifies the Employee Theft Insuring Agreement to make payment for loss to banks listed on the schedule, and that such payment will be payment to the insured. If through neglect or an act of the insured the employee theft agreement becomes invalid, the insurer is not prohibited from paying an otherwise valid claim. However, the bank must discover the invalidation of the agreement within two years or the carrier has no obligation to make any payment. Upon cancellation of the employee theft agreement by the carrier, notice will be given in writing to the banks listed on the schedule, and within the days' advance notice requirement listed in the Schedule.

This endorsement can be used with the Commercial Crime Coverage Form, the Commercial Crime Policy, and the Commercial Fidelity and Forgery Policy.

Includes copyrighted material of Insurance Services Office, Inc., with its permission.