Bernice is an underwriter.She is reviewing a commercial crime coverage application.The coverage will be written using the discovery form.Bernice is concerned that a large undiscovered loss may exist prior to the policy's inception date.Which provision should Bernice add to the policy to protect against liability for such previous losses?

Question

Quizplus · Accepted Answer

The retroactive date endorsement would be the best provision to add to the policy to protect against liability for previous losses. It establishes a specific date before which losses will not be covered. This allows the insurer to exclude any losses that occurred before the specified date, which helps to limit their exposure to unknown or undiscovered losses. The other options (extended reporting endorsement, loss sustained during prior insurance provision, and waiver of inventory provision) do not directly address liability for previous losses.

Bernice Is an Underwriter