How does the Loss Sustained Form apply to claims under the Commercial Crime Coverage when using the same insurance carrier?

The Loss Sustained Form under the Commercial Crime Coverage is designed to address claims for losses that are discovered during the policy period, even if the loss actually occurred during a previous policy period, as long as there is continuous coverage with the same insurance carrier.

The requirement that the loss must be covered under the current policy is fundamental because it ensures that the coverage provided aligns with the limits, terms, and conditions set forth in the current policy. This means that while a loss can be reported after it is discovered (which may have occurred in the past), it must still fall within the relevant coverage definitions of the current contract.

For instance, if a business experiences a theft and discovers it two years after it occurred, but is still insured by the same carrier, the loss can be reported under the current policy as long as the crime that led to the loss is a covered event under that policy. This allows for continuity of coverage and the ability to adequately respond to claims.

The other options do not accurately reflect how the Loss Sustained Form operates in practice. It is crucial to understand that the correct application hinges on the relationship between the discovery of the loss and the current policy's coverage terms.