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 the insurer against liability for such previous losses?

A retroactive date endorsement

Explanation:

In Insurance, a retroactive date endorsement is used for most claims-made policy forms.

For a claims-made policies, the date which a professional liability coverage begins, covering for any incident that causes damage or harm to a third party on or after the date it occurred, provided the claims relating to it were filed with an active liability insurance coverage, is known as the retroactive date endorsement.

Hence, Bernice should add a retroactive date endorsement to the policy to protect the insurer against liability for such previous losses.

Retroactive date endorsement.

Explanation:

A retroactive date is a date from which an individual's liability coverage begins. This date is the when ones insurance cover is activated.

Retroactive date can also be said to be the date when your insurance starts to cover you and/or third party incidents provided the incidents are filed and are deemed fit to be under the coverage of the insurance.

Any incidents before this retroactive date is not covered by the insurance. Also, incidents that exceed the time frame of the retroactive date isn't covered by the insurance as well.

Adding a retroactive date endorsement to the policy by Bernice will ensure that any loss is covered by the policy during the time of the coverage.

Cheers.