*12 / 13 TB - Commercial Crime & Bonding

Question 1

A prospective insured wishes to protect her firm against criminals taking money from a messenger going from firm to a bank.

In this situation, the prospect should purchase coverage for:

Fidelity

Robbery

Assault

Burglary

Answer 1

Robbery

Question 2

Under a Fidelity Bond, which of the following parties receives protection?

A subcontractor

An employee

An employer

A creditor

Answer 2

An employer

Question 3

Which of the following losses would be covered under a Robbery and Safe Burglary coverage?

Valuables kept in a locked safe are destroyed by fire

Cash disappears from a locked safe, with no explanation

Jewelry is stolen from a locked safe that shows no signs of forced entry

Rare manuscripts are stolen from a locked safe that shows signs of forced entry

Answer 3

Rare manuscripts are stolen from a locked safe that shows signs of forced entry

Question 4

Which of the following losses would be covered under a crime policy’s “Inside the Premises Robbery or Safe Burglary of Other Property” coverage?

Broken windows on the insured premises caused by burglar

Theft of money and securities

Fire damage to the insured building caused by a burglar

Vandalism Tia trailer on the insured premises caused by burglar

Answer 4

Broken windows on the insured premises caused by burglar

Question 5

In crime insurance, which of the following individuals is NOT considered to be “custodian”?

Sales Clerk

Janitor

Partner

Named insured

Answer 5

Janitor

Question 6

To be defined as a burglary, an event must include which of the following conditions?

Robbery

Fear or threat of violence

Visible signs of forced entry or exit

Mysterious disappearance

Answer 6

Visible signs of forced entry or exit

Question 7

The Dye’s host a party. When the guests arrive, they place their coats in the bedroom. Two days later, Mr. Dye discovers that his ring is missing from the bedroom dresser. This loss is referred to as a:

Mysterious disappearance

Burglary

Robbery

Theft

Answer 7

Mysterious disappearance

Question 8

In crime insurance, a custodian is described by which one of the following?

Any authorized person outside the premises

An authorized person having care of insured property inside the premises

An authorized person outside the premises in charge of money

An authorized person going to the post office

Answer 8

An authorized person having care of insured property inside the premises

Question 9

Which of the following terms provides the broadcast definition of criminal activity?

Burglary

Robbery

Theft

Extortion

Answer 9

Theft

Question 10

The Forgery or Alternation insuring agreement protects the insured from losses resulting from forgery or alteration of:

I. Outgoing checks

II. Drafts

III. Promissory notes

IV. Financial instruments drawn against the
insured

I, II, III and IV

I and II only

I and III only

I, II, and III only

Answer 10

I, II, III and IV

Question 11

Surety bonds guarantee the fulfillment of specific obligations. Each of the following may be the subject of Surety bond, except:

Payment of debt

Protection of funds handled by employees

Meeting contractual commitments

Completing a construction job

Answer 11

Protection of funds handled by employees

Question 12

Under a Surety bond, the “Principal” is the party who:

Agrees to pay damages if default occurs

Provides the bond in exchange for a fee

Will be paid damages if default occurs

Agrees to fulfill an obligation

Answer 12

Agrees to fulfill an obligation

Question 13

A contractor has borrowed funds from a bank in order to finance a construction project. A Surety bond which guarantees the lender that the contractor will use the borrowed funds to finish the contract free and clear of liens is known as:

A Performance bond

Bid bond

Completion bond

Labor and materials bond

Answer 13

Completion bond

Question 14

Sue Green has Commercial Crime Policy on her restaurant, but she only chose the insuring agreement “Inside the Premises Robbery or Safe Burglary of Other Property.” If an holiday, the policy would:

Cover the loss

Not cover the loss, since acts by employees are excluded

Not cover the loss, since daytime burglaries are excluded

Not cover the loss, since only loss of merchandise is covered

Answer 14

Not cover the loss, since acts by employees are excluded

Question 15

Under the “Inside the Premises Theft of Money and Securities” insuring agreement of a Crime Policy, which of the following situations would NOT be covered?

Cash in the register is destroyed in a fire

Travelers checks that have turned up missing

A casino suffered a theft of slit machine tokens

Cash that is taken by employees

Answer 15

Cash that is taken by employees

Question 16

In crime insurance terminology, an officer of the company having care and custody of insured property outside the insured premises is known as a:

Scheduled executive

Custodian

Messenger

Insured property ex cutover

Answer 16

Messenger

Question 17

In crime insurance terminology, a salesperson having possession of the insured’s property on-premises is known as a:

Custodian

Insured

Messenger

Watchperson

Answer 17

Custodian

Question 18

In Commercial Crime coverage, the “Inside the Oremises Theft of Money and Securities” insuring agreement would cover loss of all the following, except:

Currency

Jewelry

Tokens and tickets

Checks and drafts

Answer 18

Jewelry

Question 19

Which of the following are parties to contract bond?

I. Principal

II. Surety

III. Obliged

IV. Employee

I, II, and III only

I, II, III, and IV

I and II only

I and III only

Answer 19

I, II, and III only

Question 20

In crime insurance, all of the following situations would be considered theft, except:

A store’s year end inventory coming up short by 5%

Merchandise being stolen with evidence of forced entry

A clerk witnessing a customer shoplifting merchandise

Alcides being robbed at gunpoint

Answer 20

A store’s year end inventory coming up short by 5%