Casualty 3E

Question 0

Extortion

Answer 0

Surrender of property away from premises as a result of a threat communicated to the insured to do bodily harm to an insured or employee, or to a relative of either, who allegedly is being held captive (blackmail)

Question 1

Burglary

Answer 1

Taking of property by unlawfully entering or leaving the premises as evidenced with forcible entry or exit marks or damage

Question 2

Robbery

Answer 2

Taking property from the care and custody of a person who has caused or threatened to cause bodily harm

Question 3

Safe Burglary

Answer 3

Taking of property within a locked safe or vault by a person unlawfully entering the safe/vault as evidenced by visible marks of forced entry on the safe (includes the removal of a safe from premises)

Question 4

Theft

Answer 4

Larceny

Any act of stealing; broad category; includes narrow acts of stealing such as robbery and burglary

Question 5

Custodian

Answer 5

Named insured, insured’s partners, or any employee having care and custody of insured property inside the premises but doesn’t include a watch person or janitor

Question 6

Messengers

Answer 6

Named insured, insured’s partners, or employees, while having care and custody of property outside the premises

Question 7

Premises

Answer 7

Interior of that portion of any building occupied by the insurer for the purpose of conducting business

Question 8

Watch person

Answer 8

Any person the insured retains to have care and custody of property inside the premises, and who has no other duties

Question 9

Money

Answer 9

Currency 
Coins
Bank notes 
Travelers checks
Registered checks
Money orders

Question 10

Property other than money and securities

Answer 10

Any tangible property other than money and securities that has intrinsic value

Question 11

A person may add one or more crime coverage to a CPP

Answer 11

Employee Dishonesty
Forgery or Alteration
Theft, disappearance or destruction 
Robbery and safe burglary
Premises burglary
Computer fraud
Extortion

Question 12

Employee Dishonesty

Answer 12

Fidelity bond that covers losses resulting from employee dishonesty, covering money, securities, and merchandise

Can be written on a blanket, per loss, or scheduled basis (as well as named basis or position schedule basis)

Can be added to CPP

Question 13

Forgery or alteration

Answer 13

Protects the insured from losses resulting from forgery or alteration of outgoing checks—not incoming checks!

Losses by dishonest acts of insured’s employees are not covered

Can be added to CPP

Question 14

Theft, Disappearance, and Destruction**

Answer 14

Broadest crime coverage;

Covers loss of money and securities inside the premises; covered outside of premises while in care and custody of messenger

All-Risk crime insurance
Theft of money or securities by employee is excluded as well as employee dishonesty

Can be added to CPP

Question 15

Robbery and Safe Burglary

Answer 15

Covers property other than money and securities

Covers robbery of a custodian, damage to the premises, robbery of a messenger, and loss or damage to covered property while in custody of an armored-car company

Question 16

Premises burglary

Answer 16

Covers property other than money and securities inside the premises, including robbery of a watch person

Question 17

Computer fraud**

Answer 17

Covers theft of property , including money and securities, directly related to the use of any computer.

It doesn’t cover acts of employees or inventory shortages.

Question 18

Commercial auto coverage

Answer 18

May be written as part of a commercial package or as a monoline

Question 19

Business Auto Coverage form

Answer 19

Covers vehicles owned, leased , hired or borrowed by a business

Hired Autos-autos the insured leases, hires, rents, or borrows

Non-owned Autos-autos owned by employees while being used in the business of the insured

Question 20

Covered Autos

Answer 20

Includes autos identified in the Declarations by a numerical symbol

#1 indicates any auto is covered
#7 indicates only autos specifically described on Dec page

Coverage can be tailored by selecting appropriate symbol ex: liability can be for #1 but comp and collision can be assigned to #7

Question 21

Business auto liability

Answer 21

Coverage written in a combined single limit (CSL)

Question 22

Covered Persons

Answer 22

Named insured and anyone using a covered auto with the permission of the named insured

When driving out of state, the policy will automatically conform to the state requirements of any state concerning minimum policy limits and financial responsibility

Question 23

Physical Damage

Answer 23

Comprehensive and collision can be added to BAP

ACV on claims like PAP
Transportation expenses $15 day/$450 for 30 days

Coverage territories-Canada, US, and Puerto Rico

Question 24

Garage Coverage Form

Answer 24

For auto dealers, repair shops, service stations, and parking lots

It covers property damage liability to others.

It has Garage Liability and Garagekeepers Legal Liability

Question 25

Garage liability

Answer 25

Provides some premises and operations coverage, products liability, and completed operations liability in addition to auto liability

Covers mechanic who takes your car on a test drive

Question 26

Garagekeepers Legal Liability

Answer 26

Covers comprehensive and collision damage to customers cars

Bailee's type coverage 
Claims paid ACV 
Often written on a blanket basis
No coverage for theft
Deductible often applies

Question 27

Drive other car endorsement

Answer 27

Can be added to BAP for business owner or company executive who occasionally drives non-owned autos on personal business

Optional coverage for business owners who don’t own a car

Costs extra so sometimes the employer is named as an additional insured

Question 28

Mobile equipment endorsement

Answer 28

bulldozers, forklifts and road construction equipment will be considered to be covered autos

Normally wouldn’t be covered by BAP or Commercial Auto Policy unless they were being towed or carried by a covered auto.

Question 29

Extortion**

Answer 29

Covers loss of property and money and securities