Chapter 10: Commercial Crime

Question 1

Burglary

Answer 1

unlawful taking of property, breaking or entering of premises

Question 2

Robbery

Answer 2

unlawful taking of property from a person by actual violence or threat of violence

Question 3

Theft

Answer 3

unlawful taking of money, securities, other property
*broadest coverage, includes unlawful taking

Question 4

Money and securities

Answer 4

Currency; negotiable/nonnegotiable instruments that represent money or property

Question 5

Difference between the two Crime Coverage Forms
*Discovery Form & Loss Sustained Form

Answer 5

Discovery- pays for losses committed at any time and discovered during policy year/during extended period 60 days
Loss Sustained- pays for loss committed during policy period and discovered during policy period or w/n 1 yr

Question 6

Employee Theft Coverage

Answer 6

coverage if employee takes anything (money, securities, property)
Blanket (all employees) or Scheduled (those listed in dec pages)

Question 7

Forgery or Alteration Coverage

Answer 7

pays for losses resulting from forgery/alteration of checks, drafts, promissory notes

Question 8

Inside the premises- theft of money and securities Coverage

Answer 8

loss of money/securities inside the insured’s premises/banking premises that results directly from theft, disappearance, or destruction

Question 9

Inside the premises- robbery and safe burglary of other property Coverage

Answer 9

property other than money/securities if the loss is due to robbery of a custodian or safe burglary
damage to premises or a locked safe/vault

Question 10

Outside the premises Coverage

Answer 10

theft, disappearance, destruction, robbery of money/securities in the custody of a messenger or an armored motor vehicle company

Question 11

Computer fraud Coverage

Answer 11

pays for loss/damage to money, securities and other property resulting from the use of a computer to fraudulently cause the transfer of that property from inside premises or banking premises to a person/place outside those premises

Question 12

Funds transfer fraud Coverage

Answer 12

pays for loss of money/securities resulting from a fraudulent instruction directing a financial institution to transfer/pay/deliver the money/securities from the insured’s account

Question 13

Money orders and Counterfeit paper currency Coverage

Answer 13

pays for losses resulting from accepting, in exchange for merchandise, money/securities, money orders that are not paid by the insurer or counterfeit paper currency

Question 14

two methods of writing employee theft

Answer 14

blanket or scheduled

Question 15

Lessees of safe deposit boxes (other coverages)

Answer 15

coverage for securities & other property
*other property is covered from actual/attempted burglary, robbery, vandalism. Name and Address of the depository must be named on schedule

Question 16

Securities Deposited with others (other coverage)

Answer 16

securities of others in a custodian’s care for theft, disappearance or destruction; inside/outside premises and deposit for safe keeping in a depository
*custodian/depository must be named in schedule

Question 17

Guests’ Property (other coverage)

Answer 17

property of guests while the property is in a safe deposit box, inside premises or while in insured’s possession
*covers reasonable legal expenses the insured incurs from refusal to pay for loss/damage to guest’s property

Question 18

Safe Depository (other coverage)

Answer 18

bailee’s coverage for the property of others at a depository that is not a financial institution
*legal liability for client’s property located in vault/safe inside premises
*direct damage to client’s property from actual/attempted robbery/burglary; resulting damage to premises if you are the owner/liable for damage to it

Question 19

messenger

Answer 19

insured, relative, partner, member or employee, who has custody of the property outside the premises

Question 20

Custodian

Answer 20

insured, a partner, employee of the insured who has custody of the property inside the premises

Question 21

Safe burglary

Answer 21

unlawful taking if property from within a locked safe/vault