Commercial Crime Coverage

Question 1

Crime coverage forms

Answer 1

Lost sustained form: Provides coverage for losses that both took place and we’re discovered during the policy period Or that took place within policyperiod And were discovered within one year of termination of that policy period.
Discovery form: provides coverage for losses that are discovered during the policy period, but that did not necessarily occur during the policy period.

Question 2

Insuring agreements

Answer 2

Employee theft-Disagreement provides coverage for losses resulting from employee theft, such as employees stealing money from Cash register or several employees stealing office supplies.

Inside the premises -theft of money and securities: this agreement provides coverage for losses to money and securities resulting from theft, disappearance, and destruction inside the premises.

Question 3

Outside the premises

Answer 3

This coverage pays for loss of money or securities outside the premises and care and custody of a messenger(The insured, a partner, or an employee) or an armored motor vehicle company, resulting directly from theft, disappearance, or destruction.

Question 4

General conditions

Answer 4

Commercial crime policies have the following conditions:

• Property covered is limited to property that the insured owns or holds, or for which the insured is legally liable
• Coverage acts as excess over any other collectible insurance
• losses to property, other than money and securities will be paid on actual cash value bases
• Coverage Will automatically apply both new employees and to any additional premises acquired by an insured as a result of a murder or consolidation if the insured notifies the insurer with a 90 days and pays additional premuim

Question 5

Surety bonds

Answer 5

To guarantee a performance of a person or other entity
3 parties included


Question 6

Contract bonds

Answer 6

Guarantee that contractors perform per a construction contract

Question 7

Faithful performance bond

Answer 7

A bond the adds protection in case the principal fails to perform duties outline by the law, any constitution, or bylaws

Question 8

Fidiuciary bond

Answer 8

A bond required when an administrator is interested by the court to handle the property of others

Question 9

Performance bond

Answer 9

A bond guaranteeing that a contractor will faithfully perform contractual obligations

Question 10

Financial guarantee bond

Answer 10

Abandon the insurance the principal will make the payment to the obligee, like a government agency

Question 11

Fidelity bonds (honest bonds)

Answer 11

Fidelity bones are designed to cover an employer from direct loss due to fraudulent and dishonest acts by their employees, and therefore commonly reffered to as “dishonesty insurance”

Question 12

Types of bonds

Answer 12

• An individual bond is used when an employer wishes to bond a single employee
• Name scheduled bond is used when an employer wishes to bond several employees that are named in the bond
• A position schedule bond is available to employers that desire to bond a specific position, regardless of who fills the position, or how often The person filing the position is changed
• A blanket bond is for an employer that desires to cover all existing employees of a firm without exception as well as new employees