Commercial Crime Test Flashcards
George Hawthorn is employed by Moison Appliances as a shipping clerk. As he is stacking TVs in the storage room, he is confronted by two men, both carrying guns. They proceed to empty the warehouse of TVs. This is an example of burglary robbery a fidelity loss mysterious disappearance
In crime forms, robbery is defined as the unlawful taking of property from the care and custody of another person. The robber must have caused or threatened to cause bodily harm to the person being robbed or must have committed an obviously unlawful act that is witnessed by the person being robbed.
Theft generally means any act of stealing, other than burglary or robbery any act of stealing employee dishonesty only burglary and robbery only
Theft means the unlawful taking of money, securities, or other property. This broad term includes burglary, safe burglary, and robbery.
Coverage for defense costs is included in all of the crime coverages none of the crime coverages computer fraud coverage forgery or alteration coverage
Under forgery or alteration coverage, if the insured is sued for refusing to pay a forged or altered instrument and obtains the insurer’s written permission to defend the suit, the insurer will pay reasonable defense costs incurred by the insured.
What type of property is protected under computer fraud coverage? Securities only Money and securities Money, securities, and other property Money only
Computer fraud coverage covers loss of or damage to money, securities, and other property due to the use of a computer to fraudulently transfer that property from inside the premises or banking premises to a place or person (other than a messenger) outside the premises.
Under a crime policy, an insured must file a proof of loss within how many days after a loss? 60 days 90 days 120 days 30 days
Incorrect Answer
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If a loss occurs, the insured must provide a sworn proof of loss within 120 days.
When other insurance applies to a loss, the crime policy will pay on a primary basis pay on an excess basis pay its proportional share of the loss not pay any part of the loss
Incorrect Answer
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When other insurance applies to a loss, crime insurance pays on an excess basis.
In a crime insurance policy, certificates of deposit are considered money either money or securities securities other property
Securities are instruments or contracts that represent money or property.
Checks, drafts, bonds, certificates of deposit, stock certificates, stamps, and credit card receipts are all considered securities.
When an insured purchases a commercial crime coverage form, all of the coverages listed in the form automatically apply to the policy.
False
True
The insured must indicate which coverages will apply to the policy.
A customer in a liquor store points a gun at the clerk and demands that she hand over several bottles of expensive whiskey. The clerk complies. Would this loss be covered under the store’s inside the premises—robbery or safe burglary of other property coverage?
Yes
No
This insuring agreement covers loss of other property (not money or securities) while inside the premises from actual or attempted robbery of a custodian. The definition of custodian includes the insured’s employees.
While on her way to make the daily deposit at the bank, the insured stops at a gas station. When she returns to her car after paying the cashier, she discovers that someone has taken the money from her unlocked car. Would this loss be covered under outside the premises coverage?
Yes
No
This insuring agreement covers theft, disappearance, or destruction of money and securities while outside the premises and in the care and custody of a messenger or an armored car company. The definition of messenger includes the insured.
Burglars break into the insured’s building and steal several thousand dollars. They also spray-paint graffiti on the building. Would the cost to clean up the graffiti be paid under the inside the premises—theft of money and securities insuring agreement?
Yes
No
Under this insuring agreement, damage to the exterior of the premises by vandalism or malicious mischief is excluded.
An insured must file a proof of loss within how many days after a loss? 30 90 120 60
If a loss occurs, the insured must provide a sworn proof of loss within 120 days.
The insured sends an employee to Luxembourg for two months to oversee the opening of a new branch office. While on assignment, the employee embezzles over $5,000 from the company. Would this loss be covered under the insured’s employee theft coverage?
Yes, because the employee was temporarily outside the coverage territory for less than 90 days. No, because Luxembourg is outside the coverage territory.
The coverage territory for the crime policy includes the United States and its territories and possessions, Puerto Rico, and Canada. Under employee theft coverage, losses that occur outside the coverage territory are covered when the employee is temporarily outside the territory for 90 days or less.
