Exam 2 Crime Part 2

Question 1

Inside Premises Coverage: Theft Of Money and Securities

Answer 1

• Direct Loss of money or securities by a third party
• As a result of theft, destruction, or disappearance
• Secondary expenses irrelevant to direct loss
• Third Part is not EE (not EE Theft Coverage)

Question 2

Inside Premises Coverage: Theft Of Money and Securities Definition of Premise

Answer 2

• Inside of building, interior portion of building occupied by an insured in conducting its business
• Banking Premises is interior portion is extended to a building occupied by or night depository chute, or safe maintained by bank, i.e. ATM

Question 3

Inside Premises Coverage: Robbery or Safe Burglary

Answer 3

Direct loss of money or securities resulting from robbery, safe burglary or unlawful taking
- by a third party

Question 4

What Does Robbert Have to Include That is Different From Theft?

Answer 4

Threat

Question 5

Robbery Definition

Answer 5

Unlawful taking from custody of an EE or authorized person by violence or threat of violence

Question 6

Definition of Safe Burglary

Answer 6

Unlawful taking by forcible or violent entry evidenced by visible marks from a locked vault or safe located within premises
- Physical Assets: Money, Securities, or Property

Question 7

Property Covered Under Inside Premises Coverage: Robbery or Safe Burglary

Answer 7

• Damage to property
• Damage to locked safe, cash drawer, cash box or cash register by felonious entry or abstraction
• Damage to premises

Question 8

Outside Premises: In Transit Coverage

Answer 8

• Direct loss of money or securities resulting from robbery or unlawful taking
  OR
• Actual Destruction or disappearance
• Committed by a third party while in transit

Question 9

Definition of In Transit

Answer 9

• Being conveyed outside the premises from one person or place to another
• In the custody of an EE or partner or authorized person
• Temporarily within the home of an EE or Partner

Question 10

Requirements For Property Coverage While In Transit

Answer 10

• If resulting from robbery while in transit

- If resulting from unlawful taking while temporarily within the home of an EE or partner

Question 11

Mail and Carrier Exclusions

Answer 11

• No coverage for money, securities and property while in the mail or in the custody of a carrier for hire
• Different than EE doing transfer
• Does not include EE depositing in Bank

Question 12

General Exclusions for Crime Coverage

Answer 12

1) Act of Partners
2) Government Actions
3) Indirect losses (only physical loss or direct damage to covered property
4) Legal Expenses
5) Nuclear
6) War

Question 13

ERISA Requirements

Answer 13

1) ERIS plans must be bonded at 10% of plan assets
2) Maximum requirements of $500,000
3) Bond may be purchased as a stand alone policy or may be part of crime policy
- “Compulsory”
4) Fiduciary Liability not addressed by bond
- No pain and suffering

Question 14

What does “Money” Mean?

Answer 14

Currency, coin, bank notes or bullion

- ISO includes travelers checks, register checks and money orders held for sale to public

Question 15

What does “Securities” mean?

Answer 15

Negotiable and non negotiable instruments representing money or property

Question 16

What may or may not be included in “Securities”?

Answer 16

Tickets, tokens, stamps

Question 17

What Does Property Mean?

Answer 17

Tangible property

• ISO includes “that has intrinsic value”
• increase value may require endorsement

Question 18

Discovery

Answer 18

Knowledge by specific individuals which would cause a reasonable person to believe a covered loss has occurred
- Usually officers and risk managers

Question 19

Insured Responsibilities

Answer 19

1) Notify carrier as soon as possible or as soon as practible; May be x days after event
2) Furnish proof of loss within x days of discovery
3) Cooperate with investigation

Question 20

What is the usual amount of time an insured has to furnish proof?

Answer 20

120-180 days

Question 21

Discovery Form

Answer 21

• Covers losses sustained during the policy period
• Does not matter if it occurred prior to the inception of the policy
• Could cover claims that occurred
  before the policy existed/active

Question 22

Loss Sustained Form

Answer 22

• Covers Losses sustained during the policy period

- Must be discovered not later than one year after the policy period expired

Question 23

What Is Not Covered in The Loss Sustained Form

Answer 23

• Does not cover losses occuring before policy

“Long Tail”