Ins Exam M - Crime Flashcards
BURGLARY DEFINITION
the theft of prop form inside the premises when the biz is closed/unoccupied
- REQUIRES VISIBLE EVIDENCE OF FORCIBLE ENTRY OR EXIT
- Actual entry is not required
Safe Burglary definition*
The unlawful taking of prop from a locked safe/vault:
- EVIDENCED BY MARKS OF FORCIBLE ENTRY OR REMOVAL of entire safe/vault
ROBBERY DEFINITION
The dishonest stealing of prop from an indiv in possession of the prop
- ROBBERY INVOLVES FACE-TO-FACE CONFRONTRATION BETWEEN ROBBER AND VICTIM
- ROBBERY REQUIRES A THREAT OR FEAR
THEFT DEFINITION
The unlawful taking of prop from another person w/o an owner’s consent
- broad def of theft incls burglary, safe burglary, and robbery (which usually involves use of force), but also incls the taking of prop by stealth
THEFT also incls
- Larceny - occurs when there is access to area where stolen prop was located (shoplifting or dishonest domestic EEs)
- Embezzlemnt - unlawful appropriation of prop or money by someone entrusted w/ prop
- Forgery - Falsification of one’s signature by another to illegally obtain prop or money
MYSTERIOUS DISAPPEARANCE definition
A situation in which an article of prop is known to have disappeared but it is impossible to determine how it occurred
- THEFT MUST BE RULED OUT
CRIME INSURING AGREEMENTS
some of the standard insuring agrmnts incl:
> EE Theft
> Inside the Premises
- theft of money and securities
- Robbery or Safe Burglary of money and securities of custodian
- robbery or burglary of other property
EE THEFT Insuring Agreement
Covers theft of money, securities, and other property by EEs on an EE theft per occurrence basis
> 3 schedules available
- Named schedule - covers indiv listed on dec page
- Position Schedule - covers indiv in positions listed on Decs
- Blanket Covrg - covers loss by any EE
Crime Conditions
- Duties in the event of a loss
- Legal action against us
General Conditions
> Duties in the event of a loss
- insured must notify insurer ASAP, and a SWORN PROOF of LOSS MUST BE PROVIDED W/IN 120 DAYS
> Legal action against us (the insurer)
- no legal action can be taken until 90 days after the insured has filed proof of loss, and action must be brought w/in 2yrs from the date the insured discovered the loss
Crime Conditions
- Records
- Territory
> Records - insured must keep records of all covred proprty
> Territory - covrs only acts committed in the US, its territories and possessions, and Canada
BOND: DEFINITIONS
> a bond is a guarantee that a specific duty will be discharged, a certain performance maintained, or a specific obligation fulfilled
there are 3 parties involved in the bond process, which is different than an ins contract (which involves 2 parties: insured and insurer)
BOND: DEFINITIONS - 3 Parties Involved
1) OBLIGOR (underwritten EE/contractor)
- the principal whose obligation has been guaranteed by the type of bond issued
2) OBLIGEE (insured employer/project owner)
- the party in whose favor the obligation is made and who rcvs the benefit
3) SURETY (insurance Co)
- the bonding Co guaranteed the obligation will be performed by the EE (guarantor)
OBLIGOR - 3 Parties
PRINCIPAL - aka OBLIGOR
- the party who promises to do, or not do, a specific thing
- this is the person or Co that is bonded (ie: EE, contractor)
- Underwritten
OBLIGEE - 3 Parties
INSURED - aka OBLIGEE
- the party to whom the principal makes the promise and for whose protection the bond is being written
- receives the benefit (ie: employer, project owner)
SURETY - 3 Parties
SURETY - aka GUARANTOR
- the party who agrees to be responsible for loss that may result if the pincipal does not keep his promise
- the bonding Co, which is often the Ins Co
TYPE of BONDS
> the bond serves as a guarantee of performance
the SURETY guarantees teh PRINCIPAL’S conduct, and if that conduct falls short, the surety is responsible to the OBLIGEE
- FIDELITY BONDS (EE Dishonesty Bonds)
- these bonds are sold to guarantee that an OBLIGATION of TRUST will be discharged faithfully
- SURETY BONDS - these bonds are sold to guarantee that an OBLIGATION of a CERTAIN ACT will be discharged faithfully
CONTRACT BONDS
- Surety Bond Types
> Contract bonds guarantee the fulfillmnt of contract obligations
Used in private or public building or svc contracts to guarantee performance by a contractor (principal) to perform according to the terms of a contract
BID BOND - Contract Bonds
- Surety Bond Types
Guarantees to the person awarding a contract (obligee) that the bidding contractor (principal), if selected, will undertake the contract and will furnish the other nec bonds (incl-ing performance, pymnt, and maintenance bonds) for the project
PERFORMANCE BOND - Contract Bonds
- Surety Bond Types
Guarantees that the contractor (principal) will complete the contract in compliance w/ the terms of the contract
- this is most $$$
- Can’t get w/o Bid Bond
PAYMENT BOND - Contract Bonds
- Surety Bond Types
Guarantees that bills for labor and materials will be paid and that the property will be turned over to the owner free of any financial attachmnts
JUDICIAL BONDS - Surety Bond Types
> Fiduciary Bonds - PQ
> Notary Bonds - PQ
> Fiduciary Bonds - guarantee the performance of fiduciaries entrustd w/ the property of money of others; the bond binds the principal and surety jointly to the performance of the obligation assumed
Notary Bonds - witness signatures
JUDICIAL BONDS - Surety Bond Types
> Court Bonds
> Bail Bonds
> Court Bonds - permit someone to seek a remedy in a court of equity; the party seeking the remedy is the principal, and party against whom the action is taken is the obligee
Bail Bond - guarantees the person will appear in court @ the designated time and place
