Lesson 7 - Crime Insurance/ Bonds Flashcards
Fraudulent act that involves unlawfully taking property/money from another by someone who has been entrusted with property
Embezzlement
Occurs during period of time when there was access to area where stolen property was located
Larceny
Where intruder steals property from within premises while leaving visible marks of forced entry/exit
Burglary
Dishonest taking of property involving face-to-face confrontation between robber & victim
Robbery
Taking of property without owner’s consent where individuals have not been confronted or no visible signs of forced entry
Theft
Falsification of one’s signature by another to illegally obtain property or money
Forgery
Person in care/custody of insured property within premises
Custodian
Person in care/custody authorized to have care/custody of insured property outside the premises
Messenger
Involves illegally obtaining money/property as a result of a threat to cause bodily harm to any person or damage to any property
Extortion (face-to-face confrontation need not be present as in the case of robbery)
Value as the close of business on the day the loss is discovered
Securities
The two types of commercial/government crime coverage forms
Discovery forms, loss-sustained forms
Provides two primary types of coverage that involves theft from the premises and theft away from the premises
Broad form personal theft
Provides on premises coverage but only provides up to $1000 for off premises coverage and doesn’t cover loss due to mysterious disappearance
Limited form personal theft
What are the three parties in the bonding process
Surety, principal and obligee
The party who has a duty to perform
Principal also known as the obligor
The party guaranteeing performance by the principal
Surety also known as the indemnitor
The party reimbursed by the surety if the principal fails to perform
Obligee
Faithful performance of a principal guaranteed by surety company to the satisfaction of the obligee
Suretyship
Two classification of bonds
Surety and Fidelity
Bond that guarantees the performance of a duty
Surety bond
Two types of contract bonds
Bid bond and performance bond
Different surety bonds
Contract bond
Judicial bond
Public official bond
License and permit bond
Two types of judicial bonds
Fiduciary bond and court bond
Different fidelity bonds
Individual bonds
Schedule bonds
Blanket bonds
Two most common forms of blanket bonds
Commercial blanket bonds
Blanket position bonds
