M93 - Chapter 7

Question 1

Two types of All Risks Cover?

Answer 1

Property All Risks Cover (In Premises) - Covers buildings, contents and stock in premises for all contingencies, theft and accidental damage

Business All Risks Cover - Covers office machinery that needs specific cover, EG Vending machines, laptops and extends to out of office.

Question 2

5 Causes an insurer will not cover? (There are lots more)

Answer 2

Trade risks
Fraud
Property in open (for weather)
Consequential loss (Except rent)
Property covered by other contingencies (money etc,)

Question 3

Causes Insurers will cover after consideration?

Answer 3

Inventory shortages
Empty property, malicious damage & freezing pipes, escape of water etc.
Theft from the open

Question 4

Causes that can be ‘bought back’

Answer 4

Fraud/dishonest employees
Unfixed sanitary wear and glass
Land, bridge and civil works
Crops & Trees

Question 5

4 Territories that all risk can be covered in?

Answer 5

In premises
UK
Europe
Rest of world

Question 6

Simple money definition

Answer 6

Negotiable and non-negotiable money belonging to the insured or that the insured is responsible for

Question 7

Will claims be paid for money held by a security company?

Answer 7

Only if the insured is unable to recover it from the security company in the event of a loss

Question 8

(Transit insurance) what is an ‘escort warranty’

Answer 8

A warranty stating the conditions in which money should be transferred EG Number of able-bodied persons

Question 9

What is Free on board (FOB) condition

Answer 9

A terms that states the supplier is responsible to insure the items until they are onboarded onto the delivery vessel, at which point the customer needs to insure. As long as onboarded within 30 days of dispatch & within territorial limits.

Question 10

What does Theft cover extend too

Answer 10

Buildings, stock and contents + the damage caused by thieves.

Limited to - The sum insured of the item, the total sum insured or a specific limit agreed.

Question 11

Three theft extensions you might trip up on!

Answer 11

Collusion - Directors in on the game, can be considered for certain risks.

Secretion - Theft without forcible entry/exit (inside job)

Full cover - Still excludes collusion, higher excesses, more premium etc.

Question 12

Difference between money and fidelity cover in respect to dishonest employees?

Answer 12

Money - Will excludes losses not discovered within a certain period (1 - 7 days)

Fidelity - Covers losses built over many years

Question 13

What does fidelity cover headers include?

Answer 13

Stock
Machinery
Money
Work in progress

Question 14

Fidelity cover - how long is the ‘discovery period’

Answer 14

24 months after end of policy

Question 15

Typical exclusions of a fidelity policy

Answer 15

Consequential loss
Unexplained stock shortage
Loss of interest
Loss of confidential information
Losses outside geo limits

Question 16

Fidelity extensions to pay for

Answer 16

Professional fees - Associated with investigating the loss
Labour costs to restore data stolen
Losses from fraudulent cheques/BACS (high excess)

Question 17

4 types of fidelity policy

Answer 17

Individual person
Collective people, name and un-named (will list position)
Blanket
Position, based solely on the position, used in government

Policies will be on a aggregate (floating) basis

Question 18

A ‘Crime’ policy covers and has a discovery period of?

Answer 18

Covers loss of damages where employees are involved with crime and EXTENDS cover for include Directors, contractors, solicitors etc.

Discovery period is only 15 days, 12 months for an additional 75% premium,

Question 19

Exclusions insurers will allow buy backs

Answer 19

Subsidence 
Theft
Fixed glass
Fraud and dishonesty
Crops and land

Question 20

Standard money covers amounts in schedule

Answer 20

Cheques, bankers drafts and other non-negotiables - 250k
On premises OOO (not if safe) £250
At employee home £500
Unspecified safe: 2.5k
Bank night safe or business hours: 5k
Any other loss: 5k

Question 21

Maximum amount payable under theft for all property owned and responsible for

Answer 21

Limit stated for each item
Total sum insured or
Any other max, or limit stated on schedule

Question 22

Money policies exclude theft by employees unless discovered within

Answer 22

1 to 7 days.

Question 23

For cheque forgery and funds transfer/computer money theft, was it a typical excess?

Answer 23

£5000