Unit 16

Question 1

taking or attempted taking of property; evidence of forceable entry or exit

Answer 1

burglary

Question 2

taking of property from a locked safe or vault

Answer 2

safe burglary

Question 3

unlawful taking taking of property from the care and custody of another person
- must have caused threat or caused bodily harm

Answer 3

robbery

Question 4

unlawful taking of property
-broad term (includes all) and shoplifting

Answer 4

theft

Question 5

signing the name of another person with intent to deceive

Answer 5

forgery

Question 6

property of the insured has vanished
-only definition that does not involve theft

Answer 6

mysterious disappearance

Question 7

someone who has care or custody of property INSIDE the premises
-insured, insured’s partners or members, or any employee

Answer 7

custodian

Question 8

someone who has care or custody of property OUTSIDE the premises
-insured, relative of the insured, insured’s partners or members, or any employee
-does not include janitor or watchperson

Answer 8

messenger

Question 9

someone retained specifically by the insured whose sole duty is to have care and custody of property inside the premises

Answer 9

watchperson

Question 10

covers business if employee commits crime

Answer 10

employee theft

Question 11

theft of money and securities
-coverage for theft and disappearance inside the premises

Answer 11

Inside the premises - theft of money and securities

Question 12

2 coverages:
- loss of other property while inside
-loss of property from a safe

–also covers damage of building

Answer 12

Inside the premises - robbery or safe burglary of other property

Question 13

2 types of coverages:
-theft, disappearance, or destruction of money and securities while outside premises and in care of messenger
-loss of other property outside premises by actual or attempted robbery and in care of messenger or armored car

Answer 13

outside the premises

Question 14

covers loss of:
-damage to money and securities
-other property
-internal acts of fraud transmitted to external sources

Answer 14

computer fraud

Question 15

covers losses when insured accepts invalid money in good faith

Answer 15

money orders and counterfeit money

Question 16

surrender of property as a result of threat of bodily harm to insured

Answer 16

extortion

Question 17

covers money, securities and other property owned by hotel guests while:
-on the insured’s premises
-in the insured’s possession
-in the safe-deposit box on isnured’s premises

Answer 17

guest’s property

Question 18

party who promises to do (or not do) a specific thing

Answer 18

principal

Question 19

the party (insurance company) who is fiscally responsible (pays the penalty) if the principal defaults on the bond

Answer 19

surety

Question 20

the party to whom the principal makes the promise, and for whose protection the bond is being written

Answer 20

obligee

Question 21

surety promises to pay if principal defaults on obligation

Answer 21

surety bonds

Question 22

guarantee the fulfillment of contractual obligations
-contractor is principal who makes the promise to obligee

Answer 22

contract bonds

Question 23

awarded to the lowest bidder and guarantee that if contractor’s bid is accepted, contractor will enter contract at price quoted

Answer 23

bid bond

Question 24

guarantee that the contractor will complete the work as written in contract

Answer 24

performance bond

Question 25

guarantee the contractor will pay supplier and subcontractors to keep project free of liens

Answer 25

payment bonds

Question 26

guarantee materials will be available at agree price and time

Answer 26

supply bond

Question 27

guarantee an employee’s honest discharge of duty are written to protect obligee against dishonest acts by an employee

Answer 27

fidelity bonds