Unit 16 Crime Insurance

Question 1

Types of Crimes

Answer 1

Burglary-Evidence of forcible entry or exit
Safe Burglary-taking of property from a locked safe or vault; it also includes the taking of the entire safe or vault from inside the premises
Robbery-unlawful taking of property from the care and custody of another person; face to face confrontation
Theft unlawful taking of property
Forgery- signing the name of another person or organization with the intent to deceive
Mysterious disappearance- property of the insured which has vanished with no explanation. Theft must be ruled out.

Question 2

Fidelity bonds

Answer 2

Generally cover employee dishonesty and are actually and insurance product.

Question 3

Parties to a bond

Answer 3

Principal-the party who promises to do (or not do) a specific thing (the person or company required to post a bond)
Surety- the party (often the insurance company) who is fiscally responsible (pays the penalty) if the principal defaults on the bond
Obligee- the party to whom the principal makes the promise, and for whose protection the bond is being written.

Question 4

Surety bonds

Answer 4

Promise to pay if the principal defaults on his obligation. The obligee requires the principal to purchase a surety bond.