Unit 16: Crime Insurance

Question 1

Burglary

Answer 1

the taking of property from inside the premises

visible evidence of forced entry or exit

Question 2

Safe Burglary

Answer 2

the taking of property from within a locked safe

visible evidence of forced entry

includes the taking of the entire safe

Question 3

Robbery

Answer 3

the unlawful taking of property from another

violence or threat of violence

Question 4

Theft

Answer 4

the unlawful taking of property

includes burglary, safe burglary, and robbery

Question 5

Forgery

Answer 5

signing the name of another person or organization with the intent to deceive

Question 6

Mysterious Disappearance

Answer 6

the property is gone with no explanation

Question 7

Custodian

Answer 7

someone who has care or custody of property inside the premises

includes the insured, the insured’s partners, or any employee

does not include watchperson or janitor

Question 8

Messenger

Answer 8

someone who has care and custody of property while it is outside the premises

can include the insured, a relative of the insured, the insured’s partners or members, or any emplyee

Question 9

Watchperson

Answer 9

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

Question 10

Loss Sustained Form

Answer 10

occurs and is discovered during the policy period or within 1 year of expiration

Question 11

Discovery Form

Answer 11

occurs at any time and is discovered during the policy or within 60 days of expiration

Question 12

Employee Theft Form

Answer 12

pays for loss resulting from wrongdoing of employee

Question 13

Forgery or Alteration Coverage Form

Answer 13

checks, drafts, and notes; worldwide coverage

Question 14

Inside the Premises Coverage Form

Answer 14

loss of other property while inside

loss of property from a safe

inside only, also covers damage to a building

Question 15

Outside the Premises Coverage Form

Answer 15

theft, disappearance, or destruction

money and securities; custody of a messenger or armored car company

Question 16

Computer Fraud Coverage Form

Answer 16

• money and securities
• other property
• internal acts of fraud transmitted to external sources

Question 17

Computer and Funds Transfer Fraud Coverage Form

Answer 17

fraudulent transfer of money

Question 18

Extortion - commercial entities Coverage Form

Answer 18

loss of money and other properties

threat of bodily harm to insured employees

Question 19

Guests’ property Coverage Form

Answer 19

hotel guests money and other property

Question 20

Guests

Question 21

Parties to a Bond

Answer 21

• principal: makes the promise
• obligee: party to whom the promise is made
• surety: party who promises to pay if promise is broker; penalty

Question 22

Bid bonds

Answer 22

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

Question 23

Performance bonds

Answer 23

guarantee that the contractor will complete the work as written in the contract, saving the obligee from financial loss if the contractor doesn’t’ finish the project

Question 24

Payment bonds

Answer 24

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

Question 25

Supply bonds

Answer 25

guarantee materials will be available at an agreed upon price and time

Question 26

Judicial bonds

Answer 26

Fiduciary bonds and court bond

Question 27

Fiduciary bond

Answer 27

required for individuals who manage the affairs and assets for another person

Question 28

Court bond

Answer 28

used to settle legal arguments that do not involve monetary damages

Question 29

Public official bond

Answer 29

perform duties honestly and faithfully

Question 30

License and permit bonds

Answer 30

will comply with laws governing the license or permit

Question 31

Fidelity bonds

Answer 31

• employee honesty
• name schedule
• position schedule
• commercial blanket
• blanket position