CH 10

D

A Community College is insured under a Crime Coverage - Inside Premises - Robbery or Safe Burglary of Other Property Form. Which one of the following amounts will not be paid if the amount of coverage is $30,000? Choose one answer. a. $1,000 damage to the building after the thieves broke into the Dean`s office b. $15,000 damage to a locked safe, which was broken into c. None of the above are covered d. $2,000 in money taken from a vault

D

Name 3 ways in which employee theft coverage may be written. Choose one answer. a. "Named perils", basic coverage, limited perils b. "All risk", special coverage, or open perils c. All of the answers are correct d. Scheduled persons coverage, scheduled position coverage, blanket coverage

A

Coverage for Computer Fraud is purchased by the insured. Which one of the following amounts will not be paid if the amount of coverage is $50,000? Choose one answer. a. A $10,000 loss to the computer b. A computer was used to transfer $10,000 from the bank account of the insured c. A computer was used to fraudulently transport $25,000 in money to England d. A computer was used to transfer $15,000 from the company account to an employee`s account

B

Explain the "Computer Fraud" agreement of a Crime Insurance Policy. Choose one answer. a. Covers all types of property, when surrendered away from the premises as result of a threat to do bodily harm to the insured or an employee, or to a relative or invitee of either, who is (or allegedly is) being held captive. b. Insuring agreement will pay for the loss of or damage to money, securities and other property resulting from using a computer to fraudulently transport property from inside the insured's premises (or its banking premises) to a person or place outside. c. Pays for loss resulting from having accepted counterfeit currency or money orders in good faith in exchange for merchandise, money or securities, including money orders and counterfeit paper currency from any country. d. Offers coverage for non-owned property for which the insured is legally liable while the property is on the premises of the insured's client.

B

Define the discovery coverage forms. Choose one answer. a. Any loss discovered during the policy period or within 30 days after its expiration is covered regardless of when it occurred. b. Any loss discovered during the policy period or within 60 days after its expiration is covered regardless of when it occurred. c. Only losses that both occurred and were discovered during the policy period are covered d. Only losses that both occurred and were discovered during the policy period or within one year of its expiration are covered (including losses that occurred under (expired) policies as long as coverage had not been interruption)

D

Define the loss sustained crime coverage forms. Choose one answer. a. Any loss discovered during the policy period or within 60 days after its expiration is covered regardless of when it occurred. b. Any loss discovered during the policy period or within 30 days after its expiration is covered regardless of when it occurred. c. Only losses that both occurred and were discovered during the policy period are covered d. Only losses that both occurred and were discovered during the policy period or within one year of its expiration are covered (including losses that occurred under (expired) policies as long as coverage had not been interruption)

D

Explain the "Money Orders And Counterfeit Paper Currency" agreement of the Crime Insurance Policy. Choose one answer. a. Covers all types of property, when surrendered away from the premises as result of a threat to do bodily harm to the insured or an employee, or to a relative or invitee of either, who is (or allegedly is) being held captive. b. Insuring agreement will pay for the loss of or damage to money, securities and other property resulting from using a computer to fraudulently transport property from inside the insured's premises (or its banking premises) to a person or place outside. c. Offers coverage for non-owned property for which the insured is legally liable while the property is on the premises of the insured's client. Designed to cover loss due to the fraudulent transfer of funds through the use of a telephone or fax machine. d. Pays for loss resulting from having accepted counterfeit currency or money orders in good faith in exchange for merchandise, money or securities, including money orders and counterfeit paper currency from any country.

D

Explain the "Other Insurance Provision" of a Crime Insurance Policy. Choose one answer. a. All of the answers are correct b. Policy is pro rata with any other recoverable insurance c. Policy is primary over any other recoverable insurance d. Policy is excess over any other recoverable insurance

D

Explain the endorsement for "Clients' Property" in the Crime Insurance Policy. Choose one answer. a. Coverage for loss by forgery or alteration of negotiable instruments, such as checks, drafts, promissory notes or similar instruments calling for payment of a sum certain in money. b. Covers theft, disappearance, or destruction of securities, and burglary or robbery of property other than money or securities, all from within designated places of such depository. c. Designed to cover loss due to the fraudulent transfer of funds through the use of a telephone or fax machine. d. Offers coverage for non-owned property for which the insured is legally liable while the property is on the premises of the insured's client.

B

Explain the endorsement for "Extortion" in the Crime Insurance Policy. Choose one answer. a. Coverage for loss by forgery or alteration of negotiable instruments, such as checks, drafts, promissory notes or similar instruments calling for payment of a sum certain in money. b. Covers all types of property, when surrendered away from the premises as result of a threat to do bodily harm to the insured or an employee, or to a relative or invitee of either, who is (or allegedly is) being held captive. c. Designed to cover loss due to the fraudulent transfer of funds through the use of a telephone or fax machine. d. Offers coverage for non-owned property for which the insured is legally liable while the property is on the premises of the insured's client.

C

Explain the endorsement for "Funds Transfer Fraud" in the Crime Insurance Policy. Choose one answer. a. Coverage for loss by forgery or alteration of negotiable instruments, such as checks, drafts, promissory notes or similar instruments calling for payment of a sum certain in money. b. Covers theft, disappearance, or destruction of securities, and burglary or robbery of property other than money or securities, all from within designated places of such depository. c. Designed to cover loss due to the fraudulent transfer of funds through the use of a telephone or fax machine. d. Offers coverage for non-owned property for which the insured is legally liable while the property is on the premises of the insured's client.

D

Explain the endorsement for "Lessees of Safe Deposit Boxes" in the Crime Insurance Policy. Choose one answer. a. Coverage for loss by forgery or alteration of negotiable instruments, such as checks, drafts, promissory notes or similar instruments calling for payment of a sum certain in money. b. Loss of damage to money, securities, and other property resulting from theft committed by an employee, or the unlawful taking of money, securities or other property to the deprivation of the insured. c. Offers coverage for non-owned property for which the insured is legally liable while the property is on the premises of the insured's client. d. Covers theft, disappearance, or destruction of securities, and burglary or robbery of property other than money or securities, all from within designated places of such depository.

C

Explain the insuring agreement for "Employee Theft" in the Crime Insurance Policy. Choose one answer. a. Coverage for loss by forgery or alteration of negotiable instruments, such as checks, drafts, promissory notes or similar instruments calling for payment of a sum certain in money. b. Covers theft, disappearance, or destruction of securities; and burglary or robbery of property other than money or securities, all from within designated places of such depository. c. Loss or damage to money, securities, and other property resulting from theft committed by an employee or the unlawful taking of money, securities or other property to the deprivation of the insured. d. Offers coverage for non-owned property for which the insured is legally liable while the property is on the premises of the insured's client.

A

Explain the insuring agreement for "Forgery Or Alteration" in the Crime Insurance Policy. Choose one answer. a. Coverage for loss by forgery or alteration of negotiable instruments, such as checks, drafts, promissory notes or similar instruments calling for payment of a sum certain in money. b. Covers theft, disappearance, or destruction of securities; and burglary or robbery of property other than money or securities, all from within designated places of such depository. c. Offers coverage for non-owned property for which the insured is legally liable while the property is on the premises of the insured's client. d. Designed to cover loss due to the fraudulent transfer of funds through the use of a telephone or fax machine.

C

The insured has Crime Coverage - Employee Theft - in the amount of $100,000 on a Blanket Form. Three employees working in collusion manage to hide $400,000 in money, securities, and other property in some old storage boxes. A fourth employee carried the boxes by truck to a storage warehouse and helps the first three employees unload and steal the loot. The insurer`s position will be: Choose one answer. a. Denies claim b. Pays entire claim of $500,000. c. Pays $100,000 since this is the limit per loss regardless of the number of employees involved d. Pays $300,000. - $100,000 each for three employees involved in actual theft

B

The insured purchased $25,000 Extortion coverage. Which of the following losses will the insurer pay? Choose one answer. a. A customer is being held captive b. All of the answers are correct c. An employee is being held captive d. The company's president`s son is being held captive

A

Under the general provisions of the Crime Policy, which of the following valuations is incorrect? Choose one answer. a. Other property is valued at Replacement Cost at the time the loss is discovered b. Money is valued at Face Value c. Securities are valued at the time the loss is discovered d. Other property is valued at the lesser of actual replacement cost or the cost to repair

B

What does the Inside The Premises-Robbery Or Safe Burglary Of Other Property coverage include? Choose one answer. a. Loss of money and securities outside the premises in the care, custody and control of a messenger or armored car service resulting from theft, disappearance or destruction, as well as robbery of other property under the same circumstances. b. Loss of or damage to property other than money and securities from inside the premises resulting from an actual or attempted robbery of a "custodian" (defined to mean you, your partners or an "employee", but does not include leased employees) c. Named insured's legal liability of the customers' property from a safe depository; perils covered include burglary, robbery, destruction or damage d. Theft, disappearance, or destruction of securities, which have been deposited with a custodian, such as a banker or stockbroker

D

What does the Inside The Premises-Theft of Money and Securities coverage include? Choose one answer. a. Loss of money and securities outside the premises in the care, custody and control of a messenger or armored car service resulting from theft, disappearance or destruction, as well as robbery of other property under the same circumstances. b. Loss of or damage to property other than money and securities from inside the premises resulting from an actual or attempted robbery of a "custodian" (defined to mean you, your partners or an "employee", but does not include leased employees. c. Theft, disappearance, or destruction of securities, which have been deposited with a custodian, such as a banker or stockbroker. d. Loss of money and securities resulting from theft, disappearance, or destruction as well as damage to the premises if the insured is the owner or liable for the damage.

A

What does the Outside The Premises agreement include? Choose one answer. a. Loss of money and securities outside the premises in the care, custody and control of a messenger or armored car service resulting from theft, disappearance or destruction, as well as robbery of other property under the same circumstances. b. Loss of or damage to property other than money and securities from inside the premises resulting from an actual or attempted robbery of a "custodian" (defined to mean you, your partners or an "employee", but does not include leased employees.) c. Named insured's legal liability of the customers' property from a safe depository; perils covered include burglary, robbery, destruction or damage. d. Theft, disappearance, or destruction of securities, which have been deposited with a custodian, such as a banker or stockbroker.

D

What does the endorsement Safe Depository include? Choose one answer. a. Loss of or damage to property other than money and securities from inside the premises resulting from an actual or attempted robbery of a "custodian" (defined to mean you, your partners or an "employee", but does not include leased employees). b. Named insured's legal liability for guest's property while in a safe deposit box or while the property is inside the premises or in the named insured's possession. c. Theft, disappearance, or destruction of securities, which have been deposited with a custodian, such as a banker or stockbroker d. Named insured's legal liability of the customers' property from a safe depository; perils covered include burglary, robbery, destruction or damage

C

What does the endorsement Securities Deposited With Others include? Choose one answer. a. Loss of or damage to property other than money and securities from inside the premises resulting from an actual or attempted robbery of a "custodian" (defined to mean you, your partners or an "employee", but does not include leased employees). b. Named insured's legal liability for guest's property while in a safe deposit box or while the property is inside the premises or in the named insured's possession. c. Theft, disappearance, or destruction of securities, which have been deposited with a custodian, such as a banker or stockbroker d. Named insured's legal liability of the customers' property from a safe depository; perils covered include burglary, robbery, destruction or damage

A

Which coverages are covered under employee theft coverage? Choose one answer. a. All of the answers are correct b. Loss of or damage to money resulting from theft committed by an employee c. Loss of or damage to other property resulting from theft committed by an employee d. Loss of or damage to securities resulting from theft committed by an employee

C

Which of the following are not covered under the Inside The Premises-Robbery Or Safe Burglary Of Other Property coverage? Choose one answer. a. Accounting errors b. Giving of surrendering of property in any exchange or purchase, or voluntarily parting with title to or possession of any property c. None of the above are covered d. Fire or vandalism damage to the premises

C

Which of the following are not covered under the Inside The Premises-Theft of Money and Securities coverage? Choose one answer. a. Accounting errors b. Giving of surrendering of property in any exchange or purchase, or voluntarily parting with title to or possession of any property c. None of the above are covered d. Fire damage to the premises

D

Which of the following are not covered under the Outside The Premises agreement? Choose one answer. a. Accounting errors b. Fire or vandalism damage to the premises c. Giving of surrendering of property in any exchange or purchase, or voluntarily parting with title to or possession of any property d. None of the above are covered

B

Which of the following are not covered under the employee theft coverage? Choose one answer. a. Loss caused by any employee after discovery by the named insured of any dishonest act committed by the employee, whether before or after employment by the insured b. None of the above are covered c. Loss caused by any employee for whom similar prior insurance has been canceled and not later reinstated. d. There is no coverage for a loss if the proof is dependent upon inventory shortage or a profit and loss computation

A

Which of the following is a general exclusion under the Commercial Crime? Choose one answer. a. Acts committed by the named insured or its partners and members, or by its employees, directors, trustees, or representatives (except under employee theft coverage) b. Both of the answers are correct c. Loss from voluntary parting of property through trick and device d. None of the answers are correct