Chp 20 Crime Insurance (CPP)

A building insured under a Premises Burglary policy suffers a loss of $350 cash, $2,000 'stock', and $10,000 lost profits due to a closure caused by the burglary. The Premises Burglary policy will pay: A. $350 B. $2,000 C. $10,000 D. $12,350

$2,000 To cover theft of money, we need a TDD (Theft, Disappearance, and Destruction Policy), also known as an Inside the Premises, Theft of Money and Securities Policy. The lost profits would be covered by a Business Interruption Business Income Policy. So, we will cover the theft of stock. Under insurance concepts, stock refers to inventory. If the policy is referring to stock certificates, it will use the term "securities."

Theft, Disappearance and Destruction form covers: A. A company's money disappears. B. A company's stock plummets in value.

A company's money disappears.

Safe burglary covers: A. $300 cash stolen by an employee when breaking into the safe. B. A stolen safe.

A stolen safe.

Which is a burglary? A. A customer steals a watch from an open display counter. B. A thief breaks down a door after business hours and steals goods.

A thief breaks down a door after business hours and steals goods.

The definition of theft includes: A. Embezzlement B. Mysterious disappearance

Embezzlement

Employee embezzlement of money is covered by: A. Theft, disappearance and destruction B. Employee Dishonesty Form

Employee Dishonesty Form

The definition of a robbery includes: A. Breaking and entering B. Felonious abstraction

Felonious abstraction

Which policy covers the firm's bank deposits stolen from the accountant's office at night? A. Inside the Premises - Robbery or Burglary of Other Property Form B. Inside the Premises - Theft of Money and Securities

Inside the Premises - Theft of Money and Securities

A Theft, Disappearance and Destruction policy sold to the owner of a car wash business covers: A. A bank erroneously balances the Insured's checking account. B. An employee who steals money from a bank deposit bag. C. Money that is mysteriously missing from the business. D. Money stolen from a change machine.

Money that is mysteriously missing from the business. The old "Theft, Disappearance and Destruction Form," now called the Inside the Premises - Theft of Money and Securities excludes money stolen from a vending machine, excludes employee theft, and excludes arithmetical errors. So, it will cover the mysterious disappearance of money or securities.

Employee Dishonesty covers: A. Disappearance of inventory which can be proven only by a profit and loss computation. B. Dishonest actions of the insured. C. Disappearance of inventory which can be proven only by an inventory. D. None of the above.

None of the above. The Insurer under an Employee Dishonesty policy wants proof that a loss was actually caused by employee dishonesty. For that reason, the Insurer won't pay claims based merely on an inventory loss or a profit and loss statement. Theft of money by an employee is covered by Employee Dishonesty, but not theft by the Insured.

A commercial building was burglarized. In addition to damaging the building during the breakin, the burglars stole a computer, took cash and stock certificates, and vandalized the premises. The Inside the Premises - Robbery or Burglary of Other Property policy will pay for: A. The damage plus the computer plus the stock certificates B. The damage plus the computer C. The vandalism and the cash D. The cash only

The damage plus the computer

Which is a burglary? A. The door on the building is forced open and property is taken after business hours. B. The clerk is thrown to the ground and money is taken from the clerk's wallet.

The door on the building is forced open and property is taken after business hours.

Which will deter burglary losses? A. workers compensation insurance B. a watch person C. a bonded employee D. a crime insurance policy

a watch person

A locked business is broken into and goods stolen. This is covered as a: A. burglary B. robbery

burglary

A Money and Securities policy covers: A. embezzlement by an employee B. theft of merchandise by a customer C. theft of merchandise by an employee D. cash stolen from the business

cash stolen from the business The Money and Securities policy covers cash stolen from the register. However, it excludes theft by an employee, and doesn't cover merchandise at all.

The Inside the Premises - Robbery or Burglary of Other Property policy covers: A. theft from a trailer attached to the building B. damage to the property by a fire started by the burglar C. employee theft D. damage to a wood door during the burglary

damage to a wood door during the burglary Fire or vandalism caused by the burglar will be covered under the Property Policy. The "Inside the Premises - Robbery or Burglary of Other Property policy" will cover the items stolen as well as the damage from the breakin but will not cover employee theft. We need an Employee Dishonesty Policy (Fidelity Bond) for to cover employee theft.

The Inside the Premises - Robbery or Burglary of Other Property policy covers which of the following? A. damage to the building caused by the burglary B. employee theft of goods from the business C. a burglary where a large amount of cash is stolen D. theft from a vehicle

damage to the building caused by the burglary Employee theft is covered by an Employee Dishonesty Policy or Fidelity Bond. The Inside the Premises - Burglary of Other Property Policy won't cover money (get a TDD for that), and it won't cover theft off premises, such as from a vehicle. So, our correct answer is that damage to the building caused by the burglar will be covered. However, any fire or vandalism would be covered by a property insurance policy, not by the crime policy.

The Inside the Premises - Robbery or Burglary of Other Property policy covers: A. damage to the building resulting from a burglary. B. fire damage to the building resulting from a burglary.

damage to the building resulting from a burglary.

The Inside the Premises - Robbery or Safe Burglary of Other Property form covers: A. damage to the safe during a burglary B. money in the safe

damage to the safe during a burglary

The section of the Employee Theft form which specifies the amount of the coverage is the: A. conditions B. insuring agreement C. definitions D. declarations

declarations

Employee theft of goods is covered by: A. premises burglary B. fidelity bond

fidelity bond

Under a crime policy, the insured who suffers a loss is required to: A. file criminal charges against any suspect B. file a proof of loss form

file a proof of loss form

A burglary policy covers the felonious removal of property: A. from a locked building which is broken into. B. from an unlocked building.

from a locked building which is broken into. The Burglary Policy will only cover a theft (felonious abstraction) from the premises. There are special policies to cover theft away from the premises but the standard Burglary Policy only covers a burglary at the insured premises listed on the dec sheet.

"Theft" includes all of the following EXCEPT: A. shoplifting B. mysterious disappearance C. burglary D. robbery

mysterious disappearance

A business is unable to locate a weed sprayer last used the previous year. This is an example of: A. mysterious disappearance B. theft C. robbery D. burglary

mysterious disappearance

Loss from a business without either a threat or breaking and entering is: A. mysterious disappearance B. robbery

mysterious disappearance

Which of the following is considered to be a "custodian" under a commercial crime policy? A. watchperson B. customer C. janitor D. owner, partner, employee, or manager

owner, partner, employee, or manager A "custodian" is someone authorized to regularly have custody of the goods on premises. The owners, partners, employees, and managers are all custodians. A watchperson or janitor would not be expected to have custody of the goods. If we have a jewelry store, we would be upset to find the janitor, watchperson, or customer with possession of the inventory. This subtle distinction is important in the robbery policy which covers robbery of a "custodian."

Taking property by force or threat of violence is: A. burglary B. mysterious disappearance C. theft D. robbery

robbery Robberies involve threats or violence. Robbery is a type of theft, but robbery is the most specific answer. Burglaries do not involve a threat or violence. The term "theft" includes both robbery and burglary. If I have a "Theft Policy," both robbery and burglary are covered. But If I have only a Robbery Policy or only a Burglary Policy, I have much narrower coverage.

The Inside the Premises -Theft of Money and Securities Form covers money: A. stolen by a corporate official. B. stolen from a corporate board member.

stolen from a corporate board member.

Robbery is: A. taking property from a locked safe B. taking property from a person by threat of violence

taking property from a person by threat of violence

If a criminal hides in the business storeroom until closing, then steals merchandise and leaves through a fire door, this is an example of: A. burglary B. mysterious disappearance C. theft D. robbery

theft There is no sign of damage from breaking in, or breaking out, so this would be an example of theft. Mysterious disappearance is for cash/securities

The Inside the Premises - Robbery or Safe Burglary of Other Property form covers valuables stolen in which situation? A. the safe's combination was written on the back of the safe B. the safe is left open C. a burglar guesses the safe's combination D. there is visible damage to the safe

there is visible damage to the safe