4 Crime Insurance

file a proof of loss form

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

Mysterious Disappearance

"Theft" includes all of the following EXCEPT: a. shoplifting b. burglary c. robbery d. mysterious disappearance

cash stolen from the business

A Money and Securities policy covers: a. theft of merchandise by an employee b. embezzlement by an employee c. cash stolen from the business d. theft of merchandise by a customer

A company's money disappears

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

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.

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

$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."

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

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.

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

Mysterious Disappearance

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

The damage plus the computer

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 vandalism and the cash b. The cash only c. The damage plus the computer d. The damage plus the computer plus the stock certificates

burglary

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

damage to the safe during 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

stolen from a corporate board member.

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

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.

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.

Employee Dishonesty Form

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

fidelity bond

Employee theft of goods is covered by: a. premises burglary b. fidelity bond

theft There is no sign of damage from breaking in, or breaking out, so this would be an example of theft.

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. robbery c. theft d. mysterious disappearance

Mysterious Disappearance

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

taking property from a person by threat of violence

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

A stolen safe.

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

robbery

Taking property by force or threat of violence is: a. burglary b. robbery c. theft d. mysterious disappearance

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 which of the following? a. a burglary where a large amount of cash is stolen b. employee theft of goods from the business c. theft from a vehicle d. damage to the building caused by the burglary

damage to the building resulting from a burglary.

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 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: a. employee theft b. theft from a trailer attached to the building c. damage to the property by a fire started by the burglar d. damage to a wood door during the burglary

there is visible damage to the safe

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

Felonious abstraction

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

Embezzlement

The definition of theft includes: a. Embezzlement b. Mysterious disappearance

Declarations

The section of the Employee Theft form which specifies the amount of the coverage is the: a. insuring agreement b. definitions c. declarations d. conditions

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

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

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

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

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."

Which of the following is considered to be a "custodian" under a commercial crime policy? a. owner, partner, employee, or manager b. customer c. janitor d. watchperson

Inside the Premises - Theft of Money and Securities

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

Watch person

Which will deter burglary losses? a. workers compensation insurance b. a watch person c. a crime insurance policy d. a bonded employee