Unit 10 Crime

What is the policy limit for Inside the Premises Robbery or Safe Burglary of Other Property for articles attaining value - precious metals, precious or semiprecious stones, pearls or furs?

$5,000

What is the deductible under Employee Theft

$500

What is the special limit for Computer Fraud?

$5000 per occurrence for precious metals, precious or semi precious stones, pearls, first, manuscripts, drawing or records.

Which of the following statements is TRUE of a Discovery Policy?

A retroactive date may be established to limit losses occurring prior to the policy

Name some exclusions to Inside the Premises - Theft of Money and Securities

Accounting errors; giving, surrendering, voluntary parting of title of any property; fire damage to premises; vandalism damage; loss of property contained in money operated devices; extortion

Name some exclusions to Inside the Premises -Robbery or Safe Burglary of Other Property

Accounting errors; giving, surrendering, voluntary parting of title of any property; fire, except damage to say for vault; vandalism; transferring property to someone based on unauthorized instructions or threat to harm others;

List the six exclusions found under the General Exclusions under Commercial Crime Forms

Acts committed by name insured, partners, members, employees, directors, trustees, or representatives; governmental action; indirect loss; legal expenses; nuclear losses; war

What is the time frame for losses to be discovered under discovery

Any loss discovered during the policy period or within 60 days after its expiration is covered regardless of when it occurred

What does other property mean

Any tangible property other than money insecurities that has intrinsic value not otherwise excluded

Securities

Are negotiable and not negotiable instruments or contracts representing money or property

Which one of the following perils is covered by the inside the premises--robbery or safe burglary?

Burglary of a manager while a store is closed

Name examples of Forgery or Alteration

Checks, drafts, promissory notes

As an agent which endorsement should you add to a basic crime policy to cover non-owned property which the insured is legally liable for and is on the insured client's premises?

Client's Property

What does the Lessees of Safe Deposit Boxes endorsement cover?

Cover Saft, disappearance, or destruction of security; burglary robbery of other property from within places of safety depository

What does the Securities Deposited with Others endorsement cover?

Cover staffed, disappearance, or destruction of securities, which have been deposited with a custodian, such as a bank or stockbroker

A hotel has added a guests' property endorsement to its commercial crime coverage form. A guest at the hotel removes her jewelry and leaves it wrapped in a towel at the front desk while she uses some exercise equipment. When she finishes her workout, the jewelry is gone. The policy provides for which of the following?

Coverage for guests' jewelry in the amount shown on the declarations page

What will Computer Fraud pay for?

Covers a loss of or damage to money, securities, and other property resulting from using a computer to fraudulently transport property from inside the insurance premise or banking to a person or place outside of premise, which encompass anywhere in the world

What does the Guest's Property endorsement cover?

Covers a name insurance legal liability for gas property while in a safe deposit box or while the property is inside the premises or in the named insured's possession

What does the Safe Depository endorsement cover?

Covers a named insured's legal liability if it is the safe depository for customers property. Includes burglary, robbery, destruction or damage

Which of these statements is true of a Discovery Policy?

Covers any loss, regardless of when it occurs as long as it is "discovered" while the policy is in effect or within 60 days after the policy's expiration (except losses dealing with employee benefit plans where the discovery must be made within 1 year after the policy's expiration).

What does the Extortions endorsement cover?

Covers for all types of property when surrounded away from the premises as a result of a threat to do bodily harm to the insured or employee, or to a relative or invitee of either, who is or allegedly is being held captive. Also triggered by threats to damage the property within the premises

What does the Funds Transfer Fraud endorsement cover?

Covers loss due to fraudulent transfer of funds through the use of telephone or fax machine

What does Inside the Premises - Theft of Money and Securities cover?

Covers loss from within the insured's building or within a banking premise or similar place of safe depository

What does Inside the Premises -Robbery or Safe Burglary of Other Property cover

Covers loss or damage to property other than money insecurities from inside the premises resulting from a robbery of a custodian. Damage to premises, lock saved or vault is also provided

What does Money Orders and Counterfeit Paper Currency pay for?

Covers loss resulting from having excepted counterfeit currency or money orders in good faith and exchange for merchandise, money or securities. This includes money from any other country

Which is true concerning a Loss Sustained Policy?

Covers losses sustained and discovered during the policy period.

What does the Client's Property endorsement cover?

Covers non-owned property for which the insured is legally liable why the property is on the premises of the insured's clients

The endorsement for Inside the Premises Theft of Money or Securities covers the loss of which of the following?

Currency, coin, bank notes; Travelers' checks and Money orders; Securities--Negotiable or non-negotiable instruments that represent money or property

Who has the care, custody, and control CCC of property inside the premises

Custodian

Money

Defined as currency, coin, bank notes, travelers checks, and money orders

What are the two forms that crime coverage may be written on

Discovery; loss sustained

What is one of the key coverages provided in a Commercial Crime Policy

Employee Dishonesty

Which of the following insuring agreements of the commercial crime coverage form would best protect an insured from losses caused by an employee's deceit?

Employee Theft

What are the seven primary insuring agreements in the basic Commercial Crime Coverage form?

Employee Theft; Forgery or Alterations; Inside the Premises - Theft of Money and Securities; Inside the Premises - Robbery or safe Burglary of Other Property; Outside the Premises; Computer Fraud; Money Orders and Counterfeit Paper Currency

Name the additional insuring agreements available by endorsement?

Extortion; Client's Property; Funds Transfer Fraud; Lessees of Safe Deposit; Securities Deposited With Others; Safe Depository; Guest's Property

Employee Theft Coverage also includes

Forgery

Loss Sustained Form

Form that covers only losses that both occurred and were discovered during the policy period or within one year of its expiration. Will also cover losses that occurred under previous crime policies that have expired or were discovered during the current policy year, as long as the coverage I continue without interruption at the time of loss

Discovery Form

Form that states any laws discovered during the policy period or within 60 days after it's expiration Regardless when it occurred. Retroactive date may be established to limit exposure for the insured

What are the additional exclusions found under Computer Fraud?

Inventory Shortage

What does safe burglary mean

Is it taking or attempted taking a property from within a lock safe or vault by unlawful entry, with visible marks of forcible entry or taking of the safe or vaults from inside the premises

What is the definition of theft

Is the unlawful taking of money, securities, or other property to the deprivation of the insured

What is the definition of custodian

Is you, your partners, or an employee but not least employees

What property is covered under Outside the Premises

It covers loss of money and securities outside the premises in the CCC of a messenger or armored car service resulting from theft, disappearance, or destruction. Also includes Roberty of other property under same circumstances

Which of the following endorsements can be added to basic crime coverage?

Lessees of Safe Deposit Boxes - Theft from within a designated safe depository; Funds Transfer Fraud - The fraudulent transfer funds by electronic means; Extortion - Covers all types of property when surrendered under threat of bodily harm to an insured, an employee, or relative or invitee of either when held captive

As an agent in which of these ways are you NOT permitted to write Employee Theft coverage?

Limited coverage

The Commercial Property Causes of Loss- Special Form excludes what coverages

Loss from employee dishonesty; voluntary parting With property through trick and device; limits coverage for property of others and property away from insured premises

Which of the following does the inside the premises-theft of money and securities agreement insure?

Loss of Money from Theft

What Is the exception to loss sustained coverage

Loss sustain forms will also cover losses that occurred under previous crime policies in that were discovered during the current policy year, as long as crime coverage Had continued without interruption from the time of the loss

These endorsements are all risk coverage but excludes the following

Lost due to fire; last year spilling a food beverage; loss resulting from insects, animals; loss resulting from where in tear; loss resulting from base; in care custody and control and named insured for laundering or cleaning

Who has the care, custody, and control CCC of property outside the premises

Messenger

Valuation

Money is valued at face value, securities at their value on the day losses discovered, and other property at replacement cost or cost to repair

The Commercial Property Building and Property Coverage Form Excludes or limits coverage for what property?

Money; security; evidence of death; jewelry; precious metals; first; patterns in laws; stamps and tickets

In the Employee Theft Coverage does the employee have to be identified

No

Under Employee Theft, what the Schedule Excess Limit of Insurance for Specified Employees or Positions covers

One limit may apply as a general blanket or scheduled limit, and excess amounts over such limit may be applied to name persons or all persons occupying particular positions

What does Forgery or Alteration Cover

Provides coverage for loss by forgery or alteration of negotiable instruments

Employee Theft Coverage can be written in three different ways name them

Scheduled person; schedule blanket coverage

Which crime policy endorsement covers theft, disappearance, or destruction of securities when deposited with a custodian?

Securities Deposited With Others

Forgery Coverage does not include what

The insured, its partners, directors, trustees, members, or employees

Which of these statements are TRUE regarding Employee Theft coverage?

The limit is written as "all loss"; An Add Schedule Excess Limit Endorsement is available; The insurer may cancel coverage of any employee with 30 days' written notice to the insured

What are the three Crime and Employee Dishonesty coverages

Theft; burglary; robbery

Name some examples of securities

Tokens, tickets, credit or charge card receipt

When can coverage be canceled under Employee Theft

Upon discovery of any dishonest at committed by the employee; 30 days written notice

What property is covered under Employee Theft?

provides Coverage for loss or damage to money, securities, and other property resulting from theft by employee