Chapter 11 - Commercial Crime

Question 1

Define Burglary

Answer 1

Using forcable entry or exit to take somethinng

Question 2

Define Robbery

Answer 2

Using/threatening bodily harm to take something and that person witnessing an unlawful act

Question 3

Define the Messenger

Answer 3

The Insured or any of the Insured’s employees that have care and custody of covered property while outside the premise

Question 4

Define Custodian

Answer 4

The Insured or any of the employees that have care and custody while inside the premise, excluding a janitor or watchperson

Question 5

Define Watchperson

Answer 5

An employee specifically hired for the purpose of caring for covered property inside the premise.

Question 6

How long is someone an employee for regardless of the reason for termination?

Answer 6

30 days

Question 7

What are examples of securities?

Answer 7

Credit Cards, evidences of debt, and anything that represents money - tickets, tokens, food stamps

Question 8

Does the definition of money include evidences of debt?

Answer 8

No

Question 9

What are the two forms crime insurance can be written on?

Answer 9

Loss Sustained Form (similar to occurrence form)
Discovery Form (similar to claims-made form)

Question 10

Define Loss Sustained Form

Answer 10

Claims need to occur during the policy period and can be reported up to one year after the policy expiration

Question 11

Define Discovery Form

Answer 11

Claims need to be discovered during the policy period but do not necessarily need to occur during the policy period. Usually there is a retroactive date

Question 12

What are the two types of commercial enterprises crime policies can be written for?

Answer 12

Commercial Crime Coverage Forms

Government Crime Coverage Forms

Question 13

What is the difference between Commercial Crime Coverage and Government Crime Coverage

Answer 13

Besides the fact one is for private businesses and one is for government entities, government forms have two different loss limits - one for each employee theft loss and one for all losses occurring due to one employee. Commercial just has one limit for all types of employee theft.

Question 14

What are the 8 types of Crime Insuring Agreements (coverages)?

Answer 14

Employee Theft or Dishonesty
Forgery or Alteration
Inside the Premises: Theft of Money and Securities
Inside the Premises: Robbery or Safe Burglary - of other property
Outside the Premises
Computer Fraud
Fund Transfer Fraud
Money Orders and Counterfeit Money

Question 15

Describe Inside the Premises: Theft of Money and Securities

Answer 15

Covers three specific types of losses

1. theft, disappearance, or destruction of money and securities
2. covers damage to insurers premises or exteriors when caused by theft
3. covers loss or damage to locked safe/register

Question 16

Describe Inside the Premises: Robbery or Safe Burglary

Answer 16

Covers most tangible property and robbery of a safe inside the insured’s premises.

Question 17

Describe Outside the Premises Coverage

Answer 17

Insured money and securities in the hands of a messenger or armored car service
Exclusion - motor vehicles, VMM, deception of trickery

Question 18

Describe Computer Fraud Coverage

Answer 18

Provides insurance for acts committed when using a computer

Question 19

Describe Fund Transfer Fraud Coverage

Answer 19

Covers loss of funds resulting from a fraudulent transaction that directs a financial institution to transfer funds from the Insureds account

Question 20

Describe Extortion Coverage

Answer 20

Covers when someone obtains money, security, or properties through threatening bodily harm or cause damage to the premises. Coverage will not apply if the Insured does not report the demands from the extortionist.

Question 21

Define the Guests’ Property Coverage

Answer 21

Covers property that guests leave in a safe on the premises of the insured - examples: hotels.