CAIB - Chapter 6

Question 1

Identify three types of crime losses to Real Property

Answer 1

Vandalism and malicious acts
Arson
Burglary

Question 2

Identify three reasons why some types of personal property becomes target items

Answer 2

Convertibility, this is how fast can be converted into cash.
Value, how valuable the item is.
Portability, how easy to transport the item.

Question 3

Identify eight methods used by criminals which can result in loss to real and personal property

Answer 3

1) Forced entry into the building
2) Forced entry into protected enclosures
3) unforced entry into building or protected enclosures
4) forced opening of building and protected enclosures
5) Vandalism and malicious acts
6) espionage
7) shoplifting
8) Employee theft

Question 4

Identify three key areas which make forcible entry into a building vulnerable to attack

Answer 4

Doors, windows, roofs

Question 5

Identify three types of protected enclosures

Answer 5

Safe, vaults, chests

Question 6

Identify three ways in which access can be obtained into protected enclosures

Answer 6

Mechanical, thermal and explosion

Question 7

Identify how business can restrict unauthorize access to property

Answer 7

Using physical and electronic protection

Question 8

Employee Dishonesty

Answer 8

A loss which the Insured shall sustain resulting directly from one or more fraudulent or dishonesty act committed by an employee.

Question 9

Discovery Period

Answer 9

The period the Insured have to discover a loss under crime insurance . This commences after the policy expires. However the lost must have occurred during the policy period.

Question 10

Messenger

Answer 10

Insured or insured partner who is authorized to have care and custody of the insured property outside premises

Question 11

Forgery

Answer 11

fraudulently alters any writing of another without their authority

Question 12

Money

Answer 12

currency and coins in current use and having a face value

Question 13

securities

Answer 13

all negotiable and non-negotiable instruments or contracts representing money or other property and includes revenue and other stamps in current use.

Question 14

burglary (insurance meaning)

Answer 14

The unlawful taking of property by a person unlawfully entering or leaving premises as evidenced by marks of forceble entry or exit.

Question 15

Robbery

Answer 15

taking insured property from a custodian by threating to cause bodily harm to the custodian or by taking the property from a custodian who have been killed or rendered unconscious

Question 16

Custodian

Answer 16

Insured or partner, or an employee who is authorized by the Insured to have care and custody of insured property.

Question 17

Theft

Answer 17

Includes all means of taking property without the owner’s consent.

Question 18

Physical protection

Answer 18

implementing physical barriers to restrict access to unauthorized access to property. For example installing steel bars and stronger locks on the doors

Question 19

Electronic protection

Answer 19

implementing electronic barriers to restrict unauthorized access to property

Question 20

perimeter protection

Answer 20

this refers to the method used by owners to secure access to the premises when the business is closed

Question 21

area protection

Answer 21

to the protection provided to areas within the building where valuable property is being stored.

Question 22

point protection

Answer 22

provides direct security for individual items such as safes, chests and expensive equipment

Question 23

line security

Answer 23

the ability of a telephone line withstand tempering.