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List the eight insuring agreements contained in the Commercial Crime Coverage Form?
- -Employee Theft
- -Forgery and Alteration
- -Insired the Premises - Theft of Money and Securities
- -Inside the Premises - Robbery of Safe Burglary or Other Property
- -Outside the Premises
- -Computer Fraud
- -Funds Transfer Fraud
- -Money Orders and Counterfeit Money
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Complete the following regarding the Employee Theft insuring agreement.
a. Covered Cause of Loss
b. Covered Property
c. Where Coverage Applies
- a. Theft Committed by any employee.
- b. Money, securities, and other property.
- c. US, Puerto Rico, and Canada, plus ninety-day worldwide travel extension.
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What type of property is excluded from the definition of "other property" that applies to commercial crime forms?
Intellectual property, such as copyrights, patents, trade secrets; computer programs; and electronic data are excluded from the definition of other property.
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What three general criteria must be met for a person to be defined as an employee under commercial crime forms?
- 1. Currently employed by the insured or terminated in the past thirty days for reasons other than theft or any other dishonest act.
- 2. Compensated by the insured by salary, wages, or commissions.
- 3. Subject to the insured's control and direction.
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How does the Clients' Property endorsement affect employee theft coverage under the Commercial Crime Coverage Form?
The Clients' Property endorsement modifies various commercial crime provisions so that employee theft coverage will apply to theft of money, securities, or other property belonging to any client of the insured by an indentified employee of the insured.
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How is employee theft coverage modified if the Employess Theft -- Name or Position Schedule endorsement is applicable?
The Employee Theft - Name or Position Schedule endorsement applies on either a name schedule basis, in which case coverage is restricted to covering theft committed by employees whose names are scheduled; or a position schedule basis, in which case coverage is restricted to covering theft committed by employees in a particular position.
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Why is it difficult for an organization to set an appropriate limit for employee theft coverage?
It is difficult because employee theft might go undetected over many years, resulting in loss amounts in excess of what an employer might estimate for estimated losses.
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Fill in the blanks for the Inside the Premises - Theft of Money and Securities insuring agreement.
Basic Coverage
Covered Causes of loss __
Covered Property __
Where Coverage Applies __
Extension for Damage to Premises
Covered Causes of loss __
Covered Property __
Where Coverage Applies __
Extension for Containers
Covered Causes of loss __
Covered Property __
Where Coverage Applies __
- Basic Coverage
- Covered Causes of loss: Theft, disappearance, or destruction.
- Covered Property: Money and securities
- Where Coverage Applies: Inside the premises or banking premises.
- Extension for Damage to Premises
- Covered Causes of loss: Actual or attempted theft of money or securities.
- Covered Property: The premises or their exterior.
- Where Coverage Applies: At the premises.
- Extension for Containers
- Covered Causes of loss: Actual or attempted theft or unlawful entry.
- Covered Property: Locked safe, vault, cash register, cash box, orcasg drawer.
- Where Coverage Applies: Inside the premises.
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Fill in the blanks for the Inside the Premises - Robbery or Safe Burglary or Other Property insuring agreement.
Basic Coverage
Covered Causes of loss __
Covered Property __
Where Coverage Applies __
Extension for Damage to Premises
Covered Causes of loss __
Covered Property __
Where Coverage Applies __
Extension for Containers
Covered Causes of loss __
Covered Property __
Where Coverage Applies __
- Basic Coverage
- Covered Causes of loss: Actual or attempted robbery of a custodian or safe burglary
- Covered Property: Other property
- Where Coverage Applies: Inside the premises
- Extension for Damage to Premises
- Covered Causes of loss: Actual or attempted robbery or safe burglary of other property
- Covered Property: The premises or their exterior
- Where Coverage Applies: At the premises
- Extension for Containers
- Covered Causes of loss: Actual or attempted robbery or safe burglary
- Covered Property: Locked safe or vault
- Where Coverage Applies: Inside the premises
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Identify two endorsements that can be used instead of the Inside Premises -- Robbery or Safe Burglary of Other Property insuring agreement.
Two endorsements that can be used instead of the Inside the Premises - Robbery or Safe Burglary of Other Property insuring agreement are Inside the Premises - Theft of Other Property, and Inside the Premises - Robbery of a Watchperson or Burglary of Other Property.
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Fill in the blanks for the Outside the Premises insuring agreement.
Coverage for Money and Securities
Covered Causes of loss __
Where Coverage Applies __
Coverage for Other Property
Covered Causes of loss __
Where Coverage Applies __
- Coverage for Money and Securities
- Covered Causes of loss: Theft, disappearance, or destruction.
- Where Coverage Applies: Outside the premises while in care or custody of a messenger or an armored car company and inside the U.S., Puerto Rico, and Canada.
- Coverage for Other Property
- Covered Causes of loss: Actual or attempted robbery.
- Where Coverage Applies: Outside the premises while in care or custody of a messenger or an armored car company and inside the U.S., Puerto Rico, and Canada.
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Fill in the blanks for the Inside the Forgery or Alteration insuring agreement.
Covered Causes of loss __
Covered Property __
Where Coverage Applies __
- Covered Causes of loss: Forgery or alteration
- Covered Property: Checks, drafts, promissory notes, or similar instruments made or drawn by the insured or the insured's agent.
- Where Coverage Applies: Worldwide.
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What guideline helps an organization determine an appropriate limit for forgery or alteration coverage?
A guideline is that the limit for forgery or alteration coverage should probably equal the maximum amount that could be withdrawn from the firm's account in any ninety-day period. Amounts that might be paid using automatic lines of credit should also be considered.
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Fill in the blanks for the Computer Fraud insuring agreement.
Covered Causes of loss __
Covered Property __
Where Coverage Applies __
- Covered Causes of loss: Use of a computer or cause a fraudulent transfer of a covered property
- Covered Property: Money, securities, and other property
- Where Coverage Applies: The property must be transferred from inside the premises or a banking premises to a person or place anywhere else in the world.
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Fill in the blanks for the Funds Tranfer Fraud insuring agreement.
Causes of loss __
Covered Property __
Where Coverage Applies __
- Causes of loss: Fraudulent instruction directing a financial institution to transfer, pay, or deliver funds.
- Covered property: Funds, defined to mean money and securities.
- Where coverage applies: The financial institution must be located within the policy territory.
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Fill in the blanks for the Money Orders and Counterfeit Money insuring agreement:
Causes of loss __
Covered Property __
Where Coverage Applies __
- Causes of loss - Good-faith acceptance of 1) money order that are not paid upon presentation or 2) countereit money.
- Covered Property - Money orders issued by any post office , express company, or bank; and counterfeit money acquired during the regular course of business.
- Where Coverage Applies - U.S., Puerto Rico, and Canada
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Summarize the coverages provided by these commercial crime endorsements:
a. Lessees of Safe Deposit Boxes
b. Securities Depositied With Others
c. Guests' Property
- The coverage provided byt hte three commercial crime endorsements can be summarized:
- a. The Lessees of Safe Deposit Boxes endorsement enables a bank customer to insure proeprty that is kept ina safety deposit box on the premises of a bank or other depository.
- b. The Securities Deposited With Others endorsement enables the owner of securities to insure them while they are in the custodian's possession or on deposit by the custodian for safekeeping in a depository.
- c. The Guest's Property endorsement protects lodging facilities against lianility for property loss sustained by their guests.
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What causes of loss are covered by the Destruction of Electronic Data or Computer programs endorsement?
The Destruction of Electronic Data or Computer programs endorsement covers losses caused by a computer virus or vandalism committed by a person (including an employess of the insured) who has gained unauthorized access to the insured's computer system.
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The limit shown in the Commercial Crime Coverage Form is the most that the insurer will pay for each occurrence, as defined in the form. Indicate whether each of these scenerios would be a single occurrence or multiple occurrences.
a. Three warehouse employees conspired to steal $100,000 of merchandise from their employer on one occassion.
b. One cashier embezzled a total of $5,000 from his empoyer by pocketing cash payments on 50 occassions.
c. Two employees in the finance department conspired to steal a total of $75,000 from their employer over the span of six months, involving dishonest acts committed on ten different occassions.
- a. The described scenario would constitue a single occurrence.
- b. single occurrence
- c. single occurrence
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Identify the loss exposures that are excluded by the general exclusions that apply to the commercial crime insuring agreements?
- These are the general exclusions of the Commercial Crime Coverage Form:
- - Acts Committed by You, Your Partners, or Your Members
- - Acts of Employees Learned of by You Prior to the Policy Period
- - Acts of Employees, Managers, Directors, Trustees, or Representatives
- - Confidential Information
- - Indirect Loss
- - Legal Expenses
- - Nuclear Hazard
- - Pollution
- - War and Military
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Identify the three exclusions applicable only to the Employee Theft insuring agreement.
- These are the exclusions applicable only to Employe Theft:
- - Inventory Shortages
- - Trading
- - Warehouse Receipts
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Identify the eight exclusions applicable only to the Inside the Premises and Outside the Premises insuring agreements.
- These are the exclusions applicable only to the Inside the Premises and Outside the Premises insuring agreements:
- - Accounting or Arithmetical Erros or Omissions
- - Exchanges or Purchases
- - Fire
- - Money Operated Devices
- - Motor Vehicles or Equipment and Accessories
- - Transfer or Surrender of Property
- - Vandalism
- - Voluntary Party With Title to or Possesion of Property
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Identify the three exclusions applicable only to the Computer Fraud insuring agreement.
- These are the exclusions applicable only to the Computer Fraud Insuring agreement:
- - Credit card Transactions
- - Inventory Shortages
- - Funds Tranfer Fraud
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When must a loss occur and be discovered in order to be covered under a loss sustained form?
To be covered under a loss sustained form, the occurrence causing the loss must take place during the policy period, and the named insured must discover the loss during the policy period or during the extended discovery period that applies.
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When must a loss occur and be discovered in order to be covered under a discovery form (assuming no retroactive date applies)?
To be covered under a discovery form, a loss must be discovered during the policy period or during the extended discovery period that applies. The occurrence causing the loss may have occurred at any time (unless a retroactive date applies).
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Why is the choice between the loss sustained form and the discovery form more significant to employee theft coverage than to other crime coverages?
Employee theft losses are often not discovered until months or years after they occur, whereas other types of crime losses are usually discovered soon after they occur. The principal differences between the discovery and loss sustained forms usually come into play only when there is a significant delay between the occurrences and their discovery. Thus, the choice between discovery and loss sustianed forms is more significant for employee theft coverage than it is for other crime coverages.
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How long is the extended discovery period in the discovery form?
In the discovery form, the extended discovery period lasts for sixty days (one year with regard to employee benefit plans).
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How long is the extended discovery period in the loss sustained form?
In the loss sustained form, the extended discovery period lasts for one year.
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What is the basic purpose of both of the Loss Sustained During Prior Insurance conditions?
The basic purpose of both of the Loss Sustained During Prior Insurance conditions is to provide coverage under an in-force crime policy for a loss that would have been covered under a prior crime policy. One conditon applies to prior insurance issued by the current insurer, and the other condition applies to prior insurance not issued by the current insurer.
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What is the most that the insurer will pay under the Loss Sustained During Prior Insurance Issued by Us or Any Affiliate condition?
The most that the insurer will pay under the Loss Sustained During Prior Insurance Issued by Us or Any Affiliate is the highest limit of Insurance applicable during the course of the loss, whether the current limit or the limit during any prior policy year during which the loss occurred is higher. The current policy's deductible always applies.
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What is the most that the insurer will pay under the Loss Sustained During Prior Insurance Not Issued by Us or Any Affliate condition?
The most that the insureer will pay under the Loss Sustained Duirng Prior Insurance Not Issued by Us or Any Affiliate is the lowest of the limits of insurance applicable during the course of the loss. The current policy's deductible always applies.
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How does the addition of a retroactive date endorsement affect the discovery form?
When a retroactive date is added to the discovery form, the insurer does not cover acts committed before the retroactive date stated in the policy.
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How does the Joint Insured condition affect crime coverage for employee theft losses in which more than one insured is named on a policy?
The Joint Insured condition provides employee theft coverage to every insured with respect to employees of any other insured under the policy.
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Identify the duties required of the insured after discovering a loss or situation that may be covered under the crime policy.
- The insured is obligated to perform these duties after discovering a loss or situation that may be covered under the crime policy:
- - Notify the insureer as soon as possible.
- - Submit to examination under oath if the insureer's request it.
- - Produce all pertinent records.
- - Give the insurer a detailed sworn proof of loss within 120 days.
- - Cooperate with the insurer in claim investigation and settlement.
- - Notify the police of a covered loss may invloce a violation of the law (does not apply to employee theft or forgery/alteration)
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Summarize how money, securities, and other property are valued according to the Valuation-Settlement condition of the Commercial Crime Coverage Form.
The Valuation - Settlement conditon specifies that covered loss of money is paid at the face value of the money; covered loss of securities is paid at the market value of the securities at the close of business on the day the loss was discovered; and the covered loss of or damage to other property is paid on a replacement cost basis if the property is replaced.
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Summarize how the government crime forms differ form the commerical crime forms on each of these points:
a. Employee Theft insuring agreements
b. Territory condition
c. Termination as to Any Employee condition
d. Additional exclusions
e. Indemnification condition
- The government crime forms differ from the commercial crime forms in these ways:
- a. The government crime forms contain an optional additional Employee Theft insuring agreement that applies on a "per employee" basis instead of the usual "per loss" basis.
- b. The Territory condition in the government crime form does not include Canada and is therefore limited to the US and Puerto Rico.
- c. In the government crime forms, the Termination as to Any Employee condition applies to any employee whose theft or other dishonest act is discovered by the named insured or any official or employee authorized to manage or control the insured's employees. The government crime forms therefore encompass a broader group of employees whose knowledge is imputed to the insured.
- d. The government crime forms contain 2 additional exclusions, which eliminate coverage for loss caused by 1) any employee required by law to be individually bonded, 2) any treasurer or tax collector.
- e.The government crime forms contain an Indemnification condition, which states that the insurer will indemnify any of the insured's officials who are required by law to provide faithful performance bonds against loss resulting from theft committed by employees serving under these officials.
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Give three examples of financial losses covered by a kidnap, ransom, and extortion (KR&E) policy.
- A KR&E policy can cover many types of losses. Here are examples:
- - Loss resulting from the payment of ransom because of kidnapping or extortion threat.
- - Loss of money while in the custody of a messenger during transit for the purpose of being delivered as payment for ransom.
- - The cost of returning kidnapping victimes to their home country after being released by their captors.
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Paraphrase the "mainfest intent" requirement commonly found in employee dishonesty forms.
To meet the manifest intent requirement of an employee dishonesty form, the employee committing a dishonest act must have acted with manifest intent to cause a loss to the insured and to obtain financial benefit for the employee or for another person or organization that the employee wants to receive the benefit.
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Hap's Place is a gift shop insured under the ISO Commercial Crime Coverage Form that includes these insuring agreements:
- Employee Theft
- Inside the Premises
- Theft of Money and Securities
- Inside the Premises
- Robbery or Safe Burglary of Other Property
- Outside the Premises
Indicate which, if any, of those insuring agreements would cover each of the following losses. If a loss is not covered by one of the insuring agreements, explain why, and identify another insuring agreement, if any, that would have covered the loss.
a. An employee of Hap's voided the record of an actual sale and took the cash that had been deposited in the cash register for the sale.
a. Covered by Employee Theft agreement.
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Hap's Place is a gift shop insured under the ISO Commercial Crime Coverage Form that includes these insuring agreements:
- Employee Theft
- Inside the Premises
- Theft of Money and Securities
- Inside the Premises
- Robbery or Safe Burglary of Other Property
- Outside the Premises
Indicate which, if any, of those insuring agreements would cover each of the following losses. If a loss is not covered by one of the insuring agreements, explain why, and identify another insuring agreement, if any, that would have covered the loss.
b. After receiving a lower raise than expected, a Hap's employee intentionally damaged store merchandise.
b. None of the insuring agreements covers an employee's intentional destruction of covered property. This type of vandalism loss is covered by the commercail property causes of loss forms.
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Hap's Place is a gift shop insured under the ISO Commercial Crime Coverage Form that includes these insuring agreements:
- Employee Theft
- Inside the Premises
- Theft of Money and Securities
- Inside the Premises
- Robbery or Safe Burglary of Other Property
- Outside the Premises
Indicate which, if any, of those insuring agreements would cover each of the following losses. If a loss is not covered by one of the insuring agreements, explain why, and identify another insuring agreement, if any, that would have covered the loss.
c. During the busy holiday season, Hap's hired a new sales clerk from a temporary staffing agency. The temporary employee stole several small but but valuable articles of merchandise. One week following the end of the temporary employer's service, Hap's discovered the loss by reviewing store surveillance tapes.
c. Covered by Employess Theft agreement.
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Hap's Place is a gift shop insured under the ISO Commercial Crime Coverage Form that includes these insuring agreements:
- Employee Theft
- Inside the Premises
- Theft of Money and Securities
- Inside the Premises
- Robbery or Safe Burglary of Other Property
- Outside the Premises
Indicate which, if any, of those insuring agreements would cover each of the following losses. If a loss is not covered by one of the insuring agreements, explain why, and identify another insuring agreement, if any, that would have covered the loss.
d. A Hap's employee was rumored to be secretly selling music boxes from Hap's inventory and pocketing the proceeds. The employee admitted no wrongdoing, but a physical inventory revealed that five such music boxes were unaccounted for, resulting ina $1,250 inventory shortage.
d. Not Covered. Employee theft coverage is subject to an exclusion of loss that cannot be substatiated by any means other than inventory records. There is no standard form insuring this type of loss.
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Hap's Place is a gift shop insured under the ISO Commercial Crime Coverage Form that includes these insuring agreements:
- Employee Theft
- Inside the Premises
- Theft of Money and Securities
- Inside the Premises
- Robbery or Safe Burglary of Other Property
- Outside the Premises
Indicate which, if any, of those insuring agreements would cover each of the following losses. If a loss is not covered by one of the insuring agreements, explain why, and identify another insuring agreement, if any, that would have covered the loss.
e. While a Hap's employee closed the store at the end of the evening, his friend was waiting in the store to give him a ride home. The friend stole a book of checks from the owner's office when the employee was busy in another part of the store. Teh next day, without any knowledge or collusion of the employee, his friend purchsed $925 worth of merchadise at a nearby store by signing Hap's name to a stolen check.
e. Forgery by a nonemployee is not a covered cause of loss under any of the insuring agreements in Hap's policy. This loss would have been covered if Hap's policy contained the Forgery or Alteration coverage agreement.
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Hap's Place is a gift shop insured under the ISO Commercial Crime Coverage Form that includes these insuring agreements:
- Employee Theft
- Inside the Premises
- Theft of Money and Securities
- Inside the Premises
- Robbery or Safe Burglary of Other Property
- Outside the Premises
Indicate which, if any, of those insuring agreements would cover each of the following losses. If a loss is not covered by one of the insuring agreements, explain why, and identify another insuring agreement, if any, that would have covered the loss.
f. A ring of thieves staged a medical emergency in the store. During the confusion, and without being observed by anyone, an accomplice stole $600 worth of merchandise.
f. None of Hap's insuring agreements covers this loss. Employee Theft does not apply because the cause of loss was not employee theft. Inside the Premises-Theft of Money and Securities does not apply because the property taken was not money or securities. An Inside the Premises-Robbery or Safe Burglary of Other Property does not apply because the cause of loss does not meet the policy definition of "robbery": the perpetrators did not make any threats, and nobody witnessed the actual taking of the property. (The Inside the Premises-Theft of Other Propety endorsement covers the type of loss described in this question.)
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Hap's Place is a gift shop insured under the ISO Commercial Crime Coverage Form that includes these insuring agreements:
- Employee Theft
- Inside the Premises
- Theft of Money and Securities
- Inside the Premises
- Robbery or Safe Burglary of Other Property
- Outside the Premises
Indicate which, if any, of those insuring agreements would cover each of the following losses. If a loss is not covered by one of the insuring agreements, explain why, and identify another insuring agreement, if any, that would have covered the loss.
g. While walking to the bank with a cash deposit, Hap's manager was robbed at gunpoint of $1,100.
g. Covered by Outside the Premises, which includes coverage for theft of money that occurs outside of the premises while the money is in the custody of a "messenger". (The store manager meets the definition of "messenger")
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Hap's Place is a gift shop insured under the ISO Commercial Crime Coverage Form that includes these insuring agreements:
- Employee Theft
- Inside the Premises
- Theft of Money and Securities
- Inside the Premises
- Robbery or Safe Burglary of Other Property
- Outside the Premises
Indicate which, if any, of those insuring agreements would cover each of the following losses. If a loss is not covered by one of the insuring agreements, explain why, and identify another insuring agreement, if any, that would have covered the loss.
h. A man broke into Hap's during the night and stole about $5,000 of merchandise.
h. Assuming that the perpetrator was not an employee, the loss is not covered under Employee Theft. The loss is also not covered under Inside the Premises-Theft of Money and Securities because the property taken was property other than money and securities. Even though the property taken qualifies as covered property under Inside the Premises-Robbery or Safe Burglary of Other Property, the cause of loss does not meet the policy definition of "robbery" or "safe burglary". The loss would be covered by either of two endorsements: Inside the Premises-Theft of Other Property, or Inside the Premises-Robbery of a Watchperson or Burglary of Other Property.
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Hap's Place is a gift shop insured under the ISO Commercial Crime Coverage Form that includes these insuring agreements:
- Employee Theft
- Inside the Premises
- Theft of Money and Securities
- Inside the Premises
- Robbery or Safe Burglary of Other Property
- Outside the Premises
Indicate which, if any, of those insuring agreements would cover each of the following losses. If a loss is not covered by one of the insuring agreements, explain why, and identify another insuring agreement, if any, that would have covered the loss.
i. An experienced sales clerk that Hap's had just hired accepted $150 of counterfeit currency in payment for merchandise. Happ's manager discovered the counterfeit currency several hours after the customer had left the store.
i. This cause of loss is not covered under any of the insuring agreements in Hap's policy. To cover this loss, Hap's needed the money Oders and Counterfeit Money insuring agreement.
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One of the most co,plicated aspects of commercial crime insurance is the variety of Inside the Premises coverages. The following exercise will help you distinguish among the various options for covering property other than money and securities while on the insured premises. Before starting, you should review what is covered by each of the various Inside the Premises agreements for other property. Your task in this exercise is to indicate which of the following insuring agreements would cover each of the losses described. Some of the losses are covered by more than one of the insuring agreements. Make sure you indicate all the would apply:
- Inside the Premises- Theft of Other Property
- Inside the Premises- Robbery of a Watchperson or Burglary of Other Property
- Inside the Premises- Robbery or Safe Burglary of Other Property
a. A man held a warehouse night security guard at gunpoint while two accomplices stole electronic equipment.
a. the loss qualifies as theft and is therefore covered under the Inside the Premises- Theft of Other Proerty. The loss is also covered under the Inside the Premises-Robbery of a Watchperson or Burglery of Other Property because the loss constituted robbery of a watchperson. The loss is not covered under the Inside th Premises-Robbery or Safe Burglary of Other Property because that agreement covers robbery of a custodian, and the described loss was robbery of a watchperson. (review the definition of custodian, which specifically excludes a watchperson)
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Indicate which of the following insuring agreements would cover each of the losses described. Some of the losses are covered by more than one of the insuring agreements. Make sure you indicate all the would apply:
- Inside the Premises
- Theft of Other Property
- Inside the Premises
- Robbery of a Watchperson or Burglary of Other Property
- Inside the Premises
- Robbery or Safe Burglary of Other Property
b. A woman tried on an expensive leather jacket in the insured's store and, while being observed by a store sales clerk, she ran out of the store with the jacket.
b. The loss qualifies as theft and is therefore covered by Inside the Premises-Theft of Other Property. It is also covered by Inside the Premises-Robbery or Safe Burglary of Other Property because the loss constituted robbery of a custodian. The loss is not covered by Inside the Premises-Robbery of a Watchperson or Burglary of Other Property because the loss did not constitute robbery of a watchperson.
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Indicate which of the following insuring agreements would cover each of the losses described. Some of the losses are covered by more than one of the insuring agreements. Make sure you indicate all the would apply:
- Inside the Premises
- Theft of Other Property
- Inside the Premises
- Robbery of a Watchperson or Burglary of Other Property
- Inside the Premises
- Robbery or Safe Burglary of Other Property
c. While the insured store was closed for the night, a amn smashed a plate glass window, entered the store, and stole merchandise.
c. This loss is covered by Inside the Premises-Theft of Other Property. It is also covered by Inside the Premises-Robbery of a Watchperson or Burglary of Other Property because it meets the policy definition of burglary. The loss is not covered under the Inside the Premises -Robbery or Safe Burglary of Other Property because it was neither robbery of a custodian nor safe burglary.
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Indicate which of the following insuring agreements would cover each of the losses described. Some of the losses are covered by more than one of the insuring agreements. Make sure you indicate all the would apply:
- Inside the Premises
- Theft of Other Property
- Inside the Premises
- Robbery of a Watchperson or Burglary of Other Property
- Inside the Premises
- Robbery or Safe Burglary of Other Property
d. A thief posing as a customer entered the insured's store during regular business hours and hid in a storage closet. After the store closed and all employees had left, the thief took several items of merchandise and left through the back door, leaving no visible evidence of forcible exit.
d. The loss meets the policy definition of theft and is therefore covered under Inside the Premises-Theft of Other Property. The loss isnot covered under Insdie teh Premises-Robbery of a Watchperson or burglary of Other Property because it was neither robbery of a watchperson nor burglary. (Even though the definition of burglary includes "breaking out" of a building, it requires marks of forcible exit, which did not occur in this case.) the loss is not covreed under Insired the Premises-Robbery or Safe Burglary of Other Property because it did not constitute robbery of a custodian or safe burglary.
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Indicate which of the following insuring agreements would cover each of the losses described. Some of the losses are covered by more than one of the insuring agreements. Make sure you indicate all the would apply:
- Inside the Premises
- Theft of Other Property
- Inside the Premises
- Robbery of a Watchperson or Burglary of Other Property
- Inside the Premises
- Robbery or Safe Burglary of Other Property
e. While a thief posing as a customer distracted a sales clerk, the thief's accomplice stole expensive merchandise from a display case without being observed. As soon as the thieves left the store, the clerk saw that the merchadise was missing and realized that he had been duped.
e. The loss qualifies as theft and is therefore covred under the Inside the Premises-Theft of Other Property. The loss is not covreed by Inside the Premises-Robbery of a watchperson or Burglary of Other Property because it was not robbery of a watchperson or burglary. The loss is not covered by Inside the Premises- Robbery or Safe Burglary of Other Property because itw as not robbery of a custodian or safe burglary.
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Indicate which of the following insuring agreements would cover each of the losses described. Some of the losses are covered by more than one of the insuring agreements. Make sure you indicate all the would apply:
- Inside the Premises
- Theft of Other Property
- Inside the Premises
- Robbery of a Watchperson or Burglary of Other Property
- Inside the Premises
- Robbery or Safe Burglary of Other Property
f. When leaving for the night, the store manager forgot to lock the store's front door. Shortly thereafter, two youths discovered that the door was unlocked, entered the store, and stole a large quantity of clothing from the racks and shelves. No watchperson was in the store, and the youths left no visible marks of entry or exit.
f. The loss qualifies as theft adn is therefore covered under Inside the Premises-Theftof Other Property. The loss is not covered by Inside the Premises-Robbery of a Watchperson or Burglary of Other Property because it was not robbery of a watchperson or burlary (no marks of forcible entry). The loss is not covered by Inside the Premises-Robbery or Safe Burglary of Other Property because it was not robbery of a custodian or safe buglary.
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Indicate which of the following insuring agreements would cover each of the losses described:
- Inside the Premises-Robbery of a Custodian or Safe Burglary of Money and Securities
- Inside the Premises-Theft of Money and Securities
a. The insured's manager wasw robbed at knifepoint of $2,000 while walking to the bank to make a deposit.
b. A gunman entered the insured's premises during working hours and demanded that the insured's cashier hand over all of the money in the cash regiter, the cashier complied.
c. While the insured's premises were closed and locked for the night, a man broke down the insured's back door ad stole $3,000 from a cah box (not inside of a safe or vault).
- a. Neither insuring agreement covers this loss because it occurred off the premises.
- b. Both insuring agreements cover this loss because it was a theft and it was also a robbery of a custodian.
- c. Inside the Premises-Theft of Money and Securities covers this loss because the cause was theft. Inside the Premises-Robbery of a Custodian or Safe Burglary of Money and Securities does not cover the loss because the cause of loss was neither robbery of a custodian nor safe burglary. (Note that the cause of loss, in addition to being theft was also burglary as defined in the crime forms. Inside the Premises-Robbery and Safe Burglary of Money and Securities does not cover regular burglary as defined in crime forms; it covers only safe burglary.)
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