Insurance Licensing - Chapter 11: Commercial Crime Part

Which of the following is not considered a theft loss?
a. Burglary
b. Attempted theft
c. Robbery
d. Mysterious disappearance

d. Mysterious disappearance

What is the taking of property from the care of a person by threatening bodily harm?
a. Burglary
b. Attempted theft
c. Robbery
d. Mysterious disappearance

c. Robbery

For the purposes of crime policies, how long is a person an employee after employment is terminated, regardless of the reason for termination?
a. 15 days
b. 30 days
c. 60 days
d. 180 days

b. 30 days

Which of the following has the care and custody of the insured's property outside the premises?
a. Employee
b. Watchperson
c. Custodian
d. Messenger

d. Messenger

Each of the following is true of a Discovery crime coverage form, except:
a. Covers a loss that was discovered within one year of the termination of the policy period
b. Covers a loss that was discovered during the policy period
c. Might require the use o

a. Covers a loss that was discovered within one year of the termination of the policy period

Commercial Crime policies are written for which of the following commercial enterprises?
a. Private
b. Government
c. Publicly held
d. Volunteer

a. Private

The Commercial Crime Coverage form offers how many types of insuring agreements?
a. 2
b. 4
c. 6
d. 8

d. 8

The Inside the Premises: Theft of Money and Securities insuring agreement covers each of the following types of loss, except:
a. Theft of money inside the insured's premises committed by a person present on the premises
b. Accounting errors
c. Damage to t

b. Accounting errors

Which of the following is covered under the Outside the Premises crime insuring agreement?
a. Armored car stolen during a robbery
b. Transfer of property without authorization
c. Money in the hands of a messenger
d. Vandalism

c. Money in the hands of a messenger

What is required if the insured adds the Extortion endorsement to the Commercial Crime form and wants coverage for a kidnapping?
a. Agree to a personal background check when requested by the underwriter
b. Immediately contact a newspaper or TV for help in

c. Contact a law enforcement agency

If an accountant stole money by signing a business owner's name on a $1,000 check, which insuring agreement would provide coverage?
a. Theft of Money
b. Forgery or Alteration Money
c. Employee Theft
d. Money Orders and Counterfeit Money

b. Forgery or Alteration Money

Which of the following statements regarding Commercial Crime Coverage is incorrect?
a. Employee Dishonesty Coverage covers property other than money and securities
b. The definition of robbery includes forcible entry into locked premises
c. A watch person

b. The definition of robbery includes forcible entry into locked premises

Under the terms of a commercial crime policy, an individual is considered to be an employee until:
a. 30 days after he or she is terminated
b. 12 months after outstanding claims are resolved
c. He or she is terminated
d. The end of the policy period

a. 30 days after he or she is terminated

Any person employed by the insured specifically for the purpose of having the care and custody of property inside the premises is defined as a:
a. Watchperson
b. Partner
c. Messenger
d. Custodian

a. Watchperson

Which of the following crime forms requires the use of a Retroactive Date?
a. Discovery Form
b. Loss Sustained Form
c. Occurrence Form
d. Claims-made form

a. Discovery Form

ABC Credit Union has a Commercial Crime policy that includes Computer Fraud coverage. After an employee was tricked into making an unauthorized wire transfer on the basis of fraudulent, emailed instructions, why would the insurer deny the claim?
a. The tr

...

Which of the following provides coverage for commercial crime losses which occur during the policy period and are discovered within a specified time?
a. Occurrence Form
b. Loss-Sustained Form
c. Employee Theft
d. Discovery Form

b. Loss-Sustained Form

Which commercial crime policy will cover any occurrence that took place during policy period, even if it was not immediately discovered?
a. Occurrence form
b. Discovery form
c. Claims-made form
d. Loss-Sustained form

d. Loss-Sustained form

An insured's employee who has custody and care of property inside the premises is called a:
a. Custodian
b. Watchperson
c. Janitor
d. Messenger

a. Custodian

Which of the following is not one of the 8 insuring agreements used by the Commercial Crime coverage form?
a. Extortion
b. Fund Transfer Fraud
c. Employee Theft
d. Computer Fraud

a. Extortion

The Commercial Crime policy Form A for Employee Theft would not cover which of the following?
a. An employee takes merchandise from a store during inventory
b. An employee sneaks money from a cash register when nobody is looking to help make his car payme

c. An employee alters a bonus check to read $1,000 instead of $100

Which of the following is an example of burglary?
a. The taking of property by a person who hid inside a storeroom during the day and broke a window to get out at night
b. The taking of property from inside the premises by a person who has caused or threa

a. The taking of property by a person who hid inside a storeroom during the day and broke a window to get out at night

Which of the following types of property would be covered by the Guest's Property endorsement to a commercial crime policy?
a. The funds of credit union members stolen during a robbery of the credit union
b. Client property destroyed in a fire
c. Customer

d. Property stored in a hotel safety deposit box by someone renting a room

After noticing the disappearance of office supplies from within a private office facility, which coverage might an insured add to a commercial crime policy?
a. Robbery or safe burglary
b. Theft of money and securities
c. Employee theft or dishonesty
d. My

c. Employee theft or dishonesty

Which of the following could be a 'custodian' under the terms of a commercial crime property policy?
a. Janitor
b. Watchperson
c. Partner
d. Messenger

c. Partner

A commercial crime policy form written with the Robbery or Safe Burglary of Other Property insuring agreement would cover which of the following?
a. A masked gunman confronts a cashier and demands money
b. An employee breaks into the company safe and stea

c. Jewelry store windows and glass display cases are destroyed during a burglary

Which of the following is not covered by the Robbery or Safe Burglary of Other Property insuring agreement?
a. Shoplifting by a customer
b. A burglary
c. An ATM hacked so that it dispenses money to the hacker
d. A credit union held up at gunpoint

c. An ATM hacked so that it dispenses money to the hacker

Which of the following statements regarding commercial crime coverage is correct?
a. Under the Commercial Crime Program, money includes evidence of debt
b. Theft includes any act of stealing, including burglary and robbery
c. In order to constitute burgla

b. Theft includes any act of stealing, including burglary and robbery

The Discovery Form covers losses that are:
a. Discovered to have occurred during the policy period
b. Discovered within 12 month of the policy period termination
c. Discovered within 12 months of the loss
d. Discovered during the policy period, regardless

d. Discovered during the policy period, regardless of when they occurred

Which of the following incidents would not be considered theft?
a. A cashier being handed a threatening note to hand over all the cash in the cash register
b. Quarterly inventory shows a shortage of 3 stock items
c. Missing merchandise and a broken store

b. Quarterly inventory shows a shortage of 3 stock items

The Employee Theft insuring agreement would cover:
a. The theft of money from the insured's sales employee by a customer
b. A cashier taking money from the insured's cash register
c. An attempt to extort money by kidnapping an employee
d. A messenger robb

b. A cashier taking money from the insured's cash register

During an inventory check, Company RST discovers a shortage of product and materials. No evidence of a crime is found either at the warehouse or in the electronic record. Which of the following describes Company RST's likely course of action?
a. It files

c. It has to absorb the loss, since no evidence of a crime existed