Crime Coverage Flashcard

Front

Scarlett returns home to find her front door broken and several valuables missing from inside her house. According to the crime coverage text, what is this situation an example of?

Back

Taking property from inside the premises with evidence of forcible entry or exit

Answer explanation

This situation is an example of taking property from inside the premises with evidence of forcible entry or exit, as Scarlett found her door broken and valuables missing, indicating a burglary.

Front

Evelyn wants a crime coverage policy that covers losses occurring and discovered during the policy period. Which form should she choose?

Back

Discovery form

Answer explanation

Evelyn should choose the discovery form because it covers losses that occur during the policy period and are discovered before the policy ends, ensuring she is protected for any uncovered incidents.

Front

Evelyn's role at a local bank in terms of crime coverage.

Back

A person who has care and custody of property inside the premises

Answer explanation

Evelyn's role involves overseeing property and valuables inside the bank, which aligns with being a person who has care and custody of property inside the premises. This is the correct choice.

Front

Which situation is NOT covered under employee theft coverage? Options: Forgery committed by an employee, Losses based on inventory shortages, Theft by an employee in collusion with others, Theft by an employee acting alone.

Back

Losses based on inventory shortages

Answer explanation

Losses based on inventory shortages are typically not covered under employee theft insurance, as they may result from factors other than theft, such as accounting errors or shrinkage.

Front

What type of protection does commercial crime insurance offer a business concerned about potential losses from theft or employee dishonesty?

Back

Property losses due to crimes

Answer explanation

Commercial crime insurance protects businesses like Abigail's from property losses due to crimes such as theft or employee dishonesty, making it essential for safeguarding her retail store.

Front

William approaches Avery and says he will cause Avery serious harm unless Avery gives him his watch. What best describes William's actions?

Back

Threatening bodily harm to obtain property

Answer explanation

William's actions involve threatening Avery with serious harm to coerce him into giving up his watch, which is best described as 'Threatening bodily harm to obtain property.' This clearly indicates extortion.

Front

Anika wants to ensure her business is protected if cash or checks are stolen, disappear, or are destroyed while inside the store. Which coverage should she focus on?

Back

Theft, disappearance, or destruction of money inside the premises

Answer explanation

Anika should focus on 'Theft, disappearance, or destruction of money inside the premises' as it specifically covers the loss of cash or checks within her store, ensuring her business is adequately protected.

Front

Limitation of 'Outside the premises' coverage for jewelry store when using armored car service.

Back

It only covers losses that cannot be recovered from the armored car company.

Answer explanation

The correct choice highlights that 'Outside the premises' coverage only applies to losses that cannot be recovered from the armored car company, indicating a limitation in the coverage.

Front

What is covered under the definition of 'money' in the context of crime insurance coverage?

Back

Currency, coins, and bank notes in current use

Answer explanation

In the context of crime coverage, 'money' specifically refers to currency, coins, and bank notes that are currently in use, making this the correct choice. Other options describe different types of property or instruments.

Front

Which situation is NOT excluded under Michael's crime insurance coverage? Options: Theft by an unknown third party, Losses due to nuclear hazard, Theft by the insured's employees, Theft by an employee with a prior dishonest act known to the insured

Back

Theft by an unknown third party

Answer explanation

Theft by an unknown third party is typically covered under crime insurance, while losses due to nuclear hazards and theft by employees are usually excluded. Therefore, this situation would NOT be excluded.