CPCU 551, Chapter 9: Commercial Crime Coverage Form Questions and Answers, Exams of Commercial Law

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CPCU 551, CHAPTER 9 QUESTIONS

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Which one of these is not an element of the Commercial Crime Coverage Form's definition of occurrence? - ANSWERAn act committed by only one person ABC Brokerage Company (ABC) is covered by an Insurance Services Office (ISO) Commercial Crime Coverage Form written on a loss sustained basis. The policy was written to replace an identical policy with another insurer that had expired, and there was no lapse in coverage. ABC recently discovered a covered loss that occurred during the prior insurer's policy term. Which one of the following would be true for the current insurer? - ANSWERIt will pay the lesser of what would be covered under the present insurance or the prior insurance if it had remained in effect Which one of the following is an example of the exclusion for Indirect Loss in the ISO Commercial Crime Coverage Form? - ANSWERBusiness income loss ABC, Inc., is a large, national retailer that sells a variety of consumer goods. ABC carries a Commercial Package Policy that includes Insurance Service Office's Commercial Crime Coverage Form (Loss Sustained) with the following insuring agreements: Employee Theft; Forgery or Alteration; Inside the Premises—Theft of Money and Securities; and Inside the Premises—Robbery or Safe Burglary of Other Property. The limit of insurance for each one of these insuring agreements is $100, and the deductible per occurrence for each one of these insuring agreements is $1,000. The policy year is 20X1.During 20X1, two employees, Beth and Jim, in collusion, stole money and merchandise from ABC. Beth and Jim stole money on May 1, 20X1 and August 13, 20X1. They also stole merchandise on January 15, 20X1 and September 29, 20X1. The amount of the money loss totaled $15,000 while the amount of the merchandise loss totaled $110,000.With - ANSWEROne The Delicious Restaurant suffered a covered money loss under its ISO Commercial Crime Coverage Form. The form had a limit of $10,000. The value of the loss was $14,500. The insurer paid the policy limit. After paying the $10,000 policy limit, the insurer recovered $11,000 of the stolen money. Ignoring any deductibles that might apply, what dollar amount of covered property, if any, would go to Delicious Restaurant and to the insurer? - ANSWERDelicious would receive $4,500 and the insurer $6, Two tax collectors, who are employees in a local town, embezzled $520,000 from the town's treasury by altering checks and forging signatures. The town has an unendorsed ISO government crime policy with a $100,000 limit for forgery and alteration that was in force prior to the embezzlement. Which one of the following statements describes whether the town has coverage for this loss? - ANSWERThere is no coverage because there is an exclusion for losses caused by any tax collector. Which one of the following statements is correct with respect to the Inside the Premises —Robbery or Safe Burglary of Other Property coverage of an ISO Commercial Crime