Chapter 17: Commercial Crime Insurance

Approved & Edited by ProProfs Editorial Team

The editorial team at ProProfs Quizzes consists of a select group of subject experts, trivia writers, and quiz masters who have authored over 10,000 quizzes taken by more than 100 million users. This team includes our in-house seasoned quiz moderators and subject matter experts. Our editorial experts, spread across the world, are rigorously trained using our comprehensive guidelines to ensure that you receive the highest quality quizzes.

Learn about Our Editorial Process

| By Fsspc

Fsspc

Community Contributor

Quizzes Created: 22 | Total Attempts: 248,568

Questions: 8 | Attempts: 559 | Updated: Mar 22, 2023

Questions

Settings

Feedback

During the Quiz End of Quiz

Difficulty

Sequential Easy First Hard First

Play as

Quiz Flashcard

Create your own Quiz

Share on Facebook Share on Twitter Share on Whatsapp Share on Pinterest Share on Email Copy to Clipboard Embed on your website

Only used by FSS Team for INS exam.

Questions and Answers

1.

George Hawthorn is employed by Moison Appliances as a shipping clerk. As he is stacking TVs in the storage room, he is surprised by two men, both carrying guns. They proceed to empty the warehouse of TVs. This is an example of what?
- A.
  
  Burglary
- B.
  
  Robbery
- C.
  
  Mysterious disappearance
- D.
  
  A fidelity loss
Correct Answer
B. Robbery

Explanation
B is correct. In Crime forms, robbery is defined as the unlawful taking of property from the care and custody of another person. The robber must have caused or threatened to cause bodily harm to the person being robbed or must have committed an obviously unlawful act that is witnessed by the person being robbed. Burglary is the taking of property by stealth rather than by force or threat.

Rate this question:
2.

Which of the following must be true in a burglary?
- A.
  
  Property must be taken from a custodian or watchperson.
- B.
  
  There must be no evidence of force or violence.
- C.
  
  The burglary must involve unlawful entry or exit from the premises.
- D.
  
  There must be visible evidence of forcible entry or exit.
Correct Answer(s)
C. The burglary must involve unlawful entry or exit from the premises.
D. There must be visible evidence of forcible entry or exit.

Explanation
C and D are correct. Although burglary is not specifically defined in the Crime forms, it still has a specific meaning in the insurance industry. Burglary is the taking of property from inside the premises by a person unlawfully entering or leaving the premises. There must be evidence of forcible entry or exit, such as marks made by tools, explosives, chemicals, or electricity. There is no requirement that the property be taken from a custodian or watchperson.

Rate this question:
3.

Theft generally means which of the following?
- A.
  
  Any act of stealing
- B.
  
  Any act of stealing other than burglary or robbery
- C.
  
  Burglary and robbery only
- D.
  
  Employee dishonesty only
Correct Answer
A. Any act of stealing

Explanation
A is correct. Theft means the unlawful taking of money, securities, or other property. This broad term includes burglary, safe burglary, and robbery.

Rate this question:
4.

Coverage for defense costs is included in which of the following?
- A.
  
  Computer Fraud coverage
- B.
  
  Forgery or Alteration coverage
- C.
  
  All of the Crime coverages
- D.
  
  None of the Crime coverages
Correct Answer
B. Forgery or Alteration coverage

Explanation
B is correct. Under Forgery or Alteration coverage, if the insured is sued for refusing to pay a forged or altered instrument and obtains the insurer's written permission to defend the suit, the insurer will pay reasonable defense costs incurred by the insured.

Rate this question:
5.

Who of the following would be considered custodians while having care and custody of company property inside the premises?
- A.
  
  A store clerk
- B.
  
  A company vice president
- C.
  
  A janitor
- D.
  
  A night watchperson
Correct Answer(s)
A. A store clerk
B. A company vice president

Explanation
A and B are correct. A custodian is someone who has care or custody of property inside the premises. It includes the insured, the insured's partners or members, or any employee. It does not include a watchperson or janitor.

Rate this question:
6.

In a Crime insurance policy, certificates of deposit are considered which of the following?
- A.
  
  Other property
- B.
  
  Money
- C.
  
  Securities
- D.
  
  Either money or securities
Correct Answer
C. Securities

Explanation
C is correct. Securities are instruments or contracts that represent money or property. Checks, drafts, bonds, certificates of deposit, stock certificates, stamps, and credit card receipts are all considered securities.

Rate this question:
7.

What type of property is protected under Computer Fraud coverage?
- A.
  
  Money
- B.
  
  Securities
- C.
  
  Other property
- D.
  
  All of the above
Correct Answer
D. All of the above

Explanation
D is correct. Computer Fraud coverage covers loss of or damage to money, securities, and other property because of the use of a computer to fraudulently transfer that property from inside the premises or banking premises to a place or person (other than a messenger) outside the premises.

Rate this question:
8.

An insured must file a proof of loss within how many days after a loss?
- A.
  
  90 days
- B.
  
  30 days
- C.
  
  120 days
- D.
  
  60 days
Correct Answer
C. 120 days

Explanation
C is correct. If a loss occurs, the insured must provide a sworn proof of loss within 120 days.

Rate this question:

Quiz Review Timeline +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

Current Version
Mar 22, 2023

Quiz Edited by
ProProfs Editorial Team
Feb 24, 2009

Quiz Created by
Fsspc

Chapter 17: Commercial Crime Insurance

George Hawthorn is employed by Moison Appliances as a shipping clerk. As he is stacking TVs in the storage room, he is surprised by two men, both carrying guns. They proceed to empty the warehouse of TVs. This is an example of what?

Which of the following must be true in a burglary?

Theft generally means which of the following?

Coverage for defense costs is included in which of the following?

Who of the following would be considered custodians while having care and custody of company property inside the premises?

In a Crime insurance policy, certificates of deposit are considered which of the following?

What type of property is protected under Computer Fraud coverage?

An insured must file a proof of loss within how many days after a loss?