Commercial Crime Insurance Quiz

What is covered under the 'Inside the Premises – Robbery or Safe Burglary of Other Property' insuring agreement?

• Theft of money and securities inside the premises

• Forgery of checks

• Robbery of a custodian or burglary of a safe inside the premises for property other than money/securities

• Computer fraud

Answer explanation

The 'Inside the Premises – Robbery or Safe Burglary of Other Property' agreement covers robbery of a custodian or burglary of a safe for property other than money/securities, making this the correct choice.

What is the key difference between Discovery Form and Loss Sustained Form?

• The type of crime covered

• The timing trigger for coverage

• The amount of coverage provided

• The geographical area covered

Answer explanation

The key difference lies in the timing trigger for coverage. The Discovery Form covers losses that are discovered during the policy period, while the Loss Sustained Form covers losses that occurred during the policy period, regardless of when they are discovered.

Which type of fraud involves criminals tricking a bank transfer via computer?

• Forgery or Alteration

• Social Engineering Fraud

• Funds Transfer Fraud

• Computer Fraud

Answer explanation

Computer Fraud involves using computers to commit fraud, including tricking a bank transfer. This type of fraud specifically targets electronic transactions, making it the correct choice for the question.

Which type of fraud involves a fraudster tricking an employee to send money by impersonation?

• Computer Fraud

• Funds Transfer Fraud

• Social Engineering Fraud

• Forgery or Alteration

Answer explanation

Social Engineering Fraud involves manipulating individuals into divulging confidential information or performing actions, such as sending money, by impersonating a trusted source. This matches the scenario described in the question.

What is the primary purpose of Commercial Crime Insurance?

• To protect businesses from financial losses due to certain crimes

• To provide health insurance for employees

• To insure vehicles used for business purposes

• To cover damages from natural disasters

Answer explanation

The primary purpose of Commercial Crime Insurance is to protect businesses from financial losses due to certain crimes, such as theft or fraud, ensuring they can recover from such incidents.

What is the primary focus of the 'Funds Transfer Fraud' insuring agreement?

• Covers robbery of a custodian

• Covers loss from accepted counterfeit money

• Covers fraudulent instructions causing a financial institution to transfer funds from the insured’s account

• Covers theft of money inside the premises

Answer explanation

The primary focus of the 'Funds Transfer Fraud' insuring agreement is to cover losses from fraudulent instructions that lead to unauthorized transfers from the insured's account, making this the correct choice.

Which of the following is NOT typically excluded from a crime policy?

• Theft by an employee

• Losses from fire

• Legal expenses

• Losses due to governmental authority seizure

Answer explanation

Theft by an employee is typically covered under crime policies, while losses from fire, legal expenses, and losses due to governmental authority seizure are often excluded. Thus, theft by an employee is NOT excluded.

What does the 'Outside the Premises' insuring agreement cover?

• Employee theft

• Money, securities, and other property while outside the premises in the custody of a messenger or armored car

• Theft of money inside the premises

• Forgery or alteration of documents

Answer explanation

The 'Outside the Premises' insuring agreement specifically covers money, securities, and other property while they are outside the premises and in the custody of a messenger or armored car, making this the correct choice.

Who is typically considered a 'Custodian' in commercial crime insurance terms?

• A bank manager

• A security guard hired to watch the premises

• The insured or a partner or employee on premises

• An external auditor

Answer explanation

In commercial crime insurance, a 'Custodian' refers to the insured or a partner or employee on the premises, as they are responsible for safeguarding the property and assets against theft or loss.

What is the term for a person retained specifically to watch the premises with no other duties?

• Obligee

• Watchperson

• Custodian

• Messenger

Answer explanation

The term 'Watchperson' refers to an individual specifically hired to monitor premises without any additional responsibilities, making it the correct choice. Other options like 'Obligee', 'Custodian', and 'Messenger' imply different roles.