AFSB 153 FINAL PAPER 2026 QUESTIONS
WITH SOLUTIONS GRADED A+
◉Coverage is provided for which one of the following losses under
the Inside The Premises—Theft of Money and Securities insuring
agreement of the ISO Commercial Crime Coverage Form?
A: Business income losses that are the result of a covered theft
B: Confidential financial information that is disclosed by the insured
to a competitor
C: Money stolen by an officer of the company
D: Unexplained disappearance of securities from the insured's office.
Answer: D
◉Branchwood Brokerage Company (BBC) 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. BBC 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?
, A: It will pay only if the loss occurred after the current policy's
retroactive date.
B: It will decline the loss as it would be covered under the prior
insurer's policy.
C: It will require that the prior insurer be notified and the loss be
pro-rated.
D: It will pay the lesser of what would be covered under the present
or the prior insurance.. Answer: D
◉Which one of the following is correct regarding customs bond
forms?
A: There is one government customs bond form, and multiple
customs activities can be selected.
B: There is one government customs bond form, and one customs
activity is selected.
C: The surety uses its own customs bond form.
WITH SOLUTIONS GRADED A+
◉Coverage is provided for which one of the following losses under
the Inside The Premises—Theft of Money and Securities insuring
agreement of the ISO Commercial Crime Coverage Form?
A: Business income losses that are the result of a covered theft
B: Confidential financial information that is disclosed by the insured
to a competitor
C: Money stolen by an officer of the company
D: Unexplained disappearance of securities from the insured's office.
Answer: D
◉Branchwood Brokerage Company (BBC) 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. BBC 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?
, A: It will pay only if the loss occurred after the current policy's
retroactive date.
B: It will decline the loss as it would be covered under the prior
insurer's policy.
C: It will require that the prior insurer be notified and the loss be
pro-rated.
D: It will pay the lesser of what would be covered under the present
or the prior insurance.. Answer: D
◉Which one of the following is correct regarding customs bond
forms?
A: There is one government customs bond form, and multiple
customs activities can be selected.
B: There is one government customs bond form, and one customs
activity is selected.
C: The surety uses its own customs bond form.
